Many construction companies will conduct a feasibility study to assess the viability of a construction project. A feasibility study will give grounds to a project and evaluate it in terms of the strengths, weaknesses, resources, finances and how realistic a project is. Simply put – a feasibility study assesses the potential, as well as the limitations of an idea. So why is a feasibility study so important?
Taking on a project
Within the construction industry, a feasibility study is undertaken to assess whether a company can realistically take on a project. This means that the financial situation and reputation of the company is evaluated, the strengths and weaknesses of the business are taken into consideration, whether any unforeseen societal issues may have an impact on the project (such as economic instability or reasonable competition within the company’s field) and the likelihood of profit and loss once the project has been completed. Not only this, but the reports also look into the materials, labour and time required to fulfil the project. All of this is studied before a decision is made on whether the project will be financially viable and if it is worth undertaking or not.
Areas of feasibility
Breaking this down into layman’s terms, there are five aspects of a feasibility study which make up the whole body of the report: technical, economical, legal, operational and scheduling (TELOS).
- Technical – this area assesses how the company will deliver the project based on the hard materials, labour, resources and any other practical requirements such as transport.
- Economic – loss and profit considerations are an integral area of a feasibility study as, ultimately, the overall goal is that the profit outweighs the cost.
- Legal – the legality of a project needs to be looked at to assess whether the construction company will be able to meet the legal requirements of the project.
- Operational – to effectively complete a project, there needs to be a plan of action in place. This area of the feasibility study assesses whether the construction company has the ability to manage and execute a complex project.
- Scheduling – this area outlines whether the company can execute and deliver a satisfactory product to the client without the quality of the work suffering due to the time constraints laid out.
As outlined above, a feasibility study is necessary to the completion of a project and a construction company should supply you with a reasonably assessed decision taking everything into consideration for the viability of your project.
Here at Green Structural Engineering we are experts in feasibility studies and work with architects and other professionals to identify and potential pitfalls or costs to your project from an engineering perspective.