Vol. 1, Issue 3   |   09.2006

In the last 30 years, if history has taught us anything it's that asking the "stupid questions" is always the smart thing to do.

When it comes to performing feasibility and due diligence, much of the discovery process boils down to observation and intuition -- and knowing your "end product" so well that you just know what to look for and where to find the answers you need.

However, ultimately, the willingness to ask the obvious questions and explore the obvious issues — rather than make assumptions — can be the difference between a successful, on-time, in-budget project or painful, costly mistakes.

— TAG International, LLP

7 Steps to Building Potential®
How to Maximize Value in your Next Project

Step 3: Feasibility and Due Diligence

Rule of Thumb: Understand the constraints.

A feasibility and due diligence analysis provides an in-depth "drill down" exploration of the critical technical and financial factors that must be considered in bringing the project to fruition.

Determining a project's feasibility entails an examination aimed at uncovering any fatal flaws — i.e., potential obstacles that could prevent the project from being successful, as well as any issues or events that could require significant additional resources, such as time or money.

At this stage, it is important to leverage the knowledge of "subject matter experts" to fully examine key issues such as civil engineering, environmental and geotechnical factors. Each of these areas has the potential to dramatically affect the budget, schedule and success of the project.

Overall, the goal of feasibility and due diligence is to provide a comprehensive assessment of the critical issues, so you can make well-informed decisions — and ensure that what you build will serve your business and organizational needs now, and in the future.

Project Spotlight

The Village at Texas A&M -- College Station, Texas

When Hammond Jones Development decided to initiate an innovative multi-use housing project in the growing College Station market, they faced several apparent challenges due to the site's topography, including steep grades and two creeks that flowed through the property.

They engaged TAG International to help them determine how to best utilize the land — to maximize its potential value — as well as navigate the many obstacles that lay in their path.

Through an extensive discovery, evaluation and planning process, TAG delivered a comprehensive, prioritized analysis of the impediments to the proposed development plans. In addition to topography, key project issues included city zoning and land use controls, development regulations, utilities and easements and, most importantly, effective density planning to meet target profitability goals.

As Hammond Jones’ land development partner, TAG provided the expertise, insight and services needed to understand and resolve these complex issues. With guidance and in-depth analyses from TAG, Hammond Jones successfully navigated difficult political barriers to obtain the City’s approval and transformed a major topography problem – the creeks – into an amenity by creating hike and bike trails for area residents.

Ultimately, with TAG’s expertise and assistance, Hammond Jones addressed several critical hurdles that could have stalled or derailed the successful launch of the project.

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