Original scientific paper
https://doi.org/10.2478/otmcj-2024-0011
Consolidating the roles of financial feasibility studies: Property developers vs quantity surveyors
Rolien Terblanche
; School of Construction Economics and Management, University of Cape Town, Cape Town
*
David Stanton Root
; School of Construction Economics and Management, University of the Witwatersrand, Johannesburg
* Corresponding author.
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.
Keywords
Hrčak ID:
321154
URI
Publication date:
3.10.2024.
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