# Feasibility

> Feasibility means the probability of securing necessary resources for successful project completion.

**Term:** Feasibility  
**Last updated:** 2026-07-29

## Definition

## What Feasibility Means in a Contract

Feasibility, in contractual terms, describes the likelihood that a proposed project, deliverable, or obligation can actually be achieved given the resources, timeline, technology, and expertise available to the parties. Rather than being a vague business concept, feasibility is frequently formalized as a defined term tied to a specific study, report, or milestone that determines whether the parties proceed further under the agreement.

Contracts often use feasibility as a gatekeeping mechanism. Before significant capital, labor, or time is committed, one or both parties may be required to demonstrate, through evidence or expert assessment, that the intended outcome is achievable within agreed constraints. This protects both sides from being bound to obligations that cannot realistically be performed.

## How Feasibility Is Defined or Measured

Because feasibility is inherently a judgment call, contracts typically anchor it to measurable criteria rather than leaving it open to subjective interpretation. Common measures include availability of funding, access to necessary permits or licenses, technical viability, supply chain readiness, and staffing capacity.

Many agreements incorporate a formal feasibility study conducted by an independent consultant or internal technical team. The contract may specify the scope of the study, the standard of care applied, and the criteria that determine a positive or negative outcome. In some cases, feasibility is measured against a probability threshold, such as a stated likelihood of successful completion, rather than a binary pass or fail result.

- Financial feasibility, covering budget, funding sources, and return on investment
- Technical feasibility, covering whether the required technology or methodology exists and functions as intended
- Operational feasibility, covering staffing, logistics, and organizational readiness
- Regulatory feasibility, covering permits, approvals, and compliance with the law governing the contract

## Where Feasibility Appears in Agreements

Feasibility clauses commonly appear in construction contracts, technology development agreements, and any arrangement structured around delivering a defined project outcome. A [Project Agreement](https://www.genieai.co/en-us/template-type/project-agreement) may include a feasibility phase as a distinct stage before design or construction work begins, with payment or continuation contingent on a favorable feasibility outcome.

Feasibility assessments are also relevant in [Project-Based Contract](https://www.genieai.co/en-us/template-type/project-based-contract) structures where deliverables are broken into phases, since an early feasibility determination can prevent parties from investing further resources into an unworkable plan. In industries such as [Construction](https://www.genieai.co/industry/construction) and [Energy](https://www.genieai.co/industry/energy), feasibility studies are standard practice given the scale of capital investment and regulatory complexity involved.

Feasibility can also link to completion documentation. Where a feasibility study confirms viability and the project proceeds to completion, parties may later rely on a [Certificate of Completion](https://www.genieai.co/en-us/template-type/certificate-of-completion) to formally close out that phase and confirm deliverables were met.

## Why the Exact Wording Matters

Vague feasibility language creates significant risk. If a contract simply states that a project must be.

## Context

### Relevant circumstances

- New project inception and planning
- Resource assessment for ongoing projects
- Management decisions involving resource allocation
- Capital budgeting decisions

### Relevant sectors

- Construction
- Energy

## Relevant contract types

- [Project Agreement](https://www.genieai.co/en-us/template-type/project-agreement)
- [Project-Based Contract](https://www.genieai.co/en-us/template-type/project-based-contract)
- [Certificate of Completion](https://www.genieai.co/en-us/template-type/certificate-of-completion)

---

This is the Markdown representation of [https://www.genieai.co/en-us/define/feasibility](https://www.genieai.co/en-us/define/feasibility), provided for AI agents and crawlers. The HTML page is canonical. See [/llms.txt](https://www.genieai.co/llms.txt) for the full content map.