Feasibility studies are undertaken in the early stage of a project to determine whether the project requirements can be achieved, and to consider alternative solutions.
The purpose of feasibility studies is to establish whether the project is viable and to help shape the project brief to assist in the development of the project strategy. Where clients are faced with alternative strategies for redevelopment of buildings, different design options can be evaluated.
Trident understands that our clients may have to make decisions quickly as they operate in competitive markets necessitating a speedy response from the professional team. Trident’s benchmarking cost data facilitates early stage cost modelling to provide reliable cost estimates.
Working with clients from both the private and public sectors has given us a comprehensive understanding of the priorities of all the parties and stakeholders in a project. Whether providing cost or project management services, we always look to help clients maximise a site’s potential.
Financial viability assessments are frequently used to inform planning policy and development potential. This often takes the form of the maximum reasonable amount of affordable housing in terms of the economic viability of a development.
Commercial, residential and leisure developments are relied upon to regenerate and redevelop sites. A balanced, reasonable assessment of development costs and return on investment is required to establish a viable business case otherwise development will not take place.
Financial viability for planning purposes represents an objective test of the ability of a development project to meet its costs including the cost of planning obligations, while ensuring an appropriate Site Value for the landowner and a return to the developer in delivering that project.
Trident works with developers, local authorities and valuation surveyors using residual appraisal methodology following recommended good practice in accordance with RICS Professional Guidance Note ‘Financial viability in planning’. Our professional judgement and sensitivity testing ensures a consistent approach and assessment.
The cost of construction has a critical influence on the viability of a development and an accurate estimation of the building costs is a major component in a residual valuation.
We can provide cost estimates to inform development appraisals or we can appraise estimates prepared by other. Our detailed cost analysis considers the following key factors: