Project Management

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11.0 COSTING OPTION 2 : RENT COST PRICE

11.1 PROPERTY/ LAND COST

LAND RENTAL FEE AT JALAN AMPANG : RM 1.30 / ft2 Our site area is around 1000m2 which equal to 10764 ft2 10,764 ft 2 x RM 1.30/ft2 = RM 13,993.20

Thus, the monthly rental cost for the land will be around RM 14,000.00

Bank interest

Reason to buy the land

OPTION 1 : LAND COST PRICE For the Proposed Container Backpacker hotel, the buildable maximum land area is 1000 sq. m. (10,764.00 sq.ft.) So, by using the references of average land sale price RM 900 per sq.ft. 10,764.00 sq.ft.

X

RM 900.00/sq.ft. =

RM 9,687,600.00

Because of the land price if too expensive, so buying the land is not suggested, but through rent the land.

Reason to rent the land

So, after comparing the advantages of buying and renting the land conclude that through renting the land will gain the most advantages to this project.


11.0 COSTING 11.2 CONTAINER SUPPLIER

CONTAINER COST & PROPERTIES

Number of container in proposed design 10 feet size container = 10 20 feet size container = 56 40 feet size container = 30 Total cost of containers = 10(3000) + 56(5000) + 30(7000) = RM 520,000.00 The reason why the proposed designed use these much of container is because want to maximize the usage of such an expensive land and create the spacious feeling for the backpackers who stay in the building.


11.3 MATERIAL LIST

11.0 COSTING

11.4 ELEMENTARY COSTING BREAKDOWN


11.0 COSTING


11.0 COSTING TOTAL CONSTRUCTION COSTING BREAKDOWN CHART

TOTAL : 1,265,988.00


11.0 COSTING 11.5 Unforeseeable risk & cost


11.0 COSTING 11.6 PRIME COST SUM & PROVISIONAL SUM

11.7 CONSULTANT FEE COST (OPTION 1)

Total construction cost = RM 1,256,988.00

TOTAL CONSULTANT FEE = RM 253,687.96

(OPTION 2)

Total construction cost = RM 1,256,988.00

TOTAL CONSULTANT FEE = RM 189,898.20


12.0 COSTING 12.1 RETURN OF INVESTMENT INCOME

Thus, this backpacker hotel proposal need to operate for 17 months to recover on the cost. EXPENSES

FORECAST PROFIT













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