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Kf16ce49 - Assignment #1

The document discusses conducting a feasibility study for a construction project and provides a 7 step process: 1. Conduct a preliminary analysis of the plan and market opportunity. 2. Prepare a projected income statement and budget. 3. Conduct market research to understand demand. 4. Plan the business organization and operations. 5. Prepare an opening day balance sheet. 6. Review and analyze all data collected. 7. Make a final "go/no-go" decision on the project. It also provides a SWOT analysis for a construction company, identifying key strengths like efficiency, weaknesses like over-reliance on one industry or client, and opportunities like expanding services.

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Aslam Laghari
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0% found this document useful (0 votes)
24 views9 pages

Kf16ce49 - Assignment #1

The document discusses conducting a feasibility study for a construction project and provides a 7 step process: 1. Conduct a preliminary analysis of the plan and market opportunity. 2. Prepare a projected income statement and budget. 3. Conduct market research to understand demand. 4. Plan the business organization and operations. 5. Prepare an opening day balance sheet. 6. Review and analyze all data collected. 7. Make a final "go/no-go" decision on the project. It also provides a SWOT analysis for a construction company, identifying key strengths like efficiency, weaknesses like over-reliance on one industry or client, and opportunities like expanding services.

Uploaded by

Aslam Laghari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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MEHRAN UNIVERSITY OF

ENGINEERING AND TECHNOLOGY


SZAB CAMPUS KHAIRPUR MIR’S

CONSTRUCION MANAGEMENT AND PLANNING

ASSIGNMENT#01
THE HIERARCHY CHARTS Of
Civil Department, UniverSity, Army, Contractor’S
Organizer;

STEPS OF CONDUCTING FEASIBILITY STUDY;

SWOT ANALYSIS OF ANY CONSTRUCTION


PROJECT

SUBMITTED TO: SIR TOUQEER ALI RIND


SUBMITTED By:
MAHESH KUMAR
ROLL; NO: KF16CE49
Hierarchy chart of civil engineering department
Contractor’s organizer chart
Contactor’s

QA/QC Engineer Procurement

Subcontractors Project Project Planning Admin& Contracti Financial


Logistics Manager ng Manager
Area 1 Manager Area 2 Managerand Doc Manager Manager

Accountant
Surveying
Manager
Warehouse Department
Services Departmen t Cashier
Site Engineer Planning Engineer

Site Surveyor (s) Technici an (s)


Material Engineer Docs Engineer Admin Department

Technician

Rank Vise Hierarchy chart of Pakistan Army


Q:NO#2: conducting the feasibility study?
What is a Feasibility Study ?
A feasibility study is simply an assessment of the practicality of a
proposed plan or method. Just as the name implies, you’re asking, “Is this
feasible?”
For example, do you have or can you create the technology to do what you
propose? Do you have the people,  tools and the resources   necessary? And, will the
project get you the ROI you expect?

When should you do a feasibility study? It should be done during that point in the
project life cycle after the  business case   has been completed.

So, that’s the “what” and the “when” but how about the “why?” Meaning, why do
you need a feasibility study? Well, it determines the factors that will make the
business opportunity a success, making it pretty important.

7 Steps for a Feasibility Study

Follow these steps when conducting a feasibility study:

1. Conduct a Preliminary Analysis


Begin by  outlining your plan . You should focus on an un served need, a market
where the demand is greater than the supply, and whether the product or service
has a distinct advantage. Then you need to determine if the hurdles are too high
to clear (i.e. too expensive, unable to effectively market, etc.).

2. Prepare a Projected Income Statement


This step requires you to work backwards. Start with what you expect the income
from the project to be and then what investment is needed to achieve that goal.
This is the foundation of an income statement. Things to take into account here
include what services are required and how much they’ll cost, any adjustments to
revenues, such as reimbursements, etc.

3. Conduct a Market Survey, or Perform Market Research


This step is key to the success of your feasibility study, so make it as thorough as
possible. It’s so important that if your organization doesn’t have the resources to
do a proper one, then it is advantageous to hire an outside firm to do so.
The  market research   is going to give you the clearest picture of the revenues you
can realistically expect from the project. Some things to consider are the
geographic influence on the market, demographics, analyzing competitors, value
of market and what your share will be and if the market it open to expansion
(that is, response to your offer).

4. Plan Business Organization and Operations


Once the groundwork of the previous steps has been laid, it’s time to set up the
organization and operations of the planned business venture. This is not a
superficial, broad stroke endeavor. It should be thorough and include start-up
costs, fixed investments and operation costs. These costs address things such as
equipment, merchandising methods, real estate, personnel, supply availability,
overhead, etc.

5. Prepare an Opening Day Balance Sheet


This includes an estimate of the assets and liabilities, one that should be as
accurate as possible. To do this, create a list that includes item, source, cost and
available financing. Liabilities to consider are such things as leasing or
purchasing of land, buildings and equipment, financing for assets and accounts
receivables.

6. Review and Analyze All Data


All these steps are important, but the review and analysis are especially
important to make sure that everything is as it should be and nothing requires
changing or tweaking. So, take a moment to look over your work one last time.
Reexamine your previous steps, such as the income statement, and compare it
with your expenses and liabilities. Is it still realistic? This is also the time to think
about risk, analyzing and managing, and come up with any   contingency plans .

7. Make a Go/No-Go Decision


You’re now at the point to make a decision about whether the project is feasible
or not. That sounds simple, but all the previous steps we’re leading to this
decision-making moment. A couple of other things to consider before making that
binary choice is whether the commitment is worth the time, effort and money and
is it aligned with the organization’s strategic goals and long-term aspirations.

Q:NO#3:
SWOT Analysis for a Construction Company:
Where would our cities be without construction companies?

They build our homes. Smooth our streets. Fix our cracked sidewalks. In most
major cities, you can’t turn the block without seeing a construction crew working.
Clearly, the construction industry is in need right now. But the need doesn’t
guarantee financial growth.

For any business, it only takes a few poor decisions to destroy a flourishing
construction company. This SWOT analysis addresses what these poor decisions
can be, as well as the major benefits the construction industry may ignore.

After reading this, you’ll understand the key differences between a successful
construction industry and a failed one.

Construction company strengths:


Every construction company builds. This is the foundation: to construct what the
client wants. This includes a new apartment complex, segment of road, or school.
But no construction company is exactly the same. Although the strengths vary,
there are a few every company should share.

EFFICIENCY IS NUMBER ONE.

Efficiency reduces expenses. It improves profits. It can mean the difference


between a three-year project versus a one year project. Missing even one deadline
is all it takes for a company to lose its good standing with a customer.

Clients are more likely to hire a company that’s mindful of deadlines and aims to
complete their projects in a suitable time frame. Of course, without sacrificing
the quality and safety of their employees.

Meeting deadlines depends on strong project management skills. Successful


construction companies rely heavily on project managers to oversee their
projects. Without an expert’s eyes and ears on the project, most will fail.

Many companies outside the construction industry need to focus on a particular


niche. Construction companies are lucky because they’re the opposite; they thrive
by working with multiple industries simultaneously.

Why do they do this? Because if one industry is hit, the company won’t go down
with it. Instead, they’ll have an abundance of clients who are still in need of
projects. It’s easier for a company to bounce back if they lose 25 percent of their
profits, rather than 75 percent and more.

Construction company weaknesses:


Expanding on the point above, relying on one industry for clients will be financial
ruin for construction businesses. If they decide to work with only one type of
client, and the client’s business dies out, theconstruction company is left with
nothing. Because when client work dries up, so does construction work.

For example, let’s say a company specializes in building new homes. Initially, the
area was booming. Families were moving in left and right for months. But now,
suddenly, no one new has come to town. Now the company’s services become
obsolete.

The company can sit, wait, and hope work picks up. They’ll be left twiddling their
thumbs while funds drain from the company account. No business can survive
while waiting for clients.Especially if their target market’s industry is on the
decline.

What can the construction company do? Diversify their workload (as mentioned
in the strengths section above).

Another weakness these companies face is poor decisions regarding project


management.

Some companies only promote their managers based on on-the-job experience.


Meaning, if they don’t have that specific experience, they’ll never move up.
Although hands-on expertise helps when overseeing projects, it’s not the only
thing necessary in a manager. Ignoring the “management” part for the position
may lead to faults in the planning and execution of tasks.

Construction company opportunities:


Construction companies should always be on the lookout for more clients. They
shouldn’t leave this up to fate. Instead, they should create the opportunities
themselves. Like by adding new divisions in the company. Or expanding current
divisions to allow for the increased workload.

Keep an eye out for developing trends. This is one of the easiest ways to create
more sustainable work. If you’re noticing public transportation options are
expanding in a region, it may mean more people are moving. And where are those
people going to move?In the homes built by construction companies, of course.
Successful companies keep an eye on the news in the locations they offer services.
Not only to take advantage of growth .But also to see when things are beginning
to decline. This gives them the opportunity to shift their business before financial
ruin.

Construction company threats:


Threats aren’t always controllable. That remains the same in every business,
including construction. For example, a company can’t prevent a recession. And
they can’t stop a decline caused by a decreasing economy. Both of these examples
are known as external factors. The only thing anyone can do is react accordingly
to these factors.

This is the situation when the economy declines. Or when people aren’t able to
make the same purchases they once did. Changes in buying behaviors can happen
quickly, especially if the economy or politics are involved. A budding industry can
be made obsolete in only a few years time. Without proper differentiation of
clients and services, construction companies can be made just as dead.

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