IDEAS home Printed from https://ideas.repec.org/a/vrs/otamic/v16y2024i1p136-149n1011.html
   My bibliography  Save this article

Consolidating the roles of financial feasibility studies: Property developers vs quantity surveyors

Author

Listed:
  • Terblanche Rolien

    (School of Construction Economics and Management, University of Cape Town, Cape Town, South Africa)

  • Root David Stanton

    (School of Construction Economics and Management, University of the Witwatersrand, Johannesburg, South Africa)

Abstract

Financial feasibility studies in real estate development are problematic and complex and some of the success thereof relies on the communication and perspectives of at least two key stakeholders. The aim of this research is to determine the roles of financial feasibility studies based on two opposing perspectives – real estate developers and quantity surveyors. Semi-structured in-depth interviews were conducted involving 23 quantity surveyors and 23 developers by means of purposive sampling, thus making this study a qualitative interpretivist approach. A thematic analysis was conducted. The aligned roles that emerged from both perspectives are setting up the budget, practice cost control, value engineering, basis for negotiations with consultants and contractors, tool for investment decisions and tool to acquire financing. The unaligned roles from the developers’ perspective include basis for a business plan, acceptable debt determination, negotiations with landowner and tenants, basis for progress measurement, basis for as-built facility and risk on total cost. Additionally, the QS use it to secure income, as a tool to advise and for sensitivity analysis. The study found that there are prominent differences in the perspectives of the key stakeholders regarding the role of feasibility studies, while considering the perspective theory.

Suggested Citation

  • Terblanche Rolien & Root David Stanton, 2024. "Consolidating the roles of financial feasibility studies: Property developers vs quantity surveyors," Organization, Technology and Management in Construction, Sciendo, vol. 16(1), pages 136-149.
  • Handle: RePEc:vrs:otamic:v:16:y:2024:i:1:p:136-149:n:1011
    DOI: 10.2478/otmcj-2024-0011
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/otmcj-2024-0011
    Download Restriction: no

    File URL: https://libkey.io/10.2478/otmcj-2024-0011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:otamic:v:16:y:2024:i:1:p:136-149:n:1011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.