Assignment 1 – Business Case
Economic Engineering Strategy MANU1054
Assignment 1 – Business Case
The assignment 2 is an individual work. A student needs to develop a business case based on
the scenario outlined below. Several examples and templates are available on canvas.
This is 3000 words work, 40% worth of the total marks. The assignment is to be done
individually by student. The scenario for business case details are as follows:
Scenario: the proponents (applicant)
The Shine Council area is located within the Riverland, three hours’ drive to the north east of
Adelaide. The Shine Council is one of three Council areas within the Riverland which border
the River Murray from Blanchetown in the west to Paringa in the east. The Shine Council is in
the Riverland region of South Australia. The Riverland population is approximately 33,000
with the Council population 10,500. The area is 50,845ha which incorporates the townships
of Barmera, Berri, Cobdogla, Glossop, Loveday, Monash, Overland Corner and Winkie. The
economic base of the community is driven by horticulture and viticulture and associated
industries. Berri has traditionally serviced the region for state and federal government
services. Other major sources of economic development within the area include Accolade
Wines Australia located at Glossop, tourism and retail shopping. The Council area has its
origins in the pastoral holdings which occupied extensive tracts of land adjacent the River
Murray as early as the 1850s. The first overland stock route between New South Wales and
South Australia established by Joseph Hawdon and Charles Bonney in 1838 saw the
development of Overland Corner as an important staging post for drovers. The River Murray
also attracts visitors to the area for many recreational pursuits e.g. water skiing, fishing and
house boating. Lake Bonney is also located within the Council area and is a key tourist and
recreational attraction. The Council accounts for 34% of the Riverland population of 33 460.
The Riverland unlike other country regions has a stable population with a small percentage
increase.
The region has a well-earned reputation for an outdoor lifestyle and sporting excellence
coupled with a naturally friendly and outgoing social acceptance. Council is very much a River
Murray local government body with their future linked hand in hand with the health of the
river for their economy, recreation and amenity.
Council is the applicant for the Renewable Energy Solar Power Generation Facility project
submission to the State Local Government Infrastructure Partnership (SLGIP). To complete
the Facility, Council is seeking the SA Government as an investment partner. Council will fund
80% of the project, $20.136M and is seeking $5.034.9M from the SLGIP. Council is committed
to operating a financial sustainable manner and has conducted a financial analysis of the
Facility which confirms the feasibility of the project. Council is in a strong financial position
and has developed rigorous policies and processes to ensure that funds are spent and
managed in accordance with Local Government Legislative requirements. Council has
provisioned their contribution to this Facility in the long term financial plan:
1. Council financial commitment $20.136M
2. Partnership Funding from SLGIP $5.034M
Total Project Costs $25.17
1) BASE COST ESTIMATE
Effective date of BCE: dd/mm/yy
Estimated date of commencement of construction: dd/mm/yy
1 Direct Costs
1.1 Materials
1.2 Labour
1.3 Plant Hire
Sub total $
2 Indirect Costs
2.1 Recurrent overheads
2.1.1 Site facilities
2.1.2 Plant & Equipment – site maintenance
2.1.3 Project management costs
2.1.4 Commercial
2.1.5 QA and Safety
2.2 Non-recurrent overheads
2.2.1 Establishment and mobilisation
2.2.2 Disestablishment and demobilisation
2.2.3 Project insurances
2.2.4 Professional fees – design, legal, financial, etc
Subtotal $
3 Owner’s Cost
3.1 Contracted professional staff
3.2 Investigations
3.3 Land costs & resumptions
3.4 Authority fees
3.5 Owner supplied plant and equipment
Subtotal $
4 Contractor’s Fee
4.1 Profit margin
4.2 Corporate Overheads
Subtotal
5 Provisional Sums
5.1
Subtotal $
TOTAL OF BASE COST ESTIMATE $
AssignmentTutorOnline
Table 2: Base cost estimate
BASE RISK ALLOCATION AND CONTINGENCY
6 Base Risk Allocation
6.1 Escalation (period between BCE and construction)
6.2 Project Risk A
6.3 Project Risk B etc
Sub total $
7 Contingency
7.1
Subtotal $
TOTAL OF PROJECT RISKS $
Assignment questions:
1) Please discuss what is potential economic benefit of this project (employment, gross
value added labour, goods, materials, skills, long term economic growth strategy,
supply chain development) specifically
o Background
o Overview
o Issues
o Constraints
o Assumptions
o Financial costs
o Non-Financial costs
o Financial benefits
o Non-financial benefits
o Duration
o Recommendations
2) Assignment help – Discuss what is potential environmental impact of this project (positive and negative)
3) What is project risk?
4) What is cost of doing nothing?
Start this assignment in semester week 5 and submit in week 10.
Late submissions must be negotiated with the lecturer minimum one week before the due
date.
Marking Guide
ELEMENT AVAILABLE MARKS
Please discuss what is potential economic benefit of this project
(employment, gross value added labour, goods, materials, skills,
long term economic growth strategy, supply chain development). 30%
Assignment help – Discuss what is potential environmental impact of this project
(positive and negative) 20%
What is project risk? 20%
What is cost of doing nothing? 15%
Referencing of text 10%
Presentation 5%
Total 100%
Assignment status: Already Solved By Our Experts
(USA, AUS, UK & CA PhD. Homework help – Writers)
Assignment 1 – Business Case
Economic Engineering Strategy MANU1054
Assignment 1 – Business Case
The assignment 2 is an individual work. A student needs to develop a business case based on
the scenario outlined below. Several examples and templates are available on canvas.
This is 3000 words work, 40% worth of the total marks. The assignment is to be done
individually by student. The scenario for business case details are as follows:
Scenario: the proponents (applicant)
The Shine Council area is located within the Riverland, three hours’ drive to the north east of
Adelaide. The Shine Council is one of three Council areas within the Riverland which border
the River Murray from Blanchetown in the west to Paringa in the east. The Shine Council is in
the Riverland region of South Australia. The Riverland population is approximately 33,000
with the Council population 10,500. The area is 50,845ha which incorporates the townships
of Barmera, Berri, Cobdogla, Glossop, Loveday, Monash, Overland Corner and Winkie. The
economic base of the community is driven by horticulture and viticulture and associated
industries. Berri has traditionally serviced the region for state and federal government
services. Other major sources of economic development within the area include Accolade
Wines Australia located at Glossop, tourism and retail shopping. The Council area has its
origins in the pastoral holdings which occupied extensive tracts of land adjacent the River
Murray as early as the 1850s. The first overland stock route between New South Wales and
South Australia established by Joseph Hawdon and Charles Bonney in 1838 saw the
development of Overland Corner as an important staging post for drovers. The River Murray
also attracts visitors to the area for many recreational pursuits e.g. water skiing, fishing and
house boating. Lake Bonney is also located within the Council area and is a key tourist and
recreational attraction. The Council accounts for 34% of the Riverland population of 33 460.
The Riverland unlike other country regions has a stable population with a small percentage
increase.
The region has a well-earned reputation for an outdoor lifestyle and sporting excellence
coupled with a naturally friendly and outgoing social acceptance. Council is very much a River
Murray local government body with their future linked hand in hand with the health of the
river for their economy, recreation and amenity.
Council is the applicant for the Renewable Energy Solar Power Generation Facility project
submission to the State Local Government Infrastructure Partnership (SLGIP). To complete
the Facility, Council is seeking the SA Government as an investment partner. Council will fund
80% of the project, $20.136M and is seeking $5.034.9M from the SLGIP. Council is committed
to operating a financial sustainable manner and has conducted a financial analysis of the
Facility which confirms the feasibility of the project. Council is in a strong financial position
and has developed rigorous policies and processes to ensure that funds are spent and
managed in accordance with Local Government Legislative requirements. Council has
provisioned their contribution to this Facility in the long term financial plan:
1. Council financial commitment $20.136M
2. Partnership Funding from SLGIP $5.034M
Total Project Costs $25.17
1) BASE COST ESTIMATE
Effective date of BCE: dd/mm/yy
Estimated date of commencement of construction: dd/mm/yy
1 Direct Costs
1.1 Materials
1.2 Labour
1.3 Plant Hire
Sub total $
2 Indirect Costs
2.1 Recurrent overheads
2.1.1 Site facilities
2.1.2 Plant & Equipment – site maintenance
2.1.3 Project management costs
2.1.4 Commercial
2.1.5 QA and Safety
2.2 Non-recurrent overheads
2.2.1 Establishment and mobilisation
2.2.2 Disestablishment and demobilisation
2.2.3 Project insurances
2.2.4 Professional fees – design, legal, financial, etc
Subtotal $
3 Owner’s Cost
3.1 Contracted professional staff
3.2 Investigations
3.3 Land costs & resumptions
3.4 Authority fees
3.5 Owner supplied plant and equipment
Subtotal $
4 Contractor’s Fee
4.1 Profit margin
4.2 Corporate Overheads
Subtotal
5 Provisional Sums
5.1
Subtotal $
TOTAL OF BASE COST ESTIMATE $
AssignmentTutorOnline
Table 2: Base cost estimate
BASE RISK ALLOCATION AND CONTINGENCY
6 Base Risk Allocation
6.1 Escalation (period between BCE and construction)
6.2 Project Risk A
6.3 Project Risk B etc
Sub total $
7 Contingency
7.1
Subtotal $
TOTAL OF PROJECT RISKS $
Assignment questions:
1) Please discuss what is potential economic benefit of this project (employment, gross
value added labour, goods, materials, skills, long term economic growth strategy,
supply chain development) specifically
o Background
o Overview
o Issues
o Constraints
o Assumptions
o Financial costs
o Non-Financial costs
o Financial benefits
o Non-financial benefits
o Duration
o Recommendations
2) Assignment help – Discuss what is potential environmental impact of this project (positive and negative)
3) What is project risk?
4) What is cost of doing nothing?
Start this assignment in semester week 5 and submit in week 10.
Late submissions must be negotiated with the lecturer minimum one week before the due
date.
Marking Guide
ELEMENT AVAILABLE MARKS
Please discuss what is potential economic benefit of this project
(employment, gross value added labour, goods, materials, skills,
long term economic growth strategy, supply chain development). 30%
Assignment help – Discuss what is potential environmental impact of this project
(positive and negative) 20%
What is project risk? 20%
What is cost of doing nothing? 15%
Referencing of text 10%
Presentation 5%
Total 100%
Assignment status: Already Solved By Our Experts
(USA, AUS, UK & CA PhD. Homework help – Writers)
