An assessment of the relevance of feasibility studies in public projects in South Africa

Abstract: Purpose: The current status of governmental projects is down in the gutters. South African public projects congruously encounter overruns due to miss-management and poor planning. This paper aims to address these factors, as well as strive to improve the focus on society when conducting feasibility studies on the subject of public projects. The study aimed to identify the drivers for feasibility studies; how current feasibility practices hold up against theoretical best practice; the benefits gained from conducting a feasibility study prior to project commencement; factors hindering feasibility studies; and determine to what extent feasibility studies can address and improve on public project performance. Approach: This research study set out to assess the relevance of feasibility studies within the South African public project sector. Through an extensive literature review, it was found that feasibility studies could address overruns continuously encountered within the industry. Through applied research, questionnaires, interviews and effective factor analysis methodologies the study concretes the need for feasibilities, alongside strong governance. Findings: It was found that economical factors still lead the decision-making scheme towards granting projects the green light for construction. Although public projects are of concern, economical factors are still valued higher. Further findings illustrate that complete and thorough studies are not conducted, indicating a productive beneficial loss of potential gain. Further findings illustrate that governance, rather than feasibilities, could have a positive effect against overruns. Conclusion: South Africa’s construction industry suffers a great deal from cost and schedule overruns. Feasibility studies may hold the answer in mitigating these overruns. Comparing the theoretical best practices for feasibility studies and the practical execution, it is possible to determine where the industry is lacking. The findings suggest that tailored procedures should be developed specifically for SA public projects. And that governance over these procedures should be enforced if overruns are to be mitigated.M.Tech. (Construction Management