Appraisal of Factory prices - Construction projects

You need to determine the value of assets such as factories, plants, factories, warehouses, construction works,... for the purposes: bank loans, mortgages, investments, and shares consolidation, debt settlement, dispute resolution, asset division,...

Hoang Quan Appraisal - a leading reputable and professional appraisal organization for factories and construction with more than 20 years of experience and a team of appraisers rich in knowledge and professional skills, we will support you in all investment transactions.

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Factory - Construction works are important assets of small individuals, organizations and medium and large enterprises. To determine the value of these assets in the most accurate way, you need to conduct the valuation of the factory - construction. This process helps determine the value of the property for many different purposes, ensuring the accuracy, objectivity and interests of the parties participating in the transaction.

What is the valuation of the factory?

Factories, construction works, enterprise, or warehouses are the type of industrial construction, with an area - capacity on a larger scale than the usual housing, shop, or office. Factories or construction works are a large number of workers or machinery, production lines, and input materials for the enterprises production, processing, and storage of goods.

Since they are not designed for residential purposes, factories, warehouses, and workshops have specific characteristics in terms of design and supporting infrastructure, such as: electricity, water, fire protection, waste treatment, ventilation,...

Valuation of factory is the process of determining the monetary value of a factory in accordance with legal regulations. The value of a factory is affected by various factors such as its location, area, condition, construction quality, design, and so on. The factory valuation process helps to determine the asset value accurately and supports various purposes depending on the clients needs.

Types of factories that require valuation

Factories, manufacturing plants, and warehouses are often classified according to various criteria, including: manufacturing industry, scale, usage, technical characteristics - construction materials, construction area,...

Classification of factories by technical specifications and construction materials

• Appraisal of steel-built factories (pre-engineered steel buildings): are fully assembled using steel structures. They are lightweight, easy to relocate, and commonly used for temporary or mobile factories. The entire column, beam, and girder system of the factory is made of steel trusses, while the foundation is still made of concrete and steel reinforcement. The standard thickness of brick walls ranges from 10 to 20 cm, with a height of 2.2 to 2.8 m. Walls above 2.8 m can be made of corrugated iron sheets as partitions depending on the factory design. The roof of the steel truss factory uses specialized insulated corrugated iron.
• Appraisal of reinforced concrete factories are a popular type of factory that has been used for a long time. They are known for their strong structure, good load-bearing capacity, and long lifespan. They are often used in industrial manufacturing. The entire factory, including the foundation, columns, and beams, is made of reinforced concrete. The walls are built with bricks or non-fired materials, and the thickness varies depending on the design. The roof is made of color-coated galvanized steel sheets with specialized insulation, fire resistance, and noise reduction. The type of steel used for this type of factory is usually black purlin or galvanized purlin.
• Appraisal of wooden factories: are built using wood as the primary structural material. They are known for their lightweight construction and ease of construction. They are often used in agricultural production facilities.

Classification of factories by function and purpose

• Appraisal of non-office factories: are primarily comprised of workers and production lines to ensure manufacturing operations and create finished products such as consumer goods, machinery, electronics, food, cosmetics, etc.
• Appraisal of combined production and office factories: are commonly built by small and medium-sized businesses. They are divided into two functional areas: the production workshop and the office.The construction of combined production and office factories offers several advantages for businesses, including: cost savings, efficient land use, improved communication and collaboration, streamlined operations

Classification of factories by industry

• Appraisal of agricultural production facilities (crop production facilities, animal production facilities, food processing facilities,...): used to serve the production and processing of agricultural products.
• Appraisal of Industrial factories (appraisal of automotive manufacturing, appraisal of electronics manufacturing, appraisal of textile manufacturing, appraisal of food processing, appraisal of industrial factory prices, appraisal of solar power plants, appraisal of hydroelectric plants,...): used to serve the production and processing of industrial products.
• Appraisal of processing factories (oil refineries, chemical plants, paper mills,...): Used to process products from raw materials.

Classification of factories by construction scale

• Appraisal of small factories: Less than 500 square meters, These factories are constructed using lightweight materials, have a simple structure, and are low in construction cost. Small and medium-sized enterprises (SMEs) often choose to build this type of factory for the production of furniture, molds, and other products
• Appraisal of medium-sized factories: These factories range in size from 500 to 10,000 square meters. They are usually built with durable materials and have a more complex structure than small factories, resulting in higher construction costs. Large enterprises often choose this type of factory for the production of automobiles, electronic components, electrical and electronic equipment, and other products.
• Appraisal of large factories: These factories have a floor area of over 10,000 square meters and are usually built on large land areas. They have a robust structure and require the highest construction cost among all types of factories. Multinational corporations build large factories for the production of steel, chemicals, and other products.

Businesses will rely on the classification information to choose the type of factory that suits their needs and financial capabilities. The results of the factory valuation will vary depending on the number and type of factories to be valued.

What is valuation of construction?

A construction project is a product created by human labor, building materials, equipment installed in the project, linked and positioned on the ground, and can include underground, above-ground, underwater, and above-water sections, built according to the design. Construction works include civil works, industrial works, transportation works, agricultural and rural development works, technical infrastructure works and other works

Valuation of construction is the process of assessing and determining the monetary value of a construction project in accordance with legal regulations. This is done by collecting detailed information about the project, inspecting its technical condition, evaluating location factors, and using specialized valuation methods to arrive at a specific figure for the projects value.

The value of a construction project depends on many factors, including: location, scale, area, condition, design, intended, market,...

Types of construction projects that require valuation

Pursuant to Decree 46/2015/ND-CP of the Government, construction works shall be classified into the following types:

• Valuation of civil construction works: Civil construction works are types of construction works that serve the needs of human living, production, and business. They are often divided into the following categories: residential buildings (apartments, single-family houses), factories, commercial and service buildings, public buildings (cultural buildings, educational buildings, medical facilities, sports facilities, transportation facilities, etc.)
• Valuation of industrial construction works: These structures are built to serve the process of production, processing, and storage of goods. Some examples include: factories, warehouses, coal, mineral, oil and gas mining facilities, chemical and petrochemical plants, gasoline, oil and liquefied gas storage facilities and gas and oil distribution pipelines, metallurgical works, mechanical and manufacturing works, electronics and informatics industry works, energy works, light industry works, food industry works, building materials industry works, industrial explosives production and storage facilities;...
• Valuation of technical infrastructure construction works: transportation works, railway stations, airports, bus stations, water supply and drainage works, power supply, lighting, telecommunications, etc.
• Valuation of agricultural construction works: greenhouses, net houses, ponds and lakes, farms,...
• Valuation of other construction works: religious and spiritual buildings, historical monuments,...

The role of factory and construction appraisal

The valuation of factory - construction plays a crucial role in economic and financial decisions.

The value of factories and construction is a key factor influencing decisions related to buying, selling, transferring, borrowing, and investing. Therefore, obtaining accurate information about the value of factories and construction projects is essential. This information helps stakeholders accurately assess the value of their assets, determine the selling or buying price of the factory, and make sound and effective investment decisions.

In cases where there is a dispute between stakeholders regarding the value of a factory or construction project, the valuation process will provide the stakeholders with a legal basis for resolving the dispute quickly and effectively.

Furthermore, the valuation of factories and construction projects also helps to enhance market transparency and create a level playing field for all stakeholders involved in transactions.

Since this is an important activity with a significant role in the economy, it needs to be carried out by valuation units that are qualified and competent according to the regulations of the law.

The purpose of valuation of factory - construction 

Customers often choose the factory and construction valuation service of Hoang Quan Appraisal for the following purposes:

• Purchase and transfer: once the value of factories, plants, enterprises, warehouses, construction works, etc. has been determined, the parties involved in the purchase, sale, and transfer will have a basis for negotiation and contract signing.
• Bank loan: banks use the results of the valuation of factory and construction as a basis for determining the value of collateral, which serves the purpose of credit granting.
• Joint venture contribution: the contributing parties will have accurate information about the value of the factory and construction works, and make appropriate capital contribution ratios.
• Corporatization and enterprise establishment: state agencies use the appraisal results as a basis for determining the value of state-owned assets, carrying out corporatization and establishing enterprises.
• Debt settlement and business dissolution: Valuation of factory and construction helps determine the value of the companys assets. This allows the company to quickly resolve its debts and liquidate.
• Compensation, insurance, and complaints: state agencies and enterprises will rely on the appraisal results to determine the value of damaged assets, determine the level of compensation, pay insurance claims, or resolve complaints.
• Accounting and tax calculation: after determining the value of factories, workshops, etc., businesses will have a clear understanding of the value of their assets for accounting and tax calculation purposes.
• Investment consulting and project development: valuation of factory and construction helps businesses have a basis for determining the value of assets, serving the purpose of investment consulting and project development.

Valuation methods for factory - construction 

The value of a factory or construction is determined based on the factors that influence its value. The most commonly used and precise methods for determining the value of a factory or construction project currently include:

Replacement cost method

The replacement cost method is a method of the valuation of factory and construction that is based on the cost of rebuilding a similar structure. This valuation method is applied when the factory or construction work has a high value, is highly homogeneous, and can be rebuilt.

Formula: V = TC + Vt + Vs

Notes:

• V is the value of the factory or construction work.
• TC is the new construction cost (material costs, labor costs, machinery and equipment costs, management costs, contingency costs).
• Vt is the land value.
• Vs is the value of assets attached to the factory or construction work (machinery and equipment, electrical and water systems,...).

Income approach

The income approach is a method of the valuation of factory and construction that is based on the propertys income-generating potential. It is applied when the factory or construction work has a high income-generating potential and can generate profits.

Formula: V = I / r

Notes:

• V is the value of the factory or construction work.
• I is the cash flow generated from the operation of the factory or construction work over a certain period of time.
• r is the discount rate.

Comparison approach

The comparison approach is a method of the valuation of factory and construction that is based on the value of similar properties that have been transacted in the market. This method is applied when the factory or construction work has a relatively low value, is highly homogeneous, and can be compared to similar properties.

Formula: V = Vc x K

Notes:

• V is the value of the factory or construction work to be appraised.
• Vc is the value of similar properties that have been transacted in the market.
• K is the adjustment coefficient (accounting for the differences between the factory or construction work to be appraised and the similar properties that have been transacted in the market).

Legal documents for valuation of factory - construction

Customers who need to appraise the value of factories and construction works should prepare in advance one of the following legal documents for construction works:

• Land use certificate.
• Certificate of ownership of construction works.
• Construction permit (if the land use certificate does not show the construction works on the land).
• Cost estimate and settlement of construction works (if any).
• Land use right purchase and sale contract for the repurchase of land use right/industrial park infrastructure.
• Land lease contract, infrastructure purchase and sale contract.
• Drawing of the current status of the overall construction site purchase and sale (in case the ownership right has not been granted in the land use certificate/no construction permit).
• Other relevant records and documents.

Regulations of valuation of factory - construction

In Vietnam, the valuation of factory and construction is regulated by the following legal documents:

• Appraisal Laws 2012.
• The Law on Construction 2014.
• The Land Law 2013.
• Decree No. 15/2021/ND-CP issued on March 03, 2021, by which the Government details the implementation of a number of articles of the Law on Construction
• Circular No. 16/2021/TT-BXD issued on July 30, 2021, by which the Ministry of Construction details a number of contents on construction works appraisal.

Valuation process for factory and construction

The process of valuation of factories and construction in Vietnam is regulated in Article 33 of Circular No. 200/2014/TT-BTC dated December 20, 2014 of the Ministry of Finance. The valuation unit must follow the following steps:

Step 1: Preparation:

Request the client to prepare the appraisal request dossier, including:

• Appraisal request document.
• Technical documentation of the factory - construction works to be appraised.
• Other relevant documents and materials.

Conduct a preliminary study of the appraisal request dossier, determine:

• Appraisal scope.
• Appraisal content.
• Appraisal method.
• Appraisal time.

Step 2: Field survey:

• The appraiser conducts a field survey of the factory - construction works to be appraised.
• Collect necessary information and documents.

Step 3: Analysis and evaluation:

1. The appraisal unit analyzes and evaluates the factors affecting the value of the factory - construction works.

Step 4: Value determination:

• By applying the selected valuation method, the valuation agency determines the value of the factory - construction works.

Step 5: Preparation of valuation report:

• Prepare a valuation report in accordance with legal regulations.

Step 6: Delivery of results and valuation certificate:

• Deliver the results and valuation certificate to the client requesting the appraisal.

The cost of valuation of factory - construction

Factors affecting the value of factories and construction works

The value of each type of factory, plant, enterprise, warehouse, construction work, etc., will change depending on factors such as:

• Location: Factories and construction works located in convenient locations with easy access to transportation, raw materials, and labor will have higher values.
• Size: Factories and construction works with large areas and many usable spaces will have higher values.
• Condition: The value of a factory will increase depending on its actual condition and whether it is properly maintained and regularly
• Construction quality: Using high-quality building materials with a solid structure will help increase the value of factories and construction works.
• Construction/rental/acquisition cost: Determining the initial construction cost (including factory construction cost, residential building cost, company cost, etc.), factory purchase price, warehouse rental price, warehouse rental price in Ho Chi Minh City, warehouse rental price in Hanoi, industrial park rental price, and solar factory rental price, etc. will help owners determine whether the cost is high or low through the construction cost calculation table.
• Design: Factories, businesses, warehouses, buildings, etc. with modern designs that suit their needs will be valued higher.
• Purpose of use: Depending on the purpose of use, the factory will be built with different structures and qualities. Therefore, its value will also have a clear difference.
• Market: Competition, market price fluctuations, socio-economic conditions, government policies on real estate,... also change the value of the property.

Carefully analyzing and evaluating these factors will help the valuation organization make the most accurate valuation results for factories and construction.

Fee schedule for factory and construction valuation of Hoang Quan Appraisal

In addition to valuing factories, plants, businesses, warehouses, construction works, etc., Hoang Quan Appraisal also provides many other valuation services such as:

• Valuation of real estate: houses, offices, commercial centers, retail stores, etc.
• Valuation of townhouses - apartments condominiums, high-rise buildings, etc.
• Appraisal of land: land value, leasehold land, etc.

Hoang Quan Appraisal - The leading provider of factory and construction valuation services in Vietnam

Hoang Quan Appraisal is one of the leading valuation companies in Vietnam, specializing in providing factory and construction valuation services. With more than 21 years of experience in the valuation field, Hoang Quan Appraisal has successfully completed thousands of factory and construction valuation projects for individual, corporate and organizational clients.

Hoang Quan Appraisal is highly appreciated for:

• A team of experienced and highly qualified valuers who are professionally trained and have certificates of practice issued by the Ministry of Finance.
• A scientific and rigorous valuation process that ensures objectivity, honesty, and accuracy.
• The use of appropriate valuation methods for each type of asset being valued.
• Valuation reports that provide full information in accordance with regulations, have high legal value, and meet all customer needs.

⋙⋙⋙ Contact Hoang Quan Appraisal now for a free consultation and quotation!

HOANG QUAN APPRAISAL COMPANY LIMITED

• Address: Hoang Quan Appraisal System
• Phone number: 0934.252.707
• Email: contact@sunvalue.vn
• Facebook: Thẩm Định Giá Hoàng Quân

FACTORY AND CONSTRUCTION VALUATION SERVICES - HOANG QUAN APPRAISAL COMMITS:

☑️ Immediate consultation and free support upon customer contact. Quotation within 1 hour with EXTREMELY ATTRACTIVE valuation fee.

☑️ SUPER FAST delivery of valuation results.

☑️ Valuation results and certificates comply with the regulations of the Ministry of Finance, ensuring high legal value and accuracy. Accepted by domestic banks and enterprises.

☑️ 100% confidentiality of customers valuation information.

Conclusion

Valuation of factory - construction is a necessary activity to determine the exact value of assets, serving various purposes. To ensure your rights, you need to choose a reputable, professional valuation company with experience and a team of knowledgeable and skilled valuers.

Hoang Quan Appraisal - True Value, Lasting Benefits!

Source: hqa.com.vn