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Before spending on DUE DILIGENCE for a construction project, a smaller investment could save you time and money.
Determining whether a potential site will work for a project is one of the primary reasons owners and developers choose to conduct feasibility studies before buying land or building on an existing site. Among other things, feasibility studies also tell you whether your project is financially feasible or whether the locale's regulatory structure will allow it.
You can expect to pay anywhere from a few thousand to tens of thousands of dollars for a feasibility study, depending on its depth and breadth, which in turn depends on the project size and exactly what you need to know to move forward with your project.
Rarely, however, is the cost more than one percent of overall project costs, and often it is far less. And that's a reasonable cost for analyzing the information you need to make the right decision.
THE PROCEDURE
In most feasibility studies, the first step is a land assessment by an engineering firm to see whether the location can work for the project. Even a small-scale feasibility study entails reviewing the client's needs, topography, and government ordinances. Companies that need a more detailed analysis...