To examine all the technical functional and financial aspects. To advice the employer as to its feasibility.

To consider in detail the employers requirements and recommendations.

Establishment of the design brief.

Before deciding to proceed, an appraisal must be carried out to ascertain whether a proposed project will meet the objectives.

This process is nown as investigating the feasibility of a project.

!ost of the techniques used to ascertain feasibility have a financial basis.

PROFIT = BENEFIT COST (Profit = Net Benefit)

INVESTMENT APPRAISAL "ave various characteristics such as si#e of return, degree of ris and extend of liquidity.

$i e other investment, concerned on time value of money. % uncertainties, rate of interest&

'onstruction projects may be invested in a way of()

*actor of productions +ssets for direct financial gain +ssets yielding social benefits

DEVELOPMENT BUDGET ,s the statement of the financial viability of a proposed project.

*orecast of project value and cost.

-eed to be underta en at the inception of the project.

.utline of Budgets !ain Elements.

/roject cost /roject value /rice /roject viability

PRO ECT VALUE

,s

the utility or benefit of completed project to the developer, in financial terms.

0epend

on the nature of the developer and intended use of the completed project.
1elling

or

renting

for

commercial

profit 2tili#e and building for own activities

PRO ECT COST

+ll the expenditures incurred by the developer in completing the project.

3eneral economic costs 4 wor 5 resources 'ost to the public and the community in terms of

environmental quality.

The

cost of project that the developer cannot avoid paying()

$and +cquisition 6elocation 'onstruction 'ommissioning *inance %cost of borrowing, rate of interest& Taxation

PRICE 6efer to the charges made against the developer by suppliers of services for completion of the project()
'harge of buying land 'harge for management

and

execution by general contractor ,n this context developers costs.

prices

represent

PRO ECT VIABILIT!

6efers to the financial feasibility of underta ing the development of proposed project.

,ts determined by the relationship of project value and project cost.

To include the ris and uncertainty of forecasts.

0etermination of project viability is the core purpose of the development budget.

1eparate development budgets representing the alternative proposals under consideration.

0etail survey of the site +ny adjoining buildings ,nformation obtained on the position 1i#e and capacity of the various services +ny restrictions on the use of sites
4Their

effects on the proposed development

'onsultation with()
4/lanning

and Building 'ontrol .fficers 4*ire +uthority 4+ny relevant bodies

Co"#i$e %& t'e Ar('ite(t %)*e+ on,The finding and recommendations of all the members of the design team.

"aving regard to all relevant factors. ,n the case of an investment proposal

6equired to show the probable percentage

return.

1upported by conceptual designs.

0iagrammatic plans and elevations

To justify the spending of money on public projects.

To quantify all factors including various social benefits and disadvantages, widely used in connection with traffic and airport schemes or hospital building.