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This work aims to develop and build a well designed two wheeled vehicle with specific features. Certain mechanical issues are discussed for a well designed mechanical prototype. The prototype is designed so as to be able to carry and move a payload in a vertical direction while maintaining a balanced condition of the vehicle on two wheels. Considering the various positions, speeds and different sizes of a payload, carried by the vehicle, while maintaining the entire vehicle balanced is the main anxiety of the vehicle design. An approach for modeling the system to characterize its dynamic behavior is also presented.