Feasibility Estimating

What is the primary purpose of Feasibility Estimating in a project?

• Determining the project timeline

• Assessing potential risks and challenges

• Forecasting the anticipated cost of the project

• Identifying the optimum design scheme

Answer explanation

Feasibility Estimating is a process used to estimate the expected cost of a project based on the available design intent and relevant information. It helps stakeholders assess the financial feasibility of the project and make informed decisions.

What are the purpose in preparing a Feasibility Estimate. Select all possible answers.

• Support the development of the business case

• Test the viability / affordability of a project

• Establish a realistic cost limit for the project  

• Establish funding requirements and support in the application for funding

• Inform the potential direction of design development to help ensure proposals represent value for money

Answer explanation

•Support the development of the business case

•Test the viability / affordability of a project

•Establish a realistic cost limit for the project  

•Establish funding requirements and support in the application for funding

•Determine the costs of a variety of options and alternatives, to assist in decision making and the optimum solution selection

•Highlight key commercial risks and opportunities  

•Inform the potential direction of design development to help ensure proposals represent value for money

•Avoid abortive costs / exploring unviable schemes.

When is Feasibility Estimating typically undertaken in a project?

• During the formal initiation of the project

• After the initial design intent is developed

• Towards the end of the project timeline

• Concurrently with the project execution

Answer explanation

Feasibility Estimating is a process that is usually carried out after the development of a business case and before the formal initiation of a project. It occurs shortly after the initial design intent is developed to forecast the anticipated cost of the project.

Feasibility estimating prepared at this stage will be based upon either;

• floor area method

• functional unit method

• elemental method

• all of the above

Answer explanation

Given the early stage at which initial Feasibility Estimating is likely to be undertaken it is likely very limited information will be available upon which an estimate can be prepared. As such, the output is often in the form of a range of costs reflecting the information available.

Typically, estimating prepared at this stage will be based upon either;

•The floor area method

•The functional unit method 

•The elemental method   

Which step involves comparing quantities by the Design Team with Arcadis measurements and resolving any discrepancies?

• Step 1: Identify the most appropriate measurement tools

• Step 2: Measure and prepare the area schedule

• Step 3: Identify and measure appropriate quantities for estimate

• Step 4: Compare quantities and resolve discrepancies with the Design Team

Answer explanation

In the given sequence of steps, Step 4 involves comparing the quantities provided by the Design Team with Arcadis measurements and resolving any discrepancies that arise. This helps ensure accuracy and alignment between the two sets of measurements.

Which is not part of preparing the Feasibility Estimate

• Undertake quantification

• Compile draft Feasibility Estimate

• Final Account

• Benchmark Comparison and Value Engineering

• Undertake Initial PCR Process

Answer explanation

•Undertake quantification

•Establish rates

•Assess programme, procurement, and contract implications

•Establish contingency and risk allowances

•Compile draft Feasibility Estimate

•Undertake Initial PCR Process

•Undertake Project Team review

•Reconciliation with any previous estimate and budget

•Benchmark Comparison and Value Engineering

•Finalize risk schedule

•Prepare cashflow

•Summarize sustainability considerations

•Compile Feasibility Estimate