--- title: "Appraisal parameters for civil engineering project" subject: "Project Engineering" chapter: 2 key: "semester_7/project_engineering:appraisal-parameters-civil-project" source: https://www.bctengineer.com/q/semester_7/project_engineering/appraisal-parameters-civil-project site: BCT Engineering --- # Appraisal parameters for civil engineering project Project Engineering · Chapter 2: Project Appraisal and Project Formulation - Asked in: 2082 Baisakh, 8 marks - Video: [1.4 An Introduction to how we Appraise a Project](https://www.youtube.com/watch?v=jbCHx0lNDPE) — Danielle Schmidt - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/project_engineering/appraisal-parameters-civil-project - Whole chapter: https://www.bctengineer.com/md/semester_7/project_engineering/chapter-2 ## Question What is project appraisal? Explain the basic parameters to be considered during a comprehensive project appraisal for a civil engineering project. ## Short answer Project appraisal is systematic pre-investment assessment of technical, financial, economic, environmental, social and legal acceptability. For civil projects, key parameters are design, technology, site and geotechnical data, materials, construction method, cost estimate, funding, NPV/IRR/payback, demand, implementing agency, environmental impact, resettlement, laws, risk and sensitivity, plus operation and maintenance and disaster resilience. ## Answer **Project appraisal** is the critical, systematic assessment of a proposed project, before commitment of funds, to judge whether it is technically sound, economically and financially viable, environmentally and socially acceptable, and worth undertaking. #### Basic parameters for a civil engineering project | Aspect | Points examined | |---|---| | Technical | Design, technology, site, materials, capacity, construction method, availability of skills | | Economic | Benefit-cost ratio, EIRR, NPV to the nation, shadow prices, contribution to national goals | | Financial | Cost estimate, funding plan, cash flow, NPV, IRR, payback, debt service | | Market / commercial | Demand, supply, price, competition, marketing plan | | Managerial / organisational | Capability of the implementing agency, organisation structure, manpower | | Environmental | Impact on land, water, air, ecology; mitigation measures (IEE/EIA) | | Social | Effect on people, resettlement, gender, employment, community acceptance | | Legal / institutional | Laws, licences, permits, contracts, land | | Risk | Sensitivity and risk analysis of cost, time and demand | Civil-specific points inside these aspects: site investigation and geotechnical data, hydrology, design standards (NBC, IS codes), quantities and rates, construction method and equipment, construction period, quality control, safety, land and right-of-way, operation and maintenance cost over the life, and disaster resilience (flood and earthquake). ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Which best describes project appraisal? A. A critical, systematic assessment of a proposed project before funds are committed, ending in a recommendation B. The preparation of the detailed design drawings after approval C. The final audit of a completed project to measure its outcomes D. The day-to-day monitoring of a project during construction Answer: A. Appraisal is done before commitment of funds to judge technical, economic, financial, environmental and social worth. (Key point: Definition of appraisal) 2. Which are examined under the economic aspect of a civil project? A. B/C ratio, EIRR, NPV to the nation and shadow prices B. Licences and permits C. Resettlement D. Organisation structure Answer: A. These are the national-viewpoint measures. (Key point: Economic parameters) 3. Which is a civil-specific point examined in the appraisal? A. Site investigation and geotechnical data, hydrology, design standards and disaster resilience B. Only staff salaries C. Only advertising plans D. Only the brand of the equipment Answer: A. Civil projects need geotechnical, hydrological, standards and flood and earthquake resilience checks. (Key point: Civil-specific points) 4. Which belongs to the social aspect? A. Debt service B. Pavement design C. Effect on people, resettlement, gender, employment and community acceptance D. Cash flow and payback Answer: C. These are social impact items. (Key point: Social aspect) 5. What does risk analysis cover? A. Only legal permits B. Sensitivity of cost, time and demand C. Only taxes D. Only the soil type Answer: B. Risk analysis tests cost, time and demand changes. 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