BFC 44602 ECONOMY ENGINEERING

SEMESTER 1 2021/2022

COMPANY GAMUDA BERHAD

Prepared By

Ammar Ikhwan Bin Arriffin CF190135

Amirul Adam Bin Mohd Abdul Rahman CF190126

Siti Aisyah Binti Mohd Hidzir CF190165

Mohamad Aiman Bin Radzuan CF190157

Mohamad Syahrul Bin Suidin AF180012

Section 7, Group 5

Prepared For

Ts. Dr. Nor Haslinda Binti Abas

Mdm. Siti Khalijah Binti Yaman

December 31, 2021

 TABLE OF CONTENTS

INRODUCTION 3
FINANCIAL MANAGEMENT
COMPANY BACKGROUND 6
COMPANY PERFORMANCES 8
PROBLEM SOLVING 15
PROJECT MANAGEMENT
PROJECT BACKGROUND 21
LIFE CYCLE COST 23
WORK BREAKDOWN STRUCTURE 25
BENEFITS COST RATIO 31
CONCLUSION 34
REFERENCE 35
APPENDIX 36
INTRODUCTION

A Project Engineer manages technical or engineering projects. They work with stakeholders at
all levels, with direct responsibility for budgeting, personnel and project planning. Project
engineering is typically the management of engineering and technical projects this includes
management of personnel, budget, and scheduling to deliver a successful project outcome that
is fit for purpose. In addition to these factors, a significant consideration of the work of project
engineers is the safety of the project. They will work to minimize the risks associated with
engineering projects. The project engineer will act a coordinating figure, dealing with
stakeholders across all areas of the project. They will interpret the needs, expectations, and
limitations of each, and bring them together with the aim of successful project delivery.

As a Project Engineer, we were given the task to make a proposal to analyze either the project
for the development of a new private college that is worth of RM100 million for a duration of
5 years will be proceed or not. In order to achieve that, we need to analyze everything start
from the background of the project, life cycle cost of project, work breakdown structure of the
project and benefit cost ratio of the project. The aims of the proposal project are to analyze the
most suitable method required to finish the project and to learn how to manage a good financial
by analysis.

COMPANY LOGO

COMPANY NAME: GAMUDA BERHAD

ORAGNIZATION CHART

AMMAR IKHWAN BIN ARRIFFIN

CF190126
PROJECT ENGINEER

AMIRUL ADAM BIN MOHD ABDUL

RAHMAN
CF190126
PROJECT ENGINEER

MOHAMAD AIMAN BIN RADZUAN

CF190157
PROJECT ENGINEER
MOHAMAD SYAHRUL BIN SUIDAN
AF180012
PROJECT ENGINEER

SITI AISYAH BINTI MOHD HIDZIR

CF190165
PROJECT ENGINEER
 FINANCIAL MANAGEMENT

COMPANY BACKGROUND

Gamuda Berhad is an engineering, property and infrastructure company based in Malaysia.

Gamuda Berhad was incorporated on 6 October 1976 and was listed on the main board of Bursa
Malaysia on 10 August 1992. It was founded by Koon Yew Yin and Lin Yun Ling. The vision
of Gamuda Berhad is: We aim to lead the region in innovative breakthrough solutions for large-
scale public infrastructure and property development. While the mission of Gamuda Berhad is
we reliably deliver innovative world-class infrastructure and premier lifestyle properties to our
customers through our core businesses in infrastructure development and construction,
operation of infrastructure facilities and property development.

It is one of the largest Malaysian infrastructure companies and has undertaken various projects,
both locally and overseas. Table below shows some major project completed by Gamuda
Berhad.

Table 2.1: Project Completed by Gamuda Berhad.

YEAR PROJECT DISCRIPTION

2007 Stormwater Management - 50:50 joint venture collaboration with
andRoad Tunnel (SMART MMC Corporation Berhad
Tunnel) - this 9.7 km SMART tunnel primary
function is to divert excess floodwater
from Sungai Klang and Sungai Ampang to
be stored in the storage pond
2008 Electrified Double Track - This 329 km Project involves the
Project (EDTP) realignment and construction of the
electrified double railways that span
across four northern states of Perak,
Penang, Kedah and Perlis in Peninsular
Malaysia
-Works are progressing well at 97%
overall completion stage and upon
completion in November 2014
2012 turnkey contractor for - Seven underground stations will be
the constructed along the 9.5 km tunnel –
9.5 km underground KL Sentral, Pasar Seni, Merdeka,
works for KVMRT, SBK Bukit Bintang, Pasar Rakyat, Cochrane
Line and Maluri.

2016 Bukit Bantayan Bukit Bantayan Residences, a highland

Residences retreat-inspired development in Kota
Kinabalu, Sabah, marks Gamuda
Land's entry into East Malaysia.

2016 Main contractor for - length is 89.43 km (55.57 mi)

Pantu Junction - Batang
Skrang section in
Sarawak in Pan Borneo
Highway project in
works package contract
(WPC04 PJS).
2017 Gamuda Gardens Gamuda Land launches the 810- acre
Gamuda Gardens township
development in Sungai Buloh,
Selangor.
2017 twentyfive.7 Gamuda Land launches the 257- acre
twentyfive.7 township development in
Kota Kemuning,
Selangor.
2017 SBK Line The MRT Sungai Buloh-Kajang (SBK)
Line opens on 17 July 2017, two weeks
ahead of time and within budget.
COMPANY PERFORMANCE

BALANCE SHEET

Period Ending 2020 2019 2018 2017

31/07 31/07 31/07 31/07
Total Current Assets 9526.03 8075.97 7358.54 6434.52
Cash and Short Term 2791.67 1848.94 1539.17 970.58
Investments
Cash 734.02 304.01 217.36 76.47
Cash & Equipment - - - -
Short Term Investment 2057.65 1544.93 1321.82 894.38
Total Receivables, Net 3636.57 3526.36 3105.18 2777.93
Account Receivables Trade, 3318.13 3357.33 2922.28 2601.52
Net
Total Inventory 2764.95 2650.55 2574.77 2533.42
Prepaid Expenses 166.82 31.57 96.31 85.82

Total Assets 18527.54 17180.42 16632.39 15770.18

Property/Plant/Equipment/ 1078.2 1155.51 1009.19 3524.79
Total - Net
Property/Plant/Equipment/ 1774.44 1523.68 1277.83 3781.92
Total - Gross
Accumulated Depreciation - -696.24 -368.18 -268.63 -257.13
Total
Goodwill, Net - - - -
Intangibles, Net 1356.23 1307.23 1421.96 1545.80
Long Term Investments 5635.58 5524.17 5793.44 3223.86
Note Receivable – Long Term 890.84 1074.29 1005.97 964.51
Other Long Term Assets, 40.66 43.24 43.3 76.69
Total
Other Assets - Total - - - -
Period Ending 2020 2019 2018 2017
31/07 31/07 31/07 31/07
Total Current Liabilities 5886.57 5106.19 3756.66 2566.59
Account Payable 1252.48 1319 1300.59 1618.01
Payable/Accrued 2036.68 1844.39 1640.95 -
Accrued Expenses 182.02 197.52 183.03 136.77
Notes Payable/Short Term 2350.61 1443.48 1206.01 138.65
Debt
Current Port. of LT Debt/ 166.78 742.43 280.72 490
Capital Expenses
Other Current Liabilities - 1934.69 1403.76 786.30 183.16
Total

Total Liabilities 9986.45 9117.79 9035.77 8294.19

Total Long Term Debt 2962.03 2957.74 4249.96 4614.65
Long Term Debt 2952.17 2957.74 4249.96 4614.65
Capital Lease Obligations 9.85 - - -
Deferred Income Tax 335.9 375.79 407.32 419.18
Minority Interest 426.5 399.32 383.68 369.13
Other Liabilities - Total 375 278.75 238.14 324.64

Total equity 8541.09 8062.62 7596.62 7475.99

Redeemed Preferred Stock - - - - -
Total
Preferred Stock Non - - - -
Redeemed - Total
Common Stock - Total 3620.95 3469.73 3452.94 3372.37
Additional Paid-In Capital - - - -
Retained Earnings 4920.15 4592.89 4143.69 3814.07
(Accumulated Deficit)
Treasury Stock - Common - - - -
ESOP Debt Guarantee - - - -
Unrealized Gain (Loss) - - - -
 Period Ending 2020 2019 2018 2017
31/07 31/07 31/07 31/07
Other equity, total Cash - - 67.23 289.55

Total Liabilities & 18527.54 17180.42 16632.39 15770.18

Shareholders’ Equity
Total Common Shares 2513.53 2472.32 2467.99 2450.74
Outstanding
Total Preferred Shares - - - - -
Outstanding
*In millions of MYR (expect for per share)
CASH FLOW
Period Ending 2020 2019 2018 2017
31/07 31/07 31/07 31/07
Period Length 12 Months 12 Months 12 Months 12 Months
Net Income/Starting Line 585.46 908.85 729.30 826

Cash From Operating 596.31 484.72 502.38 -509.34

Activities
Depreciation/Depletions 79 56.59 42.69 31.25
Amortizations 137.16 127.98 126.69 109.26
Deferred Taxes - - - -
Non-Cash Items -137.69 -315.50 5.82 -169.74
Cash Receipts - - - -
Cash Payment - - - -
Cash Taxes Paid 183.04 159.97 198.9 180.56
Cash Interest Paid 283.14 275.84 237.68 222.68
Changes In Working Capitals -67.62 -293.20 -402.13 -1306.12

Cash From Investing Activities -320.89 375.08 -320.13 -17.11

Capital Expenditures -186.03 -267.04 -456.1 -264.58
Other Investing Cash Flow -134.86 642.12 135.97 247.47
Items - Total

Cash From Financing 137.78 -765.77 316.60 271.62

Activities
Financing Cash Flow Items -23.59 -36.6 -34.2 -17.65
Total Cash Dividends Paid -225.78 -148.08 -295.43 -292.44
Issuance (Retirement) Of 72.88 13.27 70.59 128.50
Stock, Net
Issuance (Retirement) Of 314.27 -594.36 575.64 453.21
Debt, Net
 Period Ending 2020 2019 2018 2017
31/07 31/07 31/07 31/07
Foreign Exchange Effects 24.44 10.03 -21.26 -1.78
Net Change In Cash 437.64 104.06 477.59 -256.61
Beginning Cash Balance - 63.53 -260.23 333.08
Ending Cash Balance - 167.59 217.36 76.47
Free Cash Flow - 217.68 46.38 -773.92
Free Cash Flow Growth - - - -
Free Cash Flow Yield - - - -
*In millions of MYR (expect for per share)
INCOME STATEMENT
Period Ending 2020 2019 2018 2017
31/07 31/07 31/07 31/07
Total Revenue 3662.96 4565.06 4216.55 3211.4
Revenue 3662.96 4565.06 4216.55 3211.4
Other Revenue, Total - - - -

Cost Of Revenue, Total 2816.97 3557.53 3254.43 2376.28

Gross Profit 845.99 1007.54 962.12 835.12

Total Operating Expenses 3246.59 3859.8 3510.99 2529.15

Selling/General/Admin. Total - - - -
Research & Development - - - -
Depreciation / Amortization 223.13 192.13 176.48 140.52
Interest Expense (Income) – - - 6.67 6.94
Net Operating
Unusual Expenses (Income) 148.1 - - -
Other Operating Expenses - 58.39 110.14 80.08 5.42
Total

Operating Income 416.38 705.26 705.56 682.25

Interest Income (Expenses), 169.09 195.85 41.1 143.75
Net Non- Operating
Gain (Loss) On Sale Of Assets - - - -
Other, Net - - - -
Net Income Before Taxes 585.46 901.11 746.66 826
Provision For Income Taxes 161.27 148.84 166.01 169.78
Net Income After Taxes 424.19 752.27 580.65 656.23
Minority Interest -52.51 -52.08 -50.47 -54.13
Equity Affiliates - - - -
U.S GAAP Adjustments - - - -
Net Income Before 371.68 700.19 530.18 602.09
Extraordinary Items
 Period Ending 2020 2019 2018 2017
31/07 31/07 31/07 31/07
Total Extraordinary Items - - - -
Net Income 371.68 700.19 530.18 602.09
Total Adjustment Net Income - - - -
Income Available To Common 371.68 700.19 530.18 602.09
Excluding Extraordinary
Items
Dilution Adjustment - - - -
Diluted Net Income 371.68 700.19 530.18 602.09
Diluted Weighted Average 2487.79 2468.61 2459.55 2527.43
Shares
Diluted EPS Excluding 0.15 0.28 0.22 0.24
Extraordinary Items
DPS – Common Stock 0.06 0.12 0.12 0.12
Primary Issue
Diluted Normalized Eps 0.19 0.28 0.21 0.24
*In millions of MYR (expect for per share)
PROBLEM SOLVING

Problem solving- Shortage of construction material supply in pandemic covid 19 The solution
using 7 general steps for decision-making processes.

General Steps Decision Making Processes

Define objective Despite the fact that materials and plants cost more than 50 percent of
(Understand the projects, the materials supplying part of the building process do not receive
Problem) as much attention as the new attempt to increase productivity in the
construction process by getting the major contracting parties together. In
addition to the costs incurred due to inefficiencies, poor material flow
further leads to production losses. Advances in information and
communication technology and the recent move towards enhancing
business relationships between trading organizations give new possibilities
to tackle issues that have been recognized so far.

Investigate the issue During the pandemic, the situation deteriorated dramatically due to a
(Collect relevant shortage of construction material supplies, which then affected the
information) construction industry. For some, this meant delaying commercial and
residential construction projects due to material shortages. In addition to
the recent domestic and international shortages of bricks, sand, concrete
and other materials, there are plenty of challenges.

List down potential a. Change the agreements

solution b. Reschedule your projects
(Define a set of
feasible Alternatives)
Discuss criteria a. Change the agreements
/requirement for each
Sit down and think about future price rises and delays now for present
alternative
projects. Check with all the subcontractors and suppliers and see if any
(Identify decision
possible problem areas are open. Communicate openly with the owner
making Criteria)
about what the potential impacts could be to see if you can work as bestas
possible together to mitigate the consequences. Contractors should consider
incorporating an escalation clause in their contracts for future ventures, so
that they are not left holding the bag if costs suddenly increase.And contracts
should contain a force majeure provision that defines, and fixes for,
particular appropriate delays.

b. Reschedule your projects

Another option is to reschedule projects until materials can be made

available more readily. No one knows exactly how long the shutdown will
last, and this might be a gamble whether it gets better or worse.
If possible, however, delaying a project from six months to a year can help
alleviate the immediate issues, and can help the project teamprepare when
more information is available.
Conduct analysis a. Change the agreements
(Evaluate the A clause on 'changes in the construction' is an integral part of every
Alternatives) building contract and requires the parties to agree in advance on a
mechanism for making work modifications and pricing such
modifications. All major standard type agreements, typically as part of
the general conditions discuss job adjustments.
b. Reschedule your projects
In project management, rescheduling is common, especially in the
manufacturing industry. In general, when appropriate treatments are not
implemented, unforeseen incidents adversely affect projects. Therefore,
how to adjust to a changing world and reschedule unfinished work and
resources are the dominant issues in rescheduling.
Choose and decide Reschedule your projects
(Select the best A problem with rescheduling consists of general issues with schedulingthat
Alternative) arise after changing a schedule. Due to the altered climate, project
information modifications and schedule changes can generate additional
constraints. Rescheduling must rearrange unfinished work and resources on
the basis of plan updating outcomes while generating a realistic schedule
that meets the goal of the project. Construction projects have more
unpredictable factors, such asenvironmental and productivity problems,
compared to the manufacturing industry, that make it difficult to maintain
schedules. While construction schedules during construction are frequently
modified and monitored, few studies have examined the effects of
rescheduling problems on the rescheduling method. It is therefore worthy
of investigation to extend manufacturing rescheduling principles to the
construction sector.
Action and monitor
(implement, monitor
and evaluate
the result)

The first task of schedule updating is to recognize project changes due to

actual progress. Changes in the environment which involve changes in
information, which are described as parameter revisions. It can require
additional restrictions. For the following four operation forms, aschedule
may be updated:
(1) Finished activity
In order to assess the effect of project modifications on the original
timetable, scheduling updating eliminates completed tasks from the
rescheduling operation list and preserves details on current progress and
expenditures. It is important to correct the details for finishedoperations. If
any inconsistency is detected, it is important to examine the causes that
could be caused by environmental factors or an incorrect productivity
assessment.

(2) In-progress activity

In-progress activity may be the primary reason for requiring rescheduling.
Generally, in-progress activities can be classified as splitting and non-
splitting activities. An in-progress activity is split intotwo activities, the
finished one and the incomplete one. When an in- progress activity cannot
be split, is applied to the activity that must be continually executed after
rescheduling. Conversely, presents a condition when in-progress activities
can be split. Thus, planners may postpone some incomplete activities to
release resources for urgent in- progress activities such as a delayed activity
on the critical path.

(3) Being-scheduled activity

The most critical activity is rearranging unfinished tasks and planned
activities to reschedule a project. Such a rearrangement, however, creates a
new timetable that can greatly impact all remaining tasks and participants
in the project. As stated, for construction projects requiring additional
treatments, PR is an applicable rescheduling process. Another aim of PR
is to eliminate total project variations relative to the initial schedule, and
additional restrictions are added to all planned activities to ensure that these
activities comply with the initial schedule at the beginning of the PR
rescheduling phase.
(4) New activity
New activities may be applied to a building project through modified orders
and other risks. Although the initial schedule is often greatly influenced by
such additions, these new activities represent specific circumstances and
requirements for resources. Parameters also describeinformation on these
new activities and classify the relationships between the activities in place
and the new activities in question.
 PROJECT MANAGEMENT

PROJECT BACKGROUND

Project to establish is a new private college located in area Taman Bandar, Batu Pahat, Johor.
Document study as well as knowledge gathered by field observations indicates that the area is
suitable for developmental purposes because of the flat surface of theearth which is about 0-50
meters above sea level in addition to providing a type of economic soil and stable rock geology.
This area is said to be strategic since it is situated on the main route of the people from the town
of Batu Pahat to Senggarang, which is only 20 km from Senggarang and 3 km from the town
of Batu Pahat. It is expected to be worth RM100 Million witha construction time of five years
to be finished. Figure below shows the project site on google map.

Figure 3.1: Area Taman Bandar, Batu Pahat, Johor

Besides that, the cost of buying a site in our planning area is RM10 million, for an area
of 100 hectares. This project is estimated to hire 100 people in all fields of operation. In order
to do something about it, the project strongly recommended the use of the prefabrication
process because it provides substantial benefits such as decreased construction time, increased
efficiency, improved workplace health and safety, reduced pollution from construction sites,
and reduced consumption of energy and water. It is a system in which the whole room in a
prefabricated factory is processed to complete the frame and decoration, including the floor,
wall, ceiling and other parts, and to form a separate module that is delivered for lifting to the
site. Because of its modular specificity, prefabrication enables construction at the same time
and will substantially reduce the construction schedule in order to dramatically increase the
efficiency of the building.

On the other side, environmental emissions will be minimized and noise and dust
pollution will also be significantly reduced during the building period. When the manufacturing
site is moved from the on-site to the warehouse, the output is assured, and the building site for
the worker is safer and more secure.

Project: Development Project of Private

Engineering College, Batu Pahat, Johor.
Owner Gamuda Berhad
Contractor Gamuda Berhad
Architect ICB Architects Sdn Bhd
C&S Cityscape Global Engineering Consultants Sdn Bhd
M&E Bond M & E Sdn Bhd
Quantity Surveyor Unitech QS Consultancy Sdn. Bhd
LIFE CYCLE COST

Life cycle cost analysis (LCCA) is an approach used to assess the total cost of owning a facility
or running a project. LCCA considers all the costs associated with obtaining, owning, and
disposing of an investment. Life cycle cost analysis is especially useful where a project comes
with multiple alternatives and all of them meet performance necessities, but they differ with
regards to the initial, as well as the operating, cost. In this case, the alternatives are compared
to find one that can maximize savings. For example, LCCA helps to determine which of the
two alternatives will raise the initial cost but will reduce the operating cost. However, LCCA
should not be used for the purpose of budget allocation.

Life cycle cost analysis is ideal for estimating the overall cost of a project’s alternatives.
It is also used to choose the right design to ensure that the chosen alternative will offer a lower
overall ownership cost that is consistent with function and quality. LCCA needs to be
performed during the initial stages of the design process, as there is room to make changes and
refinements that will ensure that the life cycle cost is reduced. The first step when performing
an LCCA is determining the economic impact of the alternatives available. The effects are then
quantified and expressed in monetary terms.

Figure 3.2: Life Cycle Cost Analysis Diagram

 PHASE DETAIL
Acquisition  Gamuda construction structural plan.
 Gamuda been committed to ensure and
encourage the plan by getting the strategies for the project
through aim, setting up and take action on the project.
 The strategic plan for sustainable project plan.
 Apply the innovation and productivity by create creative way
to reuse or recycling the wastes and resources.
 Planning on using the prefabrication method.
 Improvement in quality such as use any sustainable materials.
 Planning on using advance design tool in construction.
 Implemented on safer process during construction.
 Planning on reducing energy and water consumption.
 Shortened time during construction process.
 Make a design and built a function of sustainable building.
Operation  Install the external and internal work.
 Install the main structures of building.
 Install the operation and fixtures of building.
 Install the facilities that need in the building.
 Require the fire resistance and emergency exit.
 Maintenance the facilities and condition of building.
 DESCRIPTION ESTIMATED COST (RM)
Acquisition Phase
 Insurance, Taxes and Financing RM 25,000
 Land Acquisition RM 10,000,000
 Architectural and Engineering RM 5,000,000
Design
 Materials and Equipment RM 25,000,000
Operational Phase
 Wages RM 120/Person/Day
 Utility RM 70,000 / Year
 Maintenance and Repairs RM 1,000,000 / Year

If the total of workers is equal to 100 persons,

Rm120/person/day x 22 working days x 12 month = RM 31,680/Person/Year
Variable Cost (VC) = aQ
VC = RM 31,680 (100 person)
VC = RM 3,168,000/Year
WORK BREAKDOWN STRUCTURE
 Table 3.1: List of WBS
WBS Task Name

1 PROPOSED NEW PRIVATE COLLAGE

1.1 Project Start

1.2 Planning

1.2.1 Architectural design

1.2.2 Structural design

1.2.3 Preliminaries
1.2.3.1 Performance Bond and Insurances

1.2.3.2 Monthly Report and Progress Photograph

1.2.4 Earth Work

1.2.4.1 Site clearing

1.2.4.2 Excavation

1.2.4.3 Compaction

1.2.5 Construction Works

1.2.5.1 Substructure

1.2.5.1.1 Footing
1.2.5.1.2 Formwork

1.2.5.1.3 Foundation

1.2.5.2 Super Structure

1.2.5.2.1 Ground Beam

1.2.5.2.1 Formwork

1.2.5.2.1 Reinforce Beam

1.2.5.2.1 Concreting Beam

1.2.5.2.2 Slab

1.2.5.2.2 Formwork

1.2.5.2.2 Lean Concrete for Ground

1.2.5.2.2 Reinforcement Bar

1.2.5.2.2 Concreting Slab

1.2.5.2.3 Column
1.2.5.2.3 Formwork

1.2.5.2.3 Reinforce Column

1.2.5.2.3 Concreting Column

1.2.5.2.4 Roof beam

1.2.5.2.4 Steel Roof Trusses

1.2.5.2.4 Purlin

1.2.5.2.4 Roof Covering

1.2.5.2.5 Wall

1.2.5.2.5 Brickwork

1.2.5.2.5 Cladding
1.2.5.2.5 Waterproofing

1.2.5.2.6 Window and Door

1.2.5.2.6 Door
1.2.5.2.6 Window
1.2.5.2.7 Finishes

1.2.5.2.7 Floor Tiles

1.2.5.2.7 Ceiling

1.2.5.2.7 Plastering Work

1.2.5.2.7 Coating Paint

1.2.5.2.7 Landscape
1.3 Mechanical and Electrical Works

1.3.1 Infrastructure

1.3.1.1 Electrical system

1.3.1.2 Water supply

1.3.1.3 Air Conditioning

1.3.1.4 Ventilation
1.3.1.5 Fire protection
1.3.2 Testing and commissioning
1.3.2.1 RI Inspection

1.3.2.2 Certificate of Statutory Completion (CSC)

1.3.3 Project Finish

BENEFITS COST RATIO

New private college was planned to be nursing college located near area Taman Bandar, Batu
Pahat, Johor. The total capacity of this new private college is 2500 students, with 2,300 of those
being local students and the remaining 200 being international students, according to the
college. Based on the current market value of 1 hectare of land, it was sold for RM 100,000 to
a private individual. The new private college occupies an area of approximately 100 hectares.
So that, the land acquisition cost for 100 hectares is equal to RM 100,000 x 100 hectares = RM
10,000,000. The construction cost was estimated to RM 90,000,000. The private college were
estimated of annual operation and maintenance cost of RM 1,000,000 and the annual utility
cost are estimated to be RM 70,000. Annual benefits of new private college are been estimated
as below:

Tuition fee for local students = RM 10,000 x 2,300 students = RM 23,000,000

Tuition fee for international students = RM 20,000 x 200 students = RM 4,000,000

Hostel fee = RM 5,000 x 2500 Students = RM 12,500,000

The study period is 5 year and the minimum acceptable rate of return MARR is estimated of
5% per year.

Item Details
Benefit  Provide opportunities for youth to engage in higher
education.
 Gives job opportunity
 Offers economic and education opportunities through
training.
 Provide sustainable building
 Save energy consumption
 Overcome pollution.
Cost  Architecture design of building
 Operation and maintenance cost of building
 Insurance cost of building
 Construction cost of building
 Sophisticated equipment cost
 Materials cost
Disbenefit  Loss of wildlife in urban area
Cash Flow Diagram of Project
 ITEM PRESENT WORTH ANNUAL WORTH
Investme RM 10,000,000 + RM A= 100,000,000(A/P,5%,5)
nt 90,000,000
A=100,000,000(0.2309
= RM 100,000,000
7)A= RM23,097,000
Operation & P=1, 070,000(P/A,5%,5)
Maintenance RM 1,000,000 + RM 70,000
P=1, 070,000(4.3295)
= RM 1, 070,000
P= RM 4,632,565
Benefit
P= 39, 500,000(P/A,10%,5) RM 23,000,000 + RM 4,000,000 +
P=39, 500,000(4.3295)P= RM 12,500,000
RM171,015,250 = RM 39,500,000
 CONCLUSION

In order to select the construction method most suitable for the project, the group members are
required to research and present a proposal. As a Project Engineer that is working on a
construction company's latest project, which is the development of a new private college that
will cost approximately one hundred million ringgits for a five-year period. The process for
picking the approach, which involved the use of prefabrication for the project, is not a simple
problem based on a single attribute, but an extremely complex and high-risk process with
multiple decision makers involved.
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 APPENDIX

FACULTY OF CIVIL ENGINEERING AND BUILT ENVIRONMENT UNIVERSITI

TUN HUSSEIN ONN MALAYSIA

BFC44602 Economy Engineering Project Semester I Session 2021/2022

Overall Reflection on Learning Experience for This Project.

Content
This report is all about analysis a company’s verification in terms of this background, performances and
validation in the industries. In this report, we have been discussed the detail about the introduction,
Background of the company, problem solving, company performances and data analysis.
Instructor
We have been instructed and guided by our lecturer for this section which is by Puan Hannifah Binti
Tami
Group Members
 Discussed among the group members through WhatsApp
 Distributed the task equally.
 Help each other in preparing the report.
Overall
In conclusion, we are able to discussion upon the project report. We are able to find out the concept of
each measurement with their condition or limitation. We were also clearer and understand about the
analysis process.