PGPM12
NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT & REASEARCH SCHOOL OF DISTANCE EDUCATION CONSTRUCTION FINANCE MANAGEMENT PGPM 12
PREPARED BY:- MOHIT BASUK
NICMAR- SODE
213-01-31-11239-2142
Structure:-
Understanding the problem
Summarizing the main Problems
Solution of the problem
Recommendations
An offer has been given by a Charitable Trust to develop and build a facility on a 10,000 sq.m of plot in a prime locality of Pune where 5,000 sq.m of area will be used by the trust for housing, health facilities for senior citizens. 5,000 sq.m. will be given free to the developers as a cost of development
Cost of Land is Rs. 10,000/- sq.m
Flooring specifications for flooring:
- 10% Granite
- 40% Kota stone
- 50% Mosaic cement tiles
Developers would like to have minimum 18% net profit on their investment. Developer can invest only Rs. 10 lakhs as his own funds and can raise not more than Rs. 50 lakhs as bank loan.
Understanding project and project requirement
The trust wants to build a facility for public welfare. Due to probable lack of resources the trust is willing to pay the developer in kind i.e. through giving 50% of total land.
By making a preliminary survey of land prices of prime locations, it is estimated that the cost of Rs 8,000/- per sq m to Rs 12,000/- per sq m is prevalent. Therefore the given Rs 10,000/- per sq m rate be safely taken to calculate the land price. Thus 10,000 sq m of land will be of Rs 10,00,00,000/- worth .
Therefore in principle the trust is paying Rs 5,00,00,000/- in kind to the developer as development cost.
The objective for this complex:
• To utilize the space provided by charitable trust for a social & noble cause.
• To provide a better place for senior citizens.
• To make the society aware about the responsibly towards our elders.
With the said objective and given ‘A’ Class construction the 5 crore worth of construction would be around 5000 sq m of
PREPARED BY:- MOHIT BASUK
NICMAR- SODE
213-01-31-11239-2142
Structure:-
Understanding the problem
Summarizing the main Problems
Solution of the problem
Recommendations
An offer has been given by a Charitable Trust to develop and build a facility on a 10,000 sq.m of plot in a prime locality of Pune where 5,000 sq.m of area will be used by the trust for housing, health facilities for senior citizens. 5,000 sq.m. will be given free to the developers as a cost of development
Cost of Land is Rs. 10,000/- sq.m
Flooring specifications for flooring:
- 10% Granite
- 40% Kota stone
- 50% Mosaic cement tiles
Developers would like to have minimum 18% net profit on their investment. Developer can invest only Rs. 10 lakhs as his own funds and can raise not more than Rs. 50 lakhs as bank loan.
Understanding project and project requirement
The trust wants to build a facility for public welfare. Due to probable lack of resources the trust is willing to pay the developer in kind i.e. through giving 50% of total land.
By making a preliminary survey of land prices of prime locations, it is estimated that the cost of Rs 8,000/- per sq m to Rs 12,000/- per sq m is prevalent. Therefore the given Rs 10,000/- per sq m rate be safely taken to calculate the land price. Thus 10,000 sq m of land will be of Rs 10,00,00,000/- worth .
Therefore in principle the trust is paying Rs 5,00,00,000/- in kind to the developer as development cost.
The objective for this complex:
• To utilize the space provided by charitable trust for a social & noble cause.
• To provide a better place for senior citizens.
• To make the society aware about the responsibly towards our elders.
With the said objective and given ‘A’ Class construction the 5 crore worth of construction would be around 5000 sq m of