Managerial Finance for the Built Environment | My Assignment Tutor

Department of Architecture and the Built EnvironmentUniversity of the West of EnglandPostgraduate LevelMSc Construction Project ManagementManagerial Finance for the Built EnvironmentCoursework Managerial Finance for the Built Environment2020-21 Page | 1 of 6PurposeThe coursework is intended to provideyou with the opportunity todemonstrate understanding andintegration of the various aspects ofthe programme and this module. Theaim should be to obtain, analyse andinterpret financial data; and assessfinancial objectives and integrate theminto a balanced decision-makingframework.Project Brief:MF4BE, a leading local housingdeveloper of the South West isconsidering a new housingdevelopment to be built under a quasisocial housing agreement with anational house-building contractor(s).Several sites were identified in theinitial feasibility studies, many of theserequired substantial demolitions ofSource: Managerial Finance for the Built Environment2020-21 Page | 2 of 6existing dwelling houses and relocation during construction and have thusbeen rejected.The proposed development will take place on a site in a new neighbourhoodcalled East of Harry Stoke (EoHS) situated on the urban edge of northBristol near the University of the West of England and close to the M32 andM4 motorways. This site is mostly owned by Crest Nicholson and SouthGloucestershire Council while some parts are owned by other privatelandowners who intend to deliver about 2000 houses. MB4BE haspurchased 3.125 hectares of the EoHS land for £3.5 million per hectare toenable it to carry out this development. MF4BE plans to develop the site toprovide a mix of housing (including family housing, flats and shelteredaccommodation), together with commercial uses in future and also providesome open spaces. In keeping with this, the average dwelling per hectarefor this development should NOT exceed 32.To achieve this undertaking, MF4BE is considering engaging a reputableconstruction company or a housebuilder from a list of firms that haveexpressed interest. MF4BE is also considering taking a stake in a nationalconstruction company or housebuilder as part of its long-term expansiongoals of accessing other income.You are required to provide a report that will contain the following:Part 1: 60 MarksAssessment of suitability of construction or housebuilder firm(1800 words)You are required to obtain the most recently published “FULL ANNUALREPORT” for a construction company or housebuilder of your choice. Theannual report must be for a UK PLC that is listed on the UK Stock Exchangeand must be in the English language.To assess the suitability of the chosen construction company orhousebuilder, both as a building contractor and a potential investment, youare required to prepare a report on the financial “health” of this companywith the use of financial ratios as revealed or implied by the most recentfull annual report and its financial statements. Your report should be clearand succinct as if prepared for your boss (with no accounting knowledge)who is a very busy person and may have limited time to read it before animportant meeting. All relevant information in the annual report should beused as necessary. Managerial Finance for the Built Environment2020-21 Page | 3 of 6The details of the calculations of all ratios must be shown in FULL andmust submit separately in the Appendices either in Microsoft Word orMicrosoft Excel (Note: Please only restrict yourself to the ratioscovered in class). A complete copy of the FULL ANNUAL REPORT mustbe submitted as part of the Appendices. Please DO NOT use theinterim (half-year) annual report.You can get all the annual reports you need online by accessing therespective company website or by carrying out a search using yourpreferred search engine. You can use FAME (a database that can beaccessed through the UWE Library webpage) to check that the company isa PLC.Part 2: 40 MarksDevelopment decision making (1200 words)a. Undertake a breakeven analysis (a chart included) based on only thedevelopment of houses. With this in mind, you are required to decide thenumber of residential dwellings that will be constructed on this site, thehousing mix and types (e.g. 1 bedroom, 2 bedrooms etc.). Note: aminimum of three house types is required.Market information can be gleaned from a variety of databases e.g.“Rightmove” that will provide reasonable comparables. Cost informationcan be obtained from sources such as the Building Cost Information Service(BCIS) or Spoons.(14 marks)b. With reference to (a) advise MF4BE on the viability of the proposedproject by carrying out capital budgeting analysis for this developmentusing the Return of Capital Employed (ROCE), payback period, NetPresent Value (NPV) and Internal Rate of Return (IRR). Discuss which ofthese methods IS the most suitable for this task.Make appropriate assumptions regarding the timing of the construction andsale of the units.(18 marks)c. Advise MF4BE on the pros and cons of outsourcing the development ofthis project as opposed to doing it in-house.(8 marks) Managerial Finance for the Built Environment2020-21 Page | 4 of 6The full report should include, among other things:• One-page executive summary of both Part 1 and Part 2- containing thekey features and results of the report. This page must be placed at thebeginning of the report• A brief introductory section• Numerical investigation• Findings – analysis and interpretation of results• Solutions, conclusions and recommendations• References (ensure that you use the Harvard System check the UWElibrary website for guidance through the referencing link below)• Appendices – these should be used appropriately to show the workingsand should be limited to information supporting the report. Definitions ofratios should be within the report while ensuring that importantinformation is not relegated to the appendicesStyleThe typed report should be coherent, complete, clear and concise(maximum 3,000 words with a 10% allowance – see the University’s policyon word count) making good use of headings, tables, graphs, diagrams,etc. and presented professionally with balanced use of appendices,contents listings, proper referencing, bibliography, word count, etc.material in the appendices. The report should be predominately analyticalrather than descriptive.Coursework hand-inThe coursework should be handed ONLINE (electronically) followingnormal Faculty practice BEFORE 14.00hrs BST on the submission datewhich will be communicated to you later. Note that you will be penalised ifyour work is submitted even one (1) second after the 14.00hrs.The most significant point to stress at this time is that your submissionmust consist of three electronic files: –1. The report containing both parts 1 and 2 and any appendices MUSTbe submitted as a single MS WORD document.2. A single spreadsheet file (MS Excel or similar) containing (at least)two (2) separate worksheets (labelled appropriately) for theappendices of all the calculations.3. The pdf file of the FULL ANNUAL REPORTNote: Please DO NOT just paste pictures of extracts of the Excel file sincewe will need to see your calculations. Ensure that this Excel file is uploadedas a separate file and DO NOT EMBED it in the MS WORD file – embeddedfiles that cannot open will be deemed as missing. Managerial Finance for the Built Environment2020-21 Page | 5 of 6Electronic SubmissionFull instructions will be provided at least 4 weeks before submission.Ensure that you read the submission instructions carefully.Hard copy submissions are NOT accepted under any circumstances.Please do not leave submission to the last day. Computer and internetconnection problems are not acceptable grounds for PersonalCircumstances. Anticipate that very close to the deadline blackboard usagewill surge and may cause upload speed issues.The electronic format provides the ability for word counts to be completed.Anything more than 10% over the limit (not including any covering note)will not be marked. This will leave your submission incomplete anddisjointed; this will be a major penalty.The electronic submission also provides the marker with the ability toprocess the whole batch of assignments through a piece of software called‘safe assign’. This will compare the text in every assignment againstavailable electronic resources AND compare it to all the other submissionsin the batch.Best wishes Managerial Finance for the Built Environment2020-21 Page | 6 of 6Guideline assessment criteria for postgraduate work Student PerformanceFormative workSummative work% Level MA full, coherent and well- roundedsubmission showing rigour, clarity andinsights leading to elements of originalityExcellent‘Starred’ Distinction 80-100A well-structured, relevant piece of workbased on an understanding of virtually allthe important aspects, with goodreasoning and insight, expressedthroughout, that wholly supports theconclusions or solutionsVery good70-79DistinctionA submission that is well focused on thetask, showing a good grasp of the subjectand based on most of the importantaspects being well integrated into thework with reasoned outcomesGood60-69MeritReasonable coverage of the subjectmatter demonstrating logic and reasoningthat is directed towards meeting the aimsof the taskGood55-60‘Solid’ PassWork showing a grasp of the subjectmatter, having some omissions andconfusions but in which the workpresented is used to support conclusionsand/or solutionsBarelysatisfactory50-54Bare PassSome of the relevant material is identifiedand there is some indication of anappreciation of the subject matter butwith significant omissions, poorlystructured and weak conclusion/solutionsWeak40-49Fail / Area ofCompensation atComponent LevelWork with a few relevant aspects of thesubject matter, poorly linked togetherand lacking direction in addressing thequestion and providing no support forconclusionsVery weak30-39FailVery little of relevance to the questionwith an absence of focus and largelyincoherent with little sign ofunderstanding, leading to an inability todraw meaningful conclusionsUnacceptableUnacceptable


Leave a Reply

Your email address will not be published. Required fields are marked *