Interviewer view · keep this screen to yourself

A residential project in Dubai: margin and the effect of an overrun

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

Harbrook Developers (a fictional company) plans 400 apartments in Dubai to sell at an average of AED 1.5 million each. Costs: land AED 120 million, construction AED 300 million, design, permits and fees AED 30 million, sales and marketing AED 30 million, financing AED 30 million. What is the profit and margin? What happens if construction costs run 10 percent over budget?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Profit = sales revenue minus total development cost
- Revenue = units x average price
- Cost = land + construction + fees + sales + financing
- Sensitivity: construction overrun

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Revenue
What a strong candidate does: 400 apartments at AED 1.5 million.
Revenue (AED million): 400 × 1.5 = 600
Step 2: Total cost
What a strong candidate does: Add all cost lines.
Total cost (AED million): 120 + 300 + 30 + 30 + 30 = 510
Step 3: Margin
What a strong candidate does: Profit of 90 divided by revenue.
Margin (percent): (600 - 510) ÷ 600 × 100 = 15
Step 4: Profit with a 10 percent construction overrun
What a strong candidate does: Construction rises by 30 million.
Profit after overrun (AED million): 600 - 510 - 300 × 0.1 = 60

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Harbrook should go ahead only with a contingency for overruns, because the project earns AED 90 million, a 15 percent margin, but a 10 percent construction overrun cuts profit by a third, to AED 60 million. First, construction is AED 300 million of the AED 510 million cost, the largest item. Second, if sale prices also fell 10 percent on top of the overrun, profit would fall to about zero. The risk is weak sales. As a next step, check how much has been pre-sold and fix construction prices with the contractor.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.