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SCHOOL OF ARCHITECTURE · BUILDING · DESIGN

PROJECT MANAGEMENT [QSB 4424 / MGT 60704]

GROUP PROJECT (30%)

HAJI MUHD SYAFIQ BIN HJ ABD ZARIFUL (0314702)

MUHAMMAD HASIF BIN ALIAS (0316413)

LEE KIM THIAM (0310710)

WONG GENG SEN (0321690)

LIEW YONG SHENG (0315108)

JACK LIAM TININCZKY (0332368)

WONG YUN SHI (0315225)

Lecturer: Mr. Leong Boon Tik

Submission date: 4pm, 30th November 2017

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1.0 Project Background

Taylor’s University Lakeside Campus is a private university from the Taylor’s Education

Group. Taylor’s Lakeside Campus started in 2010 with a 27 acre of tropical greenery and

surrounded by its trademark 5.5 acre man-made lake. Surrounding the tranquil lake are buildings

that consist of 3 academic blocks and a commercial block named ‘Syopz’. Taylor’s University

Lakeside Campus was built with a cost of around RM450 million during the early 2007.

Figure 1 – Taylor’s University, Lakeside Campus

The academic block in Taylor’s consists of 22 lecture theatres, 2 blocks of administration

centre, computer labs comprising of Apple and Dell computers, classrooms, science laboratories

and one grand hall. Other than that, a restaurant was built in the commercial block to help along

students with their studying materials and methods.

As for the commercial block ‘Syopz’, it is a combination of retail and F&B outlets. The

slogan for ‘Syopz’ is “Work.Chill.Hangout” as it’s stated where students are able to enjoy their

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favourite meal, chat with friends or get their work done over a cup of coffee in the coffee shops.

Adding in the beautiful atmosphere of a serene lake, it is the perfect place to unwind.

Taylor’s did not overlook the sports facilities and provided multi-purpose courts for

futsal, basketball, badminton and much more. A ‘uniGym’ gym centre was also built for students

to not only train their minds but also their physical strength.

A businessman client which holds a rental contract with Taylor’s for 20 years is planning

to built a functioning new development that should complement with Taylor’s University

existing facilities. The rental of the land is RM15,000 per month for the entire 20 years. Thus,

once the developer has built and run the development for a total of 20 years then they will return

to Taylor’s University at the end of their 20 years tenure at no cost.

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2.0 Project Justification

By developing a new business, many factors must be taken into consideration to check

whether the project’s viability. Therefore, by inspecting the economy, social and political view

of the project is an important consideration to ensure lesser risk and gain maximum advantages

to ensure the project objective are met. Project justification will also help the client to decide

whether to continue on with the project after all the considerations.

As for the The area beside Syopz mall consist of an open-air carpark which is made of

rock and sands. Results from a survey made on the parking situation in Taylor’s Lakeside

University have shown that students are not satisfied with the current carparks. Other than that,

the available convenient stores in Syopz are only 7-Eleven and Family Mart. As for the products

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from both of these shops are more higher priced and limited choices, it is also proposed to build

a bigger convenient store on the roof level of the multi-storey carpark for students to buy their

everyday needs. Therefore, the proposed development is aimed to construct a three-story car

park with a convenient store at roof level. As for the convenience for students, a connected via

walkway to the existing Syopz Mall is also proposed to allow easier access. The land area for

this project is 1200m2 and an average parking lot size is 4.8m by 2.4m. This development shall

derive from the long-term financial return from the carpark area through the multi-storey carpark

and business profit of the convenient store on roof level. It is recommended to use design and

build method for this project.

Figure 2 – Design of the proposed multi-storey carpark

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2.1 Economical perspective

As for most projects, it is the main objective to gain financial profit upon the building’s

operation and value. As stated before, the client will be holding a land from Taylor’s with a

monthly rental cost of RM15,000 for 20 years. Therefore, the client is to generate his income

through the operation of the building mainly from the carpark. However, it is proposed to the

client that the client buys the franchise of 99 Speedmart and gain profits from the business.

As for the 99 Speedmart franchise, it is proposed because of the lower price of products

compared to 7-Eleven and Family Mart and therefore will have more students buying from it.

With cheaper price wars among all 3 marts, tenants from the hostel named U Residence above

Syopz, then DK Senza and D’Latour which is also located within Taylor’s Lakeside University

Campus area most probably will choose the cheaper mart to buy products from. The other

advantage to 99 Speedmart is that it also sells pre-packed fresh vegetables, fruits and frozen

seafood which allows Taylor’s students to buy their ingredients from the mart rather than driving

out of Taylor’s to the nearest market which is at PJS 7 which takes about 10 minutes drive

without considering traffics and a walking time estimation of 12 minutes only with the access

card to go through PJS 7 from Taylor’s due to the safety regulations.

The main component of the building which is the car park. It is well known as a student

in this campus that it suffers from a lack of parking spaces. The problem arises every year as

there is increasing numbers of enrolment. On the other hand, this is an advantage on financial

benefits on the clients point of view as the demand for car parks are high. Car parks are high in

profits because of it is relatively cheap and requires low maintenance. It is estimated that there is

going to be 160 car parks space per level with a charge of RM3 per entry same as the existing

basement car park charges.

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Car park space : 160 lots per level

Levels of car park : 3

Estimated income from car park per month : RM 57,600

2.2 Social perspective

Social feasibility pinpoints the effect that a proposed project may have on the social

system of the project’s environment. This proposed 3 storey car parks will prove beneficial for

students. During peak hours, students are forced to hunt for parking spaces and walk under the

sun or rain to get into class. Therefore, by building this car park, students will now have lesser

worries and stay healthier walking to their class.

Other than that, 99 Speedmart will benefit to the building as business profits are expected

to rise. Moreover, the client may be able to save cost on workers as the mart may have an

agreement with Taylor’s to have students working in the mart same as the Taylor’s Merchandise

Store. This will help the student’s ability in management control, financing and many more

scopes.

As stated by the facts above, this proposed project is considered to be socially reasonable

as it will solve the issues faced by Taylor’s Lakeside Campus for a long time.

2.3 Political perspective

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Political parties normally have the higher power in proposing projects. This is because

the proposed building is required to meet the objectives and requirements of the designated

building. As this project is located in a university, the rules shall be strictly followed with the

Malaysian Education Department.

As stated by the Malaysian Education Department, the average income to high-income

status needs to be fuelled by talented and knowledgeable parties rather than unskilled labour. It is

important for Malaysia to have a globally competitive education system that produces widely

knowledgeable and multi-skilled graduates that is able to compete globally.

This goes for Taylor’s University’s vision as they aim to achieve a balanced excellence

and be recognized as a leading international university ranked in the top 100 universities in Asia

by 2022. By then, graduates will be ready for the future in order to complement the persons in

middle-income status and high-income status. In conclusion, this project is feasible, as it equals

with the Malaysia Education Department’s political goals.

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3.0 Project Objectives

The complete outcome of the project must comply with the objectives set out as they function as

a goal to be achieved. Any form of the design or influence will be in consideration with the

objective designed beforehand. Therefore, it is utmost importance to consider the target audience

or users of the completed project as well as allocation of its values and functions in order to

justify the use of budget and workforce. The following are objectives identified while

constructing the multipurpose building project of Taylor’s University.

1. Provide students additional parking space.

2. Provide Taylor’s University cheaper option in shopping areas

3. Allow a smoking area better ventilated and designed to properly separate smokers and

non-smokers for promotion of better health

4.0 Project Merits/Benefits

Improvement in parking spaces by increasing the amount through elevation of space would

improve Taylor’s University’s internal traffic jams. The constant frustration of unable to find a

proper parking leave users to wander around Taylor’s and eventually increasing the traffic jams.

This improvement, though seemingly unimportant could even lead to lesser amount of accidents

that could have been avoided.

Student’s greatest issue in Taylor’s University have always been, especially from other parts of

Malaysia, expensive retail product. Even Taylor’s University’s cheapest option, Family Mart that

opened recently was considered to be considerably expensive. Therefore, it would certainly be

beneficial to both users and you, a businessman, to provide Taylor’s University users a cheaper

option in retail store. While the quality can be compromised, the option to allow users to gain

access to cheaper product would certainly be greatly beneficial and appreciated. Construction of

99 speedmart as the retail store also allows customer to sit atop and watch the lakeside view

along with the majestic Block C, D and E, emphasizing on the well-built architectural design of

Taylor’s University even at a cheap supermarket store as 99 speedmart.

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Smoking areas were placed at ground floor which, as physics dictates, smoke would rise causing

the first and second floor to inhale second-hand smokes. The placement of constructing a

smoking area above the parking area would mean non-smokers will need to suffer secondary

smoking as the project should provide a room with proper ventilation to allow them to smoke to

their desire. The mart being close to the smoking area benefit smoking to gain access to cigarette

packets easier and at a more convenient time.

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5.0 Project Control and Completion

5.1 Project control

When talk about project control it will never run away from cost, time and quality

control. A good project control is an important part of successful project management. Planning

and monitoring plays a major role as the cause of project failures. Project Management Triangle

is to express each project should complete within cost or budget, complete on time and achieve

client quality requirements. In this project, the project team is more concern about time and cost

control due to the nature of the building.

Figure 5.1 Project Management Triangle

5.2 Time control

Although time is not the main concern of the project, while there are variety of method of

saving construction time. For example, focusing on time-saving materials and techniques such as

steel and metal products because of they are ready made before delivery to site. Therefore, it may

reduce the labour time.

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Analyse worker productivity could be another method as labours are the one working

throughout the construction. Paying higher wages will not encourage the labour become more

hardworking or more efficient. Thus, study have been carried out and outcome showed poor

employees productivity will somehow linked to poor planning, dangerous working

circumstances, accident rates, lack of necessary or compulsory equipment and poor company

morale.

The seven important process in the project time management are, Plan schedule

management is a technique of set up the policies, operation and documentation for outlining,

managing, developing, executing and supervision the work program. Define activities are a

process to classify and analyse the certain activity to be implement for a project.

Sequence activities, a process of classify and analyse the link throughout the overall

activities. While, Estimate activity resources are process of evaluation the nature and the material

quantities, human resources, equipment, or supplies needed to carry out in every single activities.

In addition, estimate activity durations, is a process of evaluate the time period require

to complete each activity with certain resources. Develop schedule, is a process of summarize

the activity sequences, time, requirement, and schedule to form a project schedule model.

Control schedule, is a process of supervision the progress of the activities to modify or update

to baseline in order achieve the plan.

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5.3 Cost control

In this project, there will be a group of people who are specialized in cost control and

value management to administer the cost control of the entire project. The estimated cost is

RM3millions to complete the project. This project will get 50% loan fund from the bank as a

support for capital cost.

As mention before, the project is very concern with the cost. Hence, The cost control

team will carry out a detailed resources planning and cost estimating to ensure there is no

resources is overused or incur extra cost for the project. While planning for the resources, it will

also include cost budgeting and cost controlling. The cost control team will determine the

qualities of all resources and allocate to every work section as it required.

In this project, due to the nature of the proposed building, the multi-storeys did not have

to apply high ended finishes and painting for aesthetic purposes. Hence it in term of finishes it

could save a lot of cost for project itself. However, the building will need to take extra care on

the waterproofing for the ground floor due to the low ground level at the construction site which

will have potential flood problem. Thus, the project will allocated an extra cost for waterproofing

for the ground floor. In this case, the employer has introduced one of his suppliers which could

help on supplying goods and materials for the project with a lower market price which could help

the project to saving cost. Procurement method can be one of the ways of cost control. The

project is using DnB method, thus the construction cost somehow will be fixed at the beginning

where it could provide cost certainty for the employer.

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5.4 Quality control

As discussed before the project will not prioritise on the quality of product but it did not

mean the project will tolerance on the quality of work. The quality control for project is to make

sure the project satisfied the need for which it undertakes. Project quality management required

to address both management and product of the project to provide a good quality of work. Hence,

all product of the project will still have to meet the standards and requirements set by the

management team. This project will implement six sigma as the quality guideline where will be

focus on the five phases DMAIC.

Define the system, requirements, specifications and project goal to provide a better

understanding of the idea of project and move toward the goal with the team.

Measure the key aspects of the process and collect relevant data

Analyse the data to investigate, verify and determine cause-and-effect relationships, and

attempt to ensure that all factors have been considered.

Improve or optimize the current process based upon data analysis using techniques such

as design of experiments or mistake proofing. Using the standard work to create a future

process and set up a pilot run to establish process capability.

Control the future state process to ensure that any deviations from the target are

corrected before they result in defects. Implement control system and continuously

monitor the process.

This process of DMAIC will be repeating until the desired quality level is obtained.

Project quality management includes all the activities of the overall management function

that determine the quality policy, objectives, and responsibilities and implement them within the

quality system. In order to have a good quality control of a project, the project team will conduct

the quality planning, quality assurance and quality control where most the time the process will

happen concurrently. The project team will identify the quality standard required for the project

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which will impose quality policy given a direction of an organization with regard to quality, as

formally expressed by the top management. The project team will also provide a working

flowchart and checklist to ensure all work are properly done according to it standards and

requirements.. The project team will monitor all project results to determine if the product

relevant standards and identifying ways to eliminate causes of unsatisfactory results. This could

standardize the quality of work and produce a good quality product for the employer and user.

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6.0 Work Breakdown Structure

6.1 WBS diagram

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6.2 WBS Detailed Schedule

ID Activities Duration Start Finish

1 Feasibility Stage 30 Mon 01/01/18 Fri 09/02/18

1.1 Conceptual Design 24 Mon 01/01/18 Thu 01/02/18 1.1.1 Opportunity Study 12 Mon 01/01/18 Tue 16/01/18

1.1.2 Prefeasibility & Feasibility Study 12 Wed 17/01/18 Thu 01/02/18

1.2 Conceptual Review 6 Fri 02/02/18 Fri 09/02/18 1.2.1 Appraisal Report 6 Fri 02/02/18 Fri 09/02/18

2 Pre-Construction Stage 66 Mon 12/02/18 Fri 18/05/18

2.1 Contract Documentation 43 Mon 12/02/18 Fri 13/04/18

2.1.1 Tender Preparation 28 Mon 12/02/18 Fri 23/03/18 2.1.2 Tender Evaluation 10 Mon 26/03/18 Fri 06/04/18

2.1.3 Tender Award 5 Mon 09/04/18 Fri 13/04/18

2.2 Mobilization 5 Mon 16/04/18 Fri 20/04/18 2.2.1 Plant & Machinery etc 5

2.3 Site Preparation 18 Mon 23/04/18 Fri 18/05/18

2.3.1 Site Clearing 3 2.3.2 Site Surveying/Investigation 3

2.3.3 Site Leveling/Benchmarking 6

2.3.4 Install Temporary Site Service 6

3 Construction Stage 230 Mon 28/05/18 Fri 31/05/19

3.1 Substructure Works 10 Mon 28/05/18 Fri 08/06/18

3.1.1 Foundation - Piling 10

3.2 Superstructure Works 80 Mon 10/06/18 Fri 05/10/18

3.2.1 Frame 60

3.2.1.1 Slabs 20

3.2.1.2 Beams 20 3.2.1.3 Columns 20

3.2.2 Vertical Transportation 20

3.2.2.1 Staircase 10 3.2.2.2 Elevator Shaft 10

3.3 Masonry Works 30 Mon 08/10/18 Fri 23/11/18

3.3.1 External Walls 10 3.3.2 Internal Walls 10

3.3.3 Partitions 10

3.4 Metal work 10 Mon 26/11/18 Fri 07/12/18

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3.4.1 Roofing – Frame & Covering 10

3.5 Finishing Works 45 Mon 10/12/18 Thu 14/02/19

3.5.1 Doors and Windows 10

3.5.2 Fixtures and Fittings 5 3.5.3 Internal & External Wall Finishes 10

3.5.4 Floor & Ceiling Finishes 10

3.5.5 Staircase Finishes 10

3.6 M&E Works 45 Mon 18/02/19 Fri 19/04/19

3.6.1 Plumbing 10

3.6.2 Electrical 10 3.6.3 Ventilation 5

3.6.4 Fire Protection 10

3.6.5 Lift 10

3.7 Infrastructure Works 30 Mon 22/04/19 Fri 31/05/19

3.7.1 Sewerage works 10

3.7.2 Sanitary works 5 3.7.3 Road works 10

3.7.4 Connection to Existing Building 5

4 Post-Construction Stage 28 Mon 03/06/19 Wed 17/07/19

4.1 Testing and Commissioning 20 Mon 03/06/19 Fri 05/07/19

4.2 Site Landscaping 5 Mon 08/07/19 Fri 12/07/19

4.3 Demobilization 3 Mon 15/07/19 Wed 17/07/19

4.4 Handover Building (after 20 years) - Mon 01/08/39

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7.0 Project Cost Estimation

Project underestimation of resources and costs is one of the most common sources of

project failure. Due to this, project managers should have clear knowledge of the various

construction techniques and tools in defining and executing the project’s cost estimation. As

defined by the Project Management Body of Knowledge (PMBOK), cost estimation is the

iterative process of developing an approximation of the monetary resources needed to complete

project activities.

The cost that is associated with this project includes both the initial capital cost and the

subsequent operation and maintenance costs. As always, the client will want to achieve the

lowest possible net project cost keeping in mind the investment cost and how to recover his

money. But the scale of these cost components will be subjected to the nature, size and location

of the project itself. In order to accurately produce a properly ranged cost estimate for this

project, construction cost handbook for like JUBM and Langdon Seah Construction has been

used to obtain cost data which are up to date. Construction cost data fit for this project are related

to underground car park, medium rise offices and retail outlets. Other costs such as development

costs which include numerous costs like professional fees, legal fees, administrative fees,

planning fees and contingencies are based on percentage of the total construction cost.

7.1 Data used for estimating project cost (Elevated Parking)

The following data represents the costs to construct the elevated parking of three floors.

(1) Construction Cost (L&S Costs Subjected within Kuala Lumpur)

i. Elevated Carparks ( < 4 Floors) RM 1125/m2 (inclusive of services)

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(2) Development Cost

i. Professional Fees : 8% of construction costs

ii. Administrative Fees : 2% of construction costs

iii. Plan Fees : 2% of construction costs

iv. Legal Fees : 1% of construction costs

v. Contingencies : 5% of construction costs

7.1.1 Gross Development Cost

(a) Construction Cost

No

Type

No. of

Floors

Net Build Up

Area (m2)

Construction Cost

(RM/m2)

Construction Cost

(RM)

1 Elevated Car Parks 3 3600

1,125.00

4,050,000

NET TOTAL 3 3600

4,050,000

Assumption: The cost data include circulation spaces and ancillary services like toilets, staircases,

lifts and walkways.

(b) Development Cost

No. % Allocation Construction Cost (RM) Development Cost (RM)

1 Professional Fees 8%

4,050,000

324,000.00

2 Administrative Fees 2% 81,000.00

3 Plan Fees 2% 81,000.00

4 Legal Fees 1% 40,500.00

5 Contingencies 5% 202,500.00

NET TOTAL 729,000.00

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7.2 Data used for estimating project cost ( 99 Speedmart Outlet )

The following data represents the costs to operating a 99 Speedmart Outlet at the roof top level

of the elevated parking. Due to privacy of data, the data obtained for this analysis is followed up

by a manager of the said franchise. The costs that are depicted do not focus on the construction

costs but its overall costs of operations.

7.2.1 Gross Development Cost

(a) Construction Cost

No

Type

No. of

Floors

Net Build Up

Area (m2)

Construction Cost

(RM/m2)

Construction Cost

(RM)

1 99 Super SpeedMart 1 800

85

68,000.00

NET TOTAL 1 800

68,000.00

(b) Development Cost

No. % Allocation Construction Cost (RM) Development Cost (RM)

1 Professional Fees 8%

68,000.00

5,440.00

2 Administrative Fees 2% 1,360.00

3 Plan Fees 2% 1,360.00

4 Legal Fees 1% 680.00

5 Contingencies 5% 3,400.00

NET TOTAL 12,240.00

Gross Development Cost = Construction cost + Development Cost

= RM 4,050,000+ RM 68,000.00 + RM 729000.00 + RM 12,240.00

= RM 4,859,240.00

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7.3 Operation and Maintenance Cost

A building like this project which is dedicated to the students of the Taylor’s University

would carry a consequent cost for operating and maintaining the whole building. Since the client

will rent the land for RM 15,000 per month for a period of 20 years and that he will do the whole

development under his expense, it is assumed that the client will bear the whole operation and

maintenance cost without any financial support from Taylor’s University. However, without

proper communication with the management of university, the client will be unable to accurately

estimate the monthly operation and maintenance cost. It is imperative that the client liaise with

the university. In addition, to accommodate for any inflation in price, it is assumed that the

monthly expenses should be subjected to a 5% increase every 5 years. The monthly expenses

obtained for the entire building is as followed:

Electricity and water : RM 12,000

Repairing cost : RM 8,000

Cleaning cost : RM 3,000

*Note that the cleaning and repairing costs are not included during the construction stage

Element Monthly expenses

Electricity and

water

12,000.00

Repairing cost

8,000.00

Cleaning cost

3,000.00

Land Rental

15,000.00

NET TOTAL

38,000.00

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%

increase

Monthly Expenses for new building

(RM)

Yearly Expenses

(RM) TOTAL

Expenses (RM)

Year 1 (12months) 15,000.00 180,000.00 180,000.00

Year 2 to 5 (48 months) 38,000.00 456,000.00 1,824,000.00

Year 6 to 10 (60 months) 5% 39,900.00 470,800.00 2,394,000.00

Year 11 to 15 (60 months) 5% 41,895.00 502,740.00 2,513,700.00

Year 15 to 20 (60 months) 5% 43,989.75 527,877.00 2,639,385.00

NET TOTAL 9,551,085.00

Therefore, the following outlines the whole estimated project cost;

Gross Development Cost RM 4,859,240.00

Operation & Maintenance

cost RM 9,551,085.00

Total Estimated Project

cost RM 14,410,325.00

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8.0 Projected Earnings

This section will show the yearly earnings calculated to conclude the income of the client for

his 20 years’ of rental contract with Taylor’s University. The following earnings below are the

significant assets that benefits the client in renting the area:

1. Season Parking charges

2. 99 Speedmart

The following subtopics will show the projected earnings for the season parking and 99

Speedmart. It is to be noted that the first year and a half is dedicated to the construction period,

thus there will not be any earnings during the period which will end around July 2019.

8.1 Season Parking

The current season parking fee for Taylor’s University is RM 120/month. To maintain

consistency along with Taylor’s University charges, the season parking fee will also be RM

120/month. The projected earnings are as followed:

Season Parking/lot = RM 120/ month

Number of Parking Lots = 480 lots (3 levels x 160 lots/level)

Monthly Earnings = RM 120 x 480

= RM 57,600

Yearly Earnings = RM 57,600 x 12

= RM 691,200

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Note that for the 2nd year, the earnings are only about half of the year due to the construction

period that ended in July 2019, assuming 40% of yearly earnings generated for the 2nd year.

40% of RM 311,040 = RM 124,416

Year Remarks Yearly Earnings

(RM)

Total Earnings (RM)

2 - 5 40% of yearly earnings on 2nd year

691,200.00 2,350,080.00

6 - 10 Fees increases by 5% 725,760.00 3,628,800.00

11 - 15 Fees increases by 5% 762,048.00 3,810,240.00

16 - 20 Fees increases by 5% 800,150.40 4,000,752.00

NET TOTAL 13,789,872.00

8.3 99 Speedmart

99 Speedmart will be priced at RM31,500 each month. A following assumption has been made:

According to a 99 Speedmart staff, the outlet earns RM450,000 monthly but that is not

considered to be their earnings as they need to pay for suppliers, logistic and others. The staff

furthermore stated that they would only get roughly around 6% - 7% of income monthly

Allow 7% of RM450,000 = RM31,500

The projected earnings are calculated:

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99 Speedmart = RM 31,500/ month

Number of Outlet = 1

Monthly Earnings = RM 31,500 x 1

= RM 31,500

Yearly Earnings = RM 31,500 x 12

= RM 378,000

Year Remarks Yearly Earnings (RM) Total Earnings (RM)

2 - 5 40% of yearly earnings on 2nd year 378,000.00 1,285,200.00

6 - 10 Fees increases by 5% 396,900.00 1,984,500.00

11 - 15 Fees increases by 5% 416,745.00 2,083,725.00

16 - 20 Fees increases by 5% 437,582.25 2,187,911.25

NET TOTAL 7,541,336.25

8.4 Summary of Project Earnings

Season Parking = 13,789,872.00

99 Speedmart = 7,541,336.25

TOTAL = 21,331,208.25

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8.5 Net Present Value (NPV)

Year Inflow Outflow Net Cash Flow

PV

Factor @ 5%

PV Value @ 5%

0 5,039,240.00 -5,039,240.00 1 -5,039,240.00

1 1,069,200.00 456,000.00 613,200.00 0.9524 584,011.68

2 1,069,200.00 456,000.00 613,200.00 0.907 556,172.40

3 1,069,200.00 456,000.00 613,200.00 0.8638 529,682.16

4 1,069,200.00 456,000.00 613,200.00 0.8227 504,479.64

5 1,122,660.00 470,800.00 651,860.00 0.7835 510,732.31

6 1,122,660.00 470,800.00 651,860.00 0.7462 486,417.93

7 1,122,660.00 470,800.00 651,860.00 0.7107 463,276.90

8 1,122,660.00 470,800.00 651,860.00 0.6768 441,178.85

9 1,122,660.00 470,800.00 651,860.00 0.6446 420,188.96

10 1,178,793.00 502,740.00 676,053.00 0.6139 415,028.94

11 1,178,793.00 502,740.00 676,053.00 0.5847 395,288.19

12 1,178,793.00 502,740.00 676,053.00 0.5568 376,426.31

13 1,178,793.00 502,740.00 676,053.00 0.5303 358,510.91

14 1,178,793.00 502,740.00 676,053.00 0.5051 341,474.37

15 1,237,732.65 527,877.00 709,855.65 0.481 341,440.57

16 1,237,732.65 527,877.00 709,855.65 0.4581 325,184.87

17 1,237,732.65 527,877.00 709,855.65 0.4363 309,710.02

18 1,237,732.65 527,877.00 709,855.65 0.4155 294,945.02

19 1,237,732.65 527,877.00 709,855.65 0.3957 280,889.88

NET PRESENT VALUE 2,895,799.90

*First year cash outflow = RM 4,859,240 + RM 180,000 (rental for first year)

= RM 5,039,240

*The reason to why we have only 19 years while calculating the NPV is that the first financial

year is accounted as the year 0 in the NPV table.

Page | 28

8.6 Viability of project

The reason why the NPV was calculated is to find whether this project will benefit the client or

not. By having a positive NPV at a PV factor of 5% which is RM 2,895,799.90, It shows that this

project is viable and can proceed with the development.

8.7 Net Profit over the 20 years

Estimated project earnings for 20 years RM 21,331,208.25

Invested GDC - RM 4,859,240.00

Operation and maintenance cost for 20 years - RM 9,551,085.00

NET PROFIT RM 6,920,883.25

9.0 Project Summary/ Conclusion

In conclusion, the proposed project, which is a proposed construction of multi-storey car

park building with 3 level of car park and a shop lot on the roof floor in the current land used for

open paid parking within the property of Taylor’s University, located beside their commercial

building, Syopz, are proved to be beneficial, workable and profitable. In term of function, the

building would be able to provide more parking space in order to cater the ever increasing

student intakes and provide a proper and larger smoking area compared with the current

allocated area. Furthermore, student would be able enjoy the benefit of having affordable super

market while enjoying the breeze air and view on the open roof space. As for the estimation on

the projected earnings, the project showed positive profitability to the client within its 20 years of

usage with the NPV of RM 2,895,799.90 which is considered viable. Lastly, this project would

benefit both party, whereby the client would be able to fund more project or opportunity that

arises throughout the building usage, while Taylor’s University will be able to fortify their

reputation with the increases of positive feedbacks and new facilities.

Page | 29

10.0 References

Project Management Triangle - Time, Cost and Quality - Iron Triangle.

(2017). Stakeholdermap.com. Retrieved 29 November 2017, from

https://www.stakeholdermap.com/project-management/project-triangle.html

Haughey, D. (2011). Understanding the project management triple constraint. Retrieved

from https://www.projectsmart.co.uk/understanding-the-project-management-triple-

constraint.php

Project Time Management Based on PMBOK 5th Edition. (2016). CMCS. Retrieved 29

November 2017, from http://www.cmcs.co/p603-project-time-management-based-pmbok-

5th-edition/

Graves, A. (2012). What is six sigma. Retrieved from

http://www.sixsigmadaily.com/what-is-six-sigma/

Fichtner, C. (2017). PMBOK Knowledge Areas for Project Management Guide 5th

Edition - Process Groups and Processes - The Complete Guide. [online] Project-

management-prepcast.com. Available at: https://www.project-management-

prepcast.com/pmbok-knowledge-areas-and-pmi-process-groups

Costengineering.eu. (2017). Which are the best techniques for project cost estimating?.

[online] Available at: http://www.costengineering.eu/blog-article/which-are-the-best-

techniques-for-project-cost-estimating

Anon, (2017). [online] Available at:

http://www.langdonseah.com/en/sg/files/download/3796