Why a Feasibility Study Matters in Construction
Imagine that you’re standing on the edge of an enormous expanse of land that is empty, and you imagine a towering structure or a lavish home or even a modern hospital. It’s thrilling. However, before you lay the first brick or contact surveyors, there’s an important step you need to complete: getting a feasibility study for construction project
This step isn’t an exercise in tick boxes. It’s crucial to know the distinction between a building that is profitable and making a costly error. In Paragon Estimating, we assist the client in this crucial phase, making sure that every concept is supported by evidence, figures, and accurate cost estimates.
This article explains what a construction feasibility study is, why it’s important, and how to use it.
What is a feasibility study for construction project?
The term “feasibility study” refers to a feasibility study, which is a review of the feasibility and effectiveness of a planned project. It’s an in-depth examination of every aspect, including financial, technical, legal, operational, and other aspects that could affect the outcome of the project.
The objective is straightforward to determine whether the proposed project is feasible and profitable with the resources and constraints planned.
Key Objectives of a Construction Feasibility Study
- Assess the technical viability of the site: Is the site appropriate? Are there resources readily available?
- Analyse financial feasibility. Will the project be able to earn an ROI on investment?
- Review the legal and regulatory compliance of the site: Does it meet the zoning, environmental, or safety standards?
- Find out the possible risks and obstacles: These can range from supply issues to community-wide objections.
The Feasibility Stage in Construction | When and Why It Happens
The feasibility study for construction project usually occurs when an idea is first thought of but before any actual plan or design work is initiated. It is a gatekeeper, ensuring that resources aren’t squandered on impractical or financially risky projects.
When Should You Conduct a Construction Feasibility Study?
- Before acquisition of land
- Prior to securing funding
- Before engaging engineers or architects
- Before committing to marketing plans or timelines, it is important to evaluate the project’s feasibility.
The early-stage evaluation will save your feasibility study for construction project from costly mistakes and assist in convincing bankers, investors, and other people involved in it of its viability.
What Does a Construction Project Feasibility Study Include?
At Paragon Estimating, we tailor our construction feasibility studies to meet the unique needs of each project, but they typically encompass the following areas:
1. Site Analysis
Analyse the physical conditions as well as the location’s advantages and limitations. It includes testing soil as well as environmental impact studies and accessibility evaluations.
2. Financial Analysis
Break down the total cost estimate, including labour, land, materials, permits, and much more. Then, we estimate future revenue and ROI to verify the financial viability.
3. Legal and Regulatory Review
We verify the conformity of our zoning laws, building codes, and environmental regulations. other legal regulations.
4. Technical Feasibility
We look at the practicality of the proposed design, the construction availability, and the working conditions.
5. Market Demand and Risk Analysis
We analyse demand for the kind of structure and other projects, as well as risks such as recessions in the economy, fluctuations in interest rates, or political shifts.
The Benefits of Conducting a Construction Feasibility Study
It is possible to ask whether this additional expense and time are worth it Absolutely. Here’s why:
Minimise Financial Risk
Early identification of unexpected expenses or revenue shortfalls can help you avoid investing in a doomed project.
Increase Project Efficiency
The ability to see the conditions on-site, the labour market, site conditions, and the availability of material can assist in optimising schedules for projects and budgets.
Boost Stakeholder Confidence
A properly written feasibility report will assure investors, as well as lenders and partners, that your venture is viable.
Simplify Regulatory Approvals
Being aware of legal obstacles ahead of time allows for proactive solutions that speed the approval process.
feasibility study for construction project | Our Process at Paragon Estimating
At Paragon Estimating, we combine local market knowledge, the latest software tools, and decades of experience to produce feasibility study for construction project that provide the base for our clients’ success.
Step-by-Step Process:
- Initial Consultation
- Data Collection and Site Survey
- Cost Estimation and Financial Forecasting
- Legal and Regulatory Assessment
- Risk and Opportunity Analysis
- Feasibility Report Preparation
- Client Presentation and Recommendations
Our feasibility study for construction project services don’t come in a standard package. We tailor each study to your venture’s specific goals, location, and size requirements.
Real-World Example | How a Feasibility Study Saved a Client $500,000
Our client feasibility study for construction project.
Our analysis of the site revealed flooding risks, and the financial model showed a low ROI due to the high cost of infrastructure. Our feasibility report enabled the client to redirect their investment towards a new, better-performing location, ultimately saving $500,000 and avoiding months of unnecessary time and effort.
That’s the value of a thorough analysis of feasibility.
Paragon Pages You May Find Useful
- Cost Estimating Services
- Construction estimating Services
- Plumbing estimating services
- HVAC estimating services
- Electrical estimating
- Construction Calculator
- Commercial Calculator
- flooring calculator
- drywall calculator
Finalisation | Ensure your project’s success by conducting a feasibility study.
The feasibility study for construction project isn’t only due diligence; it’s a strategic investment into the future of your project. It assists in making crucial decisions, pinpoints potential risks, and uncovers opportunities that might otherwise go unnoticed. We are aware of the importance of feasibility studies. Our experienced team provides precise and actionable feasibility studies that allow you to build your business with confidence.
Ready to Future-Proof Your Construction Project?
Get in touch with us right now for a personal consultation to find out how our construction feasibility consulting services will help you turn your ideas into successful, green, sustainable projects. Get Your Free Quote Now
FAQs
What’s the objective of a feasibility study for construction project?
The study aims to ascertain the financial, technical, and legal feasibility of a construction project before investing a substantial sum of money.
How long will the construction feasibility study last?
The typical duration for completing the feasibility study is between 2 and 6 weeks.
Is feasibility analysis obligatory for project construction?
While it’s not legally required, experts strongly recommend it to mitigate risk and enhance decision-making.
What’s the cost of the feasibility study?
Costs different based on the project’s dimensions, location, and the type of study being conducted. At Paragon Estimating, we provide affordable and customised packages.
