Development of Planning-Stage Feasibility-Assessment Model for Extension Remodeling Projects of Old Apartment Buildings

Abstract

The government has continuously amended and developed laws for the vitalization of remodeling apartment buildings against the backdrop aging buildings. Despite such efforts, however, extension remodeling has not yet been used. Even though there are various issues causing this shortcoming, the present study focused on the fact that there is no instrument for reliable feasibility analysis and decision-making in the early stage of remodeling projects, thus proposing a remodeling project feasibility-assessment model. Generally, a feasibility (profitability) judgement is made after a design proposal is derived, and because decision-making for the implementation of remodeling projects is determined at the initial stage of implementation committee, a feasibility analysis model for projects at the planning stage is necessary. In this work, construction cost, project cost, financial expenses, and general sales revenues are calculated using remodeling project variables derived through existing apartment complex information, consultation, and research, and an algorithm was developed that can calculate approximate return on investment and the share of expenses of resident union members using the calculation results. In addition, the applicability of the model was tested by applying the developed early stage project feasibility analysis model to three cases already implemented. When the model was applied to three cases, the errors between the values predicted by the model and the actual values of the cases were 5% or less, indicating high reliability of the model. The model is expected to become a useful tool in practice if the applicability of the model is further proven by increasing the number of cases in the future. The project feasibility-assessment model developed in the present study will enable smooth implementation of projects by supporting residents' rapid decision-making. Moreover, if the model is variously applied by region, it is also expected to contribute to the policy establishment of local governments that identify the scale of apartment complexes in which extension remodeling projects are possible and support the remodeling. © 2019 The Authors. Published by Budapest University of Technology and Economics & Diamond Congress Ltd. Peer-review under responsibility of the scientific committee of the Creative Construction Conference 2019.