The function of project feasibility study report

The role of feasibility study in project construction

Feasibility study is an important step in the pre-construction work and the basis for compiling the design task book of construction projects. Feasibility study of construction project is an important basic work in capital construction management and a scientific method to ensure the best economic effect with the least investment. Feasibility study plays a very important role in project investment decision-making and project operation and construction.

First, the role of feasibility study in the early stage of construction

The feasibility study of the project is the basis for deciding whether to make an investment decision. The reform of the investment system in the socialist market economy has changed the original system of unified distribution of investment by the government finance, formed a pattern of diversified investment by the state, local governments, enterprises and individuals, and broke the situation that an owner construction unit uses it free of charge. Therefore, it is a decision-making document for project owners and national examination and approval authorities to decide whether to invest and how to invest in capital projects mainly according to the evaluation results provided by feasibility study.

The approved feasibility study is an important basis for the project construction unit to raise funds, especially for applying for bank loans or state subsidies, and is also the basis for joint ventures by other investors. Where it is necessary to apply for loans from banks or state subsidy funds, the feasibility study report of the project must be submitted to the relevant departments. Banks or relevant state departments will not agree to loans or financial subsidies before reviewing the feasibility study and determining that the project is really feasible. International financial organizations such as the World Bank and financial institutions such as China Construction Bank and China Development Bank all require the submission of feasibility study reports as a prerequisite for applying for construction project loans.

Feasibility study is the basis of compiling the preliminary design of the project. The preliminary design is a feasible blueprint for the planning of the proposed project according to the feasibility study, that is, detailed planning of the project scale, product scheme, overall layout, process flow, equipment selection, labor capacity, three wastes treatment, construction period, investment budget, technical and economic indicators, etc. And put forward the specific operation plan of the next project design, and the preliminary design shall not violate the principles demonstrated in the feasibility study.

Feasibility study is an important basis for comprehensive planning departments at all levels to regulate and manage fixed assets investment, and to prepare development plans, fixed assets investment and technological transformation investment. Construction projects, especially large and medium-sized projects, have many factors to consider, involving a wide range and a large amount of funds, which may have a far-reaching impact on the overall and local short-term and long-term economic life. For example, the Three Gorges Project is not only costly and has a long construction period, but also requires a large number of immigrants to move. Therefore, the feasibility study of these projects is more detailed, which can be used as an important basis for the comprehensive planning department to actually regulate and manage the investment in fixed assets and prepare the national economic and social development plan.

In recent years, the state has proposed to implement the project legal person responsibility system, and the situation of administrative subordination and no economic responsibility that existed in the past has been largely replaced by contractual economic relations. The project legal person and the competent department of the project may, according to the approved feasibility study, sign agreements and contracts with relevant domestic and foreign institutions and production owners on raw materials, energy, transportation, engineering facilities, project contracting, water and electricity supply and fund raising. Feasibility study is the basis for the project construction unit to draw up the supply and demand procurement plan for the development of new technologies and new equipment. In the feasibility study, the feasibility analysis and demonstration of the new technology and equipment used in the proposed project are carried out. If it is considered feasible, the project construction unit can introduce and purchase new equipment according to the plan drawn up in the feasibility study.

The approved feasibility study is the basis for the project construction unit to apply to the land development and land management department for construction land. Because the feasibility study puts forward methods and measures for how to make rational use of land for the proposed project, the national development department and the land management department can specifically review the land use plan and go through the land use procedures according to the feasibility study. In order to ensure that the project meets the environmental protection standards, the feasibility study puts forward the treatment measures and methods, which can be used as the main basis for the environmental protection department to evaluate the project, study the treatment measures in detail and issue the project construction permit documents.

In the process of feasibility study, due to the use of a large number of basic data, once the topography, engineering geology, hydrology, mineral resources reserves, industrial tests and other data are incomplete and cannot meet the needs of the next stage, the competent department of preliminary design needs to further carry out topographic, engineering geology and hydrological surveys or strengthen industrial tests to supplement relevant data according to the requirements and suggestions put forward in the feasibility study.

Second, the relationship between feasibility study and design project management

Feasibility study is an important basis for compiling design task book, and also an important link in preliminary design and engineering construction management. Feasibility study should not only systematically analyze and comprehensively demonstrate the proposed project, but also judge whether the project is feasible and worth investing, and make repeated comparisons in order to seek the best construction scheme and avoid the huge waste of manpower, material resources and financial resources and time delay caused by the changeable project scheme. This requires strict examination and approval system of project proposal and feasibility study report to ensure the quality and sufficient depth of feasibility study report. If you can't put forward a high-quality and practical design task book at the early stage of design and express the construction intention in standard technical terms, it will naturally be impossible to effectively control the whole design process. If the preliminary design of the project can't control the outline and main functions of the project, or rush into the construction drawing design with only a rough plan, there will definitely be problems in the management and construction of the design project.

If the overall goal in the feasibility study is not well controlled, the design process will change constantly, and designers will be at a loss. Paying attention to one thing and losing another will often lead to the congenital deficiency of the product. Therefore, the preliminary design budget must be within the budget control range of the feasibility study report. If the preliminary design is not approved, it shall not enter the stage of construction drawing design, and major design changes must be reported to the original approval authority for examination and approval. Avoid increasing investment in engineering construction to make project management out of control, resulting in "semi-finished projects" and "beard projects", which will bring huge losses to the country and investment owners.

The construction cost of a project depends directly on the feasibility study and design to a great extent. If we intervene in the design project management in the early stage of construction to ensure the safety of the owner and put forward some functional requirements for the project design before design, the workload of design change will be reduced and the design cycle will be shortened. Because the design task book is incomplete and the feasibility study report is not deep enough, the designer has no way to start. As a result, the sketch of the design drawing is designed and constructed at the same time, which is easy to be hastily mounted and submitted, which brings difficulties to the construction and project construction management.

In the real economic environment, the owner's construction unit hopes to tap the potential to reduce the project cost, especially some private and individual owners, who lack technical experts to certify and study their projects, so the design task book issued by the basic documents as the design basis is very irregular. It can vary from person to person, the terms are too simple and the enforceability is poor, which often hides some problems that should be solved in the feasibility study, fails to provide a good design environment for the design stage, causes unnecessary repetition of the design work, and even causes too many design changes in the construction, resulting in the abandonment of some projects and the delay of the construction period. The best way to solve this problem is to get involved in the design project management as soon as possible, help the owner to improve the design task book from the aspects of construction scale, standards and investment limit, and choose excellent scheme design, so that the issued design task book is more practical, it is easier to control the construction standards and achieve the ultimate goal of controlling the project cost.

Therefore, it is very necessary to do a good job in feasibility study and design project management. The work of these two links is not meticulous, and the decision-making mistakes not only have no economic benefits for the project, but also may cause great losses. Feasibility study and design project management are important means to avoid investment decision-making mistakes and ensure project construction responsibility and operational benefits after production.

Third, do a good job in the feasibility study measures

In order to meet the needs of socialist modernization and market economic system reform, China's survey, design and engineering consulting units must realize two major changes: first, they must be transformed into enterprises, from institutions affiliated to departments in the past to independent market competitors, and establish a modern enterprise system. The second is to change the operating mechanism, from a functional organization limited to a specific industry in the past to a social intermediary organization that serves the investment and construction process and follows the market mechanism. At present, it is of great practical significance to strengthen the internal reform of engineering consulting, survey and design enterprises and strive to improve the quality of the team.

China's accession to the WTO is just around the corner. Once China joins WTO, foreign engineering consulting and design institutions will enter China, and the situation of domestic and international competition is imminent. This requires engineering consulting and design units to bravely go to the market, make the feasibility study and design work to a new level, change ideas, strengthen management, and enhance the sense of responsibility of technicians. Design is a bridge to transform science and technology into productive forces. Every line, every point and every number on the map represents technical responsibility and certain funds. The quality of design is directly related to engineering construction. Therefore, the popularization and application of nDIC clauses in China's engineering projects is an important way to achieve integration with international practices and ensure the quality of engineering construction.

The feasibility study should focus on quality control and scientifically analyze the project scale, construction standards, process layout, industrial planning and technological progress. Personnel engaged in feasibility study should truly establish the spirit of serving the country and the construction owners, be familiar with national and local laws, policies and regulations on engineering construction, accurately grasp relevant professional knowledge, constantly learn new technologies, truly grasp the development direction of the industry scientifically, independently and without any interference, improve the depth and quality of feasibility study, and provide excellent products for the society.

According to experts' calculation, 70-85% of the project investment can be controlled in the design stage, and the construction, materials and services behind can only be controlled.

15—35%。 Design consultation and design review are internationally accepted practices and conventions. Without these systems, it is difficult to integrate into the international community. Therefore, in order to establish the authority of engineering consultation and design project management, promote the progress of design technology and ensure the effectiveness of investment benefits, we must adhere to the principle of expert consultation and not engage in layman consultation. This is of great significance for saving investment, improving the quality of survey and design, and safeguarding public interests and national interests from losses.