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

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.