A feasibility study, also known as a plan and cost review, is a crucial step in evaluating the viability of a construction project. Lenders, investors, and developers rely on this process to identify potential risks, confirm budget accuracy, and assess whether a project aligns with financial and regulatory expectations. At NWM Risk Management, our plan and cost review services provide comprehensive insights to support informed decision-making and mitigate construction risks.
What is a Feasibility Study?
A feasibility study is a detailed analysis of a proposed construction project to determine its practicality, financial soundness, and potential challenges. It involves evaluating various aspects of the project, such as design, budget, timeline, and compliance with local regulations. This study helps stakeholders make informed decisions before committing significant resources.
Key Components of a Feasibility Study
- Project Scope and Design Review
- Ensures that the proposed design meets industry standards and project goals.
- Evaluates architectural and engineering plans for feasibility.
- Budget and Cost Analysis
- Reviews the accuracy of construction costs, including materials, labor, and contingencies.
- Identifies potential cost overruns and ensures financial feasibility.
- Schedule and Timeline Assessment
- Examines the proposed construction timeline for practicality.
- Identifies any scheduling conflicts or delays that could impact project completion.
- Regulatory and Compliance Evaluation
- Verifies adherence to zoning laws, building codes, and environmental regulations.
- Ensures that required permits and approvals are in place before construction begins.
- Risk Management and Mitigation
- Identifies potential risks related to design, budgeting, and external factors.
- Provides recommendations for mitigating these risks to ensure a smoother project execution.
Why is a Feasibility Study Important?
A feasibility study provides stakeholders with a clear picture of a project’s risks and opportunities, helping them make informed decisions. Key benefits include:
- Risk Reduction: Identifies financial and operational risks before construction begins.
- Cost Control: Ensures budget accuracy and prevents unexpected expenses.
- Regulatory Assurance: Confirms compliance with necessary permits and industry standards.
- Project Viability: Helps lenders and investors determine if the project is worth pursuing.
NWM Risk Management’s (Feasibility Study (Plan and Cost Review) Services
At NWM Risk Management, our feasibility study process is designed to help lenders and investors confidently assess construction projects. We provide detailed plan and cost reviews, ensuring that every aspect of the project is evaluated for success. By identifying potential risks and verifying financial feasibility, we help mitigate issues before they arise, protecting investments and ensuring project success.
We adhere to industry standards by utilizing RSMeans building data for cost feasibility, reviewing AIA contract documents for compliance, and applying CSI MasterFormat divisions for detailed cost breakdowns and specifications.
For more information on our plan and cost review services, contact NWM Risk Management today. Our team of experts is ready to help you navigate the complexities of construction feasibility studies and secure your project’s success.
