Feasibility studies in the construction industry can be simply defined as the evaluation of the viability of a development project. It is used as a tool for analyzing if a proposed task can operate under a given set of assumptions, such as the technology used and the monetary aspects of the construction work.
Feasibility studies focus on providing information to help investors decide whether to proceed or redesign a proposed development project or idea. They are mainly used in business ventures relating to the construction industry.
Civil Engineering firms in Connecticut, such as Godfrey-Hoffman & Hodge, help real estate and property investors evaluate their plans and designs by conducting professional feasibility studies.
Types of Feasibility And Assessment Studies
A technical feasibility study involves evaluating the engineering aspect of the project which includes the fields of civil and structural engineering.
A managerial feasibility study involves evaluating the organizational structure and management capability of the project.
An economic feasibility study involves evaluating the economic benefit and loss that may result from the project. This is crucial to proposed non-profit development plans.
A financial feasibility study involves evaluating the capability of the organization to come up with the funds needed to complete the project.
Cultural and Social
Cultural and social feasibility studies involve evaluating the compatibility of cultural and social practices, beliefs and status affected by the proposed project.
A safety feasibility study involves evaluating whether the project can be executed and operated safely with nominal harmful influence on the environment.
A political feasibility study involves evaluating the status of the political climate that may affect the viability of the project.
Environmental feasibility studies involve evaluating the capability of the project to secure licenses, approvals and permits in a timely and cost effective way.
A market feasibility study involves evaluating the project’s impact on the market and its competitors. This also includes the profitability analysis of the project.
To conclude, the goal of feasibility/assessment studies are to analyze and outline methods of attaining business success. It is a crucial part of the development project and should be utilized by investors before implementing proposed plans.
Key Takeaway On Feasibility Studies:
- Feasibility/Assessment studies in the construction industry can be simply defined as the evaluation of the viability of a development project.
- The feasibility/assessment types are technical, managerial, economic, financial, cultural and social, safety, political, environmental and market feasibility.