Appraisal with specific purpose for government agencies or private sectors who receive concessions and authorization from the government agencies to proceed with public development projects on their behalf. Projects may also be in the form of a joint venture between the government and the private sector. The reason for granting responsibility and authorization to the private sector is mainly down to the superior flexibility of operation the private sector is able to deliver in completing projects. Hence, the state’s burden and incurred costs are passed on to the private sector. As a result, the cost of expropriation or the eminent domain must be carefully obtained and examined by the private sector domain by conducting feasibility studies before any project proceeding.
The procedures regarding the valuation for compensation cost for government projects begin as the private sector identifies the project’s framework and subjected area to exercise the power of the eminent domain. This includes categorizing each right and ownership document for each landowner or holder of the right. The process has to be done carefully and thoroughly in order to cover every square inch of the area. Any plot of land being left may delay the delivery of the area, hence, delaying the project entirely. After the expropriation line or area subjected for the eminent domain has been clearly stated and officially announced publicly, the next step is conducting an on-site survey of the entire area to determine details of the assets and properties located on each plot of land; buildings, houses, trees, livestock and any special structures that may exist. It is also crucial to consider the nature of possession and ownership on the ground of each plot. Otherwise, problems may arise later, which result in the non-deliverable of the land to be developed upon. Subsequently, the valuation models and approaches are identified after the exploration of the land. Valuation may adopt multiple appraisal methods depending on the type of ownership, building type, type of usage, location, etc.
This type of appraisal requires the cooperation of qualified senior appraisers with a high level of expertise along with the assistance of a law firm specialized and familiar with the law on government’s expropriation. The law firm representative must be able to present at the public hearing, provide an appropriate explanation, and testify before the court when being called upon.
