Do I Need A Feasibility Study?

What is a Feasibility Study?

Do I Need A Feasibility Study?

The initial process for planning small to medium density and multi-residential developments commences with a preliminary project assessment. This process is made up of discussions surrounding a client’s desired outcome for the site, their budget, a review of zoning and building codes for the proposed development site to ensure compatibility, and the establishment of the overall parameters that will impact the design.

As the name suggests, a Feasibility Study evaluates the potential of a site and its viability for development or redevelopment; establishing, for example, how many dwellings are likely to be accommodated based on the relevant Council’s controls where a town house development is being considered or if an existing dwelling could be converted to a Boarding House.

What are the Goals of a Feasibility Study?

• To understand thoroughly all aspects of a site and project, and its potential to succeed,
• To be aware of likely “roadblocks” or obstacles that could occur while implementing or throughout the duration of the project, and
• To determine if the project is in fact viable and worth undertaking.

Why is a Feasibility Study Important?

Before proceeding with any investment, an informed decision is crucial to ensuring you are not wasting time, money, and valuable resources on an impractical or futile endeavour. As well as, it is essential to lessen the chances of any serious mistakes or critical errors occurring throughout a viable project’s journey. A feasibility study undertaken during the initial due diligence phase reduces the risk of clients investing in developments that won’t deliver a return on their investment.

What are the Benefits of a Feasibility Study?

• Is it profitable? Through understanding the opportunity, a client can determine whether their investment is actually going to make any money.
• Test the concept. Cost overruns can be seriously damaging to any project; a feasibility study will prepare a client for unexpected fees or costs.
• Have confidence. Thorough and accurate studies can increase the confidence a client has in their ability to continue development, if they know the numbers will stack up at the end of the project.
• Financial aspects. Cash flow problems are one of the biggest reasons why a project fails; an analysis will help a client to convey their ideas to potential investors, with an insight into exactly what kind of financial circumstances they’ll be facing.

The Site Foreman’s Feasibility Service

The Site Foreman provides feasibility studies to clients who may be contemplating purchasing a new site or upgrading an existing one. With comprehensive investigation undertaken by our highly experienced Principal Architect, we are able to provide realistic design solutions to maximise site coverage, land value and an increase to a developer’s profits. By commencing this process, clients can make an informed decision on how to proceed confidently with their development project.

Want to know more? Get in touch with our team to discuss your options.