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
Decision analysis (DA) is the Academic discipline, discipline comprising the philosophy, methodology, and professional practice necessary to address important Decision making, decisions in a formal manner. Decision analysis includes many procedures ...
technique.
To ensure success, a project should be objectively appraised during the
feasibility study
A feasibility study is an assessment of the practicality of a project or system. A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats pr ...
, 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
[Kohli, K. N (1993). Economic analysis of investment projects: a practical approach. Oxford University Press.]
** Cost-effectiveness analysis
** Scoring and weighting.
See also
*
Feasibility study
A feasibility study is an assessment of the practicality of a project or system. A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats pr ...
References
Project management
Evaluation methods