The feasibility report, if found acceptable, is followed up with investment appraisal. The purpose of appraisal is to conduct an objective assessment for investment decision. It involves critical examination of the techno-economic analysis of feasibility findings, with particular reference to :
- Demand analysis,
- Technical specifications feasibility,
- Strength, weaknesses, opportunity and threat (SWOT) analysis,
- Environment's implications,
- Financial analysis, and
- Economicanalysis.
Appraisal of feasibility stage enables a client to :
- decide on the project concept, time and costs;
- outline the approach needed to taking the project;
- appoint key persons like construction project manager or project coordinator, to act as his representatives; and
- nominate specialist associated agencies such as the architect, designer and consultants, as per the requirements.
Depending upon the nature and complexity of the project, the following may assist the client in making decisions :
- Client representatives : These include the prospective project manager or his nominee, and the related officials.
- Specialists : These include the architects, engineers, planners, and finance and management consultants.
- Concerned officials of administration and technical departments.
The process of formulation of needs, collection of information, critical examination of concepts and re-examination of needs, may have to be repeated several times over before a project inception finally takes shape.
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