What is a Feasibility Study?
A Feasibility Study is used to determine the legal, environmental, technical and financial viability of a development. It informs the client of whether or not a project is worth the investment and identifies the risk associated with pursuing the opportunity. A well-considered and prepared feasibility study will bring together professional members of the clients’ teams such as the Architect and Quantity Surveyor to provide a study that includes:
- Feasible options
- Town planning considerations
- Environmental Impact
- Legal and statutory approvals
- Cost analysis
- Assessment of site information
- Procurement options
- Programme considerations
- Site constraints
- Risks and opportunities
The feasibility study should enable the client to decide whether or not to proceed to the next stage. It is therefore critical that sound cost advice is given at an early stage to ensure absolute viability, confidence in affordability and subsequent return on investment.
Do I have to have a Feasibility Study?
In short, no. However, if you don’t, or you have one that has been poorly executed, then you could run into serious problems later in the project.
In October 2017, a High Court Judge ordered an international architectural firm to pay £3.6m in losses incurred by their client to procure a new design team after they designed a building for more than double the client’s budget. In their defence, the architect stated that the client had not appointed a cost manager early enough in the process. We know that when a client or architect uses appropriate cost management at the correct stages of a project it can assist both clients and architects to achieve a design in line with the client’s budget.
What are the benefits?
Apart from avoiding legal action, the value of having sound cost advice at an early stage will afford you benefits including, but not limited to;
Implementation of effective cost management from the outset.
A breaking down of the available budget whilst compiling the business case and strategic brief (RIBA Stage 0) to ascertain a total construction budget.
Production of effective project documentation so that all members of the design team are fully aware of the project objectives, including constraints (RIBA Stage 1).
Continual cost challenge to the design team during concept design (RIBA Stage 2).
An up to date, fluid cost plan taking account of how the design progresses, enabling all parties to design to budget.
Inclusion of a Gateway process to protect you, the client, against the design and overall project progressing past each RIBA stage without a full report being issued and signed off. This report should include details of all costs, programme, risks and opportunities.
Provision of informed advice to you and your team with regards to procurement options you may adopt and how these affect the apportionment of risk and levels of cost certainty.
At Evolution5, we pride ourselves on our personable approach and ability to tailor our services to the requirements of our clients. Our team of highly experienced Quantity Surveyors, with personalities as varied as their individual skillsets, means we will go further than simply providing the expert service you require. Your assigned QS will also understand your needs and work to meet, and often exceed them.
For your free consultation get in touch today.
Call 023 8040 5073 or email.