House Project



House Project

Introduction

Often considered an oasis of limitless growth in the United Arab Emirates (UAE), the emirate of Dubai is widely known for its rapid expansion and lavish extravagance, which is nowhere as evident as in its market for housing and hotel development projects. Luxury is a priority, and as contractors struggle to outdo one another, the cost of projects often reaches billions of dollars. This Process has led to the construction of the world's tallest building, the Burj Tower, and the world's largest shopping mall, the Dubai Mall, all within the small emirate. But Dubai is not isolated from the rest of the world, especially with regard to financial flows and oil prices, and its economy is undoubtedly susceptible to the worldwide financial crisis. Although uniquely situated among its Arab neighbors due to its increasingly tourism-based and service-based economy, global economic contraction may put cooling pressure on Dubai's housing market, allowing leaders to focus on the long-term implications of its rapid growth.

House Project

Objectives

Commercial Contractors plans to:

Significantly expand into the commercial and office building contracting market to improve profit margins and increase local market share.

Expand services and decrease costs by creating a permanent painting crew, as well as adding a bookkeeper and an accountant to our staff.

Begin to market and offer services in the San Antonio area in preparation for opening an office there in Year 4.

Mission

Our project strives to offer the finest quality design, site preparation, cost estimates, construction, repair, and alteration to clients needing large scale construction services, whether it be office buildings, warehouses, large apartment complexes, public works, etc. Fosse maintains the highest standards of service in the commercial construction industry.

Keys to Success

The local commercial construction market is booming at the moment. In order to achieve a defendable position in this environment, Fosse must concentrate on the following tasks.

Secure at least five large scale commercial contracts over the next three years.

Expand our customer base through expansion into other geographic areas to retain a sufficient level of profitability. Increase marketing expenditures by 15%.

Costs Associated with Constructed Facilities

The costs of a constructed facility to the owner include both the initial capital cost and the subsequent operation and maintenance costs. Each of these major cost categories consists of a number of cost components. The capital cost for a construction project includes the expenses related to the initial establishment of the facility:

Land acquisition, including assembly, holding and improvement

Planning and feasibility studies

Architectural and engineering design

Construction, including materials, equipment and labor

Field supervision of construction

Insurance and taxes during construction

Owner's general office overhead

Equipment and furnishings not included in construction

Inspection and testing

The operation and maintenance cost in subsequent years over the project life cycle includes the following expenses:

Land rent, if applicable

Operating staff

Labor and material for maintenance and repairs

Periodic renovations

Insurance and taxes

Financing costs

Utilities

Owner's other expenses

The magnitude of each of these cost components depends on the nature, size and location of the project as well as the management organization, ...