In the early stages of a project, you can’t always tell precisely how much it will cost. Changes to the design or development during planning will alter the outcome.
Developers, however, often like to get a sense of the rough costs of their plans in advance so that they can make a judgement about whether they should go ahead. Feasibility costings are helpful tools that they can use to do this.
Why Do People Get Feasibility Costings?
Feasibility costings provide builders, developers, architects, and even homeowners with valuable information that they can use to decide whether they want to go ahead with a project or not.
Here are three reasons why you might want to go ahead with a feasibility costing:
- To find out whether your project is viable. You might have a plan in place that delivers a project which provides all of the features that you want to include, but it might not be economically viable. The purpose of feasibility costing in this instance is to figure out whether the project makes financial sense before any work gets underway.
- To find other feasible options. Sometimes a range of projects is viable. The purpose of feasibility costings, in this case, is to provide you with a menu of options and show you what is possible, and what isn’t. You may find that the project you initially planned isn’t viable, but a similar one is.
- To assist in the development of business documentation. Developers, architects and builders often have to produce a business case to show that a project is viable. Feasibility costings are a powerful tool that you can use to confirm with your client the costs of a project plan, as it stands, with confidence. Companies use feasibility costings in a range of documents, including business plans, strategic briefs and project execution plans.
What Factors Do Feasibility Costings Incorporate?
The concept of feasibility costing is relatively straightforward: to figure out how much a project will cost to develop in the real world.
The practicalities of making such an assessment, however, are anything but simple. Building consultants include multiple factors in their evaluation of the final cost.
- It’s important to note that feasibility costings differ from other forms of cost estimates that builders encounter during the construction of a project. The initial cost appraisal includes both the construction cost of the project, as well as broader expenses which might apply, like fees, cost of moving staff, and so on.Thus, there are a variety of factors that could enter a feasibility costing:
- The size of the floor space and assumptions about the prices of various inputs
- What is being included in the project, and what is left out
- Calibration to take account of market conditions in the future (and likely sale prices at the time of completion)
- The cost of fixtures, fittings, and equipment
- Running costs of the building
- Stamp duty and agency fees
Feasibility costings, therefore, are a vital tool you can use to get peace of mind and proceed with confidence.
Here at Bhangals Construction Consultants, we are on your side.
We are here to make sure that you are always covered, for all circumstances.
If you are looking to get feasibility costings for your commercial or residential construction project, then you need to speak with one of Bhangals Construction’s Consultants feasibility consultants - 01604 871806