Estimation During Feasibility Studies

Before a construction project is taken up for execution it is necessary to establish its feasibility. Project feasibility has to be tested on both technical and financial grounds. Technical feasibility ensure the structure can be constructed with the available technology viz. materials, design methods, construction methods etc. Financial feasibility ensures that the money spent on construction of the structure is commensurate with utility of the project viz. service rendered  or returns yielded. Feasibility studies help us to seek answers to the following questions: 

1. Should the construction project under consideration be taken up for execution or be dropped because of prohibitive costs ? 
2. If two alternative projects are available which one be preferred from economical point of view ? 
3. For a project which alternative from the viewpoint of layout, materials, method of design and construction is more economical ?
4. What is the economic size of the project ? 

Estimate of costs help us find the answer to these questions. These estimates are known as feasibility estimates. They are done in the very early stage of the project mainly to establish its feasibility. They, have to be done in a short time and are very approximate. They are therefore known as approximate estimates. No doubt an estimate always has an element of approximation but approximate estimates are not of much assistance in the execution of project.