BUSINESS PLAN FOR MIXED USE BUILDING

PROJECT TITLE: - FEASIBLITY STUDY FOR MIXED USE

BUILDING.

PROJECTOWNER:- ………………….

ADDRESS: - Addis Ababa, Sub-city: Bole,

Woreda: 08, House No……..

Phone: - ……………………

PROJECT AREA:-ADDIS ABABA, BOLE SUB-CITY

WOREDA 08

DATE: May, 2019G.C

1
 BUSINESS PLAN FOR MIXED USE BUILDING

Table of Contents
Executive Summary........................................................................................................5
Introduction.....................................................................................................................6
General Background....................................................................................................6
2 Project Objectives........................................................................................................8
2.1 General Objective..................................................................................................8
2.1.1 Specific objective............................................................................................8
Project description.......................................................................................................8
Project Rationale.........................................................................................................9
The significance of the project....................................................................................9
Project Location........................................................................................................10
3The market Study........................................................................................................11
Market Analysis........................................................................................................11
The Demand-Supply Gap..........................................................................................11
Current supply of Mixed use building.......................................................................12
Future market or Demand of commercial Building rental........................................12
Target customers.......................................................................................................13
Marketing promotion and strategy............................................................................13
Competition...............................................................................................................13
The project facilities and Services plan.....................................................................14
4 Technical Studies.......................................................................................................16
4.1 Description of the project Service/ Product mix.................................................16
4.1.1 Land Use Plan...............................................................................................16
4.2 Construction work and Technology....................................................................17
4.2.1 Construction schedule...................................................................................17
4.2.2 Architectural Design & Layout....................................................................17
4.2.3 Structural design...........................................................................................18
4.2.4 Reinforced concrete......................................................................................18

2
 BUSINESS PLAN FOR MIXED USE BUILDING

4.2.5 Foundation Design........................................................................................18

4.2.6 Construction Plan and process......................................................................19
4.3 Utilities................................................................................................................19
5 Engineering and civil works......................................................................................21
5.1 Land, Building and Civil Works.........................................................................21
5.2 Manpower and training requirement...................................................................22
5.2.1 Manpower requirement.................................................................................22
Labor Availability..................................................................................................23
Project implementation..............................................................................................23
Organizational Structure............................................................................................24
Organization and management..................................................................................24
6 Financial analysis.......................................................................................................31
6.1 Repair and Maintenance Cost..............................................................................31
6.2 Depreciation and Amortization...........................................................................31
6.3 Total Revenue......................................................................................................32
6.4 Discounted Payback Period.................................................................................32
6.5 Cash flow.............................................................................................................32
6.6 Benefit cost ratio.................................................................................................32
6.7 Internal Rate of Return........................................................................................33
6.8 Net present value.................................................................................................33
7 Conclusions and Recommendations..........................................................................34
Conclusion.................................................................................................................34
Recommendations.....................................................................................................35
References.....................................................................................................................36

3
 BUSINESS PLAN FOR MIXED USE BUILDING

List of table
Table 1: Office Space Demand Forecast…………………………………………. 12

Table 2: The plan is that the ground will be partitioned in to different rooms…14

Table 3: land utilization Plan ………………………………………….……….…..16

Table 4: Utilities…………………………………………………………………… 20

Table 5: List of Building and Civil Works and Their Costs ……………………..21

Table 6: Manpower Requirement and Annual Labor Cost………………………22

Table 7: project Implementation schedule………………………………………. 23

Table 8: Repair and Maintenance Cost ……………………………………………31

4
 BUSINESS PLAN FOR MIXED USE BUILDING

1 Executive Summary
KEY INFORMATION HIGHLIGHTS

PROJECT OWNER Mr……………..

PROJECT TITLE Mixed use Building

LAND REQUIREMENT 1174 M2

PROJECT AREA Addis Ababa, Bole Sub-City Woreda 08

PRODUCTION CAPACITY 2 basement and G+12

PRODUCTS TO BE MANUFACTURED
Rental Rooms

MARKET Domestic and International

COST OF THE PROJECT 34,512,183

PROJECT LIFE 10 YEARS

NUMBER OF WORKING DAYS 365 DAYS

FINANCIAL VIABILITY ( AT 10% DISCOUNT RATE )

NPV (NET PRESENT VALUE) 54,439,417 BIRR

IRR (INTERNAL RATE OF RETURN) 34.13%

PBP ( PAY BACK PERIOD) 3year and 9month

ANALYSIS RESULT

THE PROJECT IS TECHNICALLY FEASIBLE, FINANCIALLY AND COMMERCIALLY VIABLE

AS WELL AS SOCIALLY AND ECONOMICALLY ACCEPTABLE. HENCE, THE PROJECT IS
WORTH IMPLEMENTING.

5
 BUSINESS PLAN FOR MIXED USE BUILDING

2 Introduction

2.1 General Background

The current fast and dynamic economic growth of Ethiopia especially in Addis Ababa necessitates
equivalent growth of building and construction sector. The sector should expand rapidly to support the
overall economic development sustainable.

In the building sector of the economy, the multi- purpose in the one becoming rapidly expanding in
Addis Ababa since dynamic economic development of urban economy requires the construction of these
buildings in the city to support the growing of business service sectors like supermarkets, Beauty salon,
shops, offices cinemas, Computer Center, Cafeterias, restaurant, assembly hall, apartments and other
activities. In this regard, mixed used building expands in the all parts of the city.

Investment and property development play an important role in any emerging markets or economies.
Property generally comprises residential houses and commercial real estate property (mainly mixed us
building) developed for rental business and sale. The property investment market in Ethiopia remained
under developed for several years. As a consequence, the supply of residential houses and non-
residential real estate that can be used for residence, office space, shopping malls and catering services
in the urban centers of the country is disproportionately low to cope with the growing demand in the
country spinning from the average growth in GDP of 5.5% over the last ten years and population
increase. The relatively good performance of the macro-economy (real growth in GDP, low inflation
rate and growth in investment and export sector) has stimulated unprecedented investment growth in the
property sector over the last five years. The growth of investment in the property market over the last
five years in consistent with the global experience suggesting that investment in the residential and
commercial property is greatly influenced by the performance of the macroeconomic conditions. In
general, a stable macroeconomic condition leads to economic and business growth and develops
investors’ confidence. This certainly spurs large demand in the property market for office space,
shopping malls, catering services, apartment and residential houses. Following growing demand trends,
and with the expectation of high return on their investment capital, large number of land developers
pooled their financial resources and invested in the property market.

To this effect, the owner of the envisioned Mixed Use Building Mr ……… who has been living for long
time in this city, planned to construct in Bole Sub-city and undertaken this project study to check the
6
 BUSINESS PLAN FOR MIXED USE BUILDING

market, technical and financial feasibility of this project. The promoter is very ambitious and committed
to realize the project. Hence, they expect to get the necessary support from the city administration to
make the project to be operational.

Besides, the government polices and incentives for the private sector investment are very promising that
motivates the promoter to engaged in mixed use building business.

7
 BUSINESS PLAN FOR MIXED USE BUILDING

2 Project Objectives

2.1 General Objective

The major goal of this project is to contribute towards the growth of the trade sector in Addis Ababa. Its
specific objectives include the following.

2.1.1 Specific objective

 To construct and develop modern shops, offices, and restaurant & cafeteria facilities that enable to
provide standard services to customers.
 To undertake trading and other refuted business activities that enable to generate a reasonable to the
invested capital.
 To develop modern business centre that would provide full services on city standard.
 To create employment opportunities.
 Contribute towards the beautification of the city through the construction of modern building
infrastructure and facilities.
 To establish economically viable, socially acceptable and environmentally friend mixed use
Apartment.

2.3 Project description

The long-term goal of the project is become the best choice trade center in the city. The proposed project
will have a total area of 1174m2, designed to reader a multipurpose giving business, which will in turn
plays significant role towards solving shortage of business center in Addis Ababa.

The historical nature of the city as business unique location in one of the most attractive center in
Ethiopian (100% urban center). The owners plan the project to render banking and insurance, shopping
facility, offices and cafeteria services to create high quality class to satisfy the interest of customers in
the city. Based on environmental and other considerations, the entrepreneur has determined the type and
size of the building which is already determined by the site; conceptual planning and preliminary
analysis have been carried out by analysts.

8
 BUSINESS PLAN FOR MIXED USE BUILDING

In order to attract its clients to the service, the project will develop high standard shop & banking rooms
and office of best choices and will also save best quality apartments, restaurant and café.

2.4 Project Rationale

The existing promising investment opportunities, the demands of service needs along with relatively
sound investment support made by the government in such kinds of feasible projects, compelled the
project promoter to initiate the multipurpose oriented business project to be established. Despite the
promising business opportunities of the city, the trend on such kinds of investment found to not enough.
The mismatch between the demand for and supply of such kind of services in easily observed in the city.

Therefore, the existing shortage or absence in the supply of these services, along with its commercial
and administrative access, better location and infrastructure access, escalating trend of urbanization and
business activities, thus it is with such reason that this project is identified and proposed and assumed to
be more profitable.

In general, the country’s privatized and free market economy; good governance creates a favorable
environment for the development of investment for private investors.

2.5 The significance of the project

The envisaged project deemed to add to the economic development of the city in general in specific with
following ways:

A. Source of Revenue

As public policy of any nation, the government collects different forms of taxes from different business
organizations and individuals. Among the different forms of taxes, business income taxes, payroll
income tax and VAT are collected from undertaking business activities. Therefore, the building will
serve as sources of revenue for the city.

B. Employment opportunity

One of the problems that our country faced is unemployment. Therefore, the current objective of the
government is working on tackling the problem of unemployment and fostering the development

9
 BUSINESS PLAN FOR MIXED USE BUILDING

process either through creating self employment or employment in other organization. Hence, this
project will hire 26 individuals and more than eighty individual during construction.

2.6 Project Location

The license area is located in Addis Ababa City Administration, Bole sub-city, Woreda 08, locally
named as" Civil Service" . The total area of the project is 1174 m 2. . It is surrounded by main asphalt
road at west part, south east by resident, south west resident, and mixed use building at North part.

10
 BUSINESS PLAN FOR MIXED USE BUILDING

3 The market Study

3.1 Market Analysis

There are a number of factors which affects the demand of standardized mixed use building. Of these
factors, the most important to have influence is population growth and the level of income. The currently
expanding service industry in Addis Ababa and from every corner of the country the city has been
inviting skilled and unskilled labor forces to the center; in addition, the number of both national and
international offices has been increasing. Above all the increase in the number of population increases
for the provision of different services. Nowadays, most of the private business organizations need their
own small-medium offices in order to give their services and provide their products, and they prefer the
place that found in the center or close to the road.

As clearly indicated in the introductory part of this proposal, Addis Ababa is the dynamically growing
urban center of Ethiopia. Though the market demand gap for mixed use building is not clearly
understand there is wider gap for such demand as many merchants, organizations are flouring to the city
every day. From prior business experiences, the demand of mixed use building is very high and hence
the demand and the supply gap is very wide.

3.2 The Demand-Supply Gap

There has been a significant growth in the number of local and international trades across the country.
This increase is mainly associated with the stimulation of economic activist and partly due to an increase
in the flow of international and local traders in to the Addis Ababa. Since Addis Ababa is an important
commercial center in addition there is a significant increase in business activates and hence increasing
the number of traders. Even though there is a lack of quantitative estimates that depict the actual demand
and also the annual growth rate commercial facilities are scarce in the city. As a result there is a large
gap between the developed and that of the supply for modern Bank and cafeteria accommodation hence
this project would not face any problem of demand scarcity for it business centre and it would provide
good service to customers.

11
 BUSINESS PLAN FOR MIXED USE BUILDING

3.3 Current supply of Mixed use building

Commercial building/office sector has shown a dynamic change in the past few years. The reason for
this could be rapid economic growth and a supporting public infrastructural development. Other factors
relevant in the specific case of commercial buildings are the large increases in national and international
businesses, particularly firms in the services sector.

The business of multipurpose buildings in Addis Ababa in booming highly due to the recent rapid
growth experienced in Ethiopia. As a result, a good number of local and international organizational are
coming in place. Government offices which used to operate in limited spaces all over the city are also
concentrating on leasing new and modern buildings. Increasing numbers of international organization
which in the past had typically converted residences into office space are now moving towards renting
whole floors or even multiple floors in modern city-center commercial buildings.

3.4 Future market or Demand of commercial Building rental

The demand for office space is a derived demand because firms rent space as an input to the production
of services or goods they provide to businesses and households in the local or national economy.

Following our survey of office space users in several areas are mainly firms providing banking, offices,
cafeteria and restaurants, supermarkets, computer center service. Future demand for office space is
actually driven from growth in number of offices in the city which in turn is influenced by the macro-
economic growth in the country. Assuming that demand for office space is directly related to the growth
in the economy, the forecast for office space demand is shown in the following table;

Table 1: Office Space Demand Forecast

Office space demand under base Office space demand under high
case economic case economic
Years Growth Growth
2010/2011 9,916,543 11,304,859
2011/2012 11,007,363 12,057,416
2012/2013 12,218,173 12,953,878
2013/2014 13,562,173 13,963,577
2014/2015 15,054,011 14,554,534
2015/2016 16,709,952 14,987,431
Source: estimation based on GTP’s forecasted Ethiopian Economic Growth

12
 BUSINESS PLAN FOR MIXED USE BUILDING

3.5 Target customers

The target customers of this envisaged project include:-

1. Business Community
2. Business organization
3. The government bureau

4. Non-governmental organizations

3.6 Marketing promotion and strategy

In order to penetrate and gain considerable market share, one of the major marketing strategies for the
project is consistently rendering quality service to its tenants. Due emphasis must be placed on
improving quality of service and facilities. The major marketing strategies to promote the project and
gain considerable market share include:

 Advertising through different means focusing on the existing service and facilities
 Promote in association to the key location and nearby business
 Working on sustained promotional work.
 Working on public relations to reach and influence key personas and organization with a
capacity of making decision.
 Keeping the quality of its service/ facilities and consistently improving with changing situations.

 Seasonal discount pricing different others customer centric marketing strategies will be used by
the company.

3.7 Competition

There are different forms of competition that may face the envisaged mixed use building. These are
price and non price based competition. Moreover, there are different competitors that will compete with
the project either directly or indirectly. But the mixed use building under discussion has diversified
marketing strategies that could enable it Cope up with the different competitors in the market. Moreover
it will frequently conduct competitors research which focuses on, the strength and the weaknesses, the
different competitors’ strategies, the techniques they use in rendering the service, their customer

13
 BUSINESS PLAN FOR MIXED USE BUILDING

handling methods, and others. Generally the project has many other projects all over Addis Ababa
villages which compete with it.

3.8 The project facilities and Services plan

In order to provide mixed use business center building services of a high standard, it has been planned to
construct and develop the infrastructure and facilities that would viable to meet the requirements of an
international standard business center. Accordingly, various buildings and facilities will be constructed
phase by phase starting with the most needed ones that are essential to commence the operation of its
business activities. With the completion of construction, the building will provide a combined service
such as shops, offices, restaurant and café service as well as modern business center that primarily serve
its guests and major clients.

Table 2: The plan is that the ground will be partitioned in to different rooms:

Building Description Measur Unit price in Total

e Birr
Basement Parking Service Cars 5/per hour 5*50*365=91,250
Ground 1 and 2 Supermarket, Pharmacy, M2 350 350*1100*12*2=9,240,000
Banking & Insurance
1st floor -3rd Beauty salon, shop, M2 224 224*1100*12=2,956,800
floor Computer Center,
Cafeteria and Restaurant
4th floor -7th Different governmental M2 219 219*1100*12=2,890,800
floor and other offices
8thfloor-12th Apartments M2 150 150*1100*12=1,980,000
floor
Total 17,158,850

Since the project will be engaged in mixed building the main sources of its annual revenue would be
from the rental of building spaces such as shops, offices, and banking, café and restaurant. Therefore,
the sources of revenue have been classified in to one category namely the rental of banking and
supermarket, offices, shops, bedrooms restaurant and café based on these classifications. Based on the
market price of similar mixed use building in the area, the envisioned buildings set the following fair
price (Before VAT) for its service, hence when the building construction fully get operational it is
assumed to generate a yearly income of ETB 12,538,850.

14
 BUSINESS PLAN FOR MIXED USE BUILDING

4 Technical Studies

4.1 Description of the project Service

The envisioned mixed purpose building will provide different rental services to the different customer
groups for different purpose. The building will have basement, ground and twelve floors. The purpose of
the building explained as follows;

 The ground floor, first floor second floor and third floor designed for different business centers
like banks, supermarket, beauty salon(man and women), Computer center, pharmacy, internet
café, boutiques, different shops and other business activities,

 4-8 floors designed for Offices.

 8-12 floors designed for Apartments.

4.1.1 Land Use Plan

The total land required for the envisioned project is estimated to be 1174m 2. The total area for the
construction of the building will be 1100m2, as revealed below.

Table 3: land utilization Plan

No Description Land M2
Basement Ground First floor-Twelve floor
1 Building (G+12)
1.1 Basement 1100
1.2 Ground 1100
1.3 First floor-Twelve floor 1100
Total 1100

15
 BUSINESS PLAN FOR MIXED USE BUILDING

4.2 Construction work and Technology

4.2.1 Construction schedule

The construction project is proposed to be started on July 2019, and is expected to be finished on July
2022. As seen in the abbreviated construction schedule above, a majority of the schedule’s time is made
up of five major activities; concrete, building Enclosure, masonry, mechanical and Electrical install.
Concrete activities include processes such as placing foundations and slab on deck. The Building
Enclosure Phase includes erecting the scaffolding that will allow for exterior sheathing installation and
bricklaying.

Mechanical and Electrical install coincide with each other due to the need for coordination between the
two divisions. There are several periods of construction during the schedule in which there are multiple
construction activities occurring at the same time.

The construction site must be organized accordingly as these processes take place. As with any
construction project, the goal of the schedule will to complete all construction activities before the
required Date of completion.

This date of completion is practical based on the time of year in which the building will be completed.
The team allowed a two week contingency for any setbacks. Typically, winter construction tends to
cause unforeseen delays that negatively impact a construction project. These conditions can and will
almost undoubtedly impact the project schedule by causing unforeseen delays and project inefficiency.

4.2.2 Architectural Design & Layout

Although functional spaces for the project were laid out in significant detail, the rest of the building had
designated spaces but set layouts. It was at the discretion of the project promoter to devise typical
layouts for the non-detailed commercial and office spaces. To make sure that the building’s layouts were
practical, the project owner researched typical architectural layouts for laboratory and executive office
spaces. The walls and partitions throughout the floor will congruent with the structural frame and
column locations.

16
 BUSINESS PLAN FOR MIXED USE BUILDING

4.2.3 Structural design

One of principle deliverables of the project is the structural design of the building. The structural bays
were coordinated with the layout of the building adjustments will be made to the bays if specific layouts
are necessary. The frame will be made up of a grid with repeating standard structural bays. Included in
the structural system are bay sizes, shape and size of structural members, floor compositions and curtain
walls. These elements were established to resist gravity ad lateral loads as appropriate.

The gravity load design will completed for two frames; one of structural steel and one of reinforced
concrete. The structural steel frame will chosen for further design based on cost per square foot, local
availability of material and constructability considerations, such as erection and fabrication. The steel
system will then designed for lateral loading with necessary adjustment being made to framing.

4.2.4 Reinforced concrete

The project group prepared hand structural design calculations for a typical bay of a reinforced concrete
frame. In all reinforced concrete bay designs, a superimposed dead load of 8 pounds per square foot will
be assumed for mechanical equipment, floor coverings and ceilings.

Similarly, the design of the typical bay accounted for the use of different commercial space, in which a
live load of 1000 pounds per square was assumed. Loads will be calculated based on the requirements of
the minimum Design loads for Buildings and other Structures.

4.2.5 Foundation Design

The design of a superstructure may be accurate, have considered all possibilities and still fail because
the substructure is incapable of distributing the applied loads to the supporting soil.

Foundation design takes more into consideration than merely the loading from the columns. While the
main part of the project focused on the structural frame and its alternate designs, a preliminary
foundation plan was designed based upon maximum load carried from the superstructure through the
columns. The foundation design conducted by the project team consisted of the selection of foundation
type, determination of the bearing capacity and the design for typical interior and exterior spread
footings.

17
 BUSINESS PLAN FOR MIXED USE BUILDING

4.2.6 Construction Plan and process

The construction process for this project is normally a disjointed three mages development by which the
conceptualized need of the promoter of this project is translated into a functional facility that will meet
their needs in terms of time, cost and quality.

Based on a general program of the project owners the consultant who is going to be hired makes site
studies, develops structural designs, prepares drawings and specifications, determines quantities
involved and estimated the resultants costs. All these activities will be done in the first phase of the
project which is the design stage after the document are produced by the designers have been received,
and the works secured the project is supposed to enter the tendering stage. At this stage contractors study
the project document analyze and subsequently determine the construction methods, built up their unit
rates and submit their bids for the works. The promoter of this project intends to compare the bids and
award the contract for the lowest responsible bidder. This, is of course, presupposes that the favorable
proposal does not exceed the allocated budget.

After the award is made and the contract signed between this project owners and the contractor, the
project constructor is expected to prepare and submits a detailed construction program which includes
material schedule, manpower requirement and cash flow forecast.

After the award is made and the contract signed between this project owner and the contractor, the
project constructor is expected to prepare and submits a detailed construction program which includes
material schedule, manpower requirement and cash flow forecast.

4.3 Utilities

A number of utilities world be put in place in order to ensure smooth functioning of the project. These
utilities include:

18
 BUSINESS PLAN FOR MIXED USE BUILDING

Table 4: Utilities

No Description Qty. Unit cost Cost (Birr)

1 Electricity supply, kWh 100,000 1.30*10,000 130,000
2 Water Supply m3 50,000 10*500,000 500,000

3 Telephone and Internet Broadband

20,000

4 Fuel, Oil and lubricant

2000 19*2000 38,000

Total
1,188,000

19
 BUSINESS PLAN FOR MIXED USE BUILDING

5 Engineering and civil works

5.1 Land, Building and Civil Works

The Mixed use building has a total site area of 1174 m2. The building floor area has covered 74
m2 and the remaining 1100 m2 is left for construction. The type of buildings and its
corresponding civil construction cost is given on Table 5.

Table 5: List of Building and Civil Works and Their Costs

No Description Total price
A. SUB-STRACTURE
1 excavation and earth works 279,570.67
2 concrete work 1,936,546.34
Sub total 2,216,117.01
B. SUPER STRACTURE
1 Concrete work
7,753,358.45
2 Block work
551,534.40
3 Roofing
171,108.00
4 Carpentry and joinery
323,760.00
5 Metal works
820,860.00
6 Finishing
3,111,379.44
7 Painting
275,798.88
8 Electrical installation
7,236,330.00
9 Sanitary installation
1,151,022.00
Subtotal
21,395,151.17
A+B
23,611,268.18
Vat (15%)
3,541,690.23
Grand total
27,152,958.40

As shown on Table 5, the total cost of building and civil work is estimated at Birr 27,152,958.40

20
 BUSINESS PLAN FOR MIXED USE BUILDING

and out of which the proponent has worked more than birr 23.6 million.

5.2 Manpower and training requirement

5.2.1 Manpower requirement

The list of manpower and the annual cost of labor is indicated in Table 6.

Table 6: Manpower Requirement and Annual Labor Cost

Position No Qualification Monthly Annual

SN salary in salary in
Birr Birr
1 General manager 1 BA in management 10,0 120,000
00
2 Building admin 1 BA in Acct/Mgt 8,0 96,000
00
3 Secretary 1 10+2 in secretariat science 3,0 36,000
00
4 HRM Officer 1 10+2 in HRM/Management 4,0 48,000
00
5 Technical and 1 Diploma in building maintenance 8,0 96,000
maintenance manager 00
6 Finance head 1 BA in Accounting 6,0 72,000
00
7 IT Technician 1 Diploma in computer science/IT 6,0 72,000
00
8 Marketer 1 Diploma in marketing 5,0 60,000
00
9 Accountant 1 Diploma in accounting 4,0 48,000
00
10 Guards/Security 4 Basic 2,5 30,000
00
11 General Service head 1 Diploma in Management 6,0 72,000
00
12 Purchaser 1 Diploma in purchasing &Sup Mgt 3,5 42,000
00
13 Electrician 1 10+2 in general electricity 4,0 48,000
00
14 Plumber 1 10+2 in general mechanic 3,5 42,000
00
15 Casher 1 10+1 in bookkeeping 3,5 42,000
00

21
 BUSINESS PLAN FOR MIXED USE BUILDING

16 Cleaner 5 Unskilled 3,0 36,000

00
17 Maintenance officer 1 10+2 in General mechanic 3,5 42,000
00
18 Driver 1 10 completed 2,50 30,000
0
Total 26 86,0 1,032,000
00
Benefit (20%) 17,2 206,400
00
Grand Total 103,2 1,238,400
00

5.2.2 Labor Availability

Workers for this type of plant are available throughout the year. No foreseeable problems are
expected as most of the work requires no previous skills.

5.3 Project implementation

The project’s implementation is expected to take 24 months. The major activities include Bank
loan processing construction of the building, cleaning the area around the building, Procurement
of equipments and start rendering services. The time schedule for major activities is presented
below:

Table 7: project Implementation schedule

SN Activities Date
1 Preparation Project Proposal May 2019
2 Bank loan processing June-July 2019
3 Site Development July 2019
4 Building and construction work August, 2019-July 2022
5 Preparation for service September, 2022
6 Service execution February, 2022

22
 BUSINESS PLAN FOR MIXED USE BUILDING

5.4 Organizational Structure

5.4.1 Organization and management

Organizational Structure

The organizational structure of the project is designed by including all the necessary personnel
under the right division. At the top of the organizational structure, there will be manager with the
responsibility of supervising the overall activity of the building. Depending up on the nature of
the center and the amount of work to be performs; there exist auxiliary units under the general
manager.

Employees under each unit will be supervised by the department head that is accountable for the
general manager. General Manager is appointed by the owners

As clearly shown in the organizational structure, the center organization has one general manager
and three main sections. Under the general manager there are the, Marketing Department,
Maintenance and Building administration department. Under building admin dept there exist two
sections i.e., HRM & finance and general service. Further sub sections are also organized under
technical and maintenance manager. The following section deals with the duties and
responsibilities of each department.

A. The General Manager’s Duties and Responsibilities

 He/she will plan, organize, direct and control the overall activities of the building.

 He/she will devise policies and strategies that will enable the center to be profitable.

 He/she will incorporate modern technological innovation that will facilitate the service
delivery of the building to increase customer’s satisfaction.

 He/she will plan, organize, direct and control the human and non-human resources of the
building so as to achieve the short and long run objectives of the organization.

B. Building Administration Department

23
 BUSINESS PLAN FOR MIXED USE BUILDING

The building Administration Department of the multipurpose building has two main sections
(HRM and Finance and General Service section). It has responsible for undertaking the
following activities;

 Manage the human resources and control employee’s activity

 Well non human resources of the project, which include; effective handling of the
different resources of the building, and devise strategies of controlling against fraud and
damage.

 Will provide the right material or inventory to the center with right price at the right time.

 Will plan, organize direct and control the financial transaction of the building by using all
the necessary documents.

 Accountant and casher that will collect money from the customers.

 Will develop sound financial control system by developing modern financial control
systems.

 Will prepare the annual financial statements and prepare condensed reports for both the
General Manager and other concerned government body.

 Follow the overall status of the business and provide maintenance and repair services

C. The marketing Department

 Will handle the overall marketing activities of the organization which include planning,
organizing, directing, and controlling.

 Will develop the marketing strategies for future multipurpose building development

 Will develop effective customer handling strategies.

 Execute the promotion methods.

D. Technical and maintenance manager

24
 BUSINESS PLAN FOR MIXED USE BUILDING

 Will handle the overall physical maintenance and related issues

 Will make sure electricity and back up is organized.

 Follow up security issues and educate tenants

 Works in collaboration with general service to make sure tenants are well served

Owners

General Manager

Building Maintenance Marketing

administration Department Department

Personnel Promotion
Finance
&Property
Officers

Figure 1.organizational structure

IT, Supervisors
Electricity

25
 BUSINESS PLAN FOR MIXED USE BUILDING

5.6 Financial Requirement and Analysis

The financial resource is a prime resource for undertaking any activities. Hence for
implementing this mixed use building a total of 34,512,183.20 ETB is required. From this 30%
10,353,655 birr will be covered by the promoter of the project while the rest 70% (24,158,528)
will be covered through loan from bank at the prevailing interest rate.

Therefore the said amount of finance is needed for undertaking the following.

5.1 fixed Investment

A. Land, Building & Construction
S.N Description of works Total Cost in birr
1 Building construction 27,152,958.40
2 Site Development 50,000
3 Design and supervision 120,000.00
4 1st Year land lease 422,640
Total 27,745,598.40

B. Building Machineries and Equipments

SN Description Measure Qty Unit cost in Total cost in
ment Birr Birr.
1 Generator Unit 1 300,000.00 300,000.00
2 Carpentry tool box Set 1 27,000.00 27,000.00
3 Electrician tools box Set 1 18,500.00 18,500.00
4 Plumber tools kit Set 1 12,300.00 12,300.00
5 Fire extinguisher Unit 12 16,000.00 192,000.00
(Security Equipment)
6 Elevator Unit 1 750,000 750,000
Total 1,123,800 1,299,800

C. Vehicle
S Description UOM Qty Unit Cost in Total cost in Birr Remark
N Fr.
1 Mini-Bus Unit 1 300,000.00 300,000.00 Duty Free
Total 300,000.00

26
 BUSINESS PLAN FOR MIXED USE BUILDING

D. Office Equipments
SN Description Measurement Qty Unit cost in Total cost in
birr Birr
1 Managerial tables Unit 1 12,600.00 12,600.00
2 Managerial chairs Unit 1 19,500.00 19,500.00
3 Office table with chair Unit 7 12,000.00 12,000.00
4 Secretarial table with chairs Unit 1 8,500.00 8,500.00
5 Computer with chairs Unit 1 15,000.00 15,000.00
6 Shelf Unit   3,500.00 3,500.00
7 Filing cabinets Unit 1 1,500.00 1,500.00
8 Guest chairs Unit 1 4900 4900
9 Fax & Telephone machine Unit 1 1,300.00 1,300.00
10 Carpet and Curtain LS 1   23,000.00
Total   101,800.00

Working Capital

Operating Expenses

SN List of Items Annual cost in birr Assumptions Used

1 Audit and legal fee 48,000.00 4000 br/per ,month
2 Stationery supplies 12,000.00 1000 br/month
3 Promotional Cost 40,000.00 Lump sum annual cost
4 Property Insurance 84,009.00 1% of the building
5 Cleaning Supplies 12,000.00 1000 br. Per month
6 Uniforms 12,000.00  
7 Water consumption 5,000.00 2500 m3 by 3.15 br
8 Electric consumption 130,000.00 100,000KWH By Br.1.30
9 Fuel 38,000.00 2000 lit per year by Br.19
11 Telephone & fax 20,000.00 1800 per month
12 Repair expense 72,018.00 2% of building cost
13 Miscellaneous costs 40,000.00 6000 per month
Total 513,027.00  

Pre-service Expenses
SN Description Cost in birr
1 Project proposal 100,000.00
2 Licensing fee and others
Total 100,000.00

27
 BUSINESS PLAN FOR MIXED USE BUILDING

Summary of Total initial investment cost

SN Description Cost in Birr Percentage Share

1 Land, building & construction 27,745,598 80.39%
2 Building machines & Equipments 1,299,800.00 3.77%
3 Vehicle 300,000.00 1%
4 Office Equipment 101,800.00 0.29%
5 Total fixed investment cost 29,447,198.00 85.32%
6 Salary expense 1,238,400.00 3.59%
7 Operation Expense 513,027.00 1.49%
8 Pre service Expense 100,000.00 0.29%
9 Total Working capital 731,836.00 2.12%
10 Sub total 4,604,532.00 7.49%
11 Contingency (10%) 460,453.20  
Total initial investment capital 34,512,183.20  

28
 BUSINESS PLAN FOR MIXED USE BUILDING

6 Financial analysis

The financial analysis of this mixed use project is based on the data presented in the previous
chapters and the following assumptions: -

Finishing period 2 years

Source of finance 30 % equity
Debt finance 70 % loan
Bank interest 13%
Discount cash flow 10%
Accounts receivable 30 days
Raw material (perishable) 3 days
Raw Material (non perishable) 30 days
Cash in hand 5 days
Accounts payable 30 days
Repair and maintenance 5% of equipment cost

6.1 Repair and Maintenance Cost

The annual repair and maintenance cost of the plant is estimated based on the following rates.

Table 8: Repair and Maintenance Cost

Item Rate
Machinery and equipment 5% of the total cost or Book value
Building and civil works 2% of the total cost or Book value
Utilities 5% of the total cost or Book value

6.2 Depreciation and Amortization

The following depreciation rates are applied to depreciate the assets of the project:

 Buildings and associated Civil works 5%, linear to scrap Value

 Machinery and Equipment’s 10%, linear to scrap Value

29
 BUSINESS PLAN FOR MIXED USE BUILDING

6.3 Total Revenue

Based on the projected profit and loss statement, the project will generate a profit throughout
its operation life. Annual net profit after tax increases from Birr 8,810,480 at the beginning of
the project to Birr 22,502,429 during the last year of operation year. The detail is presented in
Annex.

6.4 Discounted Payback Period

The payback period, also called pay–off period is defined as the period required recovering the
original investment outlay through the accumulated net cash flows earned by the project.
Accordingly, based on the projected cash flow it is estimated that the project’s initial
investment will be fully recovered within 3 year 9 months.

6.5 Cash flow

The projected cash flow of the envisaged project shows that the project would generate
positive net cash flows throughout the operation years. Cumulative cash flow generated by the
project towards the end of the first operation year will amount to Birr 9,259,139. At the end of
the project life, this amount will rise to Birr 23,618,548. The detail is presented in Annex.

6.6 Benefit cost ratio

The BCR is defined as the ratio of the sum of the project’s discounted benefits to the sum of its
discounted investment and operating costs.

When BCR > 1, accept the project

When BCR < 1, reject the project

When BCR = 1, be indifferent

30
 BUSINESS PLAN FOR MIXED USE BUILDING

Bt n

 (1  r ) t
t 0
BCR  n
C
 (1  tr ) t
t 0

BCR is 5 and positive this indicates this project would return 5 birr in benefits for each birr
spent.

6.7 Internal Rate of Return

The internal rate of return (IRR) is an indicator of the efficiency or quality of an investment. A
project is a good investment proposition if its IRR is greater than the rate of return that could be
earned by alternate investments or putting the money in a bank account. Accordingly, the IRR of
the project after tax is computed to be 34.13% indicating the viability of the project.

6.8 Net present value

Net present value (NPV) is defined as the total present (discounted) value of a time series of
cash flows. NPV aggregates cash flows that occur during different periods of time during the
life of a project into a common measuring unit i.e. present value. It is a standard method for
using the time value of money to asses’ long-term projects. NPV is an indicator of how much
value an investment or project adds to the capital invested. In principle a project is accepted if
the NPV is non-negative. Accordingly, the net present value of the project at 10% discount rate
is found to be Birr 54,439,417 which is acceptable.

31
 BUSINESS PLAN FOR MIXED USE BUILDING

7 Conclusions and Recommendations

Conclusion

The objective of this proposed feasibility study is primarily to facilitate the entrepreneur with the
investment information and provide an overview about project. The proposed feasibility may
form the basis of an important investment decision and in order to serve this objective, the
document covers various aspects of Concept Development, Start-up, Production, Marketing,
Finance and Business Management.

The feasibility is based on the information obtained from various agricultural sources as well as
discussions with businessmen. For financial model, since the forecast/projections relate to the
future periods, actual results are likely to differ because of the events and circumstances that
don’t occur frequently as expected.

Whilst due care and attention has been taken in performing the exercise, no liability can be
inferred for any in-accuracy or omissions reported from the results thereof. It is essential that our
report be read in its entirety with financial model in order to fully comprehend the impact of key
assumptions on the range of values determined.

The project is accessible and has the necessary infrastructure such as road, telephone, water and
electric power. The proposed project clearly identifies all the necessary equipment, inputs,
management of the company and the required man power. The highest authority in the project
will be vested in the hand of the owner. He will control the overall activities of the proposed
project. Demand projection divulges that there is high demand for feed production in the country.
Accordingly, the planned project is set to provide quality products in the area.

The proposed project possesses wide range of economic and social benefits such as increasing
the level of investment, tax revenue and employment creation for both women and youths. It will
have also environmental concerns to protect it by planting trees around its working area and by
utilizing environmental friendly raw materials. Generally, the project is technically feasible,
financially and commercially viable as well as socially and economically acceptable. Hence the
project is worth implementing.

32
 BUSINESS PLAN FOR MIXED USE BUILDING

Recommendations

Financial sensitivity analysis shows that the project is highly sensitive to decrease in sales
revenue but relatively less sensitive to increase in raw material and investment costs. Therefore,
it is recommended that the company should give a great attention for the possible reasons for
sales reduction. In this case, different mechanisms should be selected and implemented to
increase sales. In addition to this, the company should decrease its cost that lowers profitability.
The project must utilize modern promotional styles to capture the planned market share. To do
so, it has to design effective strategy to achieve this plan.

Although, due care and diligence has been taken to compile this document, the contained
information may vary due to any change in any of the concerned factors, and the actual results
may differ substantially from the presented information. In this case, any delaying to implement
the project creates some problem on its profitability as there is always change like change in
price of services and goods, cost of raw materials, customers preference and purchasing power
etc.….So, it is recommended that investors should implement the project as soon as possible
before any change occurred.

33
 BUSINESS PLAN FOR MIXED USE BUILDING

References

Chandra, P; 2006.Projects Planning, Analysis, Selection, Financing, Implementation, and

Review, six edition. Tata McGraw-Hill publishing company Limited, New Delhi.

Eyob Deraro (2013) Project Proposal for the construction of Mixed use Building.

Wikipedia: The Free Encyclopedia. Retrieved December 10, 2006 from the World Wide Web
www.wikipedia.org.

34
 BUSINESS PLAN FOR MIXED USE BUILDING

Annex 1. Sales Revenue

Description  Project year

1 2 3 4 5 6 7 8 9 10
Ground floor Rent 10,164,00 13,528,28 18,006,14
9,240,000 0 11,180,400 12,298,440 4 14,881,112 16,369,224 6 19,806,761 21,787,437
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
350 385 424 466 512 564 620 682 750 825
Rent for shop and office 1-3 floor
2,956,800 3,252,480 3,577,728 3,935,501 4,329,051 4,761,956 5,238,152 5,761,967 6,338,163 6,971,980
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
224 246 271 298 328 361 397 437 480 528
Rent for shop and office 4-7 floor
2,890,800 3,179,880 3,497,868 3,847,655 4,232,420 4,655,662 5,121,229 5,633,351 6,196,687 6,816,355
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
219 241 265 291 321 353 388 427 469 516
Rent for shop and office 8-12 floor 1,980,000 2,217,600 2,439,360 2,439,360 2,683,296 2,683,296 2,951,625 2,951,625 3,246,787 3,246,787
Size 1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price 150 165 182 200 220 242 266 292 322 354
Parking 91,250 100,375 110,413 121,454 133,599 146,959 161,655 177,820 195,602 215,163
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
5 5.50 6.05 6.66 7.32 8.05 8.86 9.74 10.72 11.79
Total Sale 18,914,33 24,906,65 32,530,91
17,158,850 5 20,805,769 22,642,409 0 27,128,986 29,841,884 0 35,784,000 39,037,721

Annex 2. operating cost

35
 BUSINESS PLAN FOR MIXED USE BUILDING

Operating years of the project

Description 1 2 3 4 5 6 7 8 9 10
A. Direct cost                
   
Raw Material
538,67 623,58 654,76 687,50 721,88 757,97 795,87
Cost
513,027   8 565,612 593,893 8 7 5 1 5 3
Sub-total                    
Total Direct
cost                    
B. Indirect cost                    

  Wages and 1,238,400 1,300,320 1,365,33 1,433,60 1,505,28 1,580,547 1,659,57 1,742,553 1,829,681 1,921,165
Salary 6 3 3 4
  Repair and 667,449.00 667,450.00 667,451.00 667,452.00 667,453.00 667,454.00 667,455.00 667,456.00 667,457.00 667,458.00
Maintenance

  Property 4,275. 4,275 4,275.0 4,275. 4,275 4,275 4,275 4,275 4,275 4,275
Insurance 00 .00 0 00 .00 .00 .00 .00 .00 .00

  Utility 1,188,000 1,247,400 1,309,770 1,375,259 1,444,021 1,516,222 1,592,034 1,671,635 1,755,217 1,842,978
  Land lease 422,640 422,641 422,642 422,643 422,644 422,645 422,646 422,647 422,648 422,649
  Advertising 50,000. 50,001 50,002.0 50,003. 50,004 50,005 50,006 50,007 50,008 50,009
and Promotion 00 .00 0 00 .00 .00 .00 .00 .00 .00

  40,000. 40,001 40,002.0 40,003. 44,003 48,403 53,243 58,568 64,425 70,867
Miscellaneous 00 .00 0 00 .30 .63 .99 .39 .23 .75
Expense
Total operating 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 5,551,686 5,775,275
cost

                     

36
 BUSINESS PLAN FOR MIXED USE BUILDING

Annex.3 income statement

Operating years of the project

Description 1 2 3 4 5 6 7 8 9 10
Sales 18,914,33
Revenue
17,158,850 5 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
Less: 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 5,551,686 5,775,275
Operating
cost
Income 13,035,059 14,643,569 16,380,679 18,055,279 20,145,379 22,184,667 24,705,145 27,191,888 30,232,314 33,262,446
before
Depreciation
and interest

Less: interest 448,658.00 448,658.00 448,658.00 448,658.00 448,659.00 448,660.00 448,661.00 448,662.00 448,663.00 448663

Income 12,586,401 14,194,911 15,932,021 17,606,621 19,696,720 21,736,007 24,256,484 26,743,226 29,783,651 32,813,783
before
Depreciation

Less: 0.00 0.00 667,449 667,450 667,451 667,452 667,453 667,454 667,455 667,455
Depreciation

Profit /Loss 12,586,401 14,194,911 15,264,572.00 16,939,171.00 19,029,269.00 21,068,555.00 23,589,031.00 26,075,772.00 29,116,196.00 32,146,328.00
Before Tax
Less: Tax 3,775,920.30 4,258,473.30 4,579,371.60 5,081,751.30 5,708,780.70 6,320,566.50 7,076,709.30 7,822,731.60 8,734,858.80 9,643,898.40
(30%)
Net Profit or 8,810,480.70 9,936,437.70 10,685,200.40 11,857,419.70 13,320,488.30 14,747,988.50 16,512,321.70 18,253,040.40 20,381,337.20 22,502,429.60
Loss After
Tax

37
 BUSINESS PLAN FOR MIXED USE BUILDING

Annex. 4 loan disturbance

Installment Periods (in years )

Item 0 1 2 3 4 5 6 7 8 9 10
Loan disbursed                    

24,158,528
Principal       3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218

24,158,528
Interest (13%) 4,486,583 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658
Total 28,645,111 448,658.00 448,658.00 448,658.00 3,899,876.00 3,899,876 3,899,876 3,899,876 3,899,876 3,899,876 3,899,876
Outstanding                    
Balance

38
 BUSINESS PLAN FOR MIXED USE BUILDING

Annex. 5 Man power

S Position No Qualification Monthly salary Annual salary

N in Birr in Birr
1 General manager 1 BA in management 10,000 120,000
2 Building admin 1 BA in Acct/Mgt 8,000 96,000
3 Secretary 1 10+2 in secretariat science 3,000 36,000
4 HRM Officer 1 10+2 in HRM/Management 4,000 48,000
5 Technical and maintenance manager 1 Diploma in building maintenance 8,000 96,000
6 Finance head 1 BA in Accounting 6,000 72,000
7 IT Technician 1 Diploma in computer science/IT 6,000 72,000
8 Marketer 1 Diploma in marketing 5,000 60,000
9 Accountant 1 Diploma in accounting 4,000 48,000
10 Guards/Security 4 Basic 2,500 30,000
11 General Service head 1 Diploma in Management 6,000 72,000
12 Purchaser 1 Diploma in purchasing &Sup Mgt 3,500 42,000
13 Electrician 1 10+2 in general electricity 4,000 48,000
14 Plumber 1 10+2 in general mechanic 3,500 42,000
15 Casher 1 10+1 in bookkeeping 3,500 42,000
16 Cleaner 5 Unskilled 3,000 36,000
17 Maintenance officer 1 10+2 in General mechanic 3,500 42,000
18 Driver 1 10 completed 2,500 30,000
  Total 25   86,000 1,032,000
  Benefit (20%)     17,200 206,400
  Grand Total     103,200 1,238,400

39
 BUSINESS PLAN FOR MIXED USE BUILDING

Annex 6. discounted cash flow

Investment
Project Life years
Year
Description
0 1 2 3 4 5 6 7 8 9 10
INFLOW
                     

Net sales
revenue 0
17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
TOTAL
INFLOWS 0
17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
OUTFLOWS
                     

Investment 34,512,18
cost - - - - - - - -
3 - -
Operating cost 5,136,73
0 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,339,022 5,551,686 5,775,275
9
Income tax
0 3,775,920 4,258,473 4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731 8,734,858 9,643,898
TOTAL
OUTFLOWS 8,529,23 12,213,4 13,161,75 14,286,54
34,512,183 7,899,711 9,004,461 9,668,881 10,470,051 11,264,885 15,419,173
9 48 3 4

NET CASH 10,385,096.0 17,628,436. 19,369,157.0 21,497,456.0

FLOW 10,850,695.00 9,259,139.00 11,801,308.00 12,973,528.00 14,436,599.00 15,864,101.00 23,618,548.00
0 00 0 0

      NET PRESENT VALUE (NPV) 54,439,417.00

      INTERNAL RATE OF RETURN (IRR) 34.13%

      DISCOUNTED PAYBACK PERIOD (DPBP) 3.9years

40
 BUSINESS PLAN FOR MIXED USE BUILDING

Annex 7 undiscounted cash flow

Project Years
Investment
Description Operating years
Year
0 1 2 3 4 5 6 7 8 9 10
INFLFOWS                      
Inflow Funds                      
Own Equity
10,353,655                  
Long-term Loan 24,158,528 0 0                
Inflow Operations
  20,805,76 22,642,40
17,158,850 18,914,335 9 9 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
Sales revenue 20,805,76 22,642,40
0
17,158,850 18,914,335 9 9 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
TOTAL 20,805,76 22,642,40
INFLOWS
34,512,183 17,158,850 18,914,335 9 9 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
OUTFLOWS                      
Investment cost 0 0 0 0 0 0 0 0 0 0
34,512,183
Operating cost 4,270,76 4,761,27 5,136,73
0 4,123,791 4,425,090 4,587,130 4,944,319 5,339,022 551,686 5,775,275
6 1 9
Financing Cost                      
· 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218
0 0 0 0
Principal
·Interest 0
448,65 448,65 448,658 448,65 448,65 448,658 448,658 448,658 448,658 448,658
8 8 8 8
Income Tax 0
3,775,92
4,258,473 4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731 8,734,858 9,643,898
0
TOTAL
OUTFLOWS 34,512,183 8,348,369 8,977,897 9,453,119 13,568,757 14,369,927 15,164,761 16,113,324 17,061,629 13,186,420 19,319,049
NET CASH FLOW
0 8,810,481 9,936,438 11,352,650 9,073,652 10,536,723 11,964,225 13,728,560 15,469,281 22,597,580 19,718,672

41
 BUSINESS PLAN FOR MIXED USE BUILDING

BEGINNING
CASH BALANCE 0 0 8,810,481 18,746,919 30,099,569 39,173,221 49,709,944 61,674,169 75,402,729 90,872,010 113,469,590
ENDING CASH
BALANCE 0 8,810,481 18,746,919 30,099,569 39,173,221 49,709,944 61,674,169 75,402,729 90,872,010 113,469,590 133,188,262

Annex. 8 Civil works

No Description
Total price
  A.    SUB-STRACTURE  
1 excavation and earth works 279,570.67
2 concrete work 1,936,546.34
  Sub total 2,216,117.01
  B.     SUPER STRACTURE  
1 Concrete work 7,753,358.45
2 Block work 551,534.40
3 Roofing 171,108.00
4 Carpentry and joinery
323,760.00
5 Metal works 820,860.00
6 Finishing 3,111,379.44
7 Painting 275,798.88
8 Electrical installation 7,236,330.00
9 Sanitary installation 1,151,022.00
  Subtotal 21,395,151.17
  A+B 23,611,268.18
  Vat (15%) 3,541,690.23
  Grand total
27,152,958.40

42