Development Appraisals Flashcards
What is an S-Curve?
An S-Curve is a graphical representation of costs incurred over the lifecycle of a project, which shows less costs incurred in the beginning (flatter over longer period of time), with a sharp increase in the middle, and then a plateau towards the end, creating an ‘S’ - shape.
Why is an S-Curve useful?
Black Notley - What did you advise?
I advised that the development was viable based on the assumptions I had made, but, as the EUV (£900k) andestimated consented site value (£1.15m) were relatively close, I suggested that disposal to investors, occupiers, and developers be considered.
Fromus Centre - What was to be demolished?
A former (now dilapidated) social care community office and parking area
Fromus Centre - Where did you get your demolition rate from?
I asked a colleague in LSH building consultancy
Fromus Centre - Did you allow any other contingency?
I allowed a developer’s contingency of 2%.
What is sensitivity analysis?
Sensitivity analysis is a manipulation of cost and value inputs to determine the risk profile and profitability in different situations, representing “best” and “worst” case scenarios (and in-betweens).
What is a monte carlo simulation?
One changes all the inputs to assess the impact on profit. The idea is to de-risk the scheme to a point where the probability of profitability is much higher than the loss situation.
What did you advise on the Fromus Centre?
I advised that the proposed scheme (expected to be granted planning permission imminently) was financially viable based on my assumptions.
Where did you get your S106 and CIL costs from for the Fromus Centre?
Based on information included in the documents of consultee responses to the application
