What is a “Feasibility Report” in Commercial Construction?

8/12/2021

Before you embark on your newest commercial construction project, it’s important to be confident in its success. But how can you be confident? How can you know that the project will be on budget, successful, and finished on time? Taking the word of your contractor is one way to go. The best, however, is to get a feasibility report.

In commercial construction, a feasibility report is a rundown of the viability of your project. Whether you’re building an apartment complex, constructing a retail building, or adding an amenity center to an existing structure, a feasibility report can help you determine the practicality of your project. A contractor will complete a feasibility report on a variety of factors. The feasibility of a project’s scheduling, economics, operations, and legality, as well as its technical requirements, will all be taken into account to determine whether or not your project will be successful. A feasibility report is vital when beginning a new endeavor in commercial construction.

Since 1990, D’Lauro and Rodgers has prioritized transparency with our clients. Our experienced contractors offer feasibility reports on your new project, so you know what to expect. Call D’Lauro and Rodgers today to discuss your project at (215) 542-0100.

What’s in a Feasibility Report in Commercial Construction?

Requiring that your contractor complete a feasibility report can help determine the success of your project. A comprehensive feasibility report will include the suggested scheduling of a project, the preferred budget, the viability of the construction, the technical requirements, and the legality of the project itself. An experienced contractor should complete a feasibility report before agreeing to partake in your commercial construction project.

Scheduling Feasibility

In a feasibility report, a contractor should note whether or not it’s possible to complete a project in the client’s desired timeframe. Commercial construction may be time-sensitive, so projects need to be finished in a timely fashion. No one wants construction that drags on. Your contractor should assess how long they think the project will take. Doing so can give clients a rough timeline that they can either agree to or decline.

Regardless, the feasibility of the timeframe is important. If schedules don’t align, it’s vital to know that before you contract a construction company. Including the scheduling within a feasibility report can keep clients and contractors on the same page about the project’s duration.

Economic Feasibility

A contractor should assess your proposed budget for a project in their feasibility report. A contractor may promise clients that they can complete a project within a set budget, knowing they can’t. Feasibility reports give clients a clearer idea of the actual cost of a project, barring any unforeseen issues. Requesting a feasibility report will help keep the contractor and client on the same page about the budget.

In addition to staying within budget, economic feasibility evaluates the cost-benefit of your project. Your contractor will seek to answer whether or not your project is economically viable. For example, say you want to build an amenity center in your apartment complex. Your contractor will assess the potential economic advantages of adding an amenity center versus the cost of construction.

Operational Feasibility

The feasibility report you request from your contractor may include a project’s operational feasibility. Commercial construction can be a lengthy, expensive process. Before you embark, it’s helpful to know if your project will be successful. Operational feasibility addresses whether or not your project solves a problem. Will it contradict existing developments in proximity? If you’re building an amenity center, will its features be used by your tenants? Operational feasibility is an evaluation of the potential success of your project and can be included within your contractor’s report.

Legal Feasibility

Your new commercial construction project likely requires permits. A feasibility report from a trusted contractor like D’Lauro and Rodgers can help you understand any potential legal issues with your project. It may be that development isn’t legally viable. In that case, it’s much better to know beforehand rather than after you’ve begun construction. A feasibility report will note a project’s legal practicality, alerting clients to variances or permits they might need.

Technical Feasibility

Technical feasibility evaluates the ability of a contractor to complete a project. Is the construction within their capacity? Do they have the resources and supplies to adequately complete your project? Essentially, are they the right contracting service for you? This is a crucial element of a feasibility report. Instead of assessing the specifics of the project, the contractor is assessing themselves.

Why is a Feasibility Report Important in Commercial Construction?

When beginning a new commercial construction project, requesting a feasibility report from your contractor is vital. Not only can it give you a well-rounded understanding of your project, but it can help to iron out potential issues. A feasibility report can also indicate whether or not a specific contracting service is right for you.

Feasibility reports offer a complete view of your project. The economic, scheduling, operational, legal, and technical aspects of new construction are assessed. Without a feasibility report, you may run into unexpected costs and issues which could have been avoided.

A feasibility report points out potential problems and barriers to the completion of your project. For example, say you have a set budget. After requesting a feasibility report, you may find that your desired project is too expensive. In that case, you can alter your project to align with your budget. Simply getting a quote from your contractor may not provide a complete picture of costs, scheduling, and risks.

If your contractor refuses to complete a feasibility report, that’s a red flag. Your contractor should give you all of the necessary information regarding your project before you start. D’Lauro and Rodgers will assess the viability of your project and provide you with a complete feasibility report. We understand the financial risk commercial construction can pose. That’s why we offer transparent services to our valued clients.

For a Feasibility Report on Your Commercial Construction Project, Call D’Lauro and Rodgers today

Before you break ground on a new commercial construction project, it’s important to have your contractor complete a feasibility report. Call D’Lauro and Rodgers to discuss your project today at (215) 542-0100.

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