Why is it important to assess project viability before starting construction?

Assessing project viability before starting construction is crucial for understanding potential returns on investment. This assessment helps stakeholders evaluate whether the project can achieve financial success, covering costs while generating profit. It involves analyzing factors such as market demand, competition, construction costs, financing options, and potential revenue streams. By understanding these elements early on, project owners can make informed decisions about proceeding, seeking additional funding, or making necessary adjustments to the project's scope or budget.

Screening a project for its viability serves as a foundational step to secure the interests of all parties involved, ensuring that resources are not wasted on projects with insufficient return potential. This proactive approach can lead to smarter investments and better financial outcomes, ultimately benefiting the contractor and clients alike.