WELCOME

CIVIL CONSTRUCTION OF

A HOUSE

(TIME TAKEN)

COST ESTIMATEDesign/Approval of plan NILMake foundation/build super structure

6,00,000

Select &order Electrical & other accessories

1,00,000

Wiring of the building 20,000Carpentry works 1,50,000Laying of Roof 5,00,000Wall plastering/laying floors/Painting

70,000

Fixing of fittings(Sanitary, electrical etc)

20,000

Giving power and water connections for the site

30,000

Final polishing ,testing & handing over

10,000

UNIT - 2Establishing the

Project

Feasibility ReportPART 1: 1.Technical configuration is defined2.Performance requirements for various SYSTEMS,SUB-

SYSTEMS & KEY EQUIPMENTS are specified3.Cost estimate for the project is FROZEN4.Techno-Economic viability is EXAMINED,APPRAISED &

APPROVED5.An over all implementation schedule is DRAWN. Part 2 :6.Financial arrangements made to implement the project7.A project Manager has been appointed8.Pre- project Activities completed & “A ZERO DATE IS

FIXED”

Feasibility Report 1.Raw Materials(RM) Survey2.Demand Survey3.Technical Study of Product pattern, Process

selection, Plant Size and Raw Materials (RM) Requirements

4.Location Study5.Project capital cost estimates & Sources of

Finance6.Profitability & Cash Flow analysis &7.Cost-Benefit Analysis

Technical aspectsProduct PatternProcess selectionplant sizeRaw materials requirementsLocation Study

Financial aspects TYPES OF FINANCING

FINANCIAL INSTITUTIONS

FOREIGN INSTITUTIONS

NATIONAL INSTITUTIONS

TYPES OF COST ESTIMATESOrder of Magnitude Estimate: ( +/_60

%Accuracy)Study Estimate: ( +/_ 30 % Accuracy)Preliminary Estimate : ( +/_ 20 %

Accuracy)Definitive Estimate: ( +/_ 10 %

Accuracy)Detailed Estimate: ( +/_ 05 %

Accuracy)

Finalization of Project Implementation Schedule

TIME STUDY APPROACH PREVIOUS PROJECT DATAGUESTIMATING APPROACHRANGE ESTIMATESTIME TAKEN Vs TIME REQUIREDESTIMATES FROM VENDORS & CONTRACTORSALLOCATED & COMMITTED TIME

Evaluation of Project Profitability

PAY BACK PERIOD ( PBP )RETURN ON INVESTMENT ( ROI ) NET PRESENT VALUE ( NPV )INTERNAL RATE OF RETURN ( IRR )BENEFIT COST RATIO ( BCR )SOCIAL PROFITABILITY

THANKYOU