Section 1 Concept and Function of Feasibility Study
I. Concept of feasibility study
Feasibility study refers to the comprehensive analysis, demonstration and evaluation of the resources, technology, market, economy and society related to the project before the investment decision, to judge whether the project is technically feasible, economically reasonable and financially profitable, and to choose the best possible scheme. Its purpose is to make the decision-making of real estate development projects scientific and procedural, so as to improve the reliability of decision-making and provide reference for the implementation and control of development projects.
China began to introduce the feasibility study method in 1970s, and promoted it under the leadership of the government. 198 1 years ago, the former state planning commission made it clear that "feasibility study, as an important stage of technical and economic demonstration in the pre-construction work, was included in the basic construction procedure. 1983 In February, the former State Planning Commission officially promulgated the Measures for the Trial Administration of Feasibility Study of Construction Projects, which made detailed provisions on the principles, compilation procedures, compilation contents and review methods of feasibility study, so as to guide the feasibility study in China.
The characteristics and development practice of real estate projects prove that the key to project development is decision-making, and developers should attach great importance to the quality of feasibility study. What happened to harmony? Yao Kang? Anti-squat? Levies squatting in the world? Pay for chewing Bush? Happy and salty? Sword? What the hell is shooting amaranth? 5. A solar alpha?
Two. The role of feasibility study
(1) Feasibility study is an important basis for project investment decision. The scientific rationality of investment decision of development projects, especially large-scale investment projects, is a project feasibility study based on detailed and reliable market forecast, cost analysis and benefit estimation.
(2) Feasibility study is the basis for project initiation, approval and the signing of agreements and contracts between developers and relevant departments. Investment projects in China must be included in the national investment plan. Especially for real estate projects, the feasibility study report is one of the bases for the relevant government departments to establish, approve and sign relevant agreements.
(3) Feasibility study is the basis of raising construction funds for the project. The feasibility study of real estate development project analyzes the economic and financial indicators of the project, from which we can understand the project's ability to raise funds and repay the principal, as well as the ability to obtain operating benefits. Whether banks and other financial institutions provide loans mainly depends on the project profit information provided in the feasibility study. Therefore, the feasibility study is also the basis for enterprises to raise construction funds and financial institutions to provide credit loans.
(4) Feasibility study is the basis of compiling the design task book. The feasibility study arranges the construction scale, contents and standards of the development project, which is the content of the project design task book.
Section 2 Work in Feasibility Study Stage
The feasibility study can be carried out in several stages according to the progress of the project.
(a) In terms of opportunity research.
The main task of this stage is to make suggestions on investment projects or investment directions, that is, to find the most favorable investment opportunities on the basis of investigating and predicting natural resources and markets in certain regions and departments. Chance research is relatively rough, relying mainly on approximate estimation rather than detailed analysis. The accuracy of investment estimation at this stage is 30%, and research expenses generally account for 0.2% ~ 0.8% of the total investment. If the opportunity study thinks it is feasible, right? In the uprising, it was called the tomb of the cone Wei?
(2) Preliminary feasibility study
On the basis of opportunity study, further demonstrate and analyze the possibility and potential benefits of project construction. In the preliminary feasibility study stage, the investment estimation accuracy can reach 20%, and the required cost accounts for about 0.25% ~ 1.5% of the total investment.
(3) Detailed feasibility study
Detailed feasibility study is the basis of investment decision-making for development and construction projects, and it is the key step to make investment decision after analyzing the technical, financial and economic feasibility of the project. At present, the estimation accuracy of construction investment is 10%, and the required cost is about 1.0% ~ 3.0% for small-scale projects and 0.2%~ 1.0% for large-scale complex projects. Large and medium-sized projects and important small projects must be evaluated and authorized in accordance with relevant state regulations. Without the evaluation of the construction project, any unit shall not approve, but shall not organize the construction.
(four) the feasibility study stage work accuracy table
Section III Contents of Feasibility Study
I. Structure of the Feasibility Study Report
Generally speaking, the feasibility study report of a project compiled by a professional organization should include a cover and an abstract. ⒏ Suburb? A leavening agent? Smog frame?
(1) cover: generally, it should reflect the name of the feasibility report, the name of the professional research institution and the time when the report was written.
(2) Abstract: Briefly introduce the general situation of the project, the market situation, the conclusion of the feasibility study and relevant explanations or assumptions in a concise and clear language. We should highlight the key points and make the assumptions clear so that readers can understand the essence of the full text in a short time. Some experts also advocate not to write an abstract, because the feasibility study report is of great importance, and readers should read it carefully and comprehensively.
(3) Content: As a feasibility report is as short as ten pages or more, it is necessary to compile a table of contents in order to facilitate writers and readers to clearly write and master the context, assumptions and specific contents of the report.
(4) Text content: it is the main body of the feasibility report and should generally include the following contents.
1. Project overview
It mainly includes: the name and background of the project, the natural, economic, hydrogeological and other basic information of the project development, the purpose, scale, function and main technical and economic indicators of the project development, the entrusting party and the entrusted party, the purpose of the feasibility study, the personnel who compiled the feasibility study, the basis for compilation, and the assumptions and explanations for compilation);
2. Market research and analysis
On the basis of in-depth investigation and full knowledge of all kinds of information, make a scientific analysis of the market demand and supply of the proposed development project and make an objective forecast, including development cost, market price, sales target, development cycle and sales cycle.
3. Optimization of planning and design scheme
Based on the analysis and comparison of alternative planning schemes, the most reasonable and feasible scheme is selected as the final scheme and described in detail. Including the architectural layout, functional zoning, municipal infrastructure distribution, main technical parameters of buildings and projects, technical and economic indicators and technical indicators of regulatory detailed planning of the selected scheme.
4. Development schedule
If the development schedule is reasonable, the development project can be arranged according to the stages of preliminary project, main project, auxiliary project and completion acceptance. As a large-scale development project, due to the long construction period and large investment, it is generally necessary to develop by stages, and the development contents of each stage need to be arranged at the same time.
5. Project investment estimation
Analyze and evaluate the cost of development projects. The costs involved in real estate development mainly include land cost, prophase project cost, construction and installation cost, municipal infrastructure cost, public supporting cost, period cost and various taxes and fees. The accuracy of estimation is not as high as the budget, but it should conform to the future development facts to improve the accuracy of evaluation.
6. Project financing plan and financing cost estimation
According to the investment estimation and investment progress of the project, reasonably estimate the capital demand, draw up the financing plan, and calculate and analyze the financing cost. The investment in real estate development is huge, so it is necessary to arrange funds well before investment, raise funds in different ways, reduce the cost of raising funds and ensure the normal progress of the project.
7. Project financial evaluation;
According to the current national fiscal and taxation policies, current prices and relevant laws and regulations, this paper analyzes the financial situation of the project from the perspective of the project, such as profitability, solvency and foreign exchange balance, so as to explore a feasible project financing method. Specifically, based on the pre-sale forecast and cost forecast of the project, the estimated income statement, the estimated balance sheet, the estimated financial cash flow statement, the debt repayment table, the source and application table are used to calculate financial evaluation indicators and debt repayment indicators such as financial net present value, financial internal rate of return, investment payback period, debt repayment period and asset-liability ratio. , used to analyze the investment effect.
8. Uncertainty analysis and risk analysis
It mainly includes break-even analysis, sensitivity analysis and probability analysis. Through the analysis of social, economic, environmental, policy, market and other factors that affect the investment effect, we can understand the nature and degree of the influence of various factors on the project, and provide reliable basis for controlling key factors in the project operation process. At the same time, according to the possibility of risk occurrence, it provides reference for investors to understand the risk size and source of the project.
9. The conclusion of the feasibility study
According to the analysis of related factors and the numerical values of various evaluation indexes, the feasibility of the project is clearly concluded.
10. Researchers' suggestions on the project
Put forward improvement suggestions for the risks and problems existing in the project, and evaluate the effect of the suggestions.
(5) Appendix: It contains the main basis of the feasibility study and is an indispensable part of the feasibility study report. Generally speaking, when a project is doing a formal feasibility study, it must have the approval documents of relevant government departments (such as planning and site selection opinions, land lease contracts, land certificates, construction project permits, etc.). ). Professionals must prepare the feasibility study report of the project according to the power of attorney, the above documents and the corresponding laws and regulations.
(VI) Drawings: A complete feasibility report shall include the following drawings: location map, topographic map, planning red line map, design plan plan, and sometimes the overall planning map of the area or city where the project is located.
Two. Feasibility study report project investment budget
In some non-standard feasibility study reports of real estate projects, the project investment budget only includes the project budget, which is not correct enough. A real estate project is not equal to a simple building, it needs marketing cost, financial cost and construction cost, and project investment is to meet these costs. Moreover, the project budget estimate is not necessarily equal to the actual investment of the developer in the project construction. On the premise of being proved feasible, we can also adopt the rolling investment development mode of adding investment and recovering funds, so that the actual total investment of developers in engineering construction will be much smaller. The phenomenon of replacing project investment estimation with project estimation is extremely serious. The investment budget of real estate projects shall include the following contents:
(1) Estimated marketing expenses
1. Expenditure on preliminary research and feasibility study of the project
2. Project planning expenditure
3. Sales plan expenditure
4. Advertising expenses
5. Daily operating expenses of the project company
6. Public relations expenditure of projects and enterprises
(2) Estimated project expenditure
1. Engineering exploration expenditure
2. The cost of blowing sand to fill the soil and leveling the land
3. Expenditure on engineering design
4. Expenditure on construction projects
5. Expenditure on supporting facilities
6. Project supervision expenditure
(3) Estimation of land acquisition cost
1. The standard land price charged by the government at one time.
(two) compensation for demolition or compensation for young crops
3. Compensation expenses arising from the impact on public facilities.
(4) Estimation of financial costs and expenses
1. Bank guarantee and management fees incurred when foreign exchange funds enter the domestic monetary system.
2. Interest expenses caused by loans
3. All kinds of insurance costs
4. Taxes and administrative expenses
5. Unexpected expenses
Section IV Preparation of Feasibility Study Report
1. Common misunderstandings in feasibility analysis of real estate projects
1. Myth 1: Benefit Analysis of a Standard
If a project feasibility study report tells you with certainty how much money you can earn in the future, and it will definitely earn so much money, it will never be a realistic report, and a professional and serious project feasibility study report cannot be just a benefit standard. There are too many uncertain factors in the feasibility study, which makes the future price and sales process of the project in a relatively uncertain state. Therefore, the "benefit analysis" of the feasibility study can not be very certain, but only reasonable predictions, and these predictions need to assume the premise, that is, the expected value. The feasibility study gives different expected benefit forecasts according to different expected values.
2. Misunderstanding 2: Prejudice feasibility study
Looking at most of the failed large-scale real estate investments in China, most of the failures are caused by some foreseeable factors. These factors include: the senior villa is located in a large industrial zone, which leads to the destruction of the villa environment and no one cares; The development of high-rise apartments in towns far away from the city has also been neglected; Ready to live in a peasant residential area with out-of-control planning, the result is to give up halfway under the impact of cheap "fund-raising houses"; At the same time, the supply of similar buildings in the same city is too large, resulting in insufficient demand; The construction cost far exceeds the budget, resulting in a shortage of funds; A new viaduct passes through the middle, which invalidates the advantages of real estate shops. When the developers of these projects talk about these problems, they usually sigh "I didn't expect it", but I should have thought of it long ago. Let's take a look at the "feasibility study report" of these projects. Almost all of them are the same tune: quoting classics and describing the bright future of this project investment from all angles, but not mentioning the unfavorable factors of the project investment. This kind of "feasibility study" is to prove that the project is feasible from beginning to end, which makes the taboo of "preconceived".
(1) The preconceived feasibility study is usually caused by the following reasons:
A. The subjective will of the leaders of real estate investment enterprises is at work. Often due to the influence of the "chief executive's will" on the project, the project researchers are worried that finding fault with the project will offend the boss, so they learn to observe the face and observe the color. All the arguments revolve around the meaning of the leader. Therefore, in order to avoid the development of this situation, the company leaders should give more support and less intervention, and let the research group lay down their burdens and investigate and analyze with scientific methods.
B. the professional level of the research team members is not enough. The feasibility study of some projects is not given to experts who are really good at it, but to some college teachers or people in our company. In doing so, the intelligence and ability structure of the research group is very unreasonable, and it is impossible to expect them to produce a truly credible feasibility study report.
C. Some developers entrust the feasibility study to some architectural consulting institutions, whose scientific research strength is too hard, but because the project means business to them, unless the developer declares in advance that the units participating in the feasibility study cannot undertake the engineering consulting business of this project, it is unlikely to maintain a neutral research attitude.
D In order to save trouble, some developers ask their partner to provide a feasibility study report. This is when there is intentional contact. It is necessary, but it should be clear that the feasibility study done by the other party is only based on its own investment behavior and is not suitable for the current developers; Sometimes in order to win other people's investment, the other party may unilaterally exaggerate the investment value of the project, and such a feasibility study cannot be neutral.
Two. Personnel arrangement for preparing feasibility study report
Organize a feasibility study team, and the knowledge structure and personnel arrangement of the team members should be comprehensive.