Feasibility Study: Why It's Crucial Before Starting Any Construction
A well-structured feasibility study can save millions and avoid unpleasant surprises during project execution. Learn how it works.
Before committing significant resources to a construction project, it is essential to carry out a detailed feasibility study. This process analyses technical, economic and legal aspects that can impact the success of the venture.
What is a Feasibility Study?
A feasibility study is a preliminary analysis that assesses whether a project is technically feasible, economically viable and legally sound. For industrial, logistics or commercial projects, this study is even more critical due to the high investments involved.
Main Components of the Study
- Soil and Site Analysis: Geotechnical investigation to verify bearing capacity, water table and need for special foundations
- Economic Feasibility: ROI, payback, IRR calculation and cost sensitivity analysis
- Licensing: Zoning checks, environmental constraints, required permits and approval timelines
- Infrastructure: Assessment of power, water, sewerage, gas and telecommunications availability
- Schedule: Estimates for licensing, design, construction and commissioning
Benefits for Industries and Major Projects
For industrial plants, distribution centers or data centers, a robust feasibility study identifies bottlenecks before they become costly problems. For example, checking local grid capacity can avoid the need for a dedicated substation, saving millions.
"In industrial projects, discovering infrastructure limitations after work has started can delay the schedule by 6 to 12 months and increase costs by 30% or more."
Eng. Carlos Silva, Director of Projects Pizeo
When to Carry Out the Study?
The feasibility study should be the first step after identifying a business opportunity and before land acquisition. Many companies make the mistake of buying the land first and only then discovering technical or legal constraints.
Need a feasibility study for your industrial or logistics project? Pizeo has proven experience in technical and economic analysis. Contact us and speak with our specialists.
