INTRODUCTION TO

PROJECT MANAGEMENT:

TECHNICAL &
FINANCIAL
FEASIBILITY
 CONTENTS
1. Duties of an Architect as a Project Manager
2. Project Management Phases
3. Why we need Technical and Financial Feasibility (Techno-Commercial Feasibility)
4. Applicability of Techno-Commercial Feasibility
5. Technical Feasibility Parameters
i. Location and Site
ii. Project Design
iii. Statutory Clearances
iv. Market Study
v. Project Engineering
6. Outcomes of Technical Feasibility
7. Way forward
 Duties of an Architect as a
Project Manager
1. Identification of client objectives and Priorities
2. Preparation of Project Brief
3. Preparation of Options and Feasibility of Options
4. Execute risk analysis exercise
5. Establishes the Budget and Project Program
6. Advise on design team
7. Support in Procurement Strategy
8. Support in pre-contract control systems
9. Facilitates for permissions and clearances
10. Support in cost and quality control
 Project Management Phases

Idea / Need, Gut feeling of Market, Broad Budget, Pre-

Conceptualization Feasibility

Detail Technical and Financial Assumptions and Outcome

Feasibility Analysis based upon various variables

Preparation of DPR with Detail Architectural and

Realization
Engineering Drawings, BoQ’s and Construction Schedule

Procurement Preparation of RFP, Selection of Bidder, Contract

Site Supervision, Construction Management, Quality

O&M
Assurance and Approval of Bills
 CONCEPTUALIZATION (Pre-
Feasibility)

1 2 3

Features of Identified Availability of Resources / Market Sounding

Project / Need of Project Enabling Environment • Is there a demand
• Residential / • Land • Can the demand be
Commercial /Hotel • Monetary Resources generated
• Scale of project (Built- • Permissions • Long term / Short term
up area)
• Special Features
 Why we need Techno-
Commercial Feasibility

Technically Viable Financially Viable

Is there actual need? Do we have funding
Is it land/location suitable? resources?
Is the design efficient? Is the project profitable?
Is the concept executable? Is the cash flow viable?
Is the design structurally ok? Is it a better investment?

• Helps in Making Informed Decision

• Required for Financing
 Applicability of Tecno-Commercial
Feasibility

Type of project Applicability

Private Development Critical for high
(Commercial, Residential, Offices, Hotels etc.) value projects
Public Private Partnership Development (PPP) Critical for all
(Roads, Transport Hub, Hospital, Stadium etc.) kind of projects
Bankable Government Project Highly
(Convention center, Sports complex, Office Complex) Recommended
Non-Bankable Government Project Not necessary
(School, City Roads, Hospitals, Community Center)
Private Personal Use Development Not
(House, Shop, Clinic etc.) recommended
 TECHNICAL FEASIBILITY
PARAMETERS

● Location and Site • All the parameters are

equally important
● Project Design
• Assessment of all
● Statutory Clearances parameters can be done
in parallel with no
● Market Study particular order

● Project Engineering • Assessment of these

parameters will establish
● Material and Inputs assumptions for
Financial Feasibility
● Socio-Economic Sustainability
 Location and Site

Accessibility Site Condition

Land Value Surroundings

 Location and Site
Accessibility
1. Overall accessibility from the city or region (Airport, Rail, Roads) – Important for institutional projects
2. Proximity of land, based upon its use (E.g., For Commercial project, it needs to be in city center or
in a highly desirable area)
3. Available / Proposed width of access roads (This should be based upon Development regulations)
4. Access to other facilities (Public Transport, Schools, Hospitals)

Site
5. Climate, Site condition and Terrain
6. Developable area in the land
7. Infrastructure facilities
8. Geo-Technical Profile
 Land Value and
Surroundings
Land Value
1. Cost of Land (Purchase rate) • A basic assessment of Land Value at the
2. Circle Rate (Collector Guideline) technical feasibility stage is important to
3. Market Rate
identify the use of land
4. Cost of developed land

Surroundings
5. Surrounding Development Profile
6. Proposed surrounding development (Private and Government)
7. Compatible Use (e.g., residential along marriage gardens)
8. Heritage / Ecology / Special Area
 Project Design

Design
Case Study Efficiency Product
 Case Study
Case Study
1. Concept - Case study for Proof of Concept. E.g., Tensile Shades ( ✓), Luggage belt in bus stand ( ✗)
2. Zoning
3. Product Mix
4. Rate Analysis
5. Features and Materials

Case Study Selection

6. Successful Case Study
7. Un-successful Case Study (What not to do)
8. Ideal Case Study
9. Local Case Study
 Design Efficiency
Maximum Efficiency
1. Height
2. FAR
3. Permissible Building Use (Maximum Utilization of most profitable permissible Building use)
4. Carpet area Vs Super area
5. Active and Passive Spaces
6. Efficient placement of Utilities
7. Cost effective materials
8. Energy efficient

• Though the design is a subjective matter, for economical evaluation of a project all
the above factors are objectively evaluated (Particularly in case of Govt. Projects)
 Product
Product Mix
1. As per market demand
2. To achieve desirable cash flow
Options
3. Conservative
4. Optimistic • The product mix
5. Based upon client and based upon best practices and features must
be tuned to match
Standards
financial feasibility
6. Adopting national and international standards for Design
7. National Standards for building Materials
8. Market standards for Infrastructure and Utilities
Detailing
9. More the detail in design, more realistic will be feasibility
10. E.g., Advertisements, ATM, Small Shops, Capacity of water tank, Required Mechanical services etc.
 Statutory Clearances

Land Use / Building Use Municipal Clearances

Permissible Land Use, Building Use Fire, Water, Power Pollution,
and Activities Building Permission

Development Regulations Other Clearances

FAR, Height, Minimum Unit Size, Environment Clearances, Urban Arts,
Set back, Regulations relating to Heritage, Airport Authority etc.
facilities (Lift, swimming pool etc.)
 Market Assessment

1 Rate 2 Demand
Market Survey of Past Market Survey for
Rates and Prevailing demand trends.
Rates. Trends in rates

Pattern and
3 Supply 4 Projection
Market Survey for Pattern of Growth,
existing inventory and Projection of demand vs
planned inventory supply
 Rate Analysis
● Sample Size - Rates of Similar Products (In comparable Cities, within
City, International tends if applicable)
● Classification – All similar product mix to be assessed, Rental / Lease /
Outright Sale
● Trends - Trends of Minimum and Maximum for same product
● Normalization - Selling Rate and Asking Rate, factor in Discounts /
Concessions

* A type of Salable Area is termed as a Product

 Demand and Supply
● Sample Size - Similar Products (In comparable Cities, within City,
International tends if applicable)
● Classification – All similar product mix to be assessed, Rental / Lease /
Outright Sale,
● Trends – Demand Vs Supply trend in past 5-10 years (as required).
Actual Bookings Vs Available Salable Area
● Future Demand Vs Supply - Future Demand can be estimated but can
only be projected. Supply can be estimated based upon number of similar
projects approved or proposed.
* A type of Salable Area is termed as a Product
 Pattern and Projection
● Pattern – Pattern of product rates based upon past trends (for Financial
Feasibility). Pattern of product demand and supply.
● Projections – Based upon the past patterns' future projections can be
made, however various external factors shall be considered.
● External Factors – Competitive projects, Government incentives, Land
Availability, Sentiments etc.

* A type of Salable Area is termed as a Product

 Conclusion
• Range of selling price of
Product.
• Duration in which all the
product will be sold.
 Project Engineering

● Geo-Technical Survey – Topographical Survey, Soil

Bearing Capacity, Vegetation and trees
● Structural Designs
● Mechanical Designs
● Electrical, Plumbing and Services

• Non-Viability of any of above may lead to redesign.

 OUTPUTS FROM
TECHNICAL
Design Assumptions
FEASIBILITY
Detailed Costing and Revenue

• Month wise Cost of Construction

• Saleable Aera (Product wise) (Factoring in inflation, WPI)
• Rentable Area • Month wise Sale of various products after
• Other Sources of Revenue (ATM, construction period
Advertisement) • Increase in price based upon Market
• Projection of Sale Trends
• Base rate and Incremental Price • Draft Cash Flow
• Construction Duration and Cost
• O&M Duration and Cost
 Way Forward

Financial Modeling and Feasibility

● Financial Assumptions – Funding Sources, Rate of Interest, Moratorium

Period, Depreciation etc.
● Capex and Opex – Capital Expenditure, Operational Expenditure, Loan
Repayment
● Financial Feasibility – Positive Cash Flow, IRR and Return of Investment
(RoI)
 Way Forward

Detail Project Report

● Detail Design– Area Statement, Floor Plans, Sections, Interiors and

Furnitures.
● Engineering Design – MEP Drawings, Structural Drawings
● Selection of Materials – Rate analysis of Materials, Schedule of Rates
● Bill of Quantities – Itemized Cost
● O&M – Resources required and Operation Cost
● Project Scheduling – Weekly, Monthly progress and resource required
 Way Forward

Procurement
● Preparation of Request for Proposal
● Preparation of Scope of Work
● Selection Criteria
● Selection Process
● General and Special Conditions
● Bid Evaluation
● Appointment of Contractor
 Way Forward

Construction Management
● Site Supervision
● Progress Monitoring
● Approval / Preparation of Construction Drawings
● Quality Assurance and Quality Control
● Approval of Bill of Quantities