Feasibility Study Rationale

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Feasibility Study Rationale


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Purpose Of Feasibility Study

1. PROJECT PROPONENT

- The very first user of the Report will be the

Project Owner or Proponent, or the Person or

company interested in undertaking the project

being evaluated and possibly the one footing the

bill for the study. The proponent does not have ti

be an investor, although in most instances he is.


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2. Equity Investors/ Leader

The proponent often does not

have the enough funds to finance

the entire project. And even if he

does, he may not be wiling to risk

all of it on this one project. So heinvites or convinces other

parties, to put in money into

project. (through a PROJECT


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In some cases, the additional

investors are the proponentsrelative (Family Business) oramong his friends (FriendlyBusiness)

Another potential group ofinvestors are the Suppliersthemselves, particularly on highly

technical items such as those


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Small and medium- sized projects

may able to obtain loan from a

local bank or financial institution.


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Government Regulatory feasibility

-another party that may ask for feasibility

Study that may grant tax incentives, permits or

licenses, [ includes B.O.I. Board of investments

and P.E.Z.A. Philippine Export Zone Authority.

- the role of a feasibility to them is to provide

basis for dicision,


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Objective and Scope of the Study

1. Proposal writing- If the proponentneeds a third party intervention to

undertake the study, the latter needs to

prepare and submit a formal proposal tothe former.

2. Bases for Objective Scope- as a

consultant you should use it todetermine the approach that you should

follow in meeting the objective of the

study in laying out the work out the planand timable and determinin the man


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3. Sources of Data- you want to know where toget information you will need to better understand

the objectives and scope of the prospective

feasibility study engagement.


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Private Sector Data Sources

Direct Client Interview- appointmentwith perspective client. This is used

to clarify his requirements.

Indirect Client Interview- though

Phone, Fax, Email Inquiry


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Public Sector Data Sources

They normally issue terms ofReference(TOR),a formal request

for consultancy service, a formal

invitation to bid, a written document

from the client to refer to in

preparing your proposal.


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Before you could submit proposal to

Public Sector you should:

1. Submit a letter of Intent (LOI) with allyour cridentials. Your qualification

should be sufficient.

2. If you are pre qualify, then the cleintmay invite you to a meeting to allow

people like you to clarify any issue that

is unclear to TOR3. The client sometimes allow qualified

bidders to submit written questions.

4. You arenow give 30 days to submit


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TIPS ON PREPARING A

PROPOSAL

Brainstorming Is a technique used to gather ones thoughts before

the start of a project.


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Everything that comes out of the

mind related to the topic, whether

trivial or important.All possible source of relevant data

that will eventually be gathered for

the purposes of the studySimilar studies that you have done in

the past

Call your Friends, your colleagues,your staff to a meeting.

New technologies may give new

approaches


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Constructing an Outline

You need an outline that will serveas your guide prior to and

throughout the study. It should give

you idea of what activities to include

to your proposal to shoe the client

that you know to conduct a project

feasibility study


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Writing the Draft Proposal

Crucial part if the proposalPreparation Activity.

You must have a very clear idea

already of the scope of the work,

the approach and work plan and the

fee you will charge.


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Proofreading and Finalizing Proposal

Stage where the quality of theproposal is checked. Errors in your

proposal is the first thing that the

client will notice when you send it

out.

Check for grammar andtypographical Errors.


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Contents of the Proposal

The Covering LetterAddressed to the clients decision

maker or authorized office who

requested for the proposalOpen your letter with an

expression of Gratitude to the

client


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Contents of the Proposal

The Covering Letter Include duplicate of the covering letter,

which should provide space at the lower

left hand side of the page where the clientcan affix his signature to signify the

acceptance of the proposal.

Once signed the Proposal binds both the

client and the consultants to terms statedtherein relation to the engagemen


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General approach to

Methodology

1. Phased Approach-relevant if theproject is relatively untried or new to

the Philippines or or on the

proposed sire and there is no proof

of assurance on the market yet.

Phase I- will normally cover the

market and the legal and some

technical aspects of the study. If is

not feasible, the client usually advise

not to pursue the project.


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Client Participation

Client involvement:

Steering Committee- This will provide

direction to the consultant on the general

conduct of the study and accept the rulespresented.

Project Coordinator- who will liaise

between the consultatns and the clientsmanagement.

Counterpart team- They will be able to

identify good sources of internal and some


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Regular Reporting to Client

Submit Progress reports orMilestones.

First mile stone is after the first

phase, covering primarily the

market, legal aspects if any.

Final phase will be Consolidatereport.


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Use Checklist and Questionnaire

The students should be quitefamiliar with this methodology for

data gathering.

These methods will ensure that all

relevant data are obtained from

various sources.

In some instances, it may be

necessary to make a follow up on

the questionnaire to clarify to some


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Work Program and Timetable

Mobilization stage of the Engagement- Adiscussion of what you normally do

before going into study proper

This Chapter discussed the step-by-stepprocedures that you need to undertake

under each aspect of the study. It also

present specific data that ewill be

required by each aspect of the project

study

Feasibility study can take from 1-3 mos,

depending on the complexibility of the


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Project Organization and

Management

You ought to identify the members of thestudy team and define their respective

roles in conduct of the study

Do not forget that the client assignedcounterpart staff and the Project

Coordinator

Support this chapter by a bar chartAppend the Curriculum Vitae of key

consultants assigned to the engagement

List of relevant studies undertaken by


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Project Deliverable and Fees

Client expect from the consultant at a specificintervals of the study and at certain points in time.

Consultancy fee are normally composed of theprofessional fees of the consultants asssigned to

the engagement. Government units and international Funding

institutions normally inquire fees per consultant,with a break down between the compensationcost of the consultant and the multiplier used forthe current proposal.

Billing and collection of professional fees andreimbursable expenses are usually tied up toprogress billing, which in turn tied up to your

progress reporting.


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Feasibility Study Rationale

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