Score under construction

Today one of the most important indicators of investment in fixed assets, housing and other programs is the state of the market construction in progress. Investment potential of this market is huge. Construction in progress can be viewed as a failed investment projects, where specific investors are prone to high-risk conditions, unfavorable investment climate could not achieve their goals. To return at least part of the invested funds, many of them are ready to abandon the ongoing projects and to realize the objects of unfinished construction on the open market more adventurous owners. Practice shows that the evaluation of assets under construction at a cost of cost does not reflect the interests of the participants of the market. Therefore, the market construction in progress here has long been in stagnation, and unfinished construction projects can not find an efficient owner. In a rapidly changing market conditions, evaluation of assets under construction - the problem is very urgent and complex, requiring appraisers from the expertise and experience. Evaluation of assets under construction is made for the following purposes: 1. Staging facility under construction on the balance of the organization. 2. Definition of fair market value of the property under construction, which reflects the construction and the market price situation. 3. Decision on further use of the object under construction. Answer to question the continued functioning of an object depends on its degree of maturity and the possibility of changing its operational mission. Sometimes the frame system "unfinished" allows you to build on its basis a completely different building than the expected ten to fifteen years ago. 4. With the reorganization of transformation (creation of the holding, allocation units, bankruptcy) 5. Purchase or sale of an unfinished building. Most often, the latter-day owner expect additional costs associated with paperwork, technical expertise and connections of various communications. Modern investors today are more willing to acquire the object under construction, together with that given in the order of the packet of documents. >

6. In order to effectively dispose of land on which the object is under construction. In most cases the value of the amount of land on which the objects of unfinished construction. With the evaluation can determine the options the most efficient use of land, on which the unfinished The assessment of uncompleted construction is applied to objects such as buildings or structures. In order to score under construction was the objective, it is necessary to correctly classify the object evaluation under construction. Score under construction uses several methods of classification of objects of unfinished construction. The most significant for the assessor is to classify in terms of availability of the unfinished facility capacity to act as a profitable real estate. Most of the buildings and facilities for public use, as well as residential buildings can be used as income property. Evaluation of construction in progress with these types of uncompleted properties, typically uses the cost and income approach. Buildings and facilities for production purposes, in turn, can be divided into two large groups. The first group includes buildings and special purpose for which the possibility of changing the functional purpose of virtually non-existent due to the nature of constructive solutions. The second group includes objects that can be used to contain different types of productions, and, therefore, have a more versatile space planning and design solutions. Score under construction in the form of objects belonging to the first group, mainly used the cost approach. Score under construction in the form of objects belonging to the second group is determined using a cost-based, and income approach. Score under construction practically does not use an approach based on comparative analysis of sales. Score under construction defines fair market value of the property under construction, which reflects the construction and the market price situation. In addition, evaluation of construction in progress can help to identify options for the most efficient use of the land on which it has under construction. It should be noted that one of the most important constituent elements of initial permits are conditions for engineering object, ie coordinated urban (regional) services connecting conditions of the object to the networks of water supply, sewerage, gas, electricity, etc. Typically, the technical conditions for engineering support of projects under construction have a limited duration. This period is an average of 3-5 years. If the period of initial permits expired or planned changes in the functional purpose of the object requires additional capacity in terms of engineering, the costs associated with obtaining a new set of initial permits must be considered anew. Documents for evaluation under construction 1. Certificate of registration of ownership of an object under construction (if the registration was carried out). 2. Documents confirming the right to land. 3. Permits for construction. 4. General Explanatory Note to the construction project. 5. Accounting statement on the carrying value of the building (if the owner of the building - a legal person). 6. The act of preservation is not completed construction of the object (if the object is preserved). 7. Information about the encumbrances of an object under construction, including pledged or debentures, and other restrictions on the use of an object. 8. Industry classification of the object 9. Construction start date and end date of construction 10. Information about the structural system of a building (construction) 11. Permissible annual power consumption (water, electricity, gas, etc.) 12. Building area: 13. Degree of completion of construction as a whole and for individual structural elements separately