TABLE OF CONTENTS

Sr. No: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13)

Topics Name: Acknowledgment: Executive Summary: Purpose of the Project: Scope Statement; Exclusion & Deliverables: Resources Requirement: Financial Requirement; HR & Technical Feasibility; All types Cost & Time Estimation: Work Down Break Structure (WBS): Network Diagram: Risk Mgt. Process; i.e. Risk Factors & Mitigation: Recommendation: Key Success Factors of the Project:

Page No:

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ACKNOWLEDGMENT:
I offer my humblest thanks to ALMIGHTY ALLAH, The most Beneficent and the Most Considerate and the entire source of all knowledge and wisdom. I thank ALMIGHTY ALLAH, who gave me the aptitude to do this project efficiently and successfully. I faced a lot of difficulties during this period of developing internship report. But Allah gave me a lot of patience and due to the continuous encouragement of my teachers and other people concerned; I was able to complete this work. I offer my humblest respects to the HOLY PROPHET HAZRAT MUHAMMAD (Peace Be upon Him) who is, forever a torch of guidance and knowledge for humankind as a whole. Its not very easy for me to find the right words to express my gratefulness to our praiseworthy advisor

Sir. Imran
vivacious

Khalil,
suggestions,

his enthusiastic interest, in time and useful continuous encouragement,

supervision and kind behavior throughout my internship period. Apart from my respectable advisor, there are many other people who have been very helpful to me right from the beginning. I also pay my regard to all others whose names can not be included due to the scarcity of space and time. At the end Id like to thank M/S

Asad Kamal &

Ikramullah Khan, my class fellows whose company was a

cause of support and motivation, because without naming them this acknowledgement will be incomplete

(S.M.Aarif Shah)
ID No: 2882 MBA (Finance) Semester: 6th CUIST

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Executive Summary:
The objective of this report /study is primarily to facilitate potential entrepreneurs to facilitate investment and provide an overview about construction of New Hostels Intuitions / University The Feasibility Study is the preliminary study that determines whether a proposed systems project is technically, financially, and operationally viable. study precedes and project implementation. The Generally, a feasibility development cost for a capital technical

construction project includes the expenses related to the initial establishment of the facility. The owner is interested in achieving the lowest possible overall project cost that is consistent with its investment objectives. In most construction budgets, there is an allowance for contingencies construction. or As unexpected costs occurring during

construction projects become larger and more complex, so do the risks associated with them. challenges, including The sheer size, scope, and risks, determining the timing of today's projects pose significant risk management identifying allocation of risks among the parties involved, developing mitigation and risk treatment plans and opportunities for cost savings in single project applications or across an entire portfolio of projects. Because of the increasing complexity and size of project risks, sponsors must view risk on an enterprise-wide project or portfolio basis to properly and consistently identify risks, develop optimal risk allocation strategies, and, if necessary. To mitigate the risk; the Project Mangers has extensive, process-driven strategies and tools designed to manage and monitor risks from a project's earliest stages to the final delivery and commissioning.

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Purpose of this Project:
The objective of this report /study is primarily to facilitate potential entrepreneurs to facilitate investment and provide an overview about construction of New Hostels Intuitions / University. The project may form the basis of an important investment decision and in order to serve this objective, the document covers various aspects of Hostel construction concept development, start-up, and production, marketing, finance and business management. The document also provides sectoral information, brief on government policies and international scenario, which have some bearing on the project itself. This particular report which comes under Construction and Real Estate sector.

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1. Scope:
Negotiation with the owners of land and search of location is carried out carefully. Planning regarding collection of materials, labours and other equipments which are required for the project is completed. Building of hundred meters long, twenty meters in floor, 8 and 6 feet step wise width and twelve feet high flood protection wall at nearby City University of Science & Information Technology (CUIST), Peshawar in 12months in this main them to improve the Education level of the society in the region.

1.1: Goal of the Project:

To construct a well furnished era of the technology hostel of composed of 100 Rooms for City University of Science & Information Technology (CUIST), Peshawar. To construct a high-quality, hostel within 12

months at cost not to exceed Rs. 20,000,000

1.2:

Objectives of the Project:

To complete search for the location of area, where hostel to be constructed within 30-days, after approval of the project. To advertise and select the Constructer, within 15-

days after the searching of appropriate area. To construct the building for hostel within 7-

months after approval from Government agency / body. To complete the furnishing of hostel within 3-

months after construction of hostel building.

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1.3: Deliverable of the Project:
1.3.1: Intermediary deliverables:
Survey for the selection of suitable/ feasible

place for the construction. Short listing of marked places. Result of Law and Investigation. Selection of delivery.

1.3.2: Final Deliverables

Digging place for the construction. Collecting of materials for the construction.

Hiring labours for the constructions whose sufficient experienced

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2. Feasibility:
The Feasibility Study is the preliminary study that determines whether a proposed systems project is technically, financially, and operationally viable. The Alternatives Analysis, usually included as part of the Feasibility Study, identifies viable alternatives for the system design and development. Between them, the documents provide: An analysis of the system objectives, functional requirements, and system design concepts; A determination of the feasibility of applying automated systems to effectively, efficiently, and economically improve program operations; An evaluation of alternative approaches for

reasonably achieving the objectives and goals; and Identification of a proposed approach. A feasibility study is an evaluation of a proposal designed to determine the difficulty in carrying out a designated task. Generally, a feasibility study precedes technical development and project implementation. In other words, a feasibility study is an evaluation or analysis of the potential impact of a proposed project. Feasibility, perhaps the most inclusive is to do the assessment by constraint category. Common constraint categories include the flowing:-

2.1: Technical Feasibility

Technically this project is feasible; because it may provide accommodation for the student of City University of Science & Information Technology (CUIST), Peshawar. City University uncovered area / spare area is

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suitable place for this purpose and the equipments that are required for the project are also available and there is no short coming of any thing. The project can fulfill all the needs.

2.2: Financial Feasibility

Financial resources that are required for the project are enough. The operating cost of the project is reasonable and there is sufficient fund for the project. So financially this project is feasible.

3.3: Operational Feasibility

Operationally this project is feasible because operationally the ways for proposals bids are created and there is no deficiency exists.

3.4: Geographic Feasibility

Geographically this project is feasible because all the resources and materials that are required for the project are available at the same place and there is no disbursement geographically. of activities, so it is feasible

3.5: Time Feasibility

The most important thing is time feasibility; but as for as this project is concerned it is timely feasible; although it is lengthy project and it will take up to 12- 14 Months maximum time and if two or three months gape occurs we can cover that through slack time which is possible.

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3.6: Resource Feasibility
Resource wise this project is feasible because we have enough resources which are available easily and there is no hurdle in it.

3.7: Legal Feasibility

To determine whether the proposed system conflicts with legal requirements; legally this project is feasible because this project is approved by the Government of Pakistan; and other Government Agencies and legally documented. There is no legal constraint for the project.

8.3: Political Feasibility

As for is the political feasibility is concerned there is not such thing in the project that can create a political conflict. So we can say that this project is feasible politically.

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4. Resources Requirement:
4.1: Financial Requirement: Project Investment
The total cost of the project is Rs. 20.00 million

Capital Investment: Working Capital Requirement: Total Investment:

5.00 million 15.00 million 20.00 million

The proposed pre-feasibility is based on the assumption of 50% debt and 50% equity. However this composition of debt and equity can be changed as per the requirement of the investor Debt: Equity: Total Project Investment: 50% 50% 100%

4.2: Human Requirement:

4.2.1: 4.2.2: Skilled Labours Unskilled Labour

4.3: Raw Material Requirement

Following raw materials would be required for the contraction of the hostel: Bricks Crush Steel Mud Cement

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Floor Tiles Bath Room Fittings Cupboards Lighting Accessories Sewerage and water Supply Pipes Dedex Pipe Steel Doors and Grill Win Bard Chipboard Glass Varnish Paints Hardware Wires Misc. Electrifications Equipment PVC Pipes

4.4:

Machinery Requirement
Mixer, Lifts etc would be

All the required machinery i.e.

purchased for this purpose; although they available on too, but the rental expenses are too much high, therefore, it is proposed that such sort of machinery should be purchased.

4.5: Material Cost Calculation: Material Cost: Sr. No:

1. 2. Bricks Sand:

Material:

Rs.
3,600 2,200

Unit:
Thousand Truck (350 cbft)

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3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Crush Steel Cement Mud Title: Grills including labour Gate including Labour Glass Tile for Front: Door: Wood Lamination: Chipboard: Ply: 20 40 230 800 4,500 250 250 50 800 150 60 2000 700 300 Cubic ft Kg Bag Trolley Thousand Sq ft Sq ft Sq m Sq m Sq ft Sq Ft Per Sheet Per Sheet Per Sheet

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6. Estimation Cost & Time of the Project:
The costs of a constructed facility to the owner include both the initial capital cost and the subsequent operation and maintenance costs. Each of these major cost categories consists of a number of cost components. The capital cost for a construction project includes the expenses related to the initial establishment of the facility:

Land acquisition, including assembly, Planning and feasibility studies Architectural and engineering design Construction, including materials, Field supervision of construction Construction financing Insurance and taxes during construction Owner's general office overhead Equipment and furnishings not included Inspection and testing

holding and improvement

equipment and labor

in construction

The operation and maintenance cost in subsequent years over the project life cycle includes the following expenses:

Land rent, if applicable

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Operating staff Labor and material for maintenance and Periodic renovations Insurance and taxes Financing costs Utilities Owner's other expenses

repairs

The magnitude of each of these cost components depends on the nature, size and location of the project as well as the management organization, among many considerations. The owner is interested in achieving the lowest possible overall project cost that is consistent with its investment objectives. It is important for design professionals and construction managers to realize that while the construction cost may be the single largest component of the capital cost, other cost components are not insignificant. For example, land acquisition costs are a major expenditure for building construction in high-density urban areas, and construction financing costs can reach the same order of magnitude as the construction cost in large projects such as the construction of nuclear power plants. From the owner's perspective, it is equally important to estimate the corresponding operation and maintenance cost of each alternative for a proposed facility in order

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to analyze the life cycle costs. The large expenditures needed for facility maintenance, especially for publicly owned infrastructure, are reminders of the neglect in the past to consider fully the implications of operation and maintenance cost in the design stage. In most construction budgets, there is an allowance for contingencies or unexpected costs occurring during construction. single amount This of contingency construction is amount may be The included within each cost item or be included in a category of contingency. on contingency based historical

experience and the expected difficulty of a particular construction project. For example, one construction firm makes estimates of the expected cost in five different areas:

Design development changes, Schedule adjustments, General administration changes (such Differing Third site conditions requirements for those

as wage rates),

expected, and

party

imposed

during construction, such as new permits.

Contingent amounts not spent for construction can be released near the end of construction to the owner or to add additional project elements.

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Procurement of Procurement of Land Land 70% 70% Architecture Architecture Design Design 2% 2% Procurement of Procurement of Material Material 28% 28% Pour Foundation Pour Foundation 50% 50% Install Terrace Install Terrace 30% 30% Pour Stairway Pour Stairway 20% 20% Frame Exterior Frame Exterior Wall Wall 25% 25% Frame Interior Frame Interior Wall Wall 35% 35% Install Roofing Install Roofing Tresses Tresses 40% 40% Install Water Install Water Lines Lines 30% 30% Install Gas Lines Install Gas Lines 30% 30% Install Fixtures Install Fixtures 40% 40% Install Wiring Install Wiring 25% 25% Install Switches Install Switches 35% 35% Install Fixtures Install Fixtures 40% 40% Install Drywall Install Drywall 20% 20% Install Carpet Install Carpet 40% 40% Install Painting Install Painting 40% 40% Inertial Inertial 15% 15% Rs. 3,000,000 Rs. 3,000,000 Electrical Electrical 12% 12% Rs. 2,400,000 Rs. 2,400,000 Plumbing Plumbing 10% 10% Rs. 2,000,000 Rs. 2,000,000 Project Cost: Project Cost: Rs. 20,000,000 Rs. 20,000,000 Farming Farming 8% 8% Rs. 1,600,000 Rs. 1,600,000 Concrete Concrete 5% 5% Rs. 1,000,000 Rs. 1,000,000 Initiation Initiation 35% 35% Rs. 7,000,000 Rs. 7,000,000

Appropriation Method of Allocating Project Costs Using the Work down Structure (WBS)

Install Felt Install Felt 50% 50%

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Install Shingles Install Shingles 30% 30% Install Gateway Install Gateway 20% 20%

Roofing Roofing 15% 15% Rs. 3,000,000 Rs. 3,000,000

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7. Work Breakdown Structure (WBS):
A key strategy of effective planning is to partition the project into manageable chunks that can be individually planned estimated and controlled. The work breakdown structure is a graphical tool that displays the project's statement of work making it easier to understand and communicate. It is employed from the earliest stages of project planning. The work breakdown structure (WBS) is a powerful tool for expressing the scope or extent of a project in simple graphic terms. It represents the project in terms of the hierarchy of deliverables and services it will produce. The project is therefore described just as a manufacturer would document the bill of materials breakdown for a washing machine or automobile. The WBS starts with a single box at the top which represents the whole project. The project is then partitioned into its components with lower level boxes. The WBS supports the principle of management by deliverables providing a map of what is to be produced.

7.1

WBS ROLE
The role of the WBS is to:

Partition the major project deliverables into smaller components to improve the accuracy of cost estimates Provide a mechanism for collecting and organizing actual costs Provide a mechanism for performance measurement and control
Note that the WBS provides a simple map of what is to be produced. It does not deal with schedules and therefore has

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no time dimension. It is however used as entry criteria for schedule development.

7.2 A:

WBS for Construction of 100 Rooms: INITIATION:

A1: A2: A3: Procurement of Land: Architecture Design: Procurement of Materials:

B:
B1: B2: B3:

CONCRETE:
Pour Foundation: Install Terrace: Pour Stairway:

C:
C1: C2: C3:

FORMING:
Frame Exterior Walls: Frame Interior Wall: Install Roofing Tresses:

D:
D1: D2: D3: D4: D5:

PLUMBING:
Selection of Plumber: Plumbing Contract: Install Water Lines: Install Gas Lines: Install Fixture:

E:
E1: E2: E3: E4:

ELECTRICAL:
Furnishing Plane: Install Wiring: Install outlet: Install Fixtures:

F:
F1: F2: F3:

INTERIOR:
Install Drywall: Install Carpet: Install Painting:

G:
G1:

Roofing:
Install Felt:

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G2: G3: Install Shingles: Install Gateway:

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7.3:
SR. NO: A: A1: A2: A3: B: B1: B2: B3: C: C1: C2: C3: D: D1: D2: D3: D4: D5: E: E1: E2: E3: E4: F: F1: F2: F3: G: G1: G2: G3:

Activities; Predecessors etc:

ACTIVITY: INITIATION: Procurement of Land: Architecture Design: Procurement of Materials: CONCRETE: Pour Foundation: Install Terrace: Pour Stairway: FORMING: Frame Exterior Walls: Frame Interior Wall: Install Roofing Tresses: PLUMBING: Selection of Plumber: Plumbing Contract: Install Water Lines: Install Gas Lines: Install Fixture: ELECTRICAL: Furnishing Plane: Install Wiring: Install outlet: Install Fixtures: INTERIOR: Install Drywall: Install Carpet: Install Painting: ROOFING: Install Felt: Install Shingles: Install Gateway: PREDECESSOR S: A1, A2, A3 B1 B1 B1 C1 C2, D2, D3, D4 B1 D1 D1 D1 D1 C3 E1 E2 E3 E1 F1 F2 E1 G1 G2, F3, E4

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E4 E3

7.4: Network Diagram:

E2 A1 B2

Start

A2

B1

C1

C2

C3

E1

G3

End

A3

B3 F1 D1 D2 F2 G1 G2 F3

D3

D4

D5

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8. Risk Mgt. Process @ Hostel Construction:
As construction projects become larger and more complex, so do the risks associated with them. significant risk management challenges, The sheer size, scope, and timing of today's projects pose including identifying risks, determining the allocation of risks among the parties involved, developing mitigation and risk treatment plans and opportunities for cost savings in single project applications or across an entire portfolio of projects. Because of the increasing complexity and size of project risks, sponsors must view risk on an enterprise-wide project or portfolio basis to properly and consistently identify risks, develop optimal risk allocation strategies, and, if necessary.

8.1

Risk Factors in the Project:

The following risk factors may be involved in the Construction of Hostel in the City University of Science heading: Shortage of materials; specialized skilled; skilled labours & man powers due to terrorist activities in the region. Time period for completion of project may be increased; if the time period is increased so the cost might be increased too; due to inflation factor. & Information Technology (CUIST), Peshawar; they are describe in the following

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The problem of non-availability of machinery or experts may arise on the occasion. Any other, problem regarding contractors; sub contractor; skill labour etc.

8.2

Risk Mitigation Techniques:

8.2.1: Insurance Design and Placement:
o The project-specific risk transfer and

management programs that include the optimal blend of insurance, alternative risk transfer, and retained risk to maximize protection.

8.2.2: Subcontractor Default :

o Through our proprietary Sub Secure, the Project Manager should the skill of that to identify potential adverse implications of a subcontractor's financial situation and provide guidance for managing the risk of subcontractor default. In addition, Marsh can provide guidance on the nuances of a subcontractor default insurance program, like Sub Guard, and how to implement it on a project. Besides; to can also help subcontractors gain competitive

advantage by presenting their financials to contractors in the best possible light.

8.2.3: Risk Consulting:

o To mitigate the risk; the Project Mangers has extensive, process-driven strategies and

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tools designed to manage and monitor risks from a project's earliest stages to the final delivery and commissioning.

8.2.4: Project Governance :

o Projects with tight margins, tight schedules, high risks, and complex reporting requirements limit management's ability to identify and mitigate problems when they occur.

8.2.5: Project Performance Audits:

o Rectifies the challenges brought on by the increased need for transparency in project management, common goals in the review process, and standardization in contractor payment processes.

8.2.6: Loss Control:

o Site safety is crucial to project performance; control the same

8.2.7: Supply Chain:

o The Project Managers should have complete suite of supply chain risk services, from identifying and mapping risk within the supply chain to identifying and applying solutions (alternative risk strategies) to monitoring threats that affect a client's supply chain.

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Schematically, the Risk Management Process is Depicted in the following Diagram:

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9. Strategic Recommendations
The Education Industry is only profitable if the projects are completed in time. Quality of materials used ensures quality of Hostels built. Superior quality is the best competitive advantage these days. Careful selection of residential area counts

towards selling price and timely sales The investment in good architectural design is worth it. A good look is the first thing buyers would be looking for at the first place.

10. Key Success Factors/Practical Tips for Success:

The key success factors for hostel are careful selection of construction site and a good architecture. The investment in good construction material and efficient use of labour are also very crucial. In short quality pays in the long run

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