Construction Investment Project Appraisal Process

Appraisal of a construction investment project is an objective, honest and comprehensive evaluation, review and analysis of the contents of a construction project in order to ensure that the project is highly effective. for investors and society as well as comprehensive analysis and design of the basic design scheme to ensure the feasibility of the project before proceeding with 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 investment projects:

- Overall analysis and analysis of each investment plan to help investors choose the most effective and quality solution.
- Assess the necessity of the project related to the following issues: Economy, society, technology used, environmental sanitation.
- Evaluating financial options, the ability to recover capital to help project sponsors make the right and most accurate decision on whether to lend capital or not.

Contents of the process of appraisal of construction investment projects:

1. Assessment of the necessity of construction investment projects:

- In-depth analysis to ensure that the investment project brings great and necessary benefits to the society such as affecting the living environment, ....
- Comprehensive assessment of the economic benefits that the project brings, ensuring the construction works in accordance with the approved planning.

2. Technical appraisal:
- Check, evaluate and analyze all factors, technical standards and technologies applied to the project to ensure that the project is qualified and feasible for implementation.
a. Appraisal and assessment of scale, technology and equipment used in the project.
- Evaluate all standards of technology and equipment used in the project to ensure the suitability and reasonableness with the construction project.
- Conformity of the project with the approved planning, effort and usability of the project work.
- Budget and current raw material prices.
- Sanitation measures to ensure the environment during project construction.
- Alternatives and repairs.

b. Check input factors:
- Evaluate the options for supplying construction materials, and calculate the appropriate reserve capacity to ensure the ability to supply materials quickly and often and avoid wasting capital.
- For imported materials that are not available locally, it is necessary to consider and evaluate the ability to supply this material in practice in terms of: Quantity, cost, delivery conditions, specifications, quality, payment maths.
c. Appraisal of the intended location of project construction:
- Ensure that the location of project construction is consistent with the general planning.
- Capable of development and expansion, meeting the requirements of environmental sanitation, fire prevention and fighting ability.
- Well connected with the basic technical infrastructure in the locality where the project is built.
- Strictly comply with the regulations, laws, construction architecture according to local regulations.
d. Appraisal of organization, evaluation and project management:
- Experience and project management ability of the investor.
- Experience in supervision and management of construction and operation with the same level of technical workers.
- Organizational form of project management and implementation. Considering the project owners experience in organization, management, construction, management and operation, the qualifications of technical workers.

3. Evaluation of project financial capital capability:
- Evaluate, analyze and calculate the total investment capital of the construction, and the capital recovery structure of the project.
- Evaluate investment capital.
- Expenses and profits brought when the project is put into use.