Reference no: EM133304693

Risk and Cost Engineering

Students are encouraged to from groups of no more than 4 students / group to prepare the assignment

The assignment to be prepared as Feasibility Report for the project based on the project information provided to help client make decision. Exclude any inflation / cost escalation impact on the cost / revenue of the project. The financial analysis is based on a 25-year period. Bonus marks will be given for inclusion of Life Cycle Costing analysis and discussion in the assignment.

Requirements: the report is to include the following:
- Executive Summary
- Introduction
- Assumption
- Discussions
- Recommendations
- Financial Analysis
- Sensitivity Analysis
- Life Cycle Costing Analysis (Bonus Requirement)
- Group journals to write a short paragraph outlining the work that they conduct in the assignment

About Housing Choices Australia
Housing Choices Australia (Housing Choices) is a national, not-for-profit housing association that creates safe, quality, affordable housing for people who are struggling to find a home in Australia's challenging private rental market. Affordable rents are set at 25% of a person's income and no higher than 75% of market rent.

Housing Choices is dedicated to the development and management of affordable housing in inner-city and urban locations where housing stress is an issue. The company currently owns 1,300 properties and manages 2,400 tenancies across Victoria, Tasmania and the Northern Territory.

Our 20 year history and experience in providing homes to those with disabilities and mental illnesses has shown the need for a range of flexible housing models to create successful outcomes for our residents. Over half of Housing Choices' 2,400 tenancies are dedicated to people requiring support to live independently. We have an ongoing commitment to 25% of all stock being designed to accommodate people with varying disabilities, and last financial year we exceeded this target with over 33% of all properties catering to these residents' needs.

Housing Choices has used innovative funding models that deliver housing to meet a range of housing needs within well located communities. By effectively using resources and partnerships, we have delivered a range of disability accommodation solutions including a Mixed Equity Program, shared accommodation homes, independent living units within developments and in conjunction with shared homes.

Need and Tenant Mix
Through experience and research we have identified the following housing needs:

• There is a need for affordable housing that is at least 3 bedrooms
• There is an overwhelming number of single parent families who cannot find suitable accommodation
• There is a high demand for one and two-bedroom units in the inner city
• Single people and families require the most assistance to live independently
• People with disabilities need suitable, safe housing in well-located areas

We have found that applying a model of 50% of tenants on Centrelink and 50% of tenants on low wages in our developments has been most successful. Housing Choices believes that promoting a social mix in our developments creates inclusive, stable communities in which residents can forge new and productive relationships and live independent lives.

We aim to create safe, secure and inviting environments that encourage tenants to take pride in their homes and look after them. This includes providing housing to all types of people that allows them to have the same experience as anyone.

Social Housing Design Guidelines
Our developments endeavour to provide a socially cohesive insertion into the existing community. Decisions made at the design stage also have repercussions for the ongoing success of the development in respect to ongoing maintenance and management. The design must consider use by people with limited mobility, with different levels of external support and care, and respect for the independence of residents with a disability. It should also explore the principle of "ageing in place" (whereby spaces can be adapted to respond to resident's changing circumstances).

We have attached copies of our Design Guidelines and Outline Specifications. The Design Guidelines refer to important location criteria, site planning, and other design considerations. Please also note that disability modified units must comply with disability codes AS 1428.1 and 1428.2.

Budget

Housing Choices has recently been awarded $5.57 million in funding from the Federal Government to deliver social housing in the Arden-McCauley area in Melbourne. The funding conditions require Housing Choices to contribute additional private funding equal to 25% of the total project cost to deliver further social housing outcomes for this project. Housing Choices therefore expects the total cost to be approximately $7.4 million. Housing Choices private debt has to be paid off within 25 years.

In addition Housing Choices has received $360,000 in philanthropic contributions from the Lord Mayor's Charitable Foundation to provide for on-site offices, multi-purpose spaces and community infrastructure for all residents, particularly benefiting residents at risk of homelessness, with mental health conditions or disabilities.

Attachment:- Risk and Cost Engineering.rar