Test development feasibility before committing to design

Design is essential, but design should respond to a commercial brief. Too many projects spend heavily on an attractive concept before the sponsor has tested demand, cost, programme, capital and the value the scheme can realistically support.

Establish a decision brief

The brief should define the intended customer, target use, quality level, operating model, programme and commercial objective. It should also state the constraints that cannot be designed away.

This allows advisers to solve the same problem rather than optimise different assumptions.

Build a transparent appraisal

A useful appraisal separates evidence from aspiration. Values, rents, occupancy, construction costs, professional fees, finance, contingency and timing should all have a clear source and sensitivity range.

A single profit figure is not enough. Sponsors need to see which assumptions have the greatest effect on viability.

Use design to improve the economics

Once the commercial case is understood, design can test efficiency, phasing, net-to-gross area, access, servicing, buildability and the user experience. The objective is not merely to reduce cost; it is to allocate cost where it protects value.

Early coordination between commercial, planning and technical advisers reduces later redesign.

Set gateways for further spend

Pre-development expenditure should increase in stages as major risks are resolved. Clear approval gateways prevent a project from continuing only because money has already been spent.

A disciplined feasibility process creates better information for landowners, investors, lenders and delivery partners.