How do u carry out calculations for a fesibility report on a proposed construction project-?
Answer:
to show feasability you first need to verify certain things
1.) is it a capital or expense project.
- A capital project is money spent on either contructing something new or to create a new process or make a change to an old process that will alter it to make it different and thus can be considered new.
- An expense is money spent to repair something basically.
2.) If it is capital, you need to demonstrate that pay-back which is the time it takes for the project to make back the money you are proposing to spend on it.
- this can be done a variety of ways. The easiest is to calculate the money that this project will save the presumed business this project is for per yar or week or however and then calculate the time until the money saved will equal the money spent on the project.
3.) for expense projects, payback is unnecessary but you will have to verify in some way that the project is beneficial and the repair or replacement is necesary.
4.) you will also have to figure in you contingency which is the amount over the projected cost reserved for unexpected costs that pop up during the execution of the project. now Im not too familiar with pounds but if your planning to spend 20 million pounds the contingency should be something like 10% of that which would be about 2 million pounds extra added to the cost in event of unexpected costs arising during implementation.
Now if the project is executed without a hitch then you probably won't spend anything past 20 million, but in most projects unexpected costs will arise and you'll prob'ly spend some of the set aside 2 mill.
Sorry this is soo long but I'll have to leave the calculations to you becasue they vary from project to project. depends on factors and what your doing.
This question is too wide in scope. You need to distill your own thoughts and ask something that can be answered more succinctly.
I could do that for you, but I charge $65/hour plus expenses. Do you want to pony up?
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