CLASSIFICATION AND PURPOSE OF CONSTRUCTION WORK VALUATION

Construction works include civil construction, industrial, traffic, agriculture, rural development, technical infrastructure, and other types of work.

1. WHAT IS CONSTRUCTION?

Construction works are products created by human labor, construction materials, and equipment installed in the works, linked and positioned with the soil, which may include the underground part and the upper part. ground, below water, and above water, built according to design. Construction works include civil, industrial, traffic, agriculture, and rural development, technical infrastructure, and other works.

Classification of construction works:

According to Decree 46/2015 ND-CP of the Government, construction works will be classified into the following categories:

Civil works: including houses and public works

• Housing includes condominiums and individual houses
• Public works include cultural works; education projects; medical works; commercial and service works; working houses; hotels, guest houses; traffic service houses; and houses serving telecommunications, radio and television broadcasting towers; train stations, bus stations; and sports facilities of all kinds.

Industrial works include coal and ore mining works; oil and gas exploitation works; chemical and petrochemical works; works for petrol, oil, liquefied petroleum gas and gas and oil distribution pipelines; metallurgical works; mechanical works, manufacturing; electronic-informatics industrial works; energy works; light industrial works; food industry works; construction material industrial works; production works and warehouses for industrial explosives.

Traffic works include road works; railway works; waterway works; bridges; tunnels; and airports.

Irrigation works include water reservoirs; dams; drains; pump stations; wells; water pipes; channels; and works on canals and embankments of all kinds.

Technical infrastructure works include water supply and drainage works; water treatment factory; waste treatment works: landfills, landfills; waste treatment plant; and urban lighting works.

2. CONSTRUCTION ASSESSMENT METHODS

Construction works are a specific type of property, both as a type of real estate but also as movable (movable) buildings. Therefore, it is necessary to choose an appropriate valuation method. Some commonly used methods with high accuracy include:

Cost method

Is a method of valuing construction works based on the cost of creating a similar work to estimate the market value of the construction work to be valued.

Income method

Is a method of valuing construction works based on the conversion of future net income streams that can be received from exploitation, used to estimate the market value of the construction to be valued.

Profit method

Is a valuation method based on the profitability of using construction work to estimate the market value of the construction to be valued.

Residual method

Is a method of valuing construction works based on estimating the value of construction works after development minus all costs incurred to create such development.

3. PURPOSE OF EVALUATION OF FACTORY, CONSTRUCTION WORKS

• Buy, sell, transfer.
• Bank loan.
• Joint ventures.
• Equitization and establishment of enterprises.
• Debt settlement, business dissolution.
• Compensation, insurance, claims.
• Accounting, and tax calculation.
• Consulting and setting up investment projects.

4. FACTORY ASSESSMENT DOCUMENTS NEED TO PREPARE:

• Decision approving investment project
• Decision approving total investment amount
• Decision approving the budget
• Feasibility study report, feasibility progress
• Profile of construction design drawings
• Project costing documents
• Dossier for acceptance of each phase, full acceptance (if any)
• As-built drawing (if any)
• Project settlement documents
• Minutes and other relevant documents.

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SunValue is a reputable and independent appraiser, with more than 20 years of establishment and development, the leading real estate appraiser in Vietnam, the leading brand in Vietnam 2023, the strong brand in Asia 2020, pioneering the application of technology in valuation, helping to monitor real estate price fluctuations, completing price data, etc.

The system with 4 branches and more than 50 transaction offices nationwide, 2 representative offices in the US, and Australia, ... provides valuation services such as business valuation, real estate appraisal, and project valuation. investment projects, resource valuation, real estate appraisal, etc., for investment, loan, business merger & acquisition, equitization, debt settlement, study abroad...