What is the purpose of a feasibility study in construction projects?

A feasibility study in construction projects is crucial because it systematically assesses whether a proposed project is viable before substantial resources—such as time, labor, and capital—are invested. This study encompasses five main elements: technical, economic, legal, operational, and scheduling feasibility. By analyzing these aspects, project stakeholders can gain insights into whether a project can be successfully completed and if it will meet the specified objectives.

One of the primary goals of the feasibility study is to mitigate risks associated with project feasibility and to provide decision-makers with the information necessary to proceed confidently. If a feasibility study indicates significant obstacles or unlikelihood of success, the stakeholders may choose to alter the project, seek alternative solutions, or abandon the idea altogether before incurring heavy costs.

In contrast, creating a marketing plan focuses on strategies to promote and sell the project rather than evaluating its viability. Monitoring compliance with regulations is an ongoing task that typically occurs during and after the project, rather than a preliminary evaluation. Assessing labor availability, while important, is just one component of the overall feasibility study and does not encompass the full breadth of analysis required to determine a project's viability.