PA2 TOC & Workplan - Condensed
1. Introduction: BEN
A. Aim
B. Purpose
C. Scope
This will form a NEW report (but is flowing from the FA1).
I will be able to provide new introduction section in a NEW report. Essentially for FA2, we will submit BOTH the FA1 and FA2 – they will compliment as indicated in FA1 Section 1.4 Pg 3. Due in 1-2 Days
2. Background: GROUP
(Leave Blank / GAP for referral or transition from FA1 if necessary)
3. Stakeholder Identification and Analysis: NEENA (LO6)
A. Stakeholder identification
B. Stakeholder (power versus influence matrix – base theory)
C. Stakeholder ranking (from matrix – provide a score)
D. Stakeholder Analysis: Explain the impacts and power of each
E. Stakeholder Management: Provide strategies and control mechanisms
F. (eg. Community engagement, fast tracking consultation with planning or regulatory / local council, utilising market and community data and analysis, specialist consultants or designers)
G. Mini Conclusion
Neena your Goals are as follows:
- To identify the most powerful stakeholders
- To identify those stakeholders with the most influence - Analyse and Plot in a quantitative manner.
- Create a list and RANK in a table!
- Provide a Brief Outline how to manage: you are to research and select the best / most appropriate (engagement early? risk minimisation
Limit to 4-5 Pages Max, Prelim Progress Due in 2-3 days after task has been issued. (Note create an outline, commence works and provide / post progress after 2-3 days)
THEN continue work and complete with a further 2-3 days.
NO more than say 5 days in total. (April 26)
4. Financing Options: GRACE (LO6 & Part LO1)
A. Declare Options (Large Scale ONLY), via base case the project will be circa 200 - 250 million dollars.
B. Brief analysis what are the risks, requirements and obligations
(Capital or equity ratio: 60%, 70% ?? etc)
(Think – what is required to get the loan? Can it be achieved? Remember that the procurement / approach will also define the capabilities / limits of capital / equity etc)
Remember after the cashflow is done that the peak cash flow (demand) periods will be known which will perhaps revise the TIMING CASH REQUIREMENTS – a further consideration.
Grace your Goals are:
- Provide an outline of finance options
- Provide an outline of finance requirements (risk and equity etc)
- Recommend the most suitable option BUT also allow to coordinate with Christeen and the development approach (rent, build & sell or other)
Grace as a GROUP we will need to DICUSS another issue – The Development Approach, in terms of build to rent, build to sell, or real estate investment trust type option. This will affect your finance analysis and conclusion.
Limit to 4-5 Pages Max, Progress Due in 2-3 days after task has been issued.
(AGAIN, create outline and post progress – will be put in doc)
Allow till April 26-27 for finalisation, coordination will be required
5. Project Procurement Options: CHRISTEEN (LO6 & LO7)
A. Partnership? Public or Private? Etc List potential options
B. Risks and Issues (control of project vision, design, management during feasibility and concept – most important, LIST / OUTLINE ONLY of construction and future management.
Christeen your Goals are:
- Identify and Provide an outline of ALL procurement options
- Conduct a brief analysis – advantages & disadvantages (remember LARGE SCALE and MIXED-use focus)
- Mini Conclusion to be coordinated with GRACE
- Conclusion may be difficult BUT try to eliminate some and suggest the BEST two for example. That would be very productive.
Limit to 4-5 Pages Max (use tables where possible to expedient) Due in 2-3 days after task has been issued.
(AGAIN, create outline and post progress – will be put in doc)
Allow till April 26-27 for finalisation, coordination will be required
6. Sensitivity Studies: BEN (LO3)
A. Construction Costs
B. Finance Options – in Coordination with Grace
C. Other options???
This needs review and more thought
Goals Are:
- Identify the most influential impacts on development (some have been outlined in FA1) (These will be taken further)
- Evaluate the extent and timing of these impacts
- Provide some recommendations or systems to manage.
Limit to 4-5 Pages Max (use tables where possible to expedient) Due in 2-3 days after task has been issued.
(AGAIN, create outline and post progress – will be put in doc)
Allow till April 26-27 for finalisation, coordination will be required
7. Cost Benefit Analysis BEN (LO3)
BCR = Benefit Cost Ratio, indicator used in BCA, indicating the overall value for money for project or proposal, (in monetary terms relative to costs)
BCR = Proposed Total Cash Benefit / Proposed Total Cash Cost
When BCR 1, the project is expected to deliver a positive net present value (for firm and investors)
When BCR 1, the projects costs outweigh the benefits – (thus it should NOT be considered)
Ian has expressed BCR should be 2, for a developer, BUT in the current market maybe 1.5 to 1.7 may be acceptable
Limit to 4-5 Pages Max
Some flexibility is required – BUT due days before PA1 – SAY April 29-30 (AGAIN, create outline and post progress – will be put in doc)
8. Review of Options: GROUP WORKS
Refer to BCA (utilised) as above
Ian has mentioned the BCA & BCR is used for this process
This is a works in progress based on completion of ALL of the ABOVE / PREVIOUS Note: At some stage between April 28-30 this needs to be addressed.
Formalise into document so cashflow, schedule and financials may be addressed.
9. Risk Register: ROBERT
A. Review FA1 and NOTE down some potential risks that APPLY within the AREAS of the development (economic, financial, design, physical, legal, NEENA is looking after the Stakeholder specifically DO NOT CLASH – just OMIT this.
(These are NOT risks I have listed but areas of risk – Refer to FA1 Section 14.3 pages 7273
Eg as FOLLOWS:
REMEMBER these are from inception to feasibility stage, then planning through to construction. Our focus is NOT just the construction – more the pre-construction stages.
B. Refer to THIS DOCUMENT AS A TEMPLATE:
BBE 304 – Learning Materials, Module 9: Risk Management
The BASICS and concepts have already been set out in FA1 – do not replicate.
We are after an extension of what has been set out.
C. Once you have identified some of the risks, create a list and sort to MAJOR MODERATE or MINOR
HERE is an example from the treasury DOC page 24:
Re the table format:
ALSO from Page 22:
ALSO from Page 29:
ROBERT your goals are:
- Create a list of risks for review
- Begin to Rank the risks in a table as provided (basic) analysis
(these may change as we go)
- Create a corresponding table that describes: consequences and measures for each risk. - Create a further table that corresponds with risk management actions - MAKE IT EASIER FOR LATER and CODE the RISKS.
For example: if it was economic, we would say Ec1, Ec2, Ec3 – Political P1, P2, P3 and so on.
At the end when the entire list is combined and ranked the codes would obviously be jumbled.
MORE to FOLLOW – Robert, please upload progress every 1-2 days on the basecamp.
10. Prelim Construction Schedule: BEN (LO4, LO6, LO7)
Ben has commenced already.
Ian has advised time scale, preferred is in quarters.
This version is an outline, focus on stages as inception and planning, feasibility, documentation, construction. TOTAL time frame = 200 – 250 weeks = development stages, have to decide if the development spans a further period. Ie planning, design and building lasts 4-5 years, BUT developer is in project for MUCH LONGER.
MUST be completed for cash flow, must be made with flexibility.
Ie. BOTH the schedule and the cash flow might have to be changed several times to achieve our financial goals.
11. Cash Flow TBC (PA2 – FA2)
(Would recommend leaving until PA2 – there are many subjects and variables that will change)
Commencing would mean redoing I expect say 4-5 times for example.
The budget for construction is outlined already in FA1 – There is much background already covered but needs to be formally addressed.
Further this cannot be a done or taken on as a ‘sidewinder’. Ie there are many principles already established and continuing withs points 1-10 previous.
What I mean by sidewinder is creating a cashflow that is NOT reflective of all other aspects in the report.
12. Final Financials TBC (PA2 – FA2)