Why Carry Out A Construction Feasibility Study?
There are a number of different phases that a construction project must go through before building can begin, one of these is a construction feasibility study carried out by a reputable construction management firm. In this article, we will be taking a look at exactly what a construction feasibility study is, and why they’re so important to the construction process as a whole.
What is a construction feasibility study?
Essentially, a construction feasibility study aims to find out whether the construction company in question can feasibly take on the project that they’re intending to. This means that the company’s financial situation will undergo evaluation, particular areas of strength and weakness will be notified (such as managerial experience or workforce size) and external factors will also be acknowledged, such as the COVID-19 pandemic and economic instability.
After assessing the company itself, the study will then weigh this information against what they know is required for the project, for example, the materials, labour and time required to make sure that the project is completed before the deadline. Once this analysis has been completed, a decision can be made as to whether taking on such a project would be financially viable for the company or not.
To better understand the working components of a feasibility study, let’s break it down with TELOS, a handy acronym which stands for: technology, economic viability, legal considerations, operational feasibility and schedule.
- Technology: This is asking whether the company has the necessary technology and systems in place to be able to carry out the project efficiently and whether the workforce has a sufficient understanding of those systems.
- Economic viability: This stage is essentially a cost/benefit analysis. That is, are the financial risks of the project worth the potential reward?
- Legal considerations: Are there any planning restrictions that might act as a stumbling block for the project? What other legal requirements need to be met?
- Operational feasibility: This phase of the study looks at whether the company will be able to manage and execute all of the complexities of the construction project.
- Scheduling: This step looks at the various time constraints that have been set for the project, and whether they will have an impact on how easily the project can be completed.
Why should you carry out a construction feasibility study & what are the benefits?
- A feasibility study could end up saving your company huge sums of money by avoiding a project that wasn’t financially or operationally viable.
- For projects that are within scope, a feasibility study can help you work out how best organise your finances in order to structure and plan the project.
- A feasibility study can also result in recommendations for further studies that could be of use, for example, ecology surveys, drainage surveys and arboricultural surveys.
- A feasibility study can help a company better understand where their strengths and weaknesses are, and how they can be exploited or fixed in order to overcome the challenges presented by the upcoming project.
Need some help with your next construction project? Aedifice Partnership are experts in a huge range of property development services, including construction feasibility studies. For more information, please contact our friendly, professional team today and we’ll be happy to help.