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Why is a Project Feasibility Study Important?

Management for architectural construction starts with project initiation and ends with completion and delivery. Typically, the first significant step is to perform a feasibility study in the planning phase. A feasibility study is an essential step in that it helps assess the viability of a project before committing valuable resources, time and effort. With thorough analysis, stakeholders and planners gain insights about the project’s potential success.

why is a project feasibility study important

What Is a Feasibility Study?

A feasibility study is a comprehensive assessment conducted before the commencement of a project to determine its viability and potential for success. It involves analyzing various technical, financial, operational and market-related factors to provide decision-makers with valuable insights into whether a proposed project is worth pursuing or if allocating resources elsewhere is better. Once the feasibility report is concluded, our architects go to the drawing board to develop a plan for your project.

Why is a Feasibility Study Important in Construction?

An accurate construction feasibility study can help you see the whole perspective early on so you can work from a top to down approach when planning. An effective feasibility report will guide you on whether it is smart to proceed with an idea, revise it, or even scrap it altogether.

When conducting a feasibility report, you will need to break down the most general questions into numerous, narrower, and more detailed questions to bring you closer to the ultimate solution to the problem. This study will move you to take action and ask questions to ensure whether a project thought, idea or plan is likely to succeed. For instance, asking whether installing a new HVAC system will improve the efficiency and safety of your mechanical system and ultimately lower your utility expenses is an excellent place to start.

A construction feasibility study helps you to get it right the first time, even before you commit a huge amount of time, money, and resources towards building a project. Plumbing, mechanical, and electrical systems are not cheap, and coming back later to remove limitations and correct flaws that were not anticipated can be very costly.

It’s not uncommon for architectural firms to conduct multiple project feasibility assessments related to various aspects of the work, including:

  • environmental risks, limitation of client’s budget
  • possible design issues that can affect maintenance
  • requirements for legal and regulatory approval
  • construction crew management
  • procurement and inventory procedure.

As such, when you conduct a feasibility study for a project, it’s obligatory to have an excellent working knowledge of the construction industry’s many moving parts.

How is a Feasibility Study Conducted?

  • Project Definition
    The first step includes clearly articulating the project’s goals, objectives and scope. This involves defining the project’s purpose, identifying the desired outcomes and establishing the study’s boundaries. Defining the project aligns stakeholders and ensures everyone is on the same page and working towards a common goal.
  • Site Evaluation
    Once the project is defined, the next step is to assess the suitability of the proposed site, which involves looking at accessibility, zoning laws and environmental impact. Site evaluation helps decide if the location suits the project’s needs and what changes are required. It also ensures the project follows local rules and environmental standards.
  • Market Analysis
    Analyzing market conditions, demand and competition is a critical step in determining the potential profitability of a project. This involves conducting market research to understand the target market, identifying potential customers and assessing the level of competition. Market analysis helps project stakeholders gauge the demand for the project and identify any potential challenges or opportunities that may arise in the market.
  • Technical Assessment
    The next step is looking at the technical parts of a project to see if it can realistically be done. This means reviewing engineering needs, how practical construction would be and possible issues that might come up during implementation. Evaluating the technical aspects ensures the project can succeed within the limitations, which helps account for potential technical problems.
  • Financial Considerations
    Conducting a thorough cost-benefit analysis is crucial for understanding the financial viability of a project. This step involves estimating project costs, including construction, materials, labor and other associated expenses. It also includes evaluating potential returns on investment, such as revenue generation and long-term profitability. By considering the financial aspects of the project, stakeholders can make informed decisions regarding its feasibility and potential financial risks.
  • Risk Assessment
    Last but not least, identifying potential risks and developing mitigation strategies is integral to any feasibility study. This step involves analyzing potential risks affecting the project’s success, such as regulatory changes, market fluctuations or unforeseen challenges. By identifying these risks early on, stakeholders can develop effective strategies to minimize uncertainties and ensure project success.

What are the Construction Hazards that Must Be Included in the Feasibility Report?

A well-planned and well-designed project feasibility study determines whether or not the project is viable, the site remediations that need to be made to complete the project, and if another location is more suited for the project. Feasibility studies vary based on every project’s size, complexity, and circumstances; most reports include some combination of the following construction hazards.

  • Geologic Hazards
    In order for your architectural and design team to develop the best possible plans for your site, it may be necessary to have a complete investigation of geologic hazards. The information collected can be used to mitigate any known potential issues and reduce future risks.
  • Hydrogeological Investigation
    Hydrogeological conditions may impact your proposed building plans. An investigation that aims to evaluate the movement of groundwater through soil media below your proposed site location will help determine constructability given your groundwater conditions, monitoring output, and other needs.
  • Seismicity and Fault Studies
    Evaluation of the on-site geologic conditions may be needed to mitigate the present potential hazards with concerns to seismic activity depending on the scope of work.

When you examine all the areas and potential hazards in a construction project, you will be able to identify any possible constraints your property stands to face. In turn, you will be able to ensure timely completion, adherence to safety, zonal and environmental regulations, and so forth.

At Watkins Architect LTD, we have the experience and expertise to design your next project. We also assist with meeting any codes and can guide you through regulations that may be implemented in your area. We are registered for architecture in 11 states with the ability to be registered in more, if necessary. See a complete list of the states we are registered to work in. If you’re looking for an architecture firm to help with your next project, we are the best choice! We have assisted many churches, schools, restaurants, and companies with the building or renovation of their locations.

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