Description of the Model: This model was created to assist the university’s facilities manager in determining the best cost-effective and financial viable option for developing an undercover parking lot on a site measuring 11,349 square meters. It is intended to address safety and occupational health concerns as well as the lack of covered car parking spaces at the university. It takes into consideration the construction cost, the revenue earned by car parking fees and the time needed to create different options.
- Every car space needs 20 square metres, plus a allowance for access and paths.
- Cost of building is $150/square meter per floor
- An annual fee of $400 is paid to the university for each car park space.
- To construct a single-storey car parking, it would take about 0.5 years.
- It would take 1 year to build a two-storey parking garage.
- Construction of three floors takes 1.2 years.
- Construction must begin as soon as possible and should continue for 10 years.
- In the analysis, a discount rate of 4 percent is applied to expenses.
- At 3% annually, revenues will increase.
- Future changes will see the fee increase to $400 per automobile.
- The development of an underground car park for a site measuring 11,349 square meters. This is to determine which solution will be the most economical and financial.
- Calculate the amount of time that it takes for the university’s investment to make a profit on the car park.
- This model doesn’t account for any possible changes in demand for parking at the university.
- It does not include any potential other uses for the 11349-square-meters site.
- Based on the floor count and building costs of $150/square meter, the model calculates the construction cost for various options.
- Based on how many cars there are and $400/annum for parking, the model calculates the car park fees revenue.
- Based on costs of construction and revenue from car parking, the model calculates the amount of time that it takes for the university’s investment to make a profit.
- Enter the floor plan and number of spaces you require.
- Enter the cost to build a floor at $150/square meter.
- Add $400 per year for car parking fees
- For different options, enter the amount of time required to build the parking lot.
- Add the annual discount rate for expenses at 4%, and the revenue inflation rate to calculate.
- The model can be used to calculate the best cost-effective, financially feasible solution for the construction of an undercover parking lot on the 11.349 square meter area.
- This model shows the costs of construction and revenue from car parking, as well as the amount of time required for the university’s investment to make a profit on it.
- Executive Summary
The university should construct a 3-storey carpark based on this analysis. This would be the quickest option to build and produce the greatest revenue through car parking fees. In approximately 5.3 years, the university will break even on its investment in the car park.