Viability Appraisal

Viability Appraisal

Viability appraisal commences where feasibility terminates. Thus viability appraisals establishes whether or not it is worthwhile to embark on the project, which has already been established as capable of being undertaken (i.e. one that has satisfied the seven parameters, already discussed). Answering this question also throws light on a number of important issues. For example, in the case of a decision to carryout property development, viability appraisals provides opportunity of giving guidance on such but incidental issues as how to develop, which of the schemes or modes of development to adopt, and in appropriate cases, the phasing of development and the best method of marketing or distributing the resultant products or amenities, or of sharing the benefits generated by the development. Viability appraisal looks at the costs and benefits expected from the proposed project.

A viability appraisals involves an analysis of the entire investment proposal to predetermine the level of attractiveness (productivity and profitability) of the conceived plan. This should be done in the context of the motives of the investors