Cash Flow To The Project

Cash Flow analysis is the profit analysis which use to determined the viability of the planning development project. This analysis is related to the time as time change, the actual value of money change even though the face value remain the same. This meaning that the value of one pound is not same to the value of one pound ten years after even though its designed still same. Therefore, to prevent the loss for the development in the future, cash flow analysis may carry out before making the decision for the development.

To determined the viability of the development project, some of the method can be use which is payback method, Average Rate of Return (ARR), Net Present Value (NPV) and Internal Rate of Return (IRR). Payback method and ARR is the most common method use for small project or business while NPV and IRR is use for big project as to prevent the loss in the future.

For the development in the site at Matilda Street,  the cash flow analysis might be use to decide which is the most feasible development. However, the economic trends may need to taking account while analysis the value of the development.

Refurbishment Vs Demolition

A development can either been refurbished from the existing property or demolished and re-construct it. Due to the site conditions at Matilda street, demolition work is harder to carry on because the building is attached with the next building and demolish work may affect the structural of the attached building. Furthermore, there is only one access to the site and it is difficult for the heavy vehicle to enter the site. Therefore, refurbishment will be the ideal tactic of the development. 

The Building of the site at Matilda Street is attached with the next building (yellow grid) and there is only one access to the site (the yellow arrows)

Refurbishment seem will be the more economical way for the development but one of the problem is, will the existing foundation can support the refurbished building? This problem should be concern as it will effect the whole structural work of the building while carrying a health and safety risk to the surrounding people and property. 

In a nutshell, both refurbishment and demolition conducting a risk for the development and one of these method which with lower risk will be choose for the proposal. A development project is never complete without risk but people will always choose the way with lower or slightly risk as to minimise or avoid the trouble in the future.

Life can be easy, depend on the way you choose.

In a nutshell, development is different with investment even though they are related. A higher risk in an investment probably will get a higher return, but, a high risk in development definitely will face a problem. Meanwhile, we have to always clearly understand the concept of development. 

Develop with economic, social and environmental friendly

Due to Sheffield City Council (2014), all the new development is required to build with sustainable and meets the challenge of climate change. This has to be considered at the beginning of the design stage because a sustainable statement is required at the planning application for developments of 5 dwellings or over (including apartments) and all non-residential developments over 500 square metres gross internal floor space. While propose a sustainable development in the site at Matilda Street, some of the questions may need to consider:

• Is the development can support and help revitalise the local economy?
• Is the development enhance Sheffield's neighbourhood and communities?
• Is the development provide a range of movement and inclusion?
• Is the development will protect and enhance Sheffield's natural environment and resources?
• Is the development integrate high quality and design?

To propose a sustainable development, focus alone in environmental issue is insufficient while may also need to concern about the contribution to local economic and indeed a gated community and guarded neighbourhood planning.

A sustainable development is not only emphasis in environment requirement but also balance in economic and social demand.

However, PESTEL analysis method is useful in this stage while to analyse the related issues regarding to the sustainable development. It provide  a framework which is a key part of advanced strategic management.

The key considerations for the sustainable development is listed out and to be analyse by PESTEL method.

Consideration first rather than action

As aforesaid, it is easy to propose a development but it is hard to make a best development proposal. Due to the survey, there were some accommodations, shops and restaurants located around the site at Matilda Street. Consideration must always happen in this moment as to find out the key consideration for the development and while to choose the most suitable development for the site.

The competitors (yellow circles) are need to take into consideration because they can influence the market value of the propose development.

Due to the discussion in the seminar group, there are two analysis methods have been carried out which is SWOT and PEST EL.

SWOT analysis is more focus on the site factors and market conditions of the development while PEST EL is more complex as it have to consider the whole socioeconomic (Legal and Environmental issues) which related to the propose development. In my own opinion, SWOT analysis is more suitable to use in this planning stage because this analysis is introspection and essential when considering the launch of a new project. A detail analysis should be carry out before make the decision to choose the development as this cannot be return once the construction begin. It may cause a lost to whole parties involved if the planning is improper. Hence, consideration first rather than action.