Feasibility study is a process of evaluating the pros and cons of a project, the possibility of getting it right before commencement to avoid losses.
Hidden dangers and positive benefits are expected to be looked at in feasibility studies to allow clients to make informed decisions. It is usually done mostly when your building project is for commercial purposes.
Below are some key benefits of conducting a feasibility study:
• Improves project teams’ focus
• Identifies new opportunities
• Provides valuable information for a “go/no-go” decision
• Narrows the business alternatives
• Identifies a valid reason to undertake the project
• Enhances the success rate by evaluating multiple parameters
• Aids decision-making on the project
• Identifies reasons not to proceed
What will a feasibility study tell me?
A feasibility study will cover all potential threats to your project. It will focus on any specific project concerns, but in general, the feasibility study will:
• Determine if an environmental impact assessment (EIA) is required
• Assist in the development of project documentation: business case, execution plan, strategic brief
• Determine the necessary planning permissions needed
• Determine other legal/statutory approvals needed
• Analyze the budget relative to the client requirements
• Assess the potential to re-use any existing facilities
• Assess any and all site information provided by the client
• Include site appraisals, including geotechnical studies, assessment of any site contamination, availability of services, uses of adjoining land, easements and restrictive covenants, environmental impacts, etc.
• Assess operational and maintenance issues
• Appraise servicing strategies
• Address programming considerations
• Address procurement options
• Overall, establish whether the project is viable
• Help identify feasible options
Factors of Feasibility study
1. Economic-The economic benefit of embarking in the project to the owner after completion will be assessed to determine the viability, cost and other benefits associated with it before committing financial resources on the project.
2. Technical-Availability of technical resources both in equipments and manpower will also be evaluated to make sure project is not stalled due to technical deficiency
3. Schedule-Some projects/construction has a time limit for it to be ready and running. Feasibility study is expected to show if the project can be completed within a time frame, if not how will it affect the general outlook of the project.
4. Expansion-Expansion possibility of the project will also be considered , if project is on a Build,Operate and Transfer (BOT) when is the best time to pull out and the time of Return On Investment (ROI). How will this affect the investor/clients.
5. Political/Government influence- A very big project might draws the attention of the government personae, mostly for selfish interest. Feasibility study can determine likable behavior of government in power to such project and other risks.
6. Future plan-How long can such building influence its business environment and if there may be a need for future corresponding businesses to follow the building project and how will it affects?
7. Security-How secure can such a building be in that particular location can also be evaluated through feasibility study.
8. Success-Is project likely to succeed
9. Focused and Specific-The study can really streamline the idea of client on the project
10. It helps to see the Big end picture of the project
11. Alternative solutions-The study may also give other alternatives to what you are planning to do especially if the alternative is a better option or if your plan may face a difficult time.
12. Competition-Feasibility study will also expose you to present competition and forecast future competition
13. Turnaround
14. Project timing
15. Managerial-Feasibility study accesses the management team in executing project and running after construction and comes out with a verdict and advice
16. Cultural/Social-Your building project will also be evaluated based on its impacts on the socio-cultural lifestyles of inhabitants and neighbor. Will the project be intrusive and draws complaints from neighbours?
17. Safety- How safe will the building be in such area?
18. Environmental impact on Ecosystem
19. Will it have any effect or be affected by markets around? Will the project be marketable and the best process of marketing it as a business.
20. Legal- How legal it is to construct such edifice, Especially for its purpose? How easily can you get approvals from authorities?
21. Are there capable contractors to handle such projects?
22. Procurements/logistics will also be considered
23. How accessible is this project?
24. Not to forget human nuisance(omoonile) etc. Militants problems and community outlaws.
You can contact Mr Taiwo(FCA)-08037129908 to do one for you, he is very verse and highly experience in Feasibilty studies for mega projects in West Africa.
