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Abandon Project Valuation
In Thailand, there are many construction projects that have already been constructed but failed to complete. These are abandoned structures, abandoned properties or vacant buildings. These happen as there might be a delay in the project. However, in order to recontinue the project, there will be a repetition start-up fee once again. For example, the abandoned housing estate project for both low-rise projects and high-rise condominiums but in some cases, there are various kinds of structures such as hotels, apartments or even shopping malls. Sometimes, the properties and structures have been abandoned for a very long time which leads to an appropriate property inspection that must be conducted to know if they are still able to be used.
As for the valuation method, besides appraising cost based on the current condition, the Residual or Hypothesis Method must also be conducted. The results of these 2 methods will then be compared to determine the most plausibility and appropriate value. The documents that are required in this valuation are a construction permit, plan, Bill of Quantities (BOQ) and the utilization of the buildings when it is completed. Sometimes the alternative use would be applied upon special assumption from the client who wants to know, for example, the construction permit was originally an apartment. However, the client wants to know the project feasibility to change the utilization to be a hotel which can be conducted.
