Typical Caltech Project Initiation roadmap:
An analysis needs to be performed to examine the proposed investment from several standpoints.
1. MARKET DEMAND: There must be a demand for the specific service or product.
2. BUDGET: Cost of the actual construction must be taken into account.
3. COST OF MONEY: Key factor. If interest is high, ROI will be lower.
4. SCHEDULE: Timing is very important which the market can change radically.
In the feasibility analysis (Project Initiation) Phase it is required to consult with architects and construction professionals. Architects provide early design advice and construction professionals offer cost and constructability advice. Once these elements- Market Demand, Cost of Construction, Financing cost and time to market – have been analyzed, a decision can be made :
Proceed, Revise the Project or Cancel the Project.
