What is a feasibility study?

​A feasibility study is the analysis and evaluation of a proposed project that will determine if that project is (1) technically feasible, (2) feasible within the estimated cost, and (3) profitable. Where a substantial amount of money is in play feasibility studies are always conducted.
 
Theses preliminary studies are usually carried out in the very early stages of a project and when a project is large or complex, or where there is some doubt or controversy regarding the proposed development.
 
Some of the reasons a feasibility study is conducted are:
 
To establish the viability of a project
To assist in identifying feasible options.
To assist in the development of the documentation required for the project.

​Construction companies conduct a feasibility study to assess the viability of a construction project. The study will evaluate the project in terms of the strengths, weaknesses, resources, finances as well as how realistic the project is. To put it simply, a feasibility study assesses the potential, as well as the limitations of an idea. All of this needs to be taken into consideration before a decision is made on whether the project is going to be financial viable and if it is worth taking the project on.
 
Feasibility studies focus on providing information that will assist potential investors decide whether to proceed with or redesign a proposed development project or idea.
 
The areas of a feasibility study that have to be taken into account are:

• Technical – an assessment of how the company will deliver the project based on the hard materials, labour, resources and any other practical requirements such as transport.
• Economic – consideration of loss and profit are an integral area of the study because the overall goal is that the profit outweighs the cost.
• Legal – the legality of a project is important to assess whether the construction company will be able to meet the legal requirements of the project.
• Operational – a plan of action needs to be in place to ensure effective completion of the project. It is important that the construction company has the ability to manage and execute a project.
• Scheduling – this area outlines whether the company can execute and deliver a satisfactory product to the client on time.

 
A feasibility study is necessary to the completion of a project and a construction company should provide you with a reasonably assessed decision taking everything into consideration for the viability of your project. The assessments carried out should be presented in a structured way so that you can decide whether or not to proceed to the next stage.