What is a Feasibility Study?
Before embarking on a construction project how to know whether the planned and budgeted project is executable or not? How will you know whether the work that goes into the project is worth the investment?
Yes, taking up a feasibility study is an important part of your construction project and paying heed to this will not only result in a hassle-free and well-executed project but also an efficient one.
Yes, taking up a feasibility study is an important part of your construction project and paying heed to this will not only result in a hassle-free and well-executed project but also an efficient one.
While a feasibility study is not a strict mandate by law, it is always considered crucial and a highly recommended part of any building and construction project. It provides an in-depth understanding of what the project will necessitate and how feasible it is at the earliest stage possible.
In technical terms, a feasibility study is a preliminary assessment conducted at the earliest possible stage of a project to evaluate whether the planned development is viable and practical. Conducting a feasibility study will ensure optimal utilisation of critical project resources such as money, time, and materials.
Let’s take an example – Say you are planning an extension for your house, the hired professional if performing a feasibility study will think about how the new extension will impact your existing building. The impact he might be thinking about can be in terms of structural integrity, consideration towards planning when choosing materials, the number of windows that ensure ample ventilation and natural light without violating permitted development, and cost considerations, to name a few.
So, as you can see this is quite a detailed study that happens at the initial stage of a project before the commencement of its structural work.
Factors that Impact the Feasibility Study of a Project
Arguably many of them in the UK feel that considering a project without a feasibility study is not worth it. Almost all projects prioritise a feasibility study as they help in the identification and mitigation of many issues and risks that surround a project. There are numerous factors and important considerations that impact the outcome of a feasibility study.
Below is a breakdown of key impacting factors in detail –
1. Site Conditions & Analysis
This involves assessing the site for topography, soil conditions, environmental factors such as risk of flooding, air quality, etc to ensure the site is suitable for long-term construction.
2. Legal Feasibility & Regulatory Factors
This involves the legality of the proposed development. It involves adhering to zoning regulations, land usage rules, building regulations, and planning rules. It also acts as a check to verify if the land upon which the new developed is planned is free from any previous planning disputes, unsettled taxation, or any issues related to ownership.
3. Financial Viability
As the name itself implies, financial viability involves assessing and budget the project for its funds along with measuring the probability of a profit and loss. From estimation of material costs, labour costs, and planning for contingencies that may spur anytime, to futuristic of considering the RoI and resale value of the construction.
4. Market Analysis
Another key factor is to understand and build in accordance with the demand for the type of construction, competition in the market, and selling proposition. Though this is a large canvas to consider, giving it a thought is really worth it.
5. Construction Feasibility
This is more of a technical feasibility that involves taking into account the various construction techniques, availability of skilled labour, time required to complete the project, and other structural challenges and risks.
Who is Responsible for Conducting a Feasibility Study?
Usually, a feasibility study involves collaboration between a builder, an architect, a structural engineer and the local planning authority. At Extension Architecture, we have a rich experience in conducting site surveys followed by comprehensive feasibility studies for hundreds of projects be it extensions, conversions or new builds.
At What Stage Should a Feasibility Study be Conducted?
As discussed earlier, a feasibility study should be performed at the earliest possible stage. Technically, it can be conducted once the survey is done with a little planning in terms of zoning the layout, being thorough with the current market, and availability of resources. Once these are done, you can hire professionals to conduct the study.
Benefits of a Feasibility Study
Feasibility studies will enable a smoother execution of a construction project. Some of the key benefits include –
- Minimising the risk involved in cost overruns. A feasibility study will reduce the risk of overestimation or underbudgeting and will help in getting very close to the estimate of the project cost.
- Provides an almost accurate understanding of the project timeline in terms of its progress and completion.
- Ensures that a project is executed with complete adherence to planning rules, building regulations, and similar standards.
- Provides a holistic picture of the project’s viability enabling the involved stakeholders to drive informed decisions and be realistic in terms of the project vision and expectations.
While performing a feasibility study is no easy a task, it can be successfully conducted upon following a few tips –
- When conducting market study and cost study, rely only on government data and statistics, industry journals, publications and expert opinions. We are at Extension Architecture are your go to experts in such scenarios.
- Ensure clear communication. Clarify your doubts and make sure to receive regular and latest updates when it comes to costs, market demand and trends.
- Stay abreast of evolving laws, rules, and standards as they can be quite intricate to understand and navigate.
The cost of a feasibility study essentially depends on the type and complexity of the project, with simple & straightforward projects costing less and vice versa.
On an average, a feasibility study in the UK can cost between £1,200 to £2,800 for small scale projects. For medium scale ventures, the cost may range between £3,000 to £4,800.
Conclusion
Taking up a feasibility study is an important step in building construction. It gives you a lot of confidence that you are sure and guaranteed of an efficient and successful construction. Especially for projects that are running on a budget, feasibility studies are highly effective and can save significant costs, time, and resources.
Regardless of the scale of your project, if you are planning to conduct feasibility study, we just have the right team of experts who have extensive experience in handling many studies and surveys.
