CONSTRUCTION INVESTMENT PROJECT ASSESSMENT PROCESS

Appraisal of construction investment projects is the work of organizing, evaluating, reviewing and analyzing objectively, honestly and comprehensively about the contents of a construction project in order to ensure that the project brings high efficiency. 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 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. Evaluation of the necessity of construction investment projects:

- In-depth analysis to ensure that the investment project brings great and necessary benefits to society such as affecting the peoples 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.
- Sanitary measures to ensure the environment when conducting project construction.
- Alternatives and repairs.

b. Validate the 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 technical infrastructure facilities in the locality where the project is built.
- Strictly comply with regulations, laws, construction architecture according to local regulations.

d. Appraisal of organization, assessment and project management:

- Project management experience and 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. Consider the project owners experience in organizing, managing, constructing, managing and operating, and the qualifications of the team 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.
- Evaluation of investment capital.
- Expenses and profits brought when the project is put into use.