Project feasibility study: the key to

successful implementation of
sustainable and socially responsible
construction management practice
Li-yin Shen. et al.
Journal of Cleaner Production 18 (2010) 254259
(Impact factor:2.425, %in catgory:Q2)
Reporters: TIANHOUN S. Edouard
Harry Huang
LE THI THANH TAM
Date: November 02. 2011

Outline
I. Introduction
II. Research Methodology
III.Results and Analysis
1. Economic Performance Attributes

2. Social Performance Attributes

3. Environmental Performance Attributes
IV.Recommendations

V. Conclusion
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Introduction
The promotion of sustainable construction practice is to pursue
a balance among economical, social, and environmental
performance in implementing construction projects.
Traditionally project feasibility study consider nancial issues,
such as return of investment, demand and supply in the market,
risk analysis on the market conditions.
The aim of this paper
To examine the current practice of conducting project feasibility
study.
Highlight the challenges of the existing practice for the
implementation of sustainable construction.
Make recommendations for the successful implementation of the
sustainable construction.

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Research Methodology
CASE

STUDY: BEIJING, SHENZHEN AND CHONGQING

PI:29 residential projects

87
Feasibility
Studies

PII:27 public sector projects

P III:20 industrial projects

P IV:11 commercial projects

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Research Methodology

INTERVIEW: NUMBER OF SELECTED PROJECT

Project managers,
Construction managers,
Site foremen,

Site engineers,
Site surveyors,
And frontline workers.

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Research Methodology
ATTRIBUTES

IN

PROJECTS

FEASIBILITY STUDY

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3. Results and analysis

3.1 Economic performance attributes (EPAs)
EPAs are used for assessing economic
performance of construction projects
3. 2. Social performance attributes (SPAs)

SPAs are used for assessing social

performance of construction projects
3. 3. Environmental performance attributes (EnPAs)
EnPAs are used for assessing environmental
performance for construction projects

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Table 1: Attributes in project feasibility study

18 economic
performance
attributes

9 social performance
attributes

8 environmental
performance
attributes
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3.1. Economic performance attributes

Residential

projects:.

Good attention is given on the future market

Less attention is given to risk management

90%

A. EPA4 Market forecast

52%

52%

52%

B. EPA14 Finance risk assessment

C. EPA15 Return of investment

D. EPA16 Net present value

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3.1. Economic performance attributes

Public

projects
Good attention is given to the understanding of market
needs in developing public sector project
Less attention is given to market competition
96%

Public projects are administered by

government in China
3%
A. EPA3 Demand and supply analysis
B. EPA6 Market competition

B
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3.1. Economic performance attributes

Industrial projects
Good attention is given to cost situation by estimating
project budgets
Less attention is given to the provision of competitive
service and risk assessment
90%
A. EPA9 Budget estimate
50% 50%
B. EPA6 Market competition
C. EPA15 Finance risk assessment

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3.1. Economic performance attributes

Commercial projects:
Good attention is given to the function and size of
the project
Less attention is given to the factor of competition
91%

18%

A. EPA5 Project function and size

B. EPA6 Market competition

B
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3.2. Social performance attributes

18

Development of new settlement and

local communities

18

0
7

Safety standards

11
36

11

Influence to the local social

development

36

10

0
0

Improvement to the public health

55

15

70

0
Industrial

63

Cultural and heritage conversation

Commercial

35

10

20

30

Public Sector

40

50

60

70

80

Residential

No social performance attributes are considered in the surveyed residential,

industrial and commercial projects
The huge gap between the rich and the poor in Chinese society
The high rate of safe accidents in the 14
Chinese construction industry LOGO

3.3. Environmental performance attributes

Commercial

27
18

45
36

Invironmental friendly
design (EnPA6)
60
60
60

Industrial

63

Public Sector
56

Residential
0

63

70

Waste assessment
(EnPA5)

70

Noise assessment
(EnPA4)
Water impacts (EnPA3)
Air impacts (EnPA2)

17
14
14

50

The lack of consideration

given to the environmental
protection

100

The effects on the degrading

environment is huge
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Summary
18
18

Commercial

18

Industrial

30

Public Sector
Residential

35

Eco-environmental sensitivity of
the project location (EnPA1)

50

3
0

Land consumption (EnPA8)

36

Safety standards (SPA6)

26
26

11

Market competition (EPA6)

Economical
performance
attributes

69

20

40

60

Social
performance
attributes

16

80

Environmental
performance
attributes

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4. Recommendations

To improve the existing practice of

construction implementation towards
contributing to sustainable development
Environment

Social

Economic

17

All the three dimensions,

need to be fully
concerned in conducting
project feasibility studies.

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Highlights

4.1
Government

4.2
Clients
Necessary actions
required for
different levels of
project participants

4.3
Architects and engineering
consultants

4.4.
Contractors and suppliers

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4.1 Government

Guide with policies, laws and

regulations.
Balance the interests among
economic, social and
environmental stakeholders
through awards and punishment.

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4.2 Clients

Project owners are the key role

Influencing sustainability performance
for construction projects.
To improve project sustainability, clients should work
closely with other parties, including governmental offices,
planning professionals, architects and engineers.

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4.3 Architects and engineering

consultants
Professional
advice

Choice of sustainable design

plans

Choice of environmentally
friendly materials

Influences to
the project

Knowledge of sustainable
principles

Energy efficient designs for

services

Sustainable structure design

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4.4 Contractors and suppliers

They can provide information and

suggestions about the environmental
effects of construction activities and
various materials and plant

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Conclusion
The study helps to understand the key
factors considered in the practical
applications of project feasibility study.
The results also indicate that more
economic attributes are considered
than those social and environmental.
Project feasibility study should equally
embrace the principles of sustainability
(economic, social and environmental)
within a team work.
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