Research - Jyson
Research - Jyson
Research - Jyson
By
JASON N. KALOLA
218011512
Windhoek, Namibia
April 2023
DECLARATION
I, Jason Kalola, hereby declare that the work contained in the proposal for the Bachelor of
Quantity Surveying Honors Degree, entitled: “ANALYSIS OF THE IMPACT OF FEASIBILITY
STUDIES ON CAPITAL CONSTRUCTION PROJECTS IN NAMIBIA” is my own original work and
that I have not previously in its entirety or in part submitted it at any university or other
higher education institution for the award of a degree.
I further declare that I will fully acknowledge any sources of information I will use for the
research in accordance with the Institution's rules.
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Contents
DECLARATION................................................................................................................................2
1.1 Background...............................................................................................................................4
1.2 PROBLEM STATEMENT(S)...........................................................................................................5
1.2 RESEARCH GOAL/AIM.................................................................................................................5
1.3 STUDY AREA (OR SUBJECT FOCUS).............................................................................................5
1.4 RELEVANCE OR SIGNIFICANCE OF STUDY...................................................................................5
1.5 LIMITATIONS...............................................................................................................................6
1.6 OBJECTIVES.................................................................................................................................6
1.7 QUESTIONS..................................................................................................................................6
1.8 HYPOTHESES OR PROPOSITIONS................................................................................................6
CHAPTER TWO: LITERATURE REVIEW...................................................................................................7
2.0 INTRODUCTION...............................................................................................................................7
2.1 Definitions of terminologies.......................................................................................................7
2.1.1 Feasibility Studies................................................................................................................7
2.1.2 Construction Industry..........................................................................................................7
2.1.3 Project..................................................................................................................................7
2.14 Capital...................................................................................................................................8
2.2 Feasibility studies on capital construction projects...................................................................8
2.2.1 Consultants Teams...............................................................................................................8
2.3 Challenges that were experienced when implementing capital construction projects............9
2.3.1 Project Selection..................................................................................................................9
2.3.2 Project Risks Management..................................................................................................9
2.3.3 Project Delays....................................................................................................................10
2.3.4 Cost escalation...................................................................................................................10
2.4 Effect of feasibility studies on capital construction projects...................................................10
2.4.1 Feasibility studies on construction projects......................................................................11
2.4.2 integrated project evaluation and selection using multiple-attribute decision-making
technique....................................................................................................................................11
2.5 THEORETICAL FRAMEWORK.....................................................................................................11
2.6 CONCEPTUAL FRAMEWORK.....................................................................................................11
2.7 Conclusions...............................................................................................................................12
3.0 INTRODUCTION.............................................................................................................................13
3.1 Research Approaches................................................................................................................13
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3.2 Research Strategies...................................................................................................................13
3.3 Instruments and Data collection...............................................................................................14
3.3.0 Table for data collection....................................................................................................14
3.4 Ethical considerations...............................................................................................................15
3.5 Framework for data analysis....................................................................................................15
3.6 Limitations and Research Validity............................................................................................15
CONCLUSION...................................................................................................................................16
References.......................................................................................................................................16
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CHAPTER ONE
SECTION 1: INTRODUCTION
This chapter introduces the readers to the background of the study, the problem statement, the
research questions and objectives, the research goals, the significance of the study, the limitations,
and the summary.
1.1 BACKGROUND
Since achieving its independence in 1990, Namibia, a country in southwest Africa has made a strong
effort to build its economy (Kößler, 2011). Given its sparse population and wealth of natural
resources, Namibia has enormous potential for the growth of its infrastructure, including large-scale
building initiatives. These initiatives span a variety of industries, including those in the
transportation, energy, housing, water supply, and manufacturing sectors. However, starting large-
scale construction projects before thoroughly evaluating and analyzing their viability might present
serious difficulties and risks. The various dangers that can occur include poor planning, unanticipated
technological issues, budget overruns and environmental effects. As a result, other nations
understand how crucial I t is to conduct feasibility studies as a necessary step before starting capital
construction projects.
In their study on project delays and cost overruns in Ghana, Frimpong et al (2020), identified capital
turnover issues, poor contractor management, late material purchases, subpar technical
performance, and rising material prices as the primary causes of these problems. In addition,
Flyvbjerg et al (2021) indicated that, statistical research of large-scale building projects, including
trains, bridges, tunnels, and highways with a combined value of ninety billion dollars, revealed that
the project time restriction had a significant impact on project cost.
Feasibility studies offer a methodical way to assess a project's viability and likelihood of success.
They entail thorough evaluations of numerous variables, including the project's technical viability,
economic viability, social implications, environmental considerations, and compliance with laws and
regulations (Hofstrand & Holz-Clause, 2009). Decision-makers can make wise choices about project
start, resource allocation, and risk management thanks to these studies' insightful information about
the project's possible advantages, risks, and problems. Furthermore, the socioeconomic setting of
Namibia gives feasibility studies significant weight. (Noghabaei et al., 2020) argue that feasibility
studies are critical in enhancing socio-economic development. Thus, considering the socioeconomic
setting of Namibia, feasibility studies would undoubtedly provide immense benefits to infrastructure
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development. The nation faces possibilities and problems, such as the need for sustainable
development, regional inequality, and scarce financial resources. By taking into account elements
including local market demand, cost-effectiveness, long-term sustainability, and social inclusion,
feasibility studies assist in addressing these particular challenges (Noghabaei et al., 2020). Feasibility
studies help Namibia's overall socioeconomic development by including these factors in the
decision-making process and ensuring that capital construction projects are in line with national
development objectives. Despite these obstacles, Namibia has advanced significantly in recent years
in terms of expanding its road network and modernizing its existing infrastructure. The next section
will present the problem statement.
A feasibility study is a widespread problem experienced in most capital projects in Namibia, often
resulting in the project being abandoned, standstills, and delays in completion due to poor or no
feasibility and viability appraisal.
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researcher will help in building a strong and better appraisal technique and strategies for capital
project developers in Namibia.
1.5 LIMITATIONS
This study is limited to the feasibility studies and challenges faced during the implementation of
capital construction project in Namibia only. The researcher might encounter challenges when
getting data from the various respondents due to limited time and cost involved.
1.6 OBJECTIVES
The main objective of this study is:
To assess the effectiveness of feasibility studies and identify the challenges encountered during
1. To investigate how feasibility studies are undertaken on capital construction projects in
the implementation of capital construction projects in Namibia.
Namibia.
2. To Investigate the challenges experienced when implementing capital construction projects
in Namibia.
3. To evaluate the effect of feasibility studies on capital construction projects in Namibia.
1.7 QUESTIONS
The main research question of this study is:
What is the impact of feasibility studies on the success and challenges faced during
the implementation of capital construction projects in Namibia?
An assertion of the researcher's anticipation or prediction regarding the link between study variables
is known as a hypothesis. The hypothesis is where the research process begins and finishes. It is
crucial since it is the foundation of the entire process (K Dayanand, 2020).
1. 9 DELIMITATIONS
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Since the focus of this study is primarily on capital construction projects in Namibia, it is possible that
the conclusions cannot be applied to other nations or circumstances. The study will not go into detail
about other factors like design, procurement, or project management but it will focus only on the
function and effects of feasibility studies on capital construction projects in Namibia.
1.10 ASSUMPTIONS
Participants in the study will answer the interview questions honestly and truthfully. This means all
the participants that are going to participate will answer all the questions by telling the truth.
CONCLUSION
This chapter gives a brief introduction to the effects of feasibility studies on capital construction
projects in Namibia. The history of Namibia's efforts to develop its economy since attaining
independence in 1990 is covered at the outset. The chapter also explained the problem statement of
the topic, research objectives, hypotheses, and significance of the study. This chapter also spoke
about the goal of this study.
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CHAPTER TWO: LITERATURE REVIEW
2.0 INTRODUCTION
Feasibility studies contain the assessment and investigation of the possible projected project, and
they require wide investigation and study so that decision-making can be implemented. Mentioned
that the definition of the project and initial decision-making are dangerous to total project success
and proposed that the wider decisions in choosing the right project in the initial stages are more
likely to impact total project success. The vital need for feasibility is for the owner to assess the
development to determine if it has a return on investment and is feasible to progress the planned
project.
2.1.3 Project
Project definition is known to the construction industry as strategic facility planning, client briefing,
needs assessment, requirements processing, and project programming, as traditionally practiced by
architects and planners (Bendick et al., 2015).
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2.14 Capital
Capital could be defined as a process in which a business determines whether projects such as
building a new plant or investing in a long-term venture are worth pursuing (Awomewe, 2019).
a feasibility study conducted by the outsourced consultants’ services. The process begins with
preparing project documentation, scoping a project execution plan, and formulating a strategic
briefing. This will all be done by the consultant’s team that has duties on the specific project. The
consultant teams must produce planning, environmental impact assessment, analysis of the budget
related to the client requirements, assessment of site information and procurement options etc. All
this will help the contractor and client know whether the project is feasible.
A feasibility study helps in the development of additional project documentation such as the
business case, a project execution plan, and the strategic brief (Heralova, 2017). According to Hyari
& Kandil (2009), the project feasibility study is traditionally worked out through consideration of
financial issues such as return on investment, demand and supply in the market, and risk analysis for
market conditions.
(Oyedele et al., 2012) acknowledged that any failure at the conceptual-design stage of a project
might lead to stress factors causing significant problems in the successive stages of the project.
Many studies in construction practice have reviewed the implications of inefficient design, which can
lead to project failure.
Building construction projects need a team of people with hugely separate roles and responsibilities
to work closely both in the design and construction stages to determine the feasibility studies of the
proposed project as per client instruction.
DESIGN ARCHITECT This term refers to the qualified person appointed to prepare the architectural
plans for the building work.
DESIGN STRUCTURAL ENGINEER This term refers to the qualified person appointed to prepare the
structural plans for the building work.
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GEOTECHNICAL ENGINEER The geotechnical engineer prepares the underground building works
plans relating to the geotechnical aspects for approval and supervises the geotechnical aspects of
the works during construction.
A quantity surveyor is a construction industry professional who specializes in estimating the value of
construction works and can also be referred to as a "cost engineer" or "cost planner,’ although this
terminology is used on overseas contracts (Moshinsky, 2015). The quantity surveyor is an expert in
construction costs, construction management, and construction communication. He is the essential
link between the client who commissions a construction project, the architect and engineers who
design it, and the builder who builds it.
BUILDING SERVICES ENGINEER Building Services Engineers bring buildings to life by designing the
mechanical and electrical systems that allow people to function within an enclosed structure.
PROJECT MANAGER The project manager has the primary responsibility of planning a particular
construction job and overseeing its progress along the way.
2.3 Challenges that were experienced when implementing capital construction projects.
During the implementation of a capital project, there are many challenges that are faced, such as
budget restrictions and variations that may occur during construction. Scope creep is one of the
challenges: project changes from what was initially agreed at the project initiation, poor risk
management, project delays, cost escalation, and project selection. All this sort of challenge may
cause the time and cost of the project to not be completed on time, some exceeding the budget.
According to Dey (2015), evaluation and selection of industrial projects before investment decisions
are customarily done using marketing, technical, and financial information. This shortens the time
required for project evaluation and selection while also assisting the business in choosing the best
project for sustainable development. The entire methodology has been applied to a cross-country oil
pipeline project in India, and its effectiveness has been demonstrated (Dey, 2015). The project needs
to be assessed before implementation in terms of distance, ground evaluation, and other aspects;
this will help the project be completed properly. Some projects are far away, which also hinders the
contractor's ability to procure materials and deliver them on time to the site.
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Since feasibility studies are crucial step in deciding about the project's implementation, none of the
studies mentioned above discussed the details of the risk identification process in startups and
knowledge-based projects based on feasibility factors and the identification of the relationship
between several factors (Akhavan et al., 2021). It is important to assess all the risks that might
appear during the construction process because risks also hinder the implementation of the projects
if they are not accurately assessed from the beginning.
It should also be noted that managerial causes of time extensions are encountered in developed and
developing countries, whereas financial causes are experienced only in developing countries (Kazaz
et al., 2012). The results show that the feasibility study is an overlooked part of Iraqi construction
projects due to the fact that it is neglected, that it is abused in use, that the feasibility study leads to
cost and time overruns, and that the system dynamic technique is approved to be significant in the
analysis of the impact (Mohammed et al., 2019). The delay is the time overrun either beyond the
completion date specified in a contract or beyond the date that the parties agreed upon for delivery
of a project (Aziz & Abdel-Hakam, 2016).
Cost escalation refers to the increase in the amount of money required to construct a construction
project over and above the original budgeted amount. Cost escalation occurs when actual costs
exceed previously estimated values (Kaliba et al., 2015). Other studies identified cost escalation
because of problems such as delays in land acquisition, unexpected problems in the supply of raw
materials, illegal encroachment on land even during project implementation, or internal problems in
government organizations. It has further been noted that delays between the planning stage and
actual implementation of especially large infrastructure projects are a ubiquitous problem, resulting
in cost escalation and failure to meet demands as the construction completion horizon is reached
even before the completion of the project (Kaliba et al., 2015).
The key benefit of feasibility studies is to ensure that the team has identified all the various potential
risks that may occur and delay the project, which might cause cost overruns. Feasibility studies
require an evaluation of what is required to complete a planned project. Sources of finance and
capital are needed to ensure that the project will be completed on time.
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2.4.1 Feasibility studies on construction projects
Profits are achieved over a lengthy period and should have an accurate investment forecast, so the
investors still have the willingness to invest their money. Risks can influence the profit, and they will
decrease the feasibility parameter until it becomes an infeasible investment to invest in the project.
Under To those assumption, risks should have been anticipated and calculate it into the feasibility
analysis so the not happening for risks will be the addition advantage for the investor (Moshinsky,
2015)
Investment in construction projects can yield higher benefits despite its high uncertainty. The
uncertainty depends on various risk factors. The influence of the identified risk then must be
evaluated and calculated towards the project's feasibility (Firmansyah et al., 2017). Before
investment, the feasibility of the project must be determined, which gives figures of cash flow for
the following years. Risks that overshadow the construction project must be calculated as an
influential factor in the failure of the project.
Pre-Feasibility
Study
Detailed Study
Legal Study Market Study Technical and Financial and Social Study
Engineering Study Economic
Study
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Project Appraisal
Implementation
The traditional feasibility study implies the collection and arrangement of data from different project
alternatives to extract information and measurements to appraise each alternative to support
decision-making (Abou-Zeid et al., 2018). (Abou-Zeid et al., 2018) The detailed feasibility study
includes more detailed studies of the investment idea with a detailed legal, marketing, technical,
engineering, financial, economic, or social criterion that led to the project appraisal.
2.7 Conclusions
The feasibility study is a neglected part of Iraqi construction projects (Mohammed et al., 2019). Since
they were neglected, and they were abused in use. The abuse of the feasibility study leads to cost
and time overruns, and the environmental impact has a negative impact on the time and cost of the
project, which increases the time and cost. Both systems' dynamic techniques are approved to be
significant in the analysis of the impact of the feasibility study and should be used in these studies to
simulate the impact of an unsuitable feasibility study.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
This chapter expounds on the research methodology of the study. The goal of this study is to analyze
the impact of feasibility studies on capital construction in Namibia. The study also has objectives,
which are to investigate how feasibility studies are undertaken and the challenges experienced when
implementing capital construction in Namibia. It summarizes research approaches and strategies,
instruments, and data collection. Moreover, the chapter also presents ethical considerations, data
analyses, limitations, and research validity. The summary of the chapter is also discussed at the end
of the chapter.
The multi-method model of research is recommended to develop robust research designs (Xing et
al., 2021). Furthermore, based on Xing et al. (2021), it is favorable to combine qualitative and
quantitative approaches to conduct the empirical study. The research approach adopted in this
research is a mixed approach. The method of direct observation will be used to analyze the site area
of the study. Direct observation is a method of collecting evaluative information in which the
evaluator watches the research subject in his or her usual environment without altering that
environment (Firmansyah et al., 2017)
This study is going to focus more on the qualitative approach. Qualitative research involves
collecting and analyzing non-numerical data (e.g., text, videos, and audio) to understand concepts,
opinions, and experiences (Xing et al., 2021). It is used to gather insights into a problem or generate
innovative ideas for research. This approach is good since you can use the surveys by distributing
questionnaires with open-ended questions to different people to get feedback on various ideas. The
study will take a mixed-methods approach, using quantitative data (such as project success metrics)
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and qualitative data (gathered through interviews or surveys) to examine the effects of feasibility
studies and difficulties encountered during project implementation.
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feasibility studies are ▪ Quantity Surveyors
undertaken on capital
▪ Project Manager
construction projects in
Namibia. ▪ Engineers
▪ Construction planners
▪ Construction planners
▪ Construction planners
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3.6 Limitations and Research Validity
Limited data availability: The study's capacity to fully analyze data on Namibian construction projects
may be constrained. The data may not fully represent all the pertinent factors, and the sample size
may be limited.
Bias in sample selection: It is possible that not all of Namibia's construction projects are represented
by the study's sample of completed projects. If the projects chosen were not chosen at random or
there were restrictions on the availability of the data for project types, there might be selection bias.
Limited generalizability: Because the building industry may function differently in various situations,
the findings may not be applicable to other nations or areas.
Data that project managers or other stakeholders self-report: If the study relies on this information,
there may be problems with the data's completeness or correctness.
Lack of a control group: The study might not have a control group, which makes it harder to draw
conclusions regarding how feasibility studies affect causes and effects.
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CONCLUSION
This chapter examines research methodologies, tools, and techniques, as well as ethical issues, the
data analysis framework, constraints, and study validity. A thorough summary of the study's
research methodology is given in this chapter. It establishes the use of questionnaires as the main
tool for data collection, together with the qualitative approach and survey techniques. The
foundation for data analysis, limitations, and ethical issues are also covered.
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