Cost of Feasibility Study

[LynnH]

A friend asked me yesterday if I knew how much it cost to have a feasibility study done - but never having gone down this path ourselves, I thought I'd put the question to some of our experienced developers on SS ...

Would anyone be able to give me a rough idea of what it costs to have a feasibility study done - the development will be up to 4 units/townhouses in SE Queensland.

Any info would be much appreciated. Thanks!

Cheers
LynnH

P.S. Did a search, got lots of answers with 'cost' and 'study', but 'feasibility' is too long a word, apparently.

 

[Bon]

wouldn't you just be paying an accountant or similar for their time?

 

[tcocaro]

how long is a piece of string

Are you asking for a feasibility assessment i.e. do the numbers work? or are you asking how much for due diligence? i.e. can it be done?

You can pay about $4k to a company such as CBRE to conduct a due diligence or consultant oriented quantity surveyor such as napier and blakely for a similar amount.

You could go for a lesser known company and probably get away with paying about half for perhaps a similar result on a development that size.

NOTE* i dont think any developer making a development of that size would have such a feasibility done by a 3rd party. I would much prefer paying $4,000 in getting an elemental QS done, a sketch by an architect and a town planning assesment (for about 4k) and then do the feasibility myself rather than use VERY generalised figures which any feasibility would give you. I also suspect you would be overrun with questions which you may not know the answer to e.g. how much to allocate to contingency, whats the cost of borrowing funds, what level of owners equity will you be contributing, level of finishes etc etc.. the more detail you can provide for the feasibility analysis the better the outcome, if you dont know the answers to pretty much everything i have noted above the feasibility will be next to useless.

Further more if indeed you meant to say "due diligence" then the cost would range from 1k to 5k depending on how much you want i.e. just a town planning assesment? or the whole Monty e.g. identification survey, town plan assesment, soil test etc etc.

Note sure if i am making sense I hope i am and hope it has given you the answer you are seeking.

 

[redwing]

Somone here may have a great spreadsheet they can attach if not try Feastudy

metropoleprojects/UnitFeasibility is also worth a look

 

[LynnH]

tcocaro

Yes, you are making sense to me. Thank you for your advice - will pass it on to my friend!


RedWing

Thanks also for that link to those spreadsheets - will likewise pass the info on.


Thanks, guys - much appreciated!

Cheers
LynnH