Feasibility studies: the first step for construction projects

Feasibility studies: the first step for construction projects

Caution is good when making large investments. Not sure if the project is worth pursuing? You need accurate cost estimates, revenue forecasts and detailed financial analysis. Do you want to be sure that your investment project will be technically feasible? And in compliance with the law and the environment? In that case, before you give the green light to a new project, you should want to see a feasibility study.

What is a feasibility study for a development project?

A feasibility study is the first important step in any construction or development project. It is a document that comprehensively and in detail assesses the potential of an investment project and its return, yield, or profitability.

As it serves as a basis for investment decisions, it is carried out before the project starts. In addition to a detailed financial plan including total costs, revenues and return on investment, it also includes a risk analysis and an assessment of risk scenarios. This can save time, money and resources.

Imagine you are about to build and need to make a decision. A detailed feasibility study will compare the solution options, including costs and design specifications, energy performance, fire safety, sustainability and risks. You will receive a comprehensive assessment, in black and white, and it will be up to you to make a decision based on it.

What problems and issues does the feasibility study address?

If we were to write down some of the most common questions of investors and developers which can be solved in a feasibility study, it would be:

  • Financial viability: investors need to know if a project is financially viable. A feasibility study can provide accurate cost estimates, revenue forecasts and detailed financial analysis. This can help investors determine whether a project is worth the investment and will generate sufficient returns.
  • Technical feasibility: investors need to know how technically feasible a project is. A feasibility study will evaluate the technical requirements of the project, identify potential risks and assess the overall feasibility of the project.
  • Environmental impact: the feasibility study can assess the environmental impact of the project and identify potential environmental risks. This can help developers ensure that their project is environmentally sustainable.

We work with the topic of feasibility studies on various departments, from Technical due diligence to DESIGN & ARCHITECTURE to Project Management.

A well-conducted feasibility study is the cornerstone of a successful project. It provides investors and developers with important information on which to make informed decisions.

Therefore, before you give the project the green light, you want to see the feasibility study.

Do you manage projects in the construction industry?

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