Construction Investment Project Appraisal

Appraisal of a construction investment project is the organization of honest and comprehensive evaluation, review and analysis of the contents of a construction project to ensure that the project brings high efficiency. for the investor and the society as well as comprehensive design analysis and reference to the basic design project to ensure the feasibility of the project before commencing construction.

How to make a construction investment project effective for you is the responsibility that the appraisal of construction investment projects will do.

Benefits of the appraisal of construction work investment projects:

Overall analysis of each investment plan helps investors choose the best quality and most effective solution.

- Evaluate the necessity of the project related to issues: economy, society, technology use, environmental sanitation.

- Evaluate financial options, capital recovery to help project sponsors have the best and most accurate decision on whether to lend or not.
Contents of the process of appraisal of construction work investment projects:

1. Assessment of the necessity of construction investment projects:

- Analyzing in-depth to ensure that the investment project brings great benefits and is very necessary for the society such as affecting the living environment, ...
- Comprehensive assessment of economic benefits brought about by the project, ensuring that the construction works in accordance with the approved planning.

2. Technical appraisal:
- Examining, evaluating and analyzing all elements, technical standards and technologies applied to the project to ensure that the project is qualified and feasible for implementation.

a. Evaluation and evaluation of the scale, technology and equipment used in the project.
- Evaluate all technology standards and equipment used in the project to ensure the suitability and appropriateness with the construction project.
- The projects conformity with the approved planning, effort and capacity of the project work.
- Current budget and current raw material prices.
- Hygiene measures to ensure the environment when implementing the project.
- Replacement and repair plans.

b. Evaluate the inputs:
- Evaluate plans for supplying construction materials, and calculate appropriate stockpiles to ensure the ability to supply materials quickly and often and avoid wasting capital.
- For imported raw materials not available in the locality, it is necessary to consider and evaluate the ability to supply this raw material in practice: quantity, price, delivery conditions, specifications, quality, bar maths.
c. Appraisal of the intended location for project construction:
- Ensure that the project construction location is consistent with the general planning.
- Ability to develop and expand, meet requirements on environmental sanitation, fire and explosion prevention.
- Well connected with the local technical floor of the project construction.
- Strictly complying with the regulations, laws, architecture and construction according to local regulations.

d. Appraisal of organization, evaluation and project management:
- Investors experience and ability to manage projects.
- Experience in supervision, construction management, operation with technical workers.
- Forms of project management and implementation. Consider the project owner in terms of experience in organization, construction, management and operation, and the qualifications of a team of technical workers.
3. Appraisal of financial capacity of the project:
- Evaluate, analyze and calculate the total work construction investment, and the capital recovery structure of the project.
- Evaluation of investment capital.
- The cost and the profit brought when putting the project into use.