A Feasibility Study, also known as engineering study, is a key activity that should be carried out early in the project process if a successful project outcome is to be achieved. The cost of this will form the basis for capital approval and ultimately (with further refinement) will become the budget for the project.
At Prime Design we will recognize the importance and significance of the study, we will engage with the client at an early stage to understand the key drivers for the project. This is an opportunity to challenge assumptions, evaluate risk ad test the technical solution. The study could include preliminary design, surveys, supplier evaluation, cost preparation, operational evaluation and simulation modelling. Our objective Is to produce a report that summaries the project, draws conclusions about the technical solution and provides an outline cost structure.
The Feasibility Study could cover a number of factors (or ‘tests for viability’) depending on the nature and complexity of the project. Technical and financial/ economic factors are probably going to be pretty high up on the list: can it be done and what is the cost/payback period (return on investment)? Time is another of the key factors: there may be key commercial milestones (e.g., product launch) that have to be considered, so can the project be scheduled accordingly (this may affect the technical solution and cost)? Other factors should include risk assessments, safety assessments and operational assessments.
Nevertheless, on many different occasions we have seen this activity dramatically reduced in content and even missed out completely. It is seen not as an integral part of the project process but as an unnecessary ‘additional cost’. The result sadly, can quite often lead to many unforeseen factors revealing themselves as the project progresses through further stages of implementation, installation, etc. The outcome inevitably is therefore additional cost, extended timescales and compromised scope.
If you have any queries, please contact us by phone at 01784 668188 or you can alternatively email us at firstname.lastname@example.org. We will be more than happy to help you with anything you may need.