Why a Feasibility Study Should Always Be Considered

“There’s not enough capacity in the switchgear to power your equipment”…“The seal water tank won’t buffer the additional pumps”…“The dust collection system does not have enough CFM for an additional pick-up point”…“The equipment won’t fit.” 

Whether it be inaccessible equipment, a process that does not actualize throughput, an unplanned safety exposure, or a lack of process dust capture, virtually every department on a site is affected by poor project planning. What was once thought of as a no-brainer capital expenditure could quickly transform into a nightmare project with no end in sight or spending. 

In this unpredictable market of expanded lead times, material shortages, and fluctuating costs, many projects are suffering from the lack of foresight and planning. Rushing the design process to accommodate getting equipment on time has become the norm. This also comes in the advent of engineers with multiple years of project experience retiring or simply leaving careers. Now, there are too few to do too much. As a result, the feasibility phase of project planning is beginning to disappear. 

The feasibility phase of a project should not be underestimated. This critical project step can put to bed the things that keep project engineers and managers awake. Helping to eliminate uncertainties and benchmark whether or not a project is going to work within the constraints given.  

Not all feasibility studies are the same, they vary per industry, and even within the same industry are varying project scopes and operational demands. But at their core, all feasibility studies should provide stakeholders with supplemental information to help determine whether a proposed project or investment is likely to succeed. 

Determining feasibility can include multiple verification steps before the project is designed, key determinants are: 

1. Technical Viability – Is the proposed project able to actualize the proposed results? A technical feasibility analysis will quantify if a project can come to fruition without technical concerns. Taking into consideration the size of the project site, access to the area, land topography, geotechnical information, existing facilities or structures on the site, and other environmental factors.  

2. Resource Availability – Is there enough existing infrastructure to support the proposed project? Assessing the resources is another component of a technical feasibility analysis. Examining the material availability, personnel availability, required equipment, and other practical requirements unique to the project. 

3. Schedule Actualization – Does the availability of the proposed project equipment and processes allow completion of the project within the desired time frame? A scheduling feasibility analysis considers the overall design, materials, risk areas, and laws and how they could affect the overall amount of time needed to complete a project. 

4. Financial Constraint – Are the available funds adequate to support completion of the proposed project? An economic feasibility analysis helps determine if the funding is sufficient for the foreseeable project costs and commonly includes a cost benefit analysis section or “CBA”. 

Until these critical aspects can be confirmed, the project cannot be determined as feasible. 

A good feasibility study costs between 0.75% and 1.5% of the total project cost and can tell you not just whether to spend the other 99% of the budget, but also determine how it should be spent to maximize the return-on-investment and long-term effectiveness of the project. 

If a consultant is being considered to assist in designing a project, the ability of that consultant to perform the feasibility phase services should be a priority in the firm's selection. 

No matter your needs, Progressive Companies' full-service capabilities make us your ideal partner for feasibility studies and any other project stage. A team you can trust to be with you every step of the way, working transparently to make sure you are receiving the optimal solutions and resources that align with your design, schedule, and budgetary goals. 

References:

“Feasibility Study & Its Importance in Construction Project.” Www.blackridgeresearch.com, Blackridge Research & Consulting, 2 Nov. 2022, www.blackridgeresearch.com/blog/what-is-a-feasibility-study-and-importance-of-feasibility-study-in-construction-project.