5 NOTES WHEN EVALUATING CONSTRUCTION WORKS

Valuation or valuation of a construction work is the work of determining the value of money converted to a construction work at the stage after the commissioning and completion of the work. So what should be noted when evaluating construction works prices?

1. Determination of types of works

Currently according to Decree 46/2015 ND-CP of the Government, construction works will be classified into the following categories:
Civil works: This is a group of housing works and a public group. public works such as schools, clinics, public houses, commercial buildings, hotels - motels, houses for traffic purposes, communication, stations, bus stations, broadcasting stations television - radio, sports works.
Industrial works: Including mineral, oil and gas exploitation works; Electronic industrial works; light industry, construction industry, manufacturing; Production works; Works used for metallurgical purposes ...
Agricultural and rural development works: Including irrigation works such as lake works; Dam works, water pumping stations; Water pipeline works, ditches, canals; Works for husbandry, cultivation, fisheries and other agricultural projects.
Traffic works: Including items such as airport and yard works; Railway, road and waterway works.
Infrastructure and technical works: Including works used for wastewater treatment, water supply, drainage, construction; Landfill works, landfills used for burial, landfill and waste treatment; Works with urban lighting functions.
Construction works for national defense and security: Including works executed on the basis of capital from the Ministry of Public Security or the Ministry of National Defense; Works for security and defense purposes.

2. The procedures to prepare

When conducting valuation of construction works, the subject stands out valuation should prepare the following documents:
Form valuation requirements (in the form of the evaluation unit)
Authorizations Building construction Construction
ownership certificate Construction
drawings, engineering documents Construction
completion drawings
Construction contracts with contractors Construction
cost estimates
Record of work completion acceptance

3 Assessing the current state of works

When conducting the appraisal of construction prices, the appraisers or the unit conducting the appraisal of prices need to conduct actual survey to assess the current construction status, see depreciation; What is the percentage of damage and degradation of the building.
After obtaining conclusions about the current state of construction, the price appraisal unit will select the method of valuation that is most suitable for that type of construction work.

4. Choosing a valuation method

Construction works are a particular asset class. They both carry the common features of the type of real estate property, but there are also types of construction works belonging to Real Estate (capable of being moved). Therefore, depending on the specific type of project, the price appraiser will choose the most suitable valuation methods.
Currently under Valuation Standards Vietnam, constructions often used the following valuation methods

• Cost Method
• Method income capitalization
• method Profit
• Method market

5. Valuation Unit prestigious construction works

Currently in Vietnam, the INDOCHINE International Appraisal & Investment Joint Stock Company is one of the top brands in the field of price appraisal for construction works. INA is proud to be one of the investment consulting and appraisal companies licensed annually for appraisal activities according to the standards of the Price Management Department - Ministry of Finance of Vietnam.
Valuation Certificates issued by INDOCHINE have legal validity and are recognized and used by banks, businesses, and state agencies nationwide. With the criteria: "Scientific - Accurate - Efficient - Providing reliable and professional valuation services".