.Feasibility Study of Using Precast Concrete Products for Residential Buildings in Sudan

Abstract

A methodology was developed to perform economic and financial feasibility for a precast concrete factory which is expected to produce beams, slabs, columns and stairs. The aim was to find a low cost alternative to contribute in solving the housing problem in Sudan. The methodology compromise twelve steps to be followed in order to achieve the financial goals of the industry owners. An organizational chart for the proposed factory was developed, and the demand on housing within the study area (Khartoum State) was identified considering the time period 2001 to 2006. A sample project consisting of 8 blocks was considered assuming that it would be constructed using precast concrete elements produced by the proposed factory .The cost of such project was compared with that of a similar project that is constructed using insitu reinforced concrete . The study showed that the use of precast concrete resulted in considerable saving range from 30% to 37% in the required concrete and almost half (44%- 50%) of the reinforcing bars required quantity. It was also evident from the const analysis exercise that the cost of producing slabs is lessened by about USD 13/m2 when precast concrete is used instead of the traditional insitu concrete. Thus the overall cost reduction for one unit of the proposed compared was found to be 50% resulting from the cost savings as precast elements (beams and columns) are used. The financial analysis results have also confirmed that factory would have a 29% internal rate of return with a simple interest rate of 26% in the third year of operation. The investment proposal has had a break-even point at 27% with a 2.8 year back pay period .The sensitivity analysis showed the project feasibility would greatly be affected by any fluctuations in the cost of raw material.