Table of Contents

Acknowledgement...................................................................................................................

1. Executive Summery......................................................................................................

1.0 Site details and evaluation................................................................................................

1.1 Site Location............................................................................................................................

1.2 Site specific characteristics......................................................................................................

1.2.1 Transport...........................................................................................................................

1.2.2 Population.........................................................................................................................

1.2.3 Housing.............................................................................................................................

1.2.4 Parks.................................................................................................................................

1.2.5 Existing amenities.............................................................................................................

1.2.6 Schools.............................................................................................................................

1.2.7 Shops, leisure, food..........................................................................................................

1.2.8 Any other...........................................................................................................................

1.3 Site identification......................................................................................................................

1.4 Site Assessment......................................................................................................................

1.5 Site acquisition.........................................................................................................................

2.0 Final option selection decision..........................................................................................

2.1 Residential development..........................................................................................................

2.2 Office development/Commercial..............................................................................................

2.3 Shopping mall..........................................................................................................................

3.0 Legal issues requiring consideration prior to site purchase..............................................

3.1 The Deed Title.........................................................................................................................

3.2 Encumbrance Certificate..........................................................................................................

3.3 Property Tax Receipts and Bills...............................................................................................

3.4 Documentation.......................................................................................................................

4.0 Method of site purchase..................................................................................................

4.1 Buying Land with Planning Permission..................................................................................

4.2 Land Survey...........................................................................................................................

1
 4.3 Purchase the land..................................................................................................................

5.0 Statutory obligation..........................................................................................................

5.1 Fire clearance........................................................................................................................

5.2 Drainage clearance................................................................................................................

5.3 Ownership certificate..............................................................................................................

5.4 Street line & building line certificate.......................................................................................

5.5 Sewerage & storm water connection......................................................................................

5.6 Drainage certificate................................................................................................................

5.7 Fire confirmation....................................................................................................................

5.8 Submission of COC application..............................................................................................

6.0 Site layout plan & Building area.......................................................................................

7.0 Development disposal.....................................................................................................

7.1 Soft landing............................................................................................................................

7.2 Selling the development.........................................................................................................

8.0 Residual valuation.......................................................................................................

9.0 Risk Assessment.............................................................................................................

10.0 Development uniqueness..............................................................................................

11.0 Construction procurement, tendering and contract decisions.......................................

12.0 Overall development programme..................................................................................

13.0 Key risk of development and recommendations...........................................................

14.0 Conclusion.....................................................................................................................

15.0 Group reflective statement............................................................................................

16.0 References.....................................................................................................................

17.0 Appendix........................................................................................................................

Table of Figures

Figure 1, Site location........................................................................................................................

2
Acknowledgement

I take this opportunity to convey my gratefulness to everyone who have supported

me to complete this research study.

First and foremost, I pay gratitude to my module leader Dr. David Oloke for all the
guidance, assistance and continuous encouragement provided to me. I am also
indebted to him for the constructing criticisms and helped me to coordinate my
project especially in writing this report.

I would like to express my gratitude towards my team members Mr. J.A. D Madura,
Mr. U.L.A. Al uzri, Mr. A.P. Maduranga, Mr. A. Chanaka for their kind co-operation
and encouragement that help me in completion of this project.

Last, but not least, I give my immeasurable thanks to my batch mates, collogues, my
friends and specially my parents for their priceless support to make this study a
success.

3
Executive Summery

We have selected the land based on site detail and evaluation. We have identified transport,
population, schools, housing, parks, existing amenities, schools, shops, temples as site-
specific characteristics. Land availability and location suitability considered as site
identification. Investigation of site history, physical site investigations report as site
assessment. Unique point of this project will be schools, parks and hospitals around this
land. We have considered options to develop the land as residential development, office
development and shopping mall & cinema with amusement park but we found the best
option is residential development. Method of site purchase is unconditional contract. We
have to take some advices form experienced property solicitor to prevent the unwanted
problems in future.

There is a standard form to fill for statutory obligation in Urban Development Authority. Fire,
drainage clearance, street line, building line certificate, storm and drainage connection are
some of the supportive details to achieve statutory obligations. There are some risks for
development such as demolishes old building and boundary wall, diverting service line,
exceeding allocated budget and we have obtained possible solutions to overcome those
risks. Selling price of the building analysed based on residual valuation. This project will be
done in traditional procurement method and selective tender basis.

4
1.0 Site details and evaluation

1.1 Site Location

Figure 1, Site location

This land is rectangular shape and having a downward slope in the direction of Northeast to
Southwest. Land area is 200 perches at Siri dhamma mawatha road Mount lavinia. Land
located in a residential area. (Approximately 500m away from the galle road)

5
1.2 Site specific characteristics

1.2.1 Transport
There is good access to public transport 10m to the nearest bus stop, 0.5 km to the Mount
lavinia railway station, also main roads such as Colombo- galle road, baseline road
approximately 500m & 1km away from the site.

1.2.2 Population
There are around 200,000 people lives in Mount lavinia area. Most of the people live in
Apartments and flats.

1.2.3 Housing
Mostly rent apartment or flat is available in this area. Cost per 1 month for 1 apartment flat
will be 60,000 to 125,000 LKR. Selling price for 1 apartment or flat will be 6.000,000 to
10,000,000 LKR.

1.2.4 Parks
Mount lavinia children park is 2.6km away from proposed land. It is a famous and most
beautiful park in Colombo district. Also some small parks such as Lavinia park eighteen
close to the proposed site.

1.2.5 Existing amenities

There are few good cafes around the proposed land such as China dragon cafe, Boat house
cafe, Cup cafe and there have some good hotels such as Mount breeze hotel. Mount lavinia
bus stand is 1.5km away from the site.

1.2.6 Schools
Girls high school Mt lavinia located in 200m away from the site. Lead the way girls
international located in 850m away from the site & St Thomas collage in 500m away from
the site. Those colleges are the very famous colleges in Sri Lanka. Hejaaz international
school, Alethea international school, Beacon international School are some other colleges in
this area.

1.2.7 Shops, leisure, food

Cargills food city, Keels super food city & Local supermarket are 500m away from the site.
Odeon cinema hall located 5 Km away from the site.

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1.2.8 Any other

Dhakshinaramaya temple is located 750m away from site. Also there is a church for
Christians, Muslim and Tamils.

1.3 Site identification

Now this land is owned by client and previous owner is Mr. K. K. Muththusami. He is one of
relation of client. This land value is 500 million LKR. Easy access to public transport or main
roads, famous colleges are around the site area, nice parks, due to mentioned above site-
specific characteristics this land is suitable for residential project.

1.4 Site Assessment

This land is use as a residential building in previous years. There is an old house
and boundary wall in the site. House area is 600 sq.ft. And single story with flat roof.
Boundary wall is around the land. This both items need to be demolished in future.
There is a downward slope in the direction of Northeast to Southwest. There is
sewer disposal line in middle of the land. This need to be divert before start
construction.
The land has a slight slope from the front to the back and is situated in an area, which is
predominantly undeveloped, and there are no significant trees/tree stumps in land.

This land belongs to single owner. Also land deed need to be checked with land
commission office in Colombo.
Site investigation report (please refer appendix A)
Water table (please refer appendix B)

1.5 Site acquisition

Land acquisition from personal experience and contacts. Client will pay the direct to
the landowner after checking the land deed status.

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2.0 Final option selection decision

There are three main options to develop the land. Options are listed as follows.

2.1 Residential development

Residential apartments are the best option for the development of this land. Invest money
and earn investment and profit after selling apartments. There are also very famous schools
around this area. Easy access to transport, schools, playgrounds, parks and commercial
sites are key benefits from this land. This land is 1.5 km away from the Colombo- galle main
road. And it's a little noisy area. Since this is an urban area, people have less space to build
their own houses and it is noticed that people cannot afford a large amount of money to buy
land. In addition, at the same time, the time of return of housing projects is greater compared
to other commercial buildings. Due to the above facts, residential buildings are the most
suitable option for develops this land.

2.2 Office development

This land has enough space to construct an office building. There is no office building close
to this area. Invest money will be earning from rent the building. But payback time will be
longer than the apartment building. This building sales price will be 880.96 Million LKR.

Annual rent of this building = Internal floor area x rent per sq. ft

= 45,000 sq. ft x 1200 LKR

= 54 Million LKR

Payback time = Sales price of building

Annual rent
= 880.96 million LKR

54 million LKR

= 16.3 years

Therefore, payback time will be 16.3 years. This is not a good investment. Also Main roads
such as Colombo- galle road are 500m away from the site. Due to above mention main
reasons office building is not a good investment for this land.

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2.3 Shopping Mall

The construction cost and maintenance cost of a mall is higher than a normal residential
building. Nobody likes something that is built for everybody. People have varied tastes and
preferences, and these people can be categorized like high income/middle income/ low
income, Educated class/professional class / uneducated class, Teenagers/Youth/ Matured
etc. If you target a specific class, you can have a tenancy mix that answers the need of that
specific class, you can bring in facilities so client need more effort to control shopping mall.
Learn from those who started before you. Visit leading successful and failing shopping malls
and study what works in them and what does not its take more time for that. Those things
are the reason it’s not suitable for construct in this area.

3.0 Legal issues requiring consideration prior to site purchase

Buying a land has become a dangerous situation nowadays. There are blatant corruptions
surrounding the deals with creating fake documents. Therefore, we have to check for the
following factors thoroughly and even do a legal expert examine them before making the
actual purchase.

3.1 The Deed Title

It is necessary to verify if the title of the deed belongs to the name of the seller and he has
the full right to sell it. Always deal with original document not with photocopies.

3.2 Encumbrance Certificate

This document can be obtained at the sub-registration office where the deed is registered. It
declares that the land is free from any legal obligation and unpaid bills.

3.3 Property Tax Receipts and Bills

Request the originals again and make sure all payments are made, as they may cause legal
difficulties and more problems in the future. In addition to these, we need to verify that land
loans are paid with a certificate of release issued by the bank and we must obtain the value
of the land.

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3.4 Documentation

To purchase the land, the following documents are required from the seller's end:

 Original land deed of the current owner as well as the previous owner’s proper
names on the title.
 An encumbrance certificate from the Sub-registrar's office for the last 30 years at
least.
 If he got a bank loan form bank we have to get release loan certificate, mentioned
that the loan on the land has been fully repaid.
 Original property tax invoices and other bills relating to the land.

4.0 Method of site purchase

There are several methods to purchase a land. In this case we have selected unconditional
method to purchase.

4.1 Buying Land with Planning Permission

After we select the land that suite to our requirements need to contact the local planning
authority to determine whether they will allow you permission to build residential apartment
in this place. There are some certain restrictions on any building and development works
and checks these details. Also check exactly not entitled to do under the planning permission
attached to the land.

4.2 Land Survey

We have to appoint a qualified land surveyor to professionally survey the land. A survey land
is making sure that the boundaries of the plot are clearly defined. A qualified land surveyor
will tell us if there are any problems with the land and if anything should stand in the way of
our proposed development project.

10
4.3 Purchase the land

After we have received confirmation that there are no issues with the land and that planning
permission will be granted based on our outline development proposals, we can then go
ahead and register the land deed.

Before purchase the land we have to take some professional advices from experienced
property solicitor to prevent the unwanted problems in future. Once contracts have been
exchanged, the contract is binding on both vendor and purchaser.

5.0 Statutory obligation

We need to get planning permission for development of land. Development includes the
carrying out of construction building works on land. As per Urban Development Authority
there is standard application need to fill (Please refer appendix C). Also there are several
supporting applications (please refer appendix D) need to be attach above-mentioned
application. Those items mentioned as follows.

5.1 Fire clearance

The owner has to submit application & documents to the Fire department. Municipal council
and Fire Department carry out the site inspection and issue the fire clearance.

5.2 Drainage clearance

The owner has to submit application & documents to the Drainage & Water Supply Division,
Municipal council. Drainage Division officials carry out the site inspection.

5.3 Ownership certificate

The owner has to submit the application along with the relevant documents to the Assessor’s
Department.

11
5.4 Street line & building line certificate
The owner has to submit the application along with the following documents to the City
Planning Division.

5.5 Sewerage & storm water connection

The owner has to submit application along with the following documents to Drainage &
Water Supply Division, Municipal council.

5.6 Drainage certificate

The owner has to submit application along with the following documents to Drainage &
Water Supply Division, Municipal council.

5.7 Fire confirmation

The owner has to request from the Fire Department and receive on-site inspection by Fire
Inspector and receive the fire confirmation.

5.8 Submission of COC application

The owner has to submit application to the Municipal council.

6.0 Site layout plan & Building area

Please refer appendix E for site layout & front elevation plan. This apartment building will
consist 5 floors with 25 apartment units. Apartments divided as A, B, C, D & E.

Type A: – 3 Bed room, 2 Bathroom, 1100 sq.ft.

Type B: – 2 Bed room, 1 Bathroom, 1050 sq.ft.

Type C: – 2 Bed room, 2 Bathroom, 990 sq.ft.

Type D: – 3 Bed room, 2 Bathroom, 1500 sq.ft.

Type E: – 2 Bed room, 2 Bathroom, 875 sq.ft.

Also there are parking floor, rooftop swimming pool, rooftop BBQ area and rooftop study
area in this apartment building. Total gross floor area will be 44,120 sq.ft.

12
There are some sustainability features will inside this building to minimize green gas. Roof
top garden, low capacity water closet, censored taps, LED lights, Rain water harvesting
system some of the sustainability features.

7.0 Development disposal

7.1 Soft landing

Development disposal must be including with soft landing. Soft landing will make building
better for customers. During handing over to customers commissioning and end user training
will make comfortable to customers handling some equipment. Providing as built drawing will
help in maintain stage. Also handing over the user manuals will help them to easy
understand the mechanism.

7.2 Selling the development

There are 25 apartments in this proposed building. Also it’s divided as A, B, C, D & E due to
floor area. Selling price for apartments will be varying as follows.

Apartment type A – 38 million LKR

Apartment type B – 35 million LKR

Apartment type C – 30 million LKR

Apartment type D – 45 million LKR

Apartment type E – 28 million LKR

8.0 Residual valuation

Residual valuation is used to calculate the maximum value of a development site. Also
calculate the profit from development site, calculate the cost of ceiling for construction after
the land has been acquired and a reasonable maintained profit.

13
Cost of development = floor area of building x sq. ft rate x contingencies

= 44,120 sq. ft x 6,850 x 1.09

= 329,421,980.00

Land Value = Land area x cost of 1 perch

= 200 perches’ x 2,500,000.00
= 500,000,000.00 LKR

Profit = (Cost of development) x profit margin

= (329,421,980.00) x 15%

= 49,413,297.00

Demolition cost = Cost of demolish existing building + existing boundary wall

= 1,500,000.00 + 625,000.0

= 2,125,000.00

Sales price = Cost of development + land value + Profit + Demolition cost

=329,421,980.00+500,000,000.00+49,413,297.00+2,125,000.00

= 880,960,277.00 LKR

= 880.96 Million LKR

14
9.0 Risk Assessment

The risk assessment involves the anticipation of the risk that may occur during
construction, before construction or after construction. The types of risk can vary in
this project
1. Demolishing of existing building
2. Demolishing of existing boundary wall
3. Divert the existing service lines
4. Surround buildings might affect the vibration and cracks might appear at the
building walls
5. Exceeding of estimated budget with an unexpected amount.
6. Payback time exceeds the anticipated duration

The main concern in each construction project is that the estimated or assigned
budget should be correct with the fluctuation of 5-10% of budget.
After the initial examination, it was found that an existing sewerage line was under
the proposed area of the building. It can be a critical point when the sewer line is
damaged, because the whole process must be stopped and take appropriate action.
To overcome this problem, an appropriate method must be introduced and sufficient
amounts of money in the budget should be allocated and it must be done prior to
start construction.
Another of the main concerns should be the reduction of the damage to the buildings
that surround the land.

10.0 Development uniqueness

This land will be the hub of colleges. There are so many colleges around the site. St Thomas
collage, Girls high school Lead the way girls international, Hejaaz international school,
Alethea international school, Beacon international School. Also children parks and other
parks are surrounding the land. Also this place is 500m away from Main roads therefore
noise is less. Sound pollution also less. It’s a quite calm place compare with other places.
Asiri hospital, Maharhishi Ayurveda hospital, Siddhalepa Ayurveda hospital are located
within 1km from the site. Due to easy access to transport, schools, parks and hospital facility,
uniqueness of this project will be School children.

15
11.0 Construction procurement, tendering and contract decisions

Based on the site condition and client’s requirement Traditional method will be suitable
procurement system for this project. In traditional method responsibility of a contractor is
limited only to build. Consultant team will finalize the design and contract documents prior to
start construction works. After construction started, Consultants will handle the design and
management of the project. Client shall control finance and operation on project.

Tendering system will be selective tender. These types of projects need experienced
contractor. It’s better to select some contractors from contact who is involve with same types
of projects. We have to select minimum three contractors before handing over the tender
document. ICTAD/ SBD/ 02 will be the following document to preparation of contract
document.

12.0 Overall development programme

Development programme basically divided as pre contract and post contract. In pre contract
stage there are main three key points such as, develop the existing land to suite the
construction work, planning and develop the design and preparation of tender documents.

In post contract stage it shows contractor establish the site, excavation & earth work,
concrete work, masonry work, water proofing, metal works, Wood work, suspended ceiling,
plumbing and sanitary installation, electrical installation, floor, wall and ceiling finishes,
painting, drainage work and landscaping works, interior design works.

Please refer appendix F for the programme.

16
13.0 Key risk of development and recommendations

The types of risks and recommendations to overcome the risk as follows.

 Demolishing of existing building

Demolish existing building and foundation needs to be finish before start

construction. By using another contractor this will be complete easily. Service
lines need to disconnect before demolition.
 Demolishing of existing boundary wall

Demolish existing boundary wall and foundation needs to be finish before start
construction. In this case demolition contractor has to safe guard adjacent
buildings and properties.
 Divert the existing service lines

To overcome this problem, sufficient amounts of money in the budget should be

allocated to divert the sewer line and it must be done prior to start construction.
 Surround buildings might affect the vibration and cracks might appear at the
building walls

Reduction of the damage to the buildings that surround the land; we must put
sheet piling around the construction to protect the surrounding buildings. It may
cost high but it must be done to protect the adjacent buildings.
 Exceeding of estimated budget with an unexpected amount.

We can use some value engineering techniques to save some money from the
allocated budget to use unexpected works.
 Payback time exceeds the anticipated duration

We have to stick with construction programme to minimise the delay. If delay

occurred, we have to find the suitable action to catch up the delay.

17
14.0 Conclusion

We have selected the land based on site specific characteristics, site identification, site
assessment. Unique point of this project will be schools, parks and hospitals around this
land. We have considered options to develop the land and we found the best option is
residential project. Method of site purchase is unconditional contract. We have to take some
advices form experienced property solicitor to prevent the unwanted problems in future.
There is a standard form to fill for statutory obligation in Urban Development Authority. There
are some risks for development and we have obtained possible solutions to overcome those
risks. Selling price of the building analysed based on residual valuation. This project will be
done in traditional procurement method and selective tender basis. I have acted as the
Architect of this project and we have successfully finalized it.

15.0 Group reflective statement

The proposed Property Development of Proposed Residential Apartments at Mount lavania,

(the residence building of 44,120 Sq.ft) the conceptual design project designed and detailed
for fulfilling the requirement of the Assignment Group K Module: 6CN019 Group Project
Evaluation and Development. This is designed to reveal and explain the Planning, Designing
Construction and Management strategies   and applications for achieving a Residential
building which in trumps of Property development.

This is a group effort to highlight how we as professionals engage in Property development

construction industry to work as a team to achieve the goals of creating green Residential
buildings and minimize anthropogenic destruction on nature through reverse of degradation
by supporting effectively to protect environment, get optimum use of   resources in its
planning, designing and process of construction and management. Ultimately save a  
reassure for the qualitative healthy nature to sustain future generation in Sri Lanka.

We would like to pay our gratitude to all the lecturers, professors of this training course the
enlightening     us with their knowledge and examples or work and the staff of WLV and
BCAS to their extended support given during the discussion sessions held at BCAS for
making this group assignment successful.   Further to all group members work continuously,
their partnership and teamwork to present the concept and detail the conceptual ideas and
make this report and presentation successful.

18
 GROUP K

1. L.A.P Fernando (1633439) (Developer)

2. J.A.D Madura (1633069) (Quantity Surveyor)
3. U.L.A Al Uzri (1633407 (Leader) (Project Manager)
4. A.P Madurangha (1633316) (Architect)
5. A Chanaka (1633402) (Contractor)

16.0 References

Anonymous (n.d.) Profit.ndtv.com [Online], [Accessed 13 August 2018]. Available at:

<http://profit.ndtv.com/news/your-money/article-buying-a-plot-of-land-read-this-first-382958>

Anonymous (n.d.) Sustainability [Online], [Accessed 13 August 2018]. Available at:

<http://www.mdpi.com/journal/sustainability>

Anonymous (n.d.) Investment Property Partners [Online], [Accessed 13 August 2018].

Available at:<https://investmentproperty.co.uk/property-investment-resources/buying-land-
development-investment/>

Ashworth, A. (2002) Precontract studies.: Development Economics, Tendering and

Estimating, 02th ed. Blackwell.

Green Building Council Srilanka, 2015, Green@Sl Rating System for Built Environment:
Colombo 07: Green Building Council Srilanka. available at http://www.srilankagbc.org

Hackett, M. Robinson, I. and Statham, G. (2007) Procurement, Tendering and Contract

Administration, 02th ed. Blackwell

Issaac, D. (2002) Property Valuation Principles. Palgrave: Macm.Richard, R. and Sally, S.

(2015) Property Development. 6th ed. London: Routledge.

19
17.0 Appendix

Statement

20
 I am changing ownership of this land beacause of proper report submission.

 Land purchasing under bank loan process.

 Cost of the development is changed because of synopsis (development) cost not

enough.

21