Nobody likes abandoning a project, especially when there’s significant investments involved. The complexity and scope of many modern construction projects can spiral out of control without careful management and planning. To ensure projects move forward, McClure performs extensive due diligence including Feasibility Studies.

A quality feasibility report can provide stakeholders with financial and logistics information to determine if a project will be successful, even in the face of uncertainty. McClure has worked with a wide range of developers on an equally diverse list of projects, so we’re sure we have the experience and perspective you need.

Feasibility Studies Help Decide What Projects Move Forward

The feasibility of a project is based on many unknowns, such as changing material costs or if specific legal matters can be settled. Without enough answers, developers, and investors may not feel comfortable enough to devote time and resources to the project, halting construction before it begins. Feasibility studies should provide as many of those answers as possible, giving stakeholders enough confidence to see a project through.

The best-managed projects will have a complete feasibility study as early in the process as possible. This is in case there are problems yet to be discovered that will make finishing construction anything from cost-prohibitive to physically impossible. When these problems are discovered too late, a great deal of time and resources end up being spent on a project that can’t be finished. Completing a feasibility study early, however, gives everyone time to consider alternatives or take steps to resolve any problems the study brought to light.

Some feasibility studies may be more targeted toward specific categories of information, such as:

Technical Feasibility: No project can succeed without the right tools. A technical feasibility study seeks to find out if software, staff and other resources are adequate.

Economic Feasibility: Rather than focusing on just expected costs, an economic feasibility study will try to produce a cost-benefit analysis that also considers the projected profit or other benefits the finished building can provide.

Operational Feasibility: Every project has a goal in mind. For construction, this refers to what the building is intended for when it’s finished (such as selling products or services). An operational feasibility study will help confirm if the current plans for the building will accomplish everything the developers set out to do.

Scheduling Feasibility: Also known as a time feasibility study, scheduling conflicts, or time constraints will be closely reviewed. Any internal or external elements of project management that could frustrate the schedule will be highlighted.

Legal Feasibility: Navigating the legal aspects of construction takes time, and sometimes a zoning law or environmental regulation will prevent a project from progressing further. Legal feasibility studies will try to find these legal complications ahead of time.

What Information Should Feasibility Studies Include?

Because many risks to a project’s success are unknown, a professional feasibility study will try to collect as much information as possible about every aspect of the project’s needs. Despite casting such a wide net, there are still some key pieces of information that McClure prioritizes. In fact, every feasibility study should include the following information:

Comprehensive details of the site itself: This information should help the project owners decide if their chosen real estate offers everything they need. If there are problems with obstructive terrain, for example, we can suggest construction methods that sidestep the problem entirely. If there is more than one site to consider, McClure can perform what’s known as a site selection analysis to decide which site is best suited to the project.

Time and Resource Requirements:Projects would never leave the design stage without materials, labor, and enough time to turn them into a finished building. A professional feasibility report should include detailed lists of the resources, including software and digital tools, that the project will need.

Cost estimates, including permits and operational expenses: A project’s total costs include much more than just parts and labor. Permits and other legal documents often require fees to process, for example. Many feasibility assessments will even attempt to discern what costs can be expected on opening day, as well as typical daily operation costs.

Project management plans and recommendations: McClure can examine the project management hierarchy/organizational structure and suggest alternatives that may improve efficiency or internal communication.

Marketing research: Quality marketing research can inform developers if there is local demand for the intended products/services of the finished building, or what price points yield the best results.