Due Diligence and Project Feasibility: how to reduce uncertainties from “paper” to the construction site

Why Due Diligence is Your First Major Saving

Making decisions early avoids irreversible expenditure. Integrated due diligence reduces risks related to location, licensing, demand, costs, and timeline, delivering solid assumptions for valuation and executive planning.

## The Four Pillars of Feasibility

### Market and Product
* Demand mapped by segment, absorption, and average ticket price
* Price benchmarks and sales/rental velocity
* Value proposition, unit mix, and unique selling points

### Technical and Regulatory
* Urban planning and environmental restrictions
* Access, mobility, and infrastructure requirements
* Preliminary engineering studies, conceptual BIM

### Financial
* CAPEX/OPEX by major components and contingencies
* Sensitivity scenarios (price, timeline, cost of capital)
* Phased structuring, cash flow, and ROI

### Legal and Property
* Title deed, encumbrances, and easements
* Contracts and permissions linked to the asset
* Compliance with local regulations

## Minimum Deliverables
* Executive report with go/no-go recommendation and critical risks
* Risk matrix with mitigation plans
* Financial model (base/optimistic/conservative scenarios)
* Licensing and stakeholder roadmap

## Key Decision Indicators
* NPV and IRR by phase
* Payback and debt service coverage ratios (where applicable)
* Productivity metrics (approval cycle, construction lead time)

## Best Practices
* Update market assumptions at each milestone
* Maintain independence between cost and revenue estimates
* Implement a "stage-gate" decision mechanism

Need to validate a plot of land or an asset? Contact EGDC Group for a feasibility assessment.

> **Compliance Note:** Informational content. Does not constitute financial or legal advice.