Pro PAC is an acronym for Project Performance Analysis Calculator and we use it to determine the viability of any given property development project.  Pro PAC 5 is the latest release of the program that had the first version developed in 2005.  Pro PAC models the entire life cycle performance and cost of a property development project, from inception and technical viability through completion and financial viability.

Most developers and financing institutions use some form of software, past experience and “gut feel” to undertake due diligence studies or analyse the viability of development projects.  More often than not these solutions are spreadsheet based applications, spreadsheet add-ins, and time management software such as MS Project or Primavera and in certain instances even some form of business management software.

While something similar to Pro PAC may well exist, we have not come across anything that is as comprehensively tailored for analysing property development projects.

The "problem" with most spreadsheets is that they are often written for a specific set of circumstances and as soon as the parameters change (as is inevitable with property development project viabilities), the need arises to amend or update the spreadsheet to fit a new set of circumstances or different needs expressed by the client.  This creates the very real possibility of introducing errors into the spreadsheet which obviously compromises the accuracy – not something you need when important financial decisions are based on the output.  Even with care and testing the re-writing of spreadsheets remains a tedious if not laborious process.

Pro PAC has been designed and developed as a powerful application that is robust, but with sufficient built-in flexibility and options available to enable the user to model virtually any scenario that may be reasonably expected.

We’ve been using the application since 2005 when Pro PAC 2.0 was launched.  This version was really the start of the new generation analysis software – no more fiddling under the bonnet so to speak. The original tool on which Pro PAC is based was a simple spreadsheet circa the 1990’s used by our CEO, who although being a civil engineer by trade, is also a property developer in his own right.  Being both engineer and developer, Wouter also understands the procedural and commercial complexities of property development, not merely the technical and financial issues associated with a particular built environment discipline like most consultants do.

Over the past 17 years we’ve had the opportunity to assist many clients with their development projects using this software and overall the modelled outcomes consistently showed good correlation with reality at the end of the projects.  As always however, no software, regardless of complexity and accuracy, is the magical answer to all questions.  The software is merely a tool and outputs are only as reliable as the inputs.  This is why it is essential for the user to be intimately familiar with the subject matter he is advising the client on – in this case property development analysis.

Basically everybody needs to know if a project is going to yield an acceptable rate of return on their investment, what the profits are likely to be and when the profits will realise.  We however understand that while certain types of information remain important regardless of the project stage, the need for other specific information changes with time.  The whole idea is to empower the client to make informed decisions, based on reliable information throughout the entire life cycle of the project.

Pro PAC does all of this and more.

For example, when clients are in the process of evaluating a potential land purchase, they would like to know whether the asking price will fit in with acceptable returns for the project.  Depending on the complexity and make-up of the proposed development, we can create a working viability model within two hours of consultation with sufficient accuracy to provide the clients with enough substantive information to undertake their land purchase negotiations or to make the decision to investigate other properties.  In this manner much time is saved (for the client and the consultant) by not wasting it on fruitless negotiations and investigations, or confirmation is given at a very early stage that it is worthwhile pursuing and concluding a deal on the land.  All this without any need for input from other built environment professionals.

During the viability and design stages of a project when town planning and engineering layouts become available and more accurately estimated costs (construction, fees, sales income, levies, taxes, interest etc) and timeframes are available, the model is refined and calibrated putting us in a position to accurately identify areas of time and cost risk, where to focus effort to manage these risks, as well as calculate project profit and rates of return on investment.  Rigorous sensitivity and risk analysis plays an important part of the analysis.  All these outputs are obtained instantaneously as the input parameters are updated and tweaked.

While Version 5 remains true to its roots, it is a total re-write from the ground up.  Some of the enhancements and new features include:

Pro PAC is not a commercial software package, nor is it for sale.  Pro PAC is one of our most important marketing tools and we provide this service and the added benefit derived from it to all our property development clients – free of charge.

Whether Pro PAC is your way for checking your own analysis results, or whether you rely on it exclusively to base your development decisions on, we invite you to visit us and to experience the power of this unique tool first-hand.

The new time programming functionality opens a whole new range of possibilities as far as time and risk management is concerned.  I am already working on additional routines to perform Monte Carlo analyses which will:

Hopefully this functionality will become a permanent feature of Pro PAC within the next couple of weeks.

We can start by becoming aware of the problem, re-thinking our lifestyles and building differently.

In South Africa our SANS (South African National Standards) regulation gives us a minimum total external openable windows or doors sizes to be 5% of the floor area of the room. For adequate natural ventilation to take place, it is recommended to open more than one window 3 to 4 times a day for at least 10 minutes at a time.

Forced mechanical ventilation is fresh air with a fan and ducting. The SANS regulations also prescribes the l/s or airchange rate to use for different applications. Case studies from office spaces and school classrooms also confirm that proper mechanical ventilation can drastically reduce the amount of sick days taken.

There are various affordable air quality monitoring devices available on the market. Existing buildings with poor IAQ can easily be upgraded with mechanical ventilation systems, while new buildings should be designed with these system from the get start.

In South Africa, Green buildings are required to provide 1.5 times the amount of fresh air prescribed by SANS. Although this increases the heat load and power consumption of the building, the increase in IAQ creates a much healthier work environment. This increase in heat load and power consumption can be reduced by the use of enthalpy wheels or similar solid plate heat exchange systems.

Several case studies across the globe has proven that the increased fresh air rates in green buildings lead to much lower sick leave taken by employees than those in occupying traditionally built buildings.

Indoor plants are not merely decorative, but according to NASA’s Clean Air Study there are numerous plants that are effective in detoxifying the indoor air we breathe.

Stōk installed an air quality sensor to examine CO2, VOC (volatile organic compounds), and Particulate Matter (PM) concentrations and see if pollutant levels were above recommended ranges. Before installing the green wall, 15% of work hours had problematic CO2 concentrations above 1,000 ppm (parts per million).

Natural light is another vital contributor to our indoor health. Exposure to sunlight increases the brain’s production of serotonin (a hormone associated with an elevated mood).  Lack of direct sunlight causes health issues such as vitamin D deficiency, which can contribute to feelings of tiredness, fatigue and low mood. Several case studies have proven that patients in hospital rooms with more natural light, make a quicker recovery than those in rooms with low levels of natural scenery and light.

Letting some natural light in, lowers the need for artificial light and electrical appliances that emit harmful chemicals. All while creating plant-friendly spaces that also increase the IAQ.

Carpets and upholstered furniture are known for trapping particles and pollutants. Vacuuming frequently with an effective device can help keep carpets clean, but not even hot-water extraction can get rid of all contaminants.

Carpets are also an ideal environment for dust mites that leave highly allergenic excrement. When carpets get wet, it becomes a breeding ground for mould and mildew. In fact, most experts recommend that any carpet that has been wet for over 24 hours be removed, because there is no effective way to eliminate the mildew growth.

Since many conventional cleaning products are high in harmful chemicals, it is important to choose safer low-VOC (volatile organic compounds) products or try out some natural recipes and make your own.

It is a good idea to make a habit of switching off electrical appliances like the TV, computers and copy machines when not in use as they also emit chemicals that contribute to a poor indoor climate.

Warmed up plastics is another source of chemicals indoors. Plastic items like toys on a heated floor or placed in direct sunlight can give off toxic fumes.

Paying attention to the IAQ in our buildings and ensuring there is proper ventilation can tremendously contribute to increased productivity, improved employee satisfaction, lower sick leave days and reduced health costs. There are many ways to create healthier indoor air. Some are quick and easy, others take more time but will be well worth the effort.

If you have any questions for Wouter, please feel free to contact us.