FACULTY OF BUILT ENVIRONMENT AND SURVEYING

UNIVERSITI TEKNOLOGI MARA

SHAH ALAM, SELANGOR

TASK 1:
WRITTEN REPORT

(FEASIBILITY REPORT)

PROGRAMME : BACHELOR OF QUANTITY SURVEYING

COURSE : CONSTRUCTION ECONOMICS III
COURSE CODE : BQS 606
GROUP : AP224 5H
SUBMISSION DATE : 29TH JANUARY 2023
PREPARED FOR : MADAM IRMA HANIE IBRAHIM

Prepared By:

NAME STUDENT ID

AMIESYA SOFINA BINTI MOHD FUAD 2021459966

NUR FARIHAH BINTI ZAINUDIN 2021853458

SHEERA ERREN AFIDA BINTI KASUADINATA 2021853358

SITI NUR ATIQAH BINTI SUKRI 2021853346

PREFACE

First and foremost, all praise to Allah SWT because with His blessings, we are able to
complete this coursework for Construction Economics (BQS606) within the stipulated time
frame. As stated in this coursework guideline, we hope that this report can provide additional
knowledge to readers in future studies for civil engineering works, especially on the topic
bridge construction.

We would like to express our utmost gratitude to our lecturer, Madam Irma Hanie
Ibrahim, as her contribution has greatly helped us in the writing up of this report. We are greatly
thankful to be taught by knowledgeable instructor that have provided academic assistance
and insightful feedback on the topics we have learnt. We believe their expertise in this course
has also helped many students to succeed as well.

We would also like to express our gratitude to the people that we care and love, such
as family and friends, for their endless support, may it be direct or indirect to this report writing
up. Their help and encouragement have made it possible for us to continue to strive and
complete this report.
TABLE OF CONTENTS

PREFACE ............................................................................................................................................. 2
TABLE OF CONTENTS ..................................................................................................................... 3
LIST OF FIGURES & TABLES ......................................................................................................... 5
OVERVIEW ........................................................................................................................................... 1
INTRODUCTION .................................................................................................................................. 2
2.1 BRIEF BACKGROUND OF THE PROJECT................................................................... 2
2.1.1 Building Included in The Project............................................................................ 2
2.2 SCOPE OF REPORT .......................................................................................................... 4
2.3 BASIS OF ESTIMATE ........................................................................................................ 4
2.4 COST INCLUDED / EXCLUDED ...................................................................................... 5
DEVELOPMENT PROCESS.............................................................................................................. 8
3.1 LOCAL AUTHORITY INVOLVED ..................................................................................... 8
3.2 REQUIREMENTS AND PROCEDURES INCLUDED .................................................... 9
3.3 DEVELOPMENT PROCESS............................................................................................ 11
3.3.1 The Preparation of the Application and Collection of Technical
Information................................................................................................................................. 11
3.3.2 The Consideration of Development Plan ........................................................... 12
3.3.3 Notification of Construction Work Start............................................................. 13
3.3.4 Construction Site Monitoring and Interim Inspection Notification ............. 14
3.3.5 Final Examination Notification Stage I and Stage II ........................................ 15
3.3.6 Certificate of Completion and Compliance (CCC) Deposits ......................... 16
3.4 TIME AND FEES INVOLVED .......................................................................................... 17
3.4.1 Time Frame of Development Process................................................................. 17
3.4.1 Fees Involved in Development Process ............................................................. 19
SCHEDULES OF AREA ................................................................................................................... 23
4.1 BUILDING PLAN ............................................................................................................... 24
4.1.1 One-Storey Terrace House .................................................................................... 24
4.1.2 Two-Storey Terrace (Deluxe) ................................................................................ 24
4.1.3 Two-Storey Semi D .................................................................................................. 25
4.1.4 Two-Storey Shop Office ......................................................................................... 25
VIABILITY REPORT ......................................................................................................................... 26
5.1 CONSTRUCTION COST .................................................................................................. 26
5.1.1 Building Cost............................................................................................................. 26
5.1.2 Infrastructure Cost................................................................................................... 27
 5.2 PRE-DEVELOPMENT COST .......................................................................................... 28
5.2.1 Gross Development Cost ....................................................................................... 29
5.2.2 Gross Development Value ..................................................................................... 29
5.3 VIABILITY STATEMENT .................................................................................................. 30
5.4 RETURN ON INVESTMENT ............................................................................................ 30
CONCLUSION.................................................................................................................................... 31
REFERENCES ................................................................................................................................... 32
APPENDICES..................................................................................................................................... 33
LIST OF FIGURES & TABLES

Figure 1: The proposed of Site Location for Vellore City ....................................................... 2

Figure 2: Logo and Location of Kampar District Council ........................................................ 8
Figure 5: Summary of D.O Process in Accordance to OSC 3.0 ........................................... 11
Figure 6: Process of Collecting Technical Data ................................................................... 11
Figure 7: The Process of Consideration of Development Plan ............................................ 12
Figure 8: The Process of Notification of Work Start ............................................................. 13
Figure 9: Construction Site Monitoring and Interim Inspection Notification .......................... 14
Figure 10: The Process of Final Examination Notification Stage I And Stage II ................... 15
Figure 11: The Process of CCC Deposit ............................................................................. 16
Figure 12: Time Frame for Development Process ............................................................... 18
Figure 13: Site Area of the Proposed Development ............................................................ 23
Figure 14: Plan for One-Storey Terrace House ................................................................... 24
Figure 15: Plan for Two-Storey Terrace (Deluxe) ................................................................ 24
Figure 16: Plan for Two-Storey Semi D ............................................................................... 25
Figure 17: Plan for Two-Storey Shop Office ........................................................................ 25

Table 1: Type of Building for the Proposed Development ...................................................... 3

Table 2: The Calculation on the Cost per Unit ....................................................................... 5
Table 3: Cost Included in the Feasibility Report .................................................................... 7
Table 4: Administrative management for Kampar District Council ......................................... 8
Table 5: Table of Internal and External Agencies ................................................................ 14
Table 6: Fees Rate Advancement Type .............................................................................. 22
Table 7: Fees Rate for Extension ........................................................................................ 22
Table 8: Other Fees ............................................................................................................ 22
 OVERVIEW

A feasibility report is a systematic strategy and examination of the project viability that takes
into consideration of several factors such as marketing, production or technical issues,
organisational and management aspects, and financial consequence. In simple words, a
feasibility study evaluates and assesses a proposed project (Masanja, 2020). A feasibility
study is vital before undertaking and carrying out any construction project. Moreover, it is also
will determine whether enough revenue will be generated to cover the project's expenses.
Traditionally, the project client or consultant will determine the project's viability by taking into
account financial factors including the return on investment, market demand and supply, and
risk analysis of the market environment (Shen et al., 2010).

There are many benefits to carrying out a feasibility study. One of the main advantages
is that a feasibility study reveals the potential benefits and disadvantages of a proposed
project. Apart from that, it offers a cost-benefit analysis of carrying out a certain activity,
project, or business. A feasibility study also reduced risks by acting without fully
comprehending their financial or legal for an organisation or a firm. Furthermore, a feasibility
study offers a thorough understanding of a project or strategy. Additionally, a feasibility study
considers all relevant elements that must be taken into account when the project or plan is put
into action (Masanja, 2020). As a result, the client can decide on a particular endeavour
whether to proceed with the project after being presented with the feasibility report by the
Quantity surveyor.

On this report, we are required to prepare a feasibility report for the proposed project
which is medium size mixed property development project on a plot of land. The mixed
property development project is a real estate development that includes various combinations
of office buildings, hotels, apartments, retail, and other uses of the property. It makes the best
use of available space which may include amenities and artistic architecture, and facilities that
help to reduce sprawl and traffic. Mixed property development projects can be differed in
location either in an urban setting or suburban setting and also it is not standardized to the
same form. There are numerous advantages to this type of development which as it minimizes
the need for transportation and increases walkability around the area. It enhances social
networks when opportunities for chance face-to-face meetings are increased (Wardner, 2015).

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 INTRODUCTION

2.1 BRIEF BACKGROUND OF THE PROJECT

Figure 1: The proposed of Site Location for Vellore City

The proposed project is a new urban development which is referred to as the Vellore City
mixed development that is situated at Kampar, Perak. The estimated land area for this
proposed project is 10 acres which will be used for the mixed development project that include
building of residential, commercial and the infrastructure work. As for this proposed project,
the building that will be sell is consist of 1-storey terrace, one-storey terrace deluxe, two-storey
Semi-D, and two-storey of shop office which are constructed in the area of about 6 acres while
for the remaining land area will be used as to construct the ancillary building such as mosque
and TNB substation, and for the infrastructure work. Other than that, the location chosen for
this project is a great alternative for the development as it is strategically located close to the
city centre and there will be various facilities, infrastructures and access surrounding such as
schools, supermarkets, Hospital, and terminal. Moreover, this project also will impose the
green city concept as for the landscape for this project in which it could improve the
environment condition as well as keep the sustainability of nature.

2.1.1 Building Included in The Project

There are several types of building included in this proposed project since it is a mixed-use
development that combines a variety of building functions in one location as well as could
provide various facilities to the residents. Therefore, there are various choices are given for
the clients including:

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Type of Building Characteristic

One-Storey Terrace

• Size: 20’ x 65’

• 3 Bedrooms
• 2 Toilets

Two-Storey Terrace (Deluxe)

• Size: 20’ x 70’

• 4 Bedrooms
• 3 Toilets

Two-Storey Semi-D

• Size: 40’ x 80’

• 5 Bedrooms
• 5 Toilets

Two-Storey Shop Office

• Size: 20’ x 65’

• Office
• Shop
• 2 Toilets

Table 1: Type of Building for the Proposed Development

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2.2 SCOPE OF REPORT

The purpose of this report is to classify the procedures followed during the preparation of a
feasibility study for a proposed mixed development of Vellore City which is located at Jalan
Emas, 31900, Kampar Perak. Specifically, the feasibility study is accomplished by collecting
data, making an analysis on the construction cost, infrastructure cost, pre-development cost,
gross development cost, the gross development value and conducting an evaluation on the
proposed project. The final result of the feasibility study on this report will allow the client to
choose whether or not to proceed with the Vellore City mixed development project. In the
preparation of the feasibility study for the Vellore mixed development project, the Quantity
surveyor and the Local Authorities (LA) plays an important role since they are responsible for
figuring out what the construction project is going to cost and to give the authorization either
to proceed or not with the proposed development project.

Other than that, some of the documents that consist in the feasibility study for this
project are the pre-development cost schedule, total estimated gross development
values/sales income schedule, and the viability statement are all the documents that make up
this feasibility study. Therefore, the Quantity surveyors involved are required to include a
computation of this project's feasibility in the report in order to provide an estimation of the
prospective return on investment. Lastly, once the Quantity surveyors have completed the
feasibility report, they are required to present it to the client as a basis for them to make a
decision whether or not to proceed with the Vellore City mixed development project.

2.3 BASIS OF ESTIMATE

According to Pickett (2005), the Basis of Estimation (BOE) can be defined as the method of
documenting all the critical criteria for a project which include the estimation of cost where it
will be use as to justify on the project’s cost risk. This document must be sufficiently complete
and systematized so that it can be easily understand and obtain the precise estimation.
Moreover, a well written of BOE also should consist of the description and scope of the project,
the basis of pricing, well assumptions made, cost risk and opportunities, any variation from
the standard practices as well as the detail explanation on the estimation that prepared.

As for this proposed project, since this feasibility study are prepared in the early phase
of the project, thus there are many data that still cannot be obtained which required for the
assumption to be made as to carry out the calculation for the estimation. Therefore, the basis
of calculation and assumption that made in this report are based on relevant sources such as
Cost book (2022) released by BCISM, Arcadis (2022) released by JUBM and another

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document that produced by the one-stop-center. For instance, in order to know for the
construction cost of a building in this project, the GFA that obtained is multiplied with the cost
per m2 GFA which are retrieved from the document stated before and thus, the cost per unit
of building is obtained. As for this proposed project that is Vellore City mix used development
project, the calculation on the cost per unit are as shown below:

GFA = 82 m2
Cost/m2 GFA = RM1,200.00
One–Storey Terrace Cost/ Unit = RM1,200.00 x 82m2
= RM 98,400.00

GFA = 147 m2
Cost/m2 GFA = RM1,400.00
Two–Storey Terrace (Deluxe)
Cost/ Unit = RM1,400.00 x 147m2
= RM205,800.00

GFA = 282 m2
Two–Storey Semi D Cost/m2 GFA = RM1,800.00
Cost/ Unit = RM1,800.00 x 147m2
= RM507,600.00

GFA = 228 m2
Cost/m2 GFA = RM1,600.00
Two–Storey Shop Office
Cost/ Unit = RM1,600.00 x 228m2
= RM364,800.00

Table 2: The Calculation on the Cost per Unit

2.4 COST INCLUDED / EXCLUDED

In order to prepare a feasibility study for a project, there are many costs that will include in
which must be analyzed precisely as to obtain the exact estimation for the cost of the project.
However, the cost that included in the preliminary estimate also might be different between
each of the project as it depending on the type of the construction itself. Besides, there are
also several cost that will be excluded in this estimation but need to be identify as to give a
brief overview on the expected cost that will involve for the project so that the client can
determine on the potential return and loss in the future of the project. In preparing the feasibility
study of the project, some of the cost that will be excluded are such as:

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 I. The cost for land and its premium payment

II. The interest rate and cost of finance

III. The cost for fittings and furniture

IV. The cost that effect due to the inflation and taxation.

Meanwhile, the cost that included in the feasibility study are as shown in the table below which
is also that involve in preparing the feasibility study for this proposed project.

Construction Cost
Description Cost (RM)
Building Cost
1. Single – Storey Terrace House 1,200.00/m2 GFA
2. Double – Storey Terrace Deluxe 1,400.00/m2 GFA
3. Double – Storey Semi D 1,800.00/m2 GFA
4. Double – Storey Shop Office 1,600.00/m2 GFA
Infrastructure Work
1. Site Preparation 1,750.00/acre
2. Earthwork 35,000.00/acre
3. Surface Water Drainage 42,000.00/acre
4. Sewerage Reticulation 95,000/acre
5. Sewerage Treatment Plant (STP) 1,250.00/PE
6. Water Reticulation 120,000.00/acre
7. Road and Carparks Works 75,000.00/acre
8. TNB Substation 155,000.00/no
9. External M&E Services 800,000.00/acre
10. Landscaping 82,500.00/acre

Preliminaries
5% of Construction Cost

Contingencies
5% of Construction Cost

Pre – Development Cost

Soil Investigation Cost 3,500.00/borehole
Plan & Submission Fees 655,000.00 (LS)

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Capital Contribution
1. Tenaga Nasional Berhad (TNB) 2,000.00/unit
2. Lembaga Air Perak (LAP) 3,100.00 (L/S)
3. Indah Water Konsortium (IWK) 1.65% of sales income
4. Jabatan Pengairan Saliran (JPS) 10,000.00/acre
5. Telekom Malaysia 5,000.00/unit
6. CIDB 0.125% of construction cost
Survey Work 130,000.00/acre
Developer Overhead 2% Construction Cost

Sales & Marketing & Legal Fees 2% of Income

Total Gross Development Value (Development Income / Sales Incomes)
Sales Income (Selling Price)
1. Single – Storey Terrace 252,000.00/unit
2. Double – Storey Terrace Deluxe 729,000.00/unit
3. Double – Storey Semi D 948,000.00/unit
4. Double – Storey Shop Office 475,000.00/unit

Table 3: Cost Included in the Feasibility Report

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 DEVELOPMENT PROCESS

3.1 LOCAL AUTHORITY INVOLVED

Figure 2: Logo and Location of Kampar District Council

The local authority that involves for this propose project is Kampar District Council which was
established on 1 December 1979. Initially, the name for this district council was “Majlis Daerah
Kinta Selatan (MDKS)” which has been converted to” Majlis Daerah Kampar” (MDKpr) after
being approved by the government gazette on 25 February 2009. The area of this district
council is located bordering to Pahang (East), Kinta district (North and west) and Batang
Padang districts. Moreover, in MDKpr, it consists of many departments, sections, and units
which are listed as shown in the Table 4 below.

• Landscape and Recreation

• Enforcement Division
Section • Human Resources
• Information System
• Engineering
• Public Health
Department • Appraisal and Property
Management
• Planning
• Treasury
• Internal Audit
Units • Corporate
• One stop centre
• Legal

Table 4: Administrative management for Kampar District Council

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 All of these management have its different roles and responsibility in order to achieve
their mission which is to implement and regulating the development in Kampar District as to
establish a wealthy and stable environment. Some of the functions for this administrative
authority are as to plan and control the development including the preparation of structure
plan, coordinating and developing the city, enhancing landscape of the city and other works
for boosting up the sustainability of the environment and building in Kampar. For our proposed
mix development project, which is Vellore City development, the Kampar District Council
would be one of the main local authorities that involve to submit the application for constructing
development in this district. Most of the documentation that involve will required the
authorization from this district council as it is one of the procedures that must be followed in
order to establish the development project.

3.2 REQUIREMENTS AND PROCEDURES INCLUDED

Obtaining a development order or planning authorization in Malaysia is a pivotal step and

requirement in the process of controlling development. Applicants should submit their
application forms to the One Stop Center (OSC). OSC is a delivery mechanism for a planning
system that uses rules and planning practices to accelerate the application of standards and
also improve the planning system in its delivery and contribute towards property development
in Malaysia. A qualified consultant is required to provide thorough counsel to ensure a smooth
procedure and the best results. By consolidating and simplifying the approval process, OSC
was launched by the Ministry of Housing and Local Government (MHLG) in April 2007 to
enhance the planning system delivery and procedures at all local planning authorities.
Applications for land conversion, building plan approval, subdivision, amalgamation, and land
conversion are all part of the process. Notably, the planning approval committee at the local
authority where the OSC is located in Malaysia decides the actual planning consent decision-
making procedure. The consultant or town planners will advise applicants on application-
related issues as well as potential alternative developments.

As for this proposed development project, which is located in Kampar, Perak. So, to
carry out any development in Kampar, all the applicants needed to submit all documents
related to Unit One Stop Center (OSC) Kampar, Perak in Majlis Daerah Kampar through the
online platform or OSC official website. There are a few procedures for the 3 main parties
involved in the process of obtaining the approval of a development plan or construction permit,
namely Pusat Berkuasa Tempatan (PBT), the Agency of Technical Department, and the
Professional Consultant. The latest technical requirements found in the detailed checklist

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document of Pusat Berkuasa Tempatan (PBT) and the Technical Department are subject to
changes and requirements from time to time.

There are 5 methods for the development plan application which is on the first method,
the application must simultaneously and completely contain the following types of documents
that includes land Description (124A or 204D), planning permission (layout and construction
of buildings or construction of buildings only) and road and drainage plan, building plan, land
work plan, temporary building or structure permit, hoarding, signage, workers house, batching
plant, landscape plan, street lighting plan, park or area name plan, street plan, and building
name. The second method is similar to the first method but without land description (124A or
204D). Then in the third method, the application must simultaneously and completely contain
the following types of documents which is land description (124A or 204D) and planning
permission (layout). However, for the fourth method, the application must separately and
completely contain one of the following types of document which is the description of land
124A or 204D, planning permission layout, Construction, road and Drainage Plan, building
plan, land work plan, temporary building, hoarding temporary permit, temporary sign permit,
temporary worker's home permit, batching plant temporary permit, landscape plan, street
lighting plan, park name plan, street name plan, building name plan, application for an
amendment plan to a pass plan, application for house building plan of a private residence and
application for extension and renewal of the development plan. Lastly, on fifth method is
submission (deposit) for official records at the relevant local authority department namely Form
B (Commencement of Construction Work), notification of Interim Inspection, Notification of
Final Inspection, Forms G1 – G21, Form F and F1 (CCC), CFO, sanitary plan, reinforcement
concrete plan, building plans for government projects that do not require (CFO/ CCC) buildings
are issued.

All of these documents will be evaluated precisely in detail by the authorized person
involved in a short period of time such as the town and country planning department, land and
mines department, Public Works Department, Irrigation and Drainage Department,
Environment Department, Minerals and Geoscience Department, Fire and Rescue
Department, Tenaga Nasional Berhad, Sewerage Certification Agency (IWK/ MAAJARI),
State Water Authority, Communications, and Multimedia Commission, Malaysian Highway
Authority, PBT Planning Department, PBT Engineering Department, PBT Building
Department, PBT Landscape Department, PBT Health Department Director, PBT Licensing
Department Director, PBT Assistant Building Commissioner (COB) PBT, PBT Assessment
Department Director and Council Members Other related technical departments will be invited
from time to time (Kementerian Perumahan Dan Kerajaan Tempatan, 2019).

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3.3 DEVELOPMENT PROCESS

Figure 4 shows the summary of the development process according to OSC 3.0 where there
are 6 processes that are involved in this development project which are gathering data,
development plan approval, notification to start work, interim inspection, final inspection I and
II and lastly deposit of CCC.

Figure 3: Summary of D.O Process in Accordance to OSC 3.0

3.3.1 The Preparation of the Application and Collection of Technical Information

Figure 4: Process of Collecting Technical Data

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As for the first process which is data gathering, the applications are encouraged to conduct
the technical information session as it could assist them in obtaining accurate information prior
to designing, creating plans and documents for submitting a formal application. However, this
process is considered as a non-mandatory procedural requirement for the applicants since it
is stated in the list of documents outlined in the OSC 3.0 Plus Manual, where this process
could not affect the applicants right to submit a formal application. Moreover, during this
process the applicants are required to visit the relevant technical agencies if required in order
to establish the current status of the future development project since the internal/external
technical authorities such as Bomba, TNB, JKR, and Lembaga Air Perak are responsible for
advising, preparing, and supplying the information needed within a reasonable time.

3.3.2 The Consideration of Development Plan

Figure 5: The Process of Consideration of Development Plan

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Next is the process of acceptance of the considerations on the development plan by the Local
Authority (PBT) through a One Stop Centre (OSC). The application for a development plan on
this project must adhere to the checklist of documents and it is required to be submitted
through the OSC 3.0 Plus Online System. Besides, the applicants are required to submit the
application for a development plan online (softcopy) before the submission of hardcopy to the
Internal Technical Agencies (ATD) and External Technical Agencies (ATL) where the
application will then be evaluated by the assigned officer. Usually, within 7 working days, the
officer will pass the relevant comments on the application to the PSP/SP that include any
additional required documents or if there is incorrect drawing formatting.

Once the technical reviews are done, the Agency/Technical Department is required to
prepare and submit a copy of the review to the OSC and record the date of receipt. Then, the
OSC is responsible for organising the ‘’Kertas Perakuan’’ that has been submitted by the
approval department since it will be covered in the OSC Pre-JK meeting where OSC are
required to send a notice of the meeting to the applicants. Finally, once OSC has completed
the meeting results, they are responsible to update the meeting results information in the OSC
V3 KPKT portal as well as prepare the notification letters to be submitted to PSP and the
Approval Department and prepared the cover letter to ‘Urus Setia Mesyuarat Majlis Penuh’
and to the JK OC meeting members.

3.3.3 Notification of Construction Work Start

Figure 6: The Process of Notification of Work Start

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Next, the main objective on the notification of the construction work procedure is to provide an
official notification that will be documented by the PBT and agency or the technical
departments before the works on the construction site begins. Once the applicants receive the
notice, they are required to complete the Form B which is the form of ‘Mula kerja tanah dan
Kerja bangunan’ and submit the notification of the start of construction work to the One Stop
Centre (SOC). Once, the SOC has received the notification, they are required to prepare cover
letters, and distribute the notice and documentation to the agencies that may be involved and
provide a copy of the cover letters to the applicant. The agencies that are involved are as
follows:

Description Agencies

• Building Department
The Internal Technical • Planning Department
Agencies of PBT • Engineering Department
• Landscape Department

• Tenaga Nasional Berhad (TNB)

• Indah Water Berhad (IWK)
• Public Works Department (JKR)
• State Water Authority (PBAN)
The External Technical
• Occupational Safety and Health Department
Agencies
(JKKP)
• Malaysian Fire and Rescue Department (JBPM)
• Solid Waste Management and Cleaning
Corporation (SWCorp)

Table 5: Table of Internal and External Agencies

3.3.4 Construction Site Monitoring and Interim Inspection Notification

Figure 7: Construction Site Monitoring and Interim Inspection Notification

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This process refers to the site inspections that must be done by the local authorities (PBTs),
agencies, or technical departments in order to ensure that the construction for this project is
completed in compliance with the approved development plan before the facility can be used
for the CCC production. The Local Authorities should visit the site location of the development
project and it is suggested for them to visit the site repeatedly where the noncompliance is
regularly mentioned and ordered to be fixed right away at this stage. Besides, this process is
conducted by Majlis Daerah Kampar in response to the developer’s application to inspect the
proposed development project.

The contractor, architect, and the developer are the parties involved in this project
where during the site visit, the engineers in charge for this project are required to bring along
the plan for the new development that has been approved by Majlis Daerah Kampar as a guide
for them to inspect each corner for the building construction. If there is any noncompliance of
work detected, the agencies involved will issue a noncompliance notice towards the applicant
and the copy of the notice to the OSC. However, the developer must rectify it as soon as
possible before acquiring the approval from the local authority (LA) to occupy the building.

3.3.5 Final Examination Notification Stage I and Stage II

Figure 8: The Process of Final Examination Notification Stage I And Stage II

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 Next, at this stage, OSC is responsible for monitoring the final inspections that will be
conducted by six different agencies that are involved. However, the site inspections will be
conducted once all the physical work is complete for the entire scope of work that was listed
in Form G. There are two stages that are involved in order to carry out the final inspection
where as for the final inspection I, the agencies that are involved are PBAN, TNB, PBT OR
JKR if it involves JKR road reserve, and as for the final inspection II are involving JBPM,
IWK, and JKKP. The applicants must ensure that all the rectification works directed by the
Local Authority and Agency/Technical Department have been executed before submitting
the final Inspection notification to the Agencies that are involved along with the copies to the
PBT Building Department and OSC unit as for the record-keeping.

3.3.6 Certificate of Completion and Compliance (CCC) Deposits

Figure 9: The Process of CCC Deposit

Lastly, the last process that involves in the development process is the certification of
completion and compliance (CCC) deposit. In this stage, the PSP must first ensure that all
Forms G1 and G21 have been released or certified by the relevant agencies before submitting
them to the OSC unit for the CCC. However, according to the section 25(3) of the uniform
Building Bylaws of 1984 mentioned that, a PSP who has certified the issuing of the CCC are
required to submit a copy of the certificate to the Local Authority (PBT) before submit it to the
developer or the owner of the project so that the Local Authority can record the date of receipt
of the CCC deposit and the documents (Forms G1-G-21). Moreover, PSP also must prepare
a copy of CCC to the Malaysian Architect Board (LAM) or Malaysian Architect Board (LJM).

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3.4 TIME AND FEES INVOLVED

3.4.1 Time Frame of Development Process

17
Figure 10: Time Frame for Development Process

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3.4.1 Fees Involved in Development Process

Fee Rate Advancement Type

Permission to Plan
Land Development Planning Development of
Permission Building / Hermitage
Plan
Type of
Item
Development

Land Plot
Unit
Area
(Boundary
(Boundary Floor Area
Breaking Plan
Break Plan
Provided)
Not Provided

Residential

1 Low Cost RM20.00 / unit RM1.00 / M² RM20.00 / unit

Other types of
2 RM50.00 / unit RM1.00 / M² RM50.00 / unit
residence

Commercial

i. RM50.00 for
the first 200
M² of floor
area of part
thereof

ii. RM30.00 for

the first 800
Shop House /
1 RM50.00 / unit RM1.00 / M² M² of floor
Business
area of part
thereof

iii. RM25.00 for

every 600 M²
thereafter of
floor area of
part thereof

19
 Enterprise / Industry

1 Industrial Lot RM0.10 / M² RM0.10 / M² i. RM50.00 for

the first 200
M² of floor
Main Inlet RM250.00 / area of part
2 RM250.00 / unit thereof
Substation unit

ii. RM30.00 for

the first 800
Main Distribution RM250.00 / M² of floor
3 RM250.00 / unit
Substation unit area of part
thereof

iii. RM25.00 for

every 600 M²
Electrical RM250.00 / thereafter of
4 RM250.00 / unit
Substation unit floor area of
part thereof

Utility Reserve

Sewage Treatment
1
Plan (STP)

- - RM10.00 / unit

Pump House, and

2
etc

20
 Others

i. RM50.00 for
the first 200
M² of floor
area of part
thereof

ii. RM30.00 for

the first 800
Playground, and M² of floor
1 RM0.10 / M² RM0.10 / M²
etc area of part
thereof

iii. RM25.00 for

every 600 M²
thereafter of
floor area of
part thereof

Telecommunication RM250.00 / RM250.00 / RM250.00 /

2
Tower tower tower application

Addendum / Change

RM40.00 per
1 Division additional unit / - -
change

RM40.00 per
Break the
2 additional unit / - -
Boundary
change

RM40.00 per
3 Land Consolidation additional unit / - -
change

21
 i. RM50.00 for
the first 200
M² of floor
area of part
thereof

ii. RM30.00 for

the first 800
4 Building Plan - - M² of floor
area of part
thereof

iii. RM25.00 for

every 600 M²
thereafter of
floor area of
part thereof

Additions /
5 Modification of - - RM50.00 / unit
Building

Change of Use of RM250.00 /

6 - -
Land / Building application

Land Consolidation
RM250.00 /
7 for All Types of - -
application
Applications

Table 6: Fees Rate Advancement Type

50% of the rate of the type of advancement

First Extension
charged

25% of the rate of the type of advancement

Second Extension
charged

The planning permission application must

Subsequent Extension
be resubmitted

Table 7: Fees Rate for Extension

The Applications that being Rejected

50% of original fee amount
during OSC Committee Meeting

Permission to Plan Earthworks RM250.00 / application

Permission to Plan Roads & Drainage RM250.00 / application

Table 8: Other Fees

22
 SCHEDULES OF AREA

A building schedule of areas provides an estimate of the sizes of all the identified spaces in
the schedule as well as an illustration of the sizes of all the spaces stated in a building
performance specification. To help in identifying the specifications for each element included
in the project, the area needs to be drawn to scale in a "box" form with the size noted. As for
this project, the site area consists of 10 acres which include One-Storey Terrace House, Two-
Storey Terrace Deluxe, Two-Storey Semi D, Two-Storey Shop Office, Surau, TNB Substation,
and all necessary landscaping.

Figure 11: Site Area of the Proposed Development

23
4.1 BUILDING PLAN

4.1.1 One-Storey Terrace House

Figure 12: Plan for One-Storey Terrace House

The one-story terrace house has living area, dining area, kitchen, master bedroom, two
bedrooms, two bathrooms, toilet, and terrace for the corner lot. The gross floor area of each
unit is 82.00 m², with a total of 47 units.

4.1.2 Two-Storey Terrace (Deluxe)

Figure 13: Plan for Two-Storey Terrace (Deluxe)

As for the two-story terrace house deluxe, it includes living area, dining area, kitchen, master
bedroom, 4 bedrooms, as well as 4 bathrooms. Same as one storey house, it includes terrace
for the corner lot. Each unit has a gross floor area of 147.00 m² and the development has a
total of 86 units.

24
4.1.3 Two-Storey Semi D

Figure 14: Plan for Two-Storey Semi D

Regarding the two-story terrace Semi D, it has a living room, a dining room, a foyer, a kitchen,
a master suite, a guest bedroom, two bedrooms, a master bathroom, four bathrooms including
guests, a yard, and a store. There are 24 units in a total, with a gross floor area of 282.00 m²
for each unit.

4.1.4 Two-Storey Shop Office

Figure 15: Plan for Two-Storey Shop Office

The two-story shop office simply provides space for office supplies and two toilets. There are
8 units altogether, each having a gross floor area of 228.00 m².

25
 VIABILITY REPORT

5.1 CONSTRUCTION COST

5.1.1 Building Cost

GFA Cost/M2 Cost/Unit Total

Item Description Unit
(M2) GFA (RM) (RM) Amount (RM)

1 1-Storey
47 82 1,200.00 98,400.00 4,624,800.00
Terrace

2 2-Storey
86 147 1,400.00 205,800.00 17,698,800.00
Terrace Deluxe

3 2-Storey Semi D 24 282 1,800.00 507,600.00 12,182,400.00

4 2-Storey Shop
8 228 1,600.00 364,800.00 2,918,400.00
Office

TOTAL BUILDING COST: 37,424,400.00

26
5.1.2 Infrastructure Cost

Rate
Item Description Unit Qty Amount (RM)
(RM)

Site Preparation
1 Acre 10 1,750.00 17,500.00
- RM1,750.00/acre

Earthworks
2 Acre 10 35,000.00 350,000.00
- RM35,000.00/acre

Roadworks
3 Acre 10 75,000.00 750,000.00
- RM75,000.00/acre

Surface Water Drainage

4 Acre 10 42,000.00 420,000.00
- RM42,000.00/acre

Sewerage Reticulation
5 Acre 10 95,000.00 950,000.00
- RM95,000.00/acre

Water Reticulation
6 Acre 10 120,000.00 1,200,000.00
- RM120,000.00/acre

Landscaping
7 Acre 10 82,500.00 825,000.00
- RM82,500.00/acre

External M&E Services

8 Acre 10 800,000.00 8,000,000.00
- RM800,000.00/acre

TNB Substation
9 No 1 155,000.00 155,000.00
- RM155,000.00/no

Sewage Treatment Plant

- Residential
157 x 5 = 785

10 - Commercial PE 840 1,250.00 1,050,000.00

228 x 8 X 3 = 55
100
- RM1,250.00/PE

TOTAL INFRASTRUCTURE COST: 13,717,500.00

27
5.2 PRE-DEVELOPMENT COST

Rate
Item Description Unit Qty Amount (RM)
(RM)

Soil Investigation

1 - 10 acres x 4 no of No 40 3,500.00 140,000.00

borehole

Plan & Submission Fees,

2 L/S 655,000.00 655,000.00
and etc

Contribution
- TNB Unit 1 2,000.00 2,000.00
- LAP L/S 3,100.00 3,100.00
- IWK (1.65% of L/S 2,299,275.00 2,299,275.00

3 sales income)
- JPS Acre 10 10,000.00 100,000.00
- TM Unit 1 5,000.00 5,000.00
- CIDB (0.125% of L/S 70,320.11 70,320.11
construction cost)

4 Survey Works Acre 10 130,000.00 1,300,000.00

Professional Fees
- Fees (10% of L/S 5,625,609.00
5,625,609.00
5 construction cost)
- Service Charge L/S 337,536.54
337,536.54
(6%)

Developer’s Overhead &

Management Cost
6 L/S 1,125,121.80 1,125,121.80
- 2% of construction
cost

Sales & Marketing & Legal

7 Fees L/S 2,021,800.00 2,021,800.00

- 2% of income

TOTAL PRE-DEVELOPMENT COST: 13,684,762.45

28
5.2.1 Gross Development Cost

Description Cost (RM) Total Cost (RM)

Pre-Development Cost 13,684,762.45 13,684,762.45

Construction Cost

a) Building Cost 37,424,400.00

b) Infrastructure Cost 13,717,500.00

59,068,894.50
c) Preliminaries (10% of Building Cost +
5,114,190.00
Infrastructure Cost)

d) Contingencies (5% of Building Cost +

2,812,804.50
Infrastructure Cost + Preliminaries)

TOTAL ESTIMATED GROSS DEVELOPMENT COST: 72,753,656.95

5.2.2 Gross Development Value

Selling/Unit
Item Description Unit Total Income (RM)
(RM)

1 1-Storey Terrace 47 252,000.00 11,844,000.00

2 2-Storey Terrace Deluxe 86 729,000.00 62,694,000.00

3 2-Storey Semi D 24 948,000.00 22,752,000.00

4 2-Storey Shop Office 8 475,000.00 3,800,000.00

TOTAL ESTIMATED GROSS DEVELOPMENT VALUE

101,090,000.00
(SALES INCOME):

29
5.3 VIABILITY STATEMENT

Total Estimated Gross Development Value = RM101,090,000.00

Less

Total Estimated Gross Development Cost = RM72,753,656.95

Estimated Gross Profit = RM28,336,343.05

5.4 RETURN ON INVESTMENT

Estimated Gross Profit

Percentage Return = X 100
Total Estimated GDC

RM28,336,343.05
= X 100
RM72,753,656.95

= 38.95%

30
 CONCLUSION

For this study, 10 acres of land in Perak, more specifically on Jalan Emas were selected for
our proposed mixed development project. The Vellore City of Jalan Emas will be the name of
it. The following are the findings of the feasibility study for the proposed mixed development
project which include a residential building that consists a total of 47 units of 82 square meters
gross floor area 1-storey Terrace house, 86 units of 147 square meters gross floor area 2-
Storey Terrace Deluxe, 24 units of 282 square meters gross floor area of 2-Storey Semi
Detached House, and 8 units of 228 square meters gross floor area of 2-Storey Shop Office.
All this building development with a total of RM37,424,400.00 of building cost. Next, a total of
RM13,717,500.00 would spend for infrastructure cost including site preparation, earthwork,
roadwork, surface water drainage, sewerage reticulation, water reticulation, landscaping,
external M&E services, TNB substation, and sewage treatment plant for both residential and
commercial buildings. After that, there are pre-development costs including the cost of soil
investigation, plan and submission fees, contribution, survey work, professional fees which
are 10 percent of construction cost and 6 percent of service charges, developer overhead and
management cost with 2 percent of construction cost and 2 percent of income from the sales
and marketing with an overall total of RM13,684,762.45.

From this report, the total Gross Development Cost (GDC) was calculated which
includes pre-development cost sum up with construction cost and contingencies and found
that it is RM72,753,656.95. Meanwhile, a total of RM101,090,000.00 is generated from the
calculation of Gross Development Value (GDV) or sales income that includes a timesing of
unit numbers and selling per unit for each type of building. From these two totals estimated,
viability statement is produced by total estimated of GDV less total estimated GDC and the
result is RM28,336,343.05. Lastly, the calculation of percentage Return on Investment (ROI)
would be estimated Gross profit that divided with total estimated GDC and timesing with 100
percent and the final result is 38.95 percent. It can be concluded that this project is advisable
and recommended to proceed because a good ROI must be greater than 15 percent, and for
this project, it is 38.95 percent. It shows that this bodes well for the proposed mixed
development’s future profitability. Not only that, but it will also aid in the development of future
market strategies.

31
REFERENCES

BCISM Sdn Bhd. (2022). BCISM Costbook 2022.

Carta Alir Proses KM. (2020, August 27). PLAN Malaysia, Perak.
https://planmalaysia.perak.gov.my/index.php/muat-turun-kebenaran-merancang/carta-
alir-proses-km

JUBM Sdn Bhd, Arcadis Malaysia Sdn Bhd, & Arcadis Projek Sdn Bhd. (2022). Construction
Cost Handbook Malaysia 2022. http://www.arcadis.com

Kementerian Perumahan Dan Kerajaan Tempatan. (2019). Manual OSC 3.0 Plus: Proses
dan Prosedur Cadangan Pemajuan Serta Pelaksanaan Pusat Setempat (OSC).

Majlis Daerah Kampar. (2017). Latar Belakang | Portal Rasmi Majlis Daerah Kampar
(MDKpr). Portal Rasmi Majlis Daerah Kampar.
https://www.mdkampar.gov.my/ms/mdkpr/profil/latar-belakang

Masanja, N. M. (2020, May). A PRACTICAL GUIDE TO WRITING A FEASIBILITY STUDY.

NMM Printers.
https://www.researchgate.net/publication/341134813_A_PRACTICAL_GUIDE_TO_WR
ITING_A_FEASIBILITY_STUDY

Pickett, T. (2005). Preparing a Basis of Estimate. In AACE International Transactions.

PLAN Malaysia. (2017). PERMOHONAN CADANGAN PEMAJUAN DI BAWAH

PERENGGAN 22(2A)(c) PPA 13 PANDUAN PELAKSANAAN AKTA 172. Jabatan
Perancangan Bandar dan Desa. http://www.townplan.gov.my

Shen, L. yin, Tam, V. W. Y., Tam, L., & Ji, Y. bo. (2010). Project feasibility study: the key to
successful implementation of sustainable and socially responsible construction
management practice. Journal of Cleaner Production, 18(3), 254–259.
https://doi.org/10.1016/J.JCLEPRO.2009.10.014

Wardner, P. (2015). EXPLAINING MIXED-USE DEVELOPMENTS: A CRITICAL REALIST’S

PERSPECTIVE.

32
APPENDICES

Appendix 1: Official Website of OSC

Appendix 2: Official OSC for Majlis Daerah Kampar, Perak

33
 Appendix 3: Cost per Unit Retrieved from BCISM

Appendix 4: Cost per Unit Retrieved from ARCADIS

34