Definition

Feasibility of a project

Viability is the quality of viable (that is likely to be carried out or materialized

thanks to its circumstances or characteristics). The concept also refers to the
condition of the road where it can be traveled.

Elements to identify project viability

A project is viable when the conditions of all kinds of elements such as:
environment, market, technological, legal, environmental, financial, economic
and social are met.

Importance of the feasibility study in projects

The research and information uncovered in the feasibility study will support
the business planning stage and reduce research time. Therefore, the cost of
the business plan will also be reduced. A careful feasibility analysis provides a
wealth of information that is also necessary for the business plan. For
example, a good market study is necessary to determine the viability of the
business concept. This information provides the basis for the market section of
the business plan.

Finally, a feasibility study should contain clearly supporting evidence for its
recommendations. The strength of the recommendations can be weighed
against the study's ability to demonstrate the continuity that exists between the
research analysis and the proposed business model. Recommendations will be
based on a mix of numerical data with qualitative, experience-based
documentation. A business feasibility study is heavily dependent on market
study and analysis. A feasibility study provides stake holders with varying
degrees of evidence that a business concept will in fact be viable.

Justification of previous studies, scope and type

The justification is given by different research points in the project such as:

TO. Technical feasibility : Technical feasibility is analyzed for a given

requirement or idea to determine if it is possible to carry it out satisfactorily
and safely with the available technology, verifying various factors such as
structural resistance, durability, operability, energy implications, control
mechanisms. , depending on the field in question.

b. Project beneficiaries : is the one who presents their project to one or more
financial entities that could potentially be interested in the project.

c. Project technology: for its part, it is that linked to technology (the

application of technical skills and knowledge to satisfy a need or solve a
problem).

d. Economic evaluation: The economic study is much more than the analysis
of supply and demand or competing and substitute prices; its general objective
is to verify the real possibility of product penetration in a given market.

AND. Distributive impact: The Project promotes the integration of local

support networks that constitute spaces for social audit and quality control of
implementation at the local level.

Feasibility study structure

Definition

Feasibility

The feasibility study is a task that is usually organized and carried out by
systems analysts. The study consumes approximately between 5% and 10% of
the total estimated cost of the project, and its preparation period varies
depending on the size and type of system to be developed .

Elements to identify feasibility in a project

Problems with some current element.- Errors, inefficiencies, delays, desires

for an increase, reduction of expenses, etc.

Desire to exploit new needs.- New markets, new production, more ways to
obtain competitive sales, use of information systems.

Increase in competition.- New features in competitors, improve a service or a

product.

Make the use of information more effective.- New information, better use,
speed, better decisions.

Organizational growth.- Growth in companies, more needs.

Union or corporate acquisition.- Consolidation of systems and processes,

requirements, reduce redundant activities.

Changes in the environment or the market.- Clients, suppliers, laws and

regulations, climate.

Importance of the feasibility study in a project

The objective of feasibility studies is to determine the viability of

implementing an investment project, while defining the main elements of the
project.

It is very important that a project be evaluated to determine its feasibility, that

is, to know if the project is viable or not.
You can even do a feasibility study and begin the system development
process, but the context or scenario may suddenly change, forcing you to
rethink certain aspects and requiring a feasibility study again.

Justification of the feasibility study in a project

This stage compiles all the previous aspects to generate an implementation

plan that involves all aspects related to the company and the project, also that
allows defining an organization and scheduling of the necessary efforts and
resources, as well as the costs and resulting benefits. The aspects considered
are the following:

Sequence of applications.

Estimation of efforts, resources and calendar.

Estimation of costs and benefits.

Determine success factors.

Make recommendations.

Feasibility study resources

The determination of resources for a feasibility study follows the same pattern
considered by the objectives seen above, which must be reviewed and
evaluated if a project is carried out. These resources are analyzed based on
three aspects:

• Operational.

• Technicians.
• Economical.

Operational Feasibility.

It refers to all those resources where some type of activity (Processes) is

involved, depending on the human resources that participate during the
operation of the project. During this stage, all those activities that are
necessary to achieve the objective are identified and everything necessary to
carry it out is evaluated and determined.

Technical feasibility.

It refers to the necessary resources such as tools, knowledge, skills,

experience, etc., that are necessary to carry out the activities or processes
required by the project. Generally we refer to tangible (measurable) elements.
The project must consider whether current technical resources are sufficient or
need to be supplemented.

Economic Feasibility.

It refers to the economic and financial resources necessary to develop or

carry out the activities or processes and/or to obtain the basic resources that
must be considered: the cost of time, the cost of implementation and the cost
of acquiring new resources.

Generally, economic feasibility is the most important element since

through it the other shortcomings of other resources are solved, it is the most
difficult to achieve and requires additional activities when it is not available.
Example of a feasible but not viable project

The Santo Domingo metro is a project that has had a highly positive impact on
the road development of the City of Santo Domingo. This has brought with it
economic relief for public transportation users, since the price to the public
This service does not reflect the reality of the cost, therefore it is a feasible
project, because the users make use of it with economic benefits for them, but
it is not viable, since its maintenance and operation exceeds the price they pay.
For the user, therefore, the government must subsidize a large amount, thus
being one more cost that the government does not recover.

Example of a viable but not feasible project

An example of this nature is the famous artificial island that the National
District council proposed several years ago, being viable because it could be
built, but not feasible due to the high cost of operation and which would only
be used by an elitist party, not being useful to everyone.

Phases or stages of a project

Generalities

The completion of any civil works or construction project or the improvement

of existing ones begins long before the machines begin to work on the ground.
Before this occurs, a laborious process is developed that begins when it is
considered that there is a need to be covered, whether with the aim of
improving public services or satisfying private needs (to improve
communication between two populations, the need arises. road, etc.).
Afterwards, it will be necessary to study the different possible alternatives, the
economic cost and the environmental and social repercussions of the work.
Finally, the decision will be made to make the most appropriate alternative.
This process may take months, or even years. The promoter can be either the
public administration or private.

Construction project process stages

PLANNING

In this stage, the needs to be covered and the objectives to be achieved are
defined.

The first step to follow is to carry out a feasibility study where all the physical,
economic, environmental and perhaps political issues that arise are resolved.

The study begins with the collection of the data necessary for the design of a
solution to said need, data that can be topographic (measurement of the real
surface of a piece of land), hydrological (rainfall of a basin, etc.), statistical
( road gauges, etc.) or of another nature.

At this stage, the consulting engineer must work in an integrated manner with
other professionals (financial, etc.) and national or local authorities with
decision-making power, to study the economic and social implications,
environmental impacts, etc., of the work.

TENDER OF THE WORKS

Once the project is sufficiently detailed and specified, the tender for the work
is called, announcing the opening of the contest or auction. In the case of the
Public Administration being the promoter, bidding is mandatory. However, if
it is a private developer, it can dispense with the public bidding procedure and
request offers directly from various competing contractors.

In general, the bidding documents for the work are made up of documents of
administrative clauses, specific clauses (contracting, prices, deadlines,
payment method and conditions to be met by the construction company) and
technical specifications (technical characteristics of the project, its scope,
documents of which it consists, previous studies, tests, basic documentation to
be used, scales, number of copies, degree of completion of plans, schedules,
work units with expression of prices and, ultimately, all the technical qualities
that must meet the project to be accepted by the Administration).

AWARD OF THE WORKS CONTRACT

The promoter will evaluate the offers presented based on the budget,
experience, technical and financial guarantees, environmental studies, quality
certificates, etc., and will award the works contract to the bidder that presents
the best offer.

The supervision of the work will be carried out by the same designer or
another independent one, as determined by the promoter.

CONSTRUCTION

Once the work has been awarded, the work on the ground begins (clearing,
staking out, etc.), preparing it for the works to be carried out (earth
movements, construction of structures, etc.).

The construction begins with the layout of the work, which consists of
capturing on the ground details previously drawn on plans, such as the place to
place foundation pillars, etc. It is an important step to then proceed with the
completion of the work.
 Rethinking of the work

THE RECEIPT OF THE WORK AND THE MAINTENANCE PERIOD

The works are considered completed when the construction management

certifies that they have been completed in accordance with the contract and
after signing the so-called provisional acceptance certificate. The contractor's
contractual responsibility ends at this moment, although it may be extended to
the so-called maintenance period, lasting from six to twelve months. During
this period, the contractor is obliged to carry out, at his own expense, any
correction or repair that is considered necessary, and to correct all defects,
faults or imperfections that appear in the work. It is after signing the final
acceptance certificate that the contractor is exempt from all contractual
responsibility.

THE WORKS CONTRACT

The works contract is the legal instrument that allows financial responsibility
to be shared between the promoter of the construction project and the
contractor. Therefore, among other clauses, it contains those in which the
contractor is obliged to insure the works against loss or damage. Therefore, it
is important for a good risk analysis to study this document.

GEOTECHNICAL STUDY

The geotechnical study is the result of the inspection and characterization

work of the subsoil affected by an engineering or architectural work,
motivated by the need to know the behavior of the terrain under the influence
of said work, and that in addition to understanding the formal descriptive
aspects of the land, usually includes certain recommendations for the project
of the work in those facets in which it “interacts” with the land.

In this study, the nature of the materials to be excavated, the method of

excavation, the slopes to be adopted in the clearings of the grading, the load-
bearing capacity of the land to support the fillings, the way of carrying out the
latter, their slopes, the seats that may occur and the time necessary for them to
occur, the safety coefficients adopted, the measures to be taken to increase
them -if they are not acceptable-, and the measures to be taken to reduce
and/or accelerate the seats.

HEALTH AND SAFETY PROJECT

The prevention of occupational risks is a matter that is currently considered of

great importance. In this phase, the person in charge of the project aims to
have everything in order for the workers of said project and even for the
project itself, to take care of At the level of institutional security, everything
concerning the purely legal project.

Each contractor will prepare a specific Work Health and Safety Plan for each
work, in which the forecasts contained in the Study or Basic Study,
corresponding technical justification, are analyzed, studied, developed and
complemented, which may not imply a reduction in the amount total or the
levels of protection provided for in the Study or Basic Study. The Health and
Safety Plan must be approved, before the start of the work, by the health and
safety coordinator during the execution of the work. In the case of Public
Administration works. When the appointment of a coordinator is not
necessary, his or her functions will be assumed by the optional management.

ENVIRONMENTAL STUDY

Exposition of the main alternatives studied and justification of the main

reasons for the solution adopted, taking into account the environmental
effects.

Study of fauna, flora, soil, air, water, climatic factors, landscape and material
goods, including historical, artistic and archaeological heritage.

Measures planned to reduce, eliminate or compensate for significant

environmental effects.

Environmental monitoring program.

Summary of the study and conclusions in easily understandable terms.

Bibliography

(Heredia, R. (1995) "Integrated Project Management." Second edition.

Polytechnic University of Madrid).

(Latiner, Wendel M and Hildebrand, Joel H. Reference book of Inorganic).

(Levenspiel, O. Chemical Reaction Engineering, 1972).