A feasibility study focuses on the analysis and assessment of the construction project. Objective techniques are used to assess risk situations. Potential problems can arise due to delays, budget overruns or unfavorable topographic conditions. The objectivity of the feasibility study allows stakeholders to make qualified decisions about the project – how to improve it, what needs to be changed and what are its critical points.
The feasibility study is not just about identifying shortcomings or aspects of the project that can be improved. The studies are divided into technical, economic, legal, operational and schedule feasibility studies. When done correctly, a feasibility study also highlights the key components and benefits of a construction project.
A technical feasibility study is used to determine if the contractors and tenants have the necessary technical resources. This includes aspects such as transport, materials, workforce, design and technological infrastructure. If you’re able to answer these questions with an affirmative reply, you can reduce the chances of having to deal with unexpected situations.
• Have sufficient resources and materials been provided during the scheduled timeframe for the project?
• Is modern construction technology used?
• Does the team have the technical skills and experience to use the latest technology?
• Do you have ways to transport material and equipment?
The goal of any construction project should be profitability. The project should be managed and budgeted to avoid cost overruns and financial loss. The economic feasibility study is an analysis of each aspect of the project, looking for areas where costs can be optimized.
It is crucial that the budget is reviewed and assessed in accordance with the expectations of stakeholders and clients. In this case, value engineering is used to assess economic feasibility.
All contracts, regulations and legal aspects of the construction project must be assessed before the construction phase begins. It is important to understand whether stakeholders, contractors and companies can meet legal agreements and standards, as well as whether it is necessary to update legal contracts and agreements.
Operational feasibility assesses the extent to which the proposed construction project solves community problems and meets long-term objectives. First of all, it ensures that the identified problems and goals are achievable within the budget. Before the outset of the construction, it is necessary to give answers to the following questions:
• Who will benefit from this project?
• What are the expected outcomes of the project?
• What are the short-term and long-term goals of the construction project?
• Does the project management team have the skills and experience to achieve the goals of the construction project?
A poorly planned construction schedule results in delays, cost overruns, and construction errors. When deadlines are not met, changes are often made at the last minute or additional money is spent in an effort to get the project back to normal.
The best way to prevent this approach to construction is detailed supervision and analysis of every aspect of the feasibility study. It is important to keep in mind that a good organization will not work if the people executing the project lack the skills and knowledge to manage the project.
During the feasibility study, the design, architectural drawings, materials, budgets, environmental impacts, legal regulations and topographic areas for the building are analyzed. It is also important to evaluate the construction project in accordance with safety, community benefits, and the team’s ability to complete the project on time and within budget.
A feasibility study can help prevent construction costs overruns. The results of objective feasibility studies, including technical, economic, legal, operational and schedule feasibility studies, highlight what needs to be done before construction can begin.
The primary benefit of a feasibility study is in identifying threats and risk areas that may delay the project and affect cost overruns. The team in charge of creating the feasibility study should use the results of the study to determine in which direction to go with the construction project. A dedicated team of architects and engineers can respond to the most demanding projects, taking into account deadlines, budget and quality.