financial & risk management

Sc/ PgDip Quantity Surveying (Overseas Delivery) FINANCIAL AND RISK MANAGEMENT- SESSION 2015/16 ASSESSMENT BRIEF Submission Deadline: Friday 6th May 2016 by 16:00hrs (BST) This assessment contributes 100% of the marks for the above module 1. BRIEF 1.1. Background The philosophy behind the assessment regime is that it is an integral part of the education process and one of the principal drivers to learning. In all assessment activities, students are encouraged to apply what they have learnt to their own (project or business) organisation. The assessment will be on the basis of the extent to which a student has been able to apply subject material to gain new insight and create or envisage the start of new innovations within the organisation or profession. 1.2. Task As a Commercial Manager for a Clampdown Developments Ltd, a fictional development company, you are tasked with identifying an investment opportunity and putting forward a development proposal, in a report format, as to how you would develop the site for consideration by the board of directors of Clampdown Developments. Therefore, you are required to select a development opportunity of a significant scale. The overriding objective of the project is to realise a return on capital. You will need to consider an outline development plan for the site and based on this outline you are required to prepare a detailed development proposal from a finance and risk point of view with particular focus on. Consideration must also be given to the local authority planning objectives, environmental considerations and other constraints resulting from the nature and location of the site. 2 Clampdown’s Objectives Clampdown is obviously seeking to obtain a satisfactory financial return on its investment in any development on the Site. Consideration needs to be given to risks that may materialise that have an impact on that return bearing in mind, amongst other issues, the current economic climate and the location of the Site. Task The Commercial Director of Clampdown has requested that you present your detailed proposals to the board of directors in a report format addressing the following key considerations: • A brief review of the selected investment opportunity and the appropriateness, and suitability of the selected site. • A risk appraisal along with the proposal for an appropriate risk management system. • Develop and calculate the project’s financial appraisal considering at least the following costs: Pre-development costs, Construction costs, Finance costs, Letting and promotion, Profit. Cost of land purchase and interest (use the existing market rate) • Analyse how fluctuations in variables affect your financial/ risk assessment Note: make reasonable assumptions/ predictions where necessary. 2. SUBMISSION REQUIREMENTS FORMAT Students shall work individually to produce their own reports. The assignment is to be submitted in report format and as such should have a formal structure and layout. It should be written to Clampdown Board of directors. Report should be submitted as a single document. LENGTH It should not exceed 6000 words and represent appropriately up to 80 hours of research application and writing. REFERENCING All submissions shall have a reference list (and an optional bibliography), listing the sources used in the preparation of the report. The School has adopted the Harvard system (APA 6th) as standard referencing system. SUBMISSION This assignment MUST be submitted electronically through Turnitin® Further information and support for students using Turnitin® can be found here: http://www.salford.ac.uk/library/help/blackboard-and-collaborate 3 3. ASSESSMENT CRITERIA This coursework shall be assessed according to the following assessment criteria: A demonstration of research, appropriate knowledge and understanding in investment selection and its risk, and financial implications 10% An understanding and an ability to critically evaluate and present appropriate risk management systems 30% The demonstration of an understanding of the importance of project variables and its use for development proposals in managing risk and finance 20% A critical project appraisal and demonstration of knowledge and understanding of financial performance, and advice to client 30% Presentation of report- Layout, structure, visual presentation, use of language, clarity of expression, referencing within text and bibliography 10% Total 100% MARKING SCALE The comprehensiveness of the report in covering the essential requirement of the task; level of understanding, criticality of discussion, evaluation and application of key assessment tools and techniques on selected case study/ scenario; good use of citation of quality references and quotations; and conclusions and recommendations. At Postgraduate Level 7 the following marking scale shall be used: Outstanding 90% – 100% Excellent 80% – 89% Very good 70% – 79% Good 60% – 69% Satisfactory 50% – 59% Unsatisfactory 40% – 49% Inadequate 30% – 39% Poor 20% – 29% Very poor 10% – 19% Extremely poor 0% – 9% LEARNING OUTCOMES ADDRESSED 4 Knowledge and Understanding: • Analyse various risk and value theories and techniques and identify risks and uncertainties associated with the appraisal of developments • Critically evaluate alternative developments through appropriate risk, financial and value appraisal techniques and cost forecasting techniques. • Develop critical thinking, creativity and innovation related to financial and risk management in the construction and property sector. Transferable/Key Skills and other attributes • Establish criteria for utilising appropriate decision techniques including identifying, formulating and solving problems related to the construction and property sector. • Apply risk and financial management techniques and appropriate appraisal tools in the construction and property industry. • Apply risk and financial management techniques to evaluate various project options and review decisions. 5. RETURN & FEEDBACK ARRANGEMENTS Coursework marks and feedback will be available within 15 working days of your submission and will be uploaded into Blackboard. IMPORTANT INFORMATION I. OBLIGATION TO KEEP COPIES OF ALL WORK Students MUST keep a spare copy of all work which they hand in as well as the receipt which is issued to them at the time of submission. II. PROVISIONAL NATURE OF MARKS & GRADES All marks and grades issued to students are provisional until ratified by examination boards. III. LAST DATE FOR SUBMISSIONS Submissions made after 16:00hrs on the fourth working day following submission will be deemed inadmissible and recorded as a non-submission. IV. ELECTRONIC SUBMISSIONS 5 If the submission document file up-loaded to Blackboard is corrupt and cannot be viewed - This is classed as a NON submission. It is the responsibility of the student to ensure their submission material can be opened by others. To ensure your submission can be opened please follow this simple step: Go back to the submission area and the blue button that was labelled Submit will now be a button labelled View – select this button and what you see upon doing so will be the file/format that your Lecturer can see. If you can open and view the document then so can the lecturer. V. PENALTIES FOR LATE SUBMISSION Where coursework is submitted late, the following penalties shall be applied to the mark: (a) if the work is no more than four working days late, then five marks shall be deducted for each working day (08:30-16:00 Mon-Thursday or part thereof) , but if the work would otherwise pass then the mark for the work shall be reduced to no lower than the pass mark for the component (b) if the work is no more than four working days late and marked and the mark is lower than the pass mark, then no penalty shall be applied; (c) if the work is more than four working days late then it cannot be submitted and shall be recorded as a non-submission (NS). VI. ACADEMIC MISCONDUCT The University takes a serious view of all acts of academic misconduct. Such acts are considered dishonest and as attempts to gain unfair advantage. Acts of academic misconduct can take many forms. They are likely to fall into one or more of the following categories: a) Plagiarism Plagiarism involves taking the work of another person or source and using it as if it were one’s own. b) Self plagiarism Self plagiarism (or double submission) is resubmitting previously submitted work on one or more occasions (without proper acknowledgement). This may take the form of copying either the whole piece of work or part of it. Normally credit will already have been given for this work. c) Collusion Collusion occurs when, unless with official approval (e.g. in the case of group projects), two or more students consciously collaborate in the preparation and production of work which is ultimately submitted by each in an identical, or substantially similar, form and/or is represented by each to be the product of his or her individual efforts. Collusion also occurs where there is unauthorised cooperation between a student and another person in the preparation and production of work which is presented 6 as the student’s own. d) Falsifying experimental or other investigative results This could involve a range of things that make it appear that information has been collected by scientific investigation, the compilation of questionnaire results etc whereas in reality it has been made up or altered to provide a more favourable result. e) Taking unauthorised material (including electronic devices) into an examination f) Contracting another to write a piece of assessed work / Writing a piece of assessed work for another This involves any means whereby a person does work on behalf of another. It includes assessments done for someone else in full or in part by a fellow student, a friend or family member. It includes sitting an examination for someone else. It also covers obtaining material from internet ‘cheat sites’ or other sources of work. Penalties for this type of unfair means will normally apply both to a student of the University who does work on behalf of another and a student of the University who has work done for him/her. g) Copying from, or communicating with, another examination candidate during an examination h) Bribery This involves giving money, gifts or any other advantage to an academic member of staff which is intended to give an unfair advantage in an assessment exercise. VII. Particular care should be taken in respect of the following: a) Getting help from others / helping others Students are encouraged to discuss and share ideas and information, however those who knowingly assist others to commit academic misconduct whether or not for payment (e.g. by giving another student the opportunity to copy part or all of a piece of work, by providing copies of assessments or by providing bespoke assignments to another student) will be subject to the same penalties as those who use unfair means. Students must ensure that they protect their own work, submit it themselves and do not allow other students to use their memory stick and/or print off work on their behalf. b) Use of Readers/Note Takers Students with special learning requirements who require the services of readers or note takers are advised to use appropriately trained individuals. Further advice can be obtained from the Disability Service Team within Student Life Directorate. http://www.advice.salford.ac.uk/disability c) Referencing Students using work which has been produced by other people within an assignment will need to ensure that they acknowledge or reference the source of the work. Students should check with their Schools for particular requirements. Marks may be deducted for poor referencing. If poor referencing is extensive throughout a piece of work it could appear that the student is trying to claim credit for the work and he/she may be deemed 7 to have committed plagiarism. Guidance on good referencing practice is available from Schools or may be provided through research training programmes, the Study Skills Programme located in Student Life and on-line guidance provided by Information & Learning Services. Some useful resources are: http://www.advice.salford.ac.uk/ Penalties If satisfied that unfair means has occurred, a penalty will be imposed on the student. Penalties vary depending on whether the matter is referred to the School Academic Misconduct Panel or the University Disciplinary Committee and on the particular circumstances. A range of penalties may be imposed including: - A penalty of 0% for the assessment component attempted using unfair means; - A penalty of 0% for the module affected by unfair means; - A penalty of 0% for the module affected by unfair means and the marks of all other modules at that academic level being capped at the pass mark (40% for undergraduates, 50% for post graduates). In the most severe cases, where there are aggravating factors (e.g. that this is a repeated case of the use of unfair means by a student at an advanced stage in their studies), a student found guilty of using unfair means may be permanently expelled from the University. Further details of the Academic Misconduct procedure are available from: http://www.governance.sa