Feasibility Study Rationale

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.

Purpose Of Feasibility Study

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 he invites or convinces other parties, to put in money into project. (through a PROJECT

Purpose Of Feasibility Study

2. Equity Investors/ Leader
In

some cases, the additional investors are the proponents relative (Family Business) or among his friends (Friendly Business) Another potential group of investors are the Suppliers themselves, particularly on highly technical items such as those

Purpose Of Feasibility Study

2. Equity Investors/ Leader
Small

and medium- sized projects may able to obtain loan from a local bank or financial institution.

Purpose Of Feasibility Study

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,

Objective and Scope of the Study

1. Proposal writing- If the proponent

needs a third party intervention to undertake the study, the latter needs to prepare and submit a formal proposal to the former. 2. Bases for Objective Scope- as a consultant you should use it to determine the approach that you should follow in meeting the objective of the study in laying out the work out the plan and timable, and determining the man

Purpose Of Feasibility Study

3. Sources of Data- you want to know where to

get information you will need to better understand the objectives and scope of the prospective feasibility study engagement.

Private Sector Data Sources

Direct Client Interview- appointment

with perspective client. This is used to clarify his requirements. Indirect Client Interview- though Phone, Fax, Email Inquiry

Public Sector Data Sources

They normally issue terms of

Reference(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.

Before you could submit proposal to Public Sector you should:

1. Submit a letter of Intent (LOI) with all

your cridentials. Your qualification should be sufficient. 2. If you are pre qualify, then the cleint may invite you to a meeting to allow people like you to clarify any issue that is unclear to TOR 3. The client sometimes allow qualified bidders to submit written questions. 4. You arenow give 30 days to submit

TIPS ON PREPARING A PROPOSAL

Brainstorming
Is a technique used to gather ones thoughts before

the start of a project.

 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 study Similar studies that you have done in the past Call your Friends, your colleagues, your staff to a meeting. New technologies may give new approaches

Constructing an Outline
You need an outline that will serve

as 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

Writing the Draft Proposal

Crucial part if the proposal

Preparation 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.

Proofreading and Finalizing Proposal

Stage where the quality of the

proposal is checked. Errors in your proposal is the first thing that the client will notice when you send it out. Check for grammar and typographical Errors.

Contents of the Proposal

The Covering Letter Addressed to the clients decision

maker or authorized office who requested for the proposal Open your letter with an expression of Gratitude to the client

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 client can affix his signature to signify the acceptance of the proposal. Once signed the Proposal binds both the client and the consultants to terms stated therein relation to the engagemen

Contents of the Proposal

Introduction
Background of the Study- you can mention here the

Business activity of the client, the relevance of the proposed project to such business and other relevant circumstances related to the proposed engagement Objectives and Scope of work-The specific objective of the engagement and the aspects that will cover d by the study

General approach to Methodology

1. Phased Approach-relevant if the

project 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.

Client Participation
Client involvement:

Steering Committee- This will provide

direction to the consultant on the general conduct of the study and accept the rules presented. Project Coordinator- who will liaise between the consultatns and the clients management. Counterpart team- They will be able to identify good sources of internal and some

Regular Reporting to Client

Submit Progress reports or

Milestones. First mile stone is after the first phase, covering primarily the market, legal aspects if any. Final phase will be Consolidate report.

Use Checklist and Questionnaire

The students should be quite

familiar 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

Work Program and Timetable

Mobilization stage of the Engagement- A

discussion of what you normally do before going into study proper This Chapter discussed the step-by-step procedures 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

Project Organization and Management

You ought to identify the members of the

study team and define their respective roles in conduct of the study Do not forget that the client assigned counterpart staff and the Project Coordinator Support this chapter by a bar chart Append the Curriculum Vitae of key consultants assigned to the engagement List of relevant studies undertaken by

Project Deliverable and Fees

Client expect from the consultant at a specific

intervals of the study and at certain points in time. Consultancy fee are normally composed of the professional 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 compensation cost of the consultant and the multiplier used for the current proposal. Billing and collection of professional fees and reimbursable expenses are usually tied up to progress billing, which in turn tied up to your progress reporting.