ABC Development Assignment Example | Topics and Well Written Essays - 2000 words

ABC Development - Assignment Example The housing project was scheduled to begin on January 1, 2013 and to be completed in the first few days of the month of December 2013. However, the construction process was delayed by 1 week. The planning process also realized delays of about 3 weeks. In total, delays in the schedule were 4 weeks (approximately 1 month). The planning permission was to commence on March 1, 2013 while construction was to begin a month later (April 1). It means that the first complete housing units were to be rescheduled to the end of October. The sales process should have started on November 1, 2013. The sales would remain at the same rate indicated earlier in the feasibility study since the shifts in house sales have not affected the current revised rate. It remains at 2 housing units sold per month. However, completing the sales would be realized three in February 2014. There are changes on the interest rate charged by the financial institution responsible for the funding of the housing project. With the increase in the rates of interest, loan facility would have to be viable until the end of February 2014. The simple interest would have to be scaled to 1.3% or simply 1% because of the 0.8% rise in the simple interest rates. The interest on the loan facility remains at the original schedule of a quarterly model in arrears. The developer’s cash will be used to pay it out. Roll-ups will not be allowed on the payments. The commitment fee of  £5000 will not be affected by scaling up the interest or the changes in planning and construction schedules. It will still be paid once the loan has been processed. The disposal fee of  £500 per housing sold will also remain unchanged. The funding of construction costs in a revolving basis will not be affected by the changes. It will remain at  £525,000. The remaining land cost ( £80,000) and