Define: Technical feasibility
In a contract, technical feasibility is a party's confirmation that suitable technology, methods, or expertise already exist and are reasonably likely to achieve the agreed requirements. It is often a condition precedent to proceeding with a project, milestone, or deliverable, and it protects both parties from committing resources to work that current technology cannot realistically support.
Legal accuracy standard set & glossary spot-checked by Imad Mohammed Nazar , Skadden-trained M&A lawyer, Legal Engineer at GenieAI
What Technical feasibility Means in a Contract
Technical feasibility, as a contractual concept, refers to a documented assessment that the technology, tools, skills, or infrastructure needed to complete a task exist and are capable of meeting the specified requirements within an acceptable degree of certainty. Rather than a vague optimism that something might work, feasibility language in contracts usually points to a concrete, evaluable state: known methods, available components, and a reasonable expectation of success based on current capability rather than speculative invention.
Parties reference technical feasibility to allocate risk before committing time and money. If a supplier or developer promises to deliver a solution, the buyer often wants assurance, expressed contractually, that the promise rests on demonstrable technical grounds rather than untested ambition. This is especially common in agreements involving software development, engineering, product design, or any deliverable where the underlying science or technology is not yet fully proven at the time of signing.
The term also functions as a gatekeeper. Many contracts make progress to the next phase conditional on a feasibility determination, meaning the parties agree not to proceed with build, manufacture, or rollout until the relevant technology has been shown, or reasonably predicted, to work as intended.
How Technical feasibility Is Defined or Measured
Because feasibility is inherently a judgment call, contracts typically try to anchor it to measurable or observable criteria rather than leaving it entirely open-ended. Common measurement approaches include technical specifications, prototype testing results, expert assessments, industry-standard benchmarks, or a defined success rate for a pilot phase.
Some agreements incorporate a feasibility study as a discrete contractual deliverable, with its own scope, timeline, and acceptance criteria. The study's conclusions, rather than a party's subjective belief, then become the trigger for further obligations. Others rely on a more general standard, such as requiring technology that is.
Relevant Circumstances
- Developing a new software or program
- Conducting scientific research
- Designing a new product
- Managing a project from inception to completion
Relevant Sectors
- Technology
- Science and Research
- Engineering
- Project Management