The Largest Real Estate Developers - The Cost of Construction - Real Estate Assignment Help

Assignment Task:

Scenario 

A client who is one of the largest real estate developers in your region of the world, has secured a smaller than ideal sized development for a proposed office building in an urban location and has obtained planning permission for the proposed development. 

The purchased site is a sloping site and was used by the previous owner for manufacturing car batteries. The client has not been provided with geological survey reports but is concerned about the type of soil and possible contamination of the ground. 

The management of the project has been awarded to a firm of consultant quantity surveyors. The project is at concept stage where the project team has produced only sketches suggesting two design options. 

Option 1 

A two-storey office building to accommodate a reception hall and meeting rooms on the ground floor with a kitchenette, office spaces and toilet facilities on each floor. 

In addition to onsite car parking for staff and visitors, the client is considering allocating an additional area on site for a state-of-the-art gym for use by members of the public who will be paying to use the gym as another source of revenue. 

Option 2 

A three-storey building, with only a reception hall and meeting rooms on the ground floor; a kitchenette, office spaces and toilet facilities over the first floor and with the gym on the second floor. This would result in a smaller footprint for the building and allow an increased area for staff, visitor and customer parking. 

You are the Quantity Surveyor assigned to this project and you are scheduled to have a project planning meeting with the client. From the previous meetings, the client does not fully understand why the cost of the two options would be significantly different. The client is keen on option 2 as it offers the best solution to meet all the requirements of a modern office space.

Task 

You are required to advise the client by providing a critical analysis that considers the following: 

• How the design of option 2 will impact the cost of construction in comparison with option 1.

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