Scope and Application of Decision Appraisal

Scope and Application of Decision Appraisal

Decision appraisal is essentially an aid or guide to logical, rational or prudent decision-making. In a way, all appraisals lead to the making of one form of decision or the other, be it a decision on the value, on investment or granting of a loan, on carrying out land development, on urban and regional planning, on urban renewal and so on and so forth. But the basic distinction between the two broad generic types of appraisal remains significant.

Project appraisal is very global in its sweep. Life is essentially a decision making process. It is inconceivable that any rational man can ever take a decision without consciously or unconsciously weighing in its implications and consequences; or without consulting wise heads for expert advice in appropriate cases.

Rational human beings normally like to know well in advance whether they can successfully undertake a project or scheme be it land development/use, commercial undertaking inter tribal war, marriage, industrial enterprise, mining operation, land resource exploitation, lending investment in stocks and shares, engineering and construction works, urban renewal and redevelopment and so on and so forth; and if so, whether or not the outcome or consequences would justify the venture or decisions.

Decision appraisal, therefore goes beyond decisions on real estate investment, land and resource development, urban and regional planning. Its essence is applicable to all decisions. Who appraises what is largely a function of the adequacy of one’s training and experience for the project being appraised, and the suitability, relevance, or adaptability of one’s professional techniques to the particular project or scheme being appraised.