KATHMANDU UNIVERSITY

DEPARTMENT OF CIVIL ENGINEERING

Architecture program

SUBJECT: QUANTITY ESTIMATION

1 SUBJECT CODE: CIEG 342
YEAR: THIRD
SEMESTER: SIXTH
DATE: 9th March, 2022
Chapter 4: Valuation
Quantity estimation CIEG 342
Part 2 Raju Bhele
Lecturer 5/7/2023
Department of civil engineering
chapter 4 valuation, Raju BHELE Kathmandu University
Valuation of properties
 Valuation????
a house survey????

It’s won’t inform you of any structural damage to the property.

an impartial look at the property's true market value

an indication of the value of the property

 Valuation Report
 A Valuation Report is a basic inspection of a property that will
determine its value.
 A property surveyor will look at the property's location and
condition.
 It's important to note that a valuation report is not a house survey.
 A valuation survey will provide an impartial look at the property's
true market value to learn if what you're paying for it is accurate.
 It’s won’t inform you of any structural damage to the property.
 A valuation report gives an indication of the value of the property
 Practical consents on Valuation

• Valuation of residential building

• Valuation of land
• Legal provision
• Land rate as per Government
• Factors affections value of the land
 Valuation of residential building

i. Land area verification is to be done by triangulation method

ii. Valuation of land is calculated based on assumption that fair
market value (70%) and value of land as fixed by government
(30%) (note: it may vary not hard fast to take 70%, 30%)
iii. Detail estimate of quantity multiplied by item rate to determine
the value of building
iv. Actual value of the building is = cost estimated of the building –
depreciation
v. Fixed assets
vi. Final valuation = fixed asset + value of building
 Valuation of real properties in Nepal (Building) : General Practice
i. First step of building valuation is when foundation or DPC level is completed
ii. Up to DPC level plinth are rate may be lesser
iii. If the same building is completed up to superstructure the plinth area rate increase
accordingly
iv. If the same building is completely finished with plastering, painting, tile, marble etc. the
plinth area rate increase accordingly
 Steps for valuation for residential building in Nepal
1) Determination of plinth area (separate plinth area rate for Ground floor and other floor i.e.
1st, 2nd etc.,
2) Determine total value for all the floor area based on plinth area rate
3) Incorporate other facilities like electricity nearly (5-10%)
4) Incorporate water supply and sanitary nearly (5-10%)
5) Determine the total value of the building = 2+3+4
6) Deduct depreciation of the building based on its age normally 2% per year
 Note: for other type of building like commercial etc. the plinth area rate may be higher
and the rate of electricity and water supply may also be increased
Valuation of real properties in Nepal (Land)

i. Site verification
ii. Measurement on site
iii. Market rate analysis
iv. Office work or report preparation
 Site verification
1) To check client shown land
with cadastral map (see all
the periphery, location of
stream, check lalpurja, plot
no. verification)
 Measurement on site
1) Triangulation ( measure front face of
land, right of way of stream, road , check
bye laws as per municipality, reduce all
the requirement

 Market rate analysis

1) Do micro analysis by asking local
peoples, local market agents of real
state, assume all the factors like air port
area or river area or slope, market rate
asking to number of people, ask jagga Measurement on site
karobari, it may depend upon location,
population density, future market of the
land etc
 Office work and report preparation

 Determine real area and lal purja (plot area) and cadastral map (napi
naksa) area of plot
 Compare all the area (three above) from your measurement, lalpurja
and cadastral map, and choose least area for valuation purpose
 Decide market rate that you asked or found by different method
 See the government issued rate of that area
 Then give 70% of weightage to market rate and 30% to government rate
and find out weightage value ( 30%, 70% is just reference may vary)
 Banks or some loan issuing body will provide some 40%, 50% or even
60%, 70% of determined value of step 9 (depends upon bank to bank)
 Factors affecting the value of land (Land)
i. Situation/location
ii. Size
iii. Shape
iv. Road position
v. Frontage of plot
vi. Nature of soil
vii.Level
viii.Landlocked
ix. Utility of the land
x. Others…..
 Report Writing:
• Client detail ( owner? Firm? Consultancy?......it is generally bank X, Y or Z) but
borrower may be person or firm i.e. Ram , Shyam , Hari etc.
• Measurement unit of plot area ( land or building ) must be in square meter (m2)
e.g. nali, kattha, ana, dhur, biga, ropani etc, should be equivalence in square
meter for uniformity
• Be clear about it is valuation or re valuation
• Write detail method adopted for valuation
• Write limitations/scopes/risks/ future problems that can be forecasted etc.
• Drawings, data, detail if any should be presented
• Mention remarks if any
• If 2/3 of the value is not ensured from fair market then valuator may be
punishable (blacklist)…it depends upon laws of different institutions???
Report Writing:
o Cover page (contains owner, client, firm or consultancy detail with
contact detail and address)
o Valuation certificate: short summary certificate indication value signed
by valuator, date, with engineering council license number
o Introduction (introduction to valuation, property type, location, purpose
of valuation etc.)
o Scope (scope of the valuation)
o Methodology adopted (which type of valuation was adopted etc.)
o Factors taken in consideration for valuation (major factors, assumptions
etc.)
o Limitation (what were the limitation during valuation)
o Preliminary findings (findings if any, condition of property etc.)

Prepared By: Mahesh Raj Bhatt, Lecturer, Kathmandu University

 Report Writing:

o Physical inspection/site inspection (physical inspection detail if any)

o Missing components (if some components are missed )
o Brief discussion and approaches used for valuation
o Evaluation (table of calculation , mathematical part etc.)
o References if any
o Annexes
i. Copy of blue book/plot cadastral map, lalpurja etc.
ii. Inspection sheet
iii. Basis of rating
iv. Photograph etc. taken if any
v. Drawings etc.
vi. Estimation sheet if any
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