Project appraisal
{{Short description|Structured assessment of the viability of a project}}
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.{{Citation| author=John Filicetti|date=August 2007|url=http://www.pmhut.com/pmo-and-project-management-dictionary| title=PMO and Project Management Dictionary}} It often involves comparing various options, using economic appraisal or some other decision analysis technique.Cost-Benefit Analysis, 2nd edition, (2001) by Boardman, Greenberg, Vining, and Weimer, {{ISBN|0-13-087178-8}} Pearson Education, Prentice Hall.Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, and David L. Weimer, (1996) Cost – Benefit Analysis: Concepts and Practice, 1st Edition, by
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 analysisHanley, N and Spash, C (1993). Cost Benefit Analysis and the Environment. Edward Elgar. Cambridge University Press.Brent, Robert J. Cost-Benefit Analbmbmbbmysis for Developing Countries. Edward Elgar Publishing. Overseas Development Administration. Appraisal of Projects in Developing Countries. A Guide for Economists. HMSO Publications.Layard, Richard and Glaister, Stephen (eds) Cost-Benefit Analysis. Second edition. Cambridge.
- Economic appraisalKohli, K. N (1993). Economic analysis of investment projects: a practical approach. Oxford University Press.
- Cost-effectiveness analysis
- Scoring and weighting.