A land feasibility study is a necessary step toward developing a new commercial or residential area. Aside from being a government requirement before any physical labor begins, a feasibility study helps determine if an area is suitable for new businesses or residences.
Conducting a land feasibility study will help you avoid problems in the future and will ultimately save time and money. This article will discuss the significance of land feasibility studies for building projects along with the reasons why your project needs one.
What is a Feasibility Study?
A land feasibility study is a thorough analysis of construction intentions and represents a crucial element in the project’s planning. It determines how likely you are to complete the project on time and become successful by taking into account all pertinent economic, legal, technical, and scheduling factors. A feasibility study is meant to help ensure that the project can be carried out without posing unnecessary risks and that the building plans are appropriate for the chosen location.
The study determines if an area has the necessary natural resources to support new businesses and residences. For example, a water terminal study compares water levels in different parts of an area to identify potential sources of drinking water. A soil quality audit compares the quality of soil in different areas to identify locations with poor ground conditions. An electrical feasibility study identifies areas with adequate electrical utilities and ventilation for industrial operations. All these factors contribute to the decision of whether the given site is suitable for development.
Types of Feasibility Study
An effective feasibility study discusses several important aspects of a project, including the following:
- Economic Feasibility: A commercial real estate broker or a professional research firm may do this kind of feasibility analysis. Their responsibility is to conduct market research to determine what kind of project will work best in the area. Economic forecasts, competitive analyses, demographic trends, and other topics are included in the market research.
- Physical/Technical Feasibility: The land itself is the main focus of this sort of feasibility analysis. The study is often carried out by a qualified individual such as a civil engineer or an architect. They will take soil samples, assess the environment, determine whether the site’s utilities are enough for the proposed work, and, in many cases, survey the land.
- Financial Feasibility: The financial feasibility study assesses your financial situation to see if enough capital is available to fund the project.
- Scheduling Feasibility: Scheduling feasibility considers timelines. It functions as an estimate of how long construction work will take. This study tries to identify the potential constraints to the work process which may include financial, technical, and technological constraints.
The Importance of a Feasibility Study
Feasibility studies are extremely important for any construction project because they serve as the cornerstones upon which the rest of your project will be built. Before investing much time and money into a project, construction managers undertake feasibility studies to identify the benefits and drawbacks of the endeavor.
This work is also valuable because it enables you to identify opportunity variables that contribute to a project’s eventual success. The study represents a critical stage of any construction project that requires the land or building site to be developed. It can identify the best site, drive the layout of buildings, and determine the cost of construction. Land feasibility studies are also used to better understand the land itself and determine whether the site is suitable for the project.
Feasibility Study Costs
The cost of land feasibility studies can vary depending on what is included. They may cover some or all of the following:
- Land surveying
- Topographic mapping
- Soil testing
- Cultural resources
- Environmental resources
- Water resources
- Geotechnical engineering
- Building permits
- Construction documents
- Permits for construction
- Site design
- Engineering design
- Project management
- Environmental impact assessment
- Cost estimate
A feasibility study will cost between $15,000 and $25,000, depending on the size of the property and the scope of the investigation. The expense is also influenced by the time it takes to complete the investigation.
To reduce the cost of land feasibility studies, you might try looking for a land consultant who specializes in land purchase and will work with you within your financial constraints.
Comprehensive Feasibility Study Analysis
A land feasibility study is among your development project’s most crucial components. It will assist you in deciding whether the site is appropriate for your intended project by providing an estimate of how much the project will cost. Development ventures that break ground without feasibility studies are far more likely to fail.
A land feasibility study is typically done by a professional engineer who analyzes the project’s location, nearby infrastructure, the surrounding natural environment, the climate, existing environmental laws and regulations, and all other factors that may impact the project. Contact a Burrell CG representative today for expert advice.
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