PROGRAMME VALUE STARTS WITH VIABLE

Building a solid business case amid shifting conditions

Labour shortages, weak confidence and constrained public spending have made viability the most critical, and most fluid, factor in built asset decision-making.

Regulatory reform, cost inflation and evolving asset models mean viability isn’t a single checkpoint but a series of ‘go / no go’ moments requiring constant review.

Private and public sector approaches differ:

Private cases focus on evidence-based ROI and flexible funding conditions.
Public cases face political shifts and changing net zero requirements.

Both contend with legal obligations (Building Safety, Biodiversity Net Gain) lengthy planning processes, and changing asset building models, making ongoing viability assessment essential.

Once funding is in place, key viability challenges include:

Protecting viability during procurement

Complex major projects and programmes often have long timescales which can introduce uncertainty and volatility.

Viability testing should therefore be a dynamic process, making use of regular updates, with the mindset that viability is alive calculation. Clients and project teams who have access to real-time viability forecasting will make the best procurement decisions.

Early engagement, with the right people around the table

Engaging with a skilled and experienced team in the early stages of a project will build strong relationships, set clear expectations, and deliver better project outcomes.

Getting project risk right

Contractors in the current market are increasingly risk averse. It’s becoming increasingly difficult for clients to transfer risk to contractors, and for contractors to push that risk further down the supply chain. Intelligent solutions around risk allocation and determining which parties are best able to manage risk helps to protect both project and organisation viability, encouraging market appetite for projects.

Futureproofing

Long-term viability for a built asset extends far beyond its initial capital cost.

Many private and public sector occupiers need to address modern demands for amenity and flexibility. Assets that only just meet regulatory baselines may struggle to compete in the marketplace longer term.

Designs that achieve higher environmental standards, such as advanced BREEAM and LEED ratings, may require greater upfront investment.

For many built asset owners and investors, true viability is defined by the lifecycle values these choices create, rather than build cost alone.