Feasibility Analysis
At this stage, you will:
- Identify and test the suitability of the site
- Ensure that the project complies with municipal regulations (environmental, zoning, etc.)
- Establish a reasonable budget using industry yardstick costs
- Make a final decision about whether to move forward
Suitability of the Site
You may already have a site or a building in mind, but once you have determined your space needs then you will be more comfortable determining whether the site or building can meet your requirements. You will now have very specific criteria to evaluate the space required for your project. Make a list of your conclusions from the above questions and use this checklist to evaluate the site or building.
Whether you are buying or leasing a space to renovate, you will have some common considerations:
- Is the square footage adequate for your needs?
- Is there adequate outdoor play space, immediately adjacent to the building?
- Is child care a permitted use within the zoning by-laws?
- Is the location suitable – away from heavy traffic and environmental concerns?
- Are there easements to take into account?
- What kind of natural light is there in the building?
- Are there good setbacks, balanced scale, quality materials?
- Are there natural features: parks, walks, views?
- Is the entrance located as close as possible to natural grade to facilitate accessibility for children, staff or parents with mobility challenges?
- Does it have a level, weather-protected area at the entrance at grade to accommodate strollers, bicycles, wheelchairs, easy access?
- Would child care be a good fit in the neighbourhood - not too noisy for neighbours; not too noisy for children?
- Is it near other services and community resources: school, museum, library, recreation centre, shops, etc?
- Is public transportation accessible?
- Does it get enough sun? Is it a wind tunnel? Is there good water run-off? Will snow tend to mound or drift around the entranceway?
- Is there sufficient parking?
If you are leasing:
- What tenant improvements will the landlord make?
- What kind of operating agreement will there be?
- What are the terms and conditions?
- How long a lease will there be?
- What will your lease payments include?
- Is there a buy-out and renewal clause?
- Who covers the insurance?
Choosing the type of facility to build
The main factors that will tend to dictate which of these options you choose are usually linked to time and money. Cost is usually the biggest barrier to overcome and it will vary considerably depending on whether you are in an urban, suburban or rural area. Per space costs can vary considerably, from about $10,000/space for a modest renovation to about $65,000/space for new construction in a major urban area. Costs depend on whether you are developing a small modular, stand-alone facility or concrete construction in a high density neighbourhood; the cost of construction and the construction climate –which can affect prices and the availability of trades; the cost of land and whether you are purchasing or leasing it. (A nominal lease rate could be negotiated if the land or building is provincially or municipally owned). This can result in project costs that range between about $450,000 to $2 - $3 million for a 45-space centre.
You will want to consider the value of the investment in relation to the permanence and the flexibility of the space.
Your architect will propose alternative options for you to consider for type of building construction, depending on your budget and other site-specific issues. The City of Vancouver has undertaken a lot of new ELCC construction and has provided some useful notes for consideration. (link to Notes on Types of Construction)
Municipal Regulations
Once again, make sure that all municipal by-laws and regulations have been complied with.
Construction Budget
Develop a budget that can be followed throughout the project. Include the following costs and ensure they are accounted for:
- Estimated cost of construction
- Contingency allowance (5%)
- Consultants – maximum 15%
- Permits
- Servicing (site, telephone, hydro, datawiring, etc.)
- Legal fees
- Insurance
- Site/building acquisition costs
- Appraisal
- Survey
- Condition, subsurface/geotechnical and environmental reports
- Signage
- General overhead
- Taxes and rebates
Your construction budget will be developed by your architect (possibly in conjunction with a quantity surveyor). Before the details have been confirmed, the cost will be expressed as a “square foot” estimate. As the project develops and greater detail becomes available a more extensive costing of all the components will be carried out.
Identifying Consultants
In addition to your architect, landscape architect and project manager, you will also probably need to involve a functional programmer, lawyer, engineers (mechanical, electrical, structural, environmental, civil), quantity surveyor and land surveyor. Make sure that you, or your project manager, follow a competitive bidding process to select these consultants. Where possible, consultants should be retained for a fixed fee for pre-determined projects.
Deciding to Move Forward
Conducting the feasibility analysis will allow you to decide whether you are in a position to proceed with the project on the selected site and on the basis of your functional program incorporating.