Project appraisal
Project appraisal is the process of assessing, in a structured way, the case for proceeding with a project or proposal, or the project's viability. It often involves comparing various options, using economic appraisal or some other decision analysis technique.
To ensure success, a project should be objectively appraised during the feasibility study, taken into account principal dimensions, technical, economic, financial, and social implications. To establish the justification for a project the project appraisal is the process of judging whether the project is profitable or not to client.
Process
- Initial assessments
- Define problem and long-list
- Consult and short-list
- Evaluate alternatives
- Compare and select project appraisal.
Types of appraisal
- Technical appraisal
- Project appraisal
- Legal appraisal
- Environment appraisal
- Commercial and marketing appraisal
- Financial/economic appraisal
- Organizational or management appraisal
- Cost-benefit analysis
- Economic appraisal
- Cost-effectiveness analysis
- Scoring and weighting.