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<p>Financial feasibility studies in real estate development are problematic and complex and some of the success thereof relies on the communication and perspectives of at least two key stakeholders. The aim of this research is to determine the roles of financial feasibility studies based on two opposing perspectives – real estate developers and quantity surveyors. Semi-structured in-depth interviews were conducted involving 23 quantity surveyors and 23 developers by means of purposive sampling, thus making this study a qualitative interpretivist approach. A thematic analysis was conducted. The aligned roles that emerged from both perspectives are setting up the budget, practice cost control, value engineering, basis for negotiations with consultants and contractors, tool for investment decisions and tool to acquire financing. The unaligned roles from the developers’ perspective include basis for a business plan, acceptable debt determination, negotiations with landowner and tenants, basis for progress measurement, basis for as-built facility and risk on total cost. Additionally, the QS use it to secure income, as a tool to advise and for sensitivity analysis. The study found that there are prominent differences in the perspectives of the key stakeholders regarding the role of feasibility studies, while considering the perspective theory.</p>
</abstract>

Financial feasibility studies in real estate development are problematic and complex and some of the success thereof relies on the communication and perspectives of at least two key stakeholders. The aim of this research is to determine the roles of financial feasibility studies based on two opposing perspectives – real estate developers and quantity surveyors. Semi-structured in-depth interviews were conducted involving 23 quantity surveyors and 23 developers by means of purposive sampling, thus making this study a qualitative interpretivist approach. A thematic analysis was conducted. The aligned roles that emerged from both perspectives are setting up the budget, practice cost control, value engineering, basis for negotiations with consultants and contractors, tool for investment decisions and tool to acquire financing. The unaligned roles from the developers’ perspective include basis for a business plan, acceptable debt determination, negotiations with landowner and tenants, basis for progress measurement, basis for as-built facility and risk on total cost. Additionally, the QS use it to secure income, as a tool to advise and for sensitivity analysis. The study found that there are prominent differences in the perspectives of the key stakeholders regarding the role of feasibility studies, while considering the perspective theory.

Consolidating the roles of financial feasibility studies: Property developers vs quantity surveyors

Organization, Technology and Management in Construction: an International Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

Financial feasibility studies in real estate development are problematic and complex and some of the success thereof relies on the communication and...

Consolidating the roles of financial feasibility studies: Property developers vs quantity surveyors

Article Category: Research Paper

Published Online: Aug 08, 2024

Page range: 136 - 149

Received: Jan 09, 2024

Accepted: Jun 26, 2024

DOI: https://doi.org/10.2478/otmcj-2024-0011

Keywords
financial feasibility studies, real estate development, construction cost, quantity surveying, investing in construction, perspective theory, building cost

© 2024 Rolien Terblanche et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Consolidating the roles of financial feasibility studies: Property developers vs quantity surveyors

Article Category: Research Paper

Published Online: Aug 08, 2024

Page range: 136 - 149

Received: Jan 09, 2024

Accepted: Jun 26, 2024

DOI: https://doi.org/10.2478/otmcj-2024-0011

Keywordsfinancial feasibility studies, real estate development, construction cost, quantity surveying, investing in construction, perspective theory, building cost

© 2024 Rolien Terblanche et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
financial feasibility studies, real estate development, construction cost, quantity surveying, investing in construction, perspective theory, building cost