Valuation methodology of non - use in the first and upper

floor:
Through the scope of our real estate business and dealing with
the process of valuation on a daily basis, we put the stages of
the construction of a house consisting of a first floor (bear two
floors) according to what is customary locally:
m To describe the stage
1 Upon completion of setting the
rules
2 Upon completion of the
foundation works
3 Upon completion of the beam
work and**** the first floor
4 Upon completion of the bricks
works of the first floor
5 Upon completion of the casting of
the slab on grade
6 Upon completion of the roof
works
7 Upon completion of *****
8 Upon completion of the inside
plastering works
9 Upon completion of Ceramic of
bathrooms and kitchens
10 Upon completion of the outside
plastering works
11 Upon completion of Electrical
installations and waterproof for
bathrooms and kitchen
12 Upon completion of all slabs on
grade
13 Upon completion of primer and
putty works
14 Upon Installing the doors and
windows
15 Upon completion of Installation of
sanitary materials and electrical
lights
16 Upon completion of Sewage
works
17 Upon completion of Dyeing and
cleaning
18 operational works of home and
trial period

These stages are deemed known when building a one-floor

house that can bear additional first and upper floor upon which
a percentage shall be considered for each stage of the total
percentage of building a one-floor house(100%).
The Percentages set out in the table are recognized percentage
and are divided by the size of each stage and the extent of their
consumption of building materials.we took into account that
the period of time to completion of each stage, and It is
considered in terms of approach a smooth and scientific way
from the practical aspect of the valuation process cause It is
based on concrete stages.
Percentage of the contribution of each stage in the total
percentage of construction:
In this stage we talk about the contribution of each percentage
in each stage to outreach for the final stage to build a first floor
Prepared for the building of the first and upper floor.
m Description of the stage Percentage%
1 Upon completion of setting the 13
rules
2 Upon completion of the 2.5
foundation works
3 Upon completion of the beam 2.5
work and**** the first floor
4 Upon completion of the bricks 12
works of the first floor
5 Upon completion of the casting of 10
the slab on grade
6 Upon completion of the roof 7
works
7 Upon completion of ***** 3
8 Upon completion of the inside 8
plastering works
9 Upon completion of Ceramic of 3
bathrooms and kitchens
10 Upon completion of the outside 5
plastering works
11 Upon completion of Electrical 4
installations and waterproof for
bathrooms and kitchen
12 Upon completion of all slabs on 5
grade
13 Upon completion of primer and 5
putty works
14 Upon Installing the doors and 5
windows
15 Upon completion of Installation of 5
sanitary materials and electrical
lights
16 Upon completion of Sewage 2
works
17 Upon completion of Dyeing and 5
cleaning
18 operational works of home and 3
trial period

The table motioned above is an essential element in the

valuation process because it contains all data related to the
construction in its normal state and without talking about the
imbalance that has occurred which different in our reality from
slight to moderate to heavy damage.
*********
The subject of non-use is a comprehensive term and reaches
in the most range to demolition and reconstruction.
We will give the next example to understand the subject
clearly:
Example:
A person rented a shop from a second person, opened a
supermarket, and did everything necessary to operate it by
purchasing the objects and establishing the supermarket.
However, during the use, he discovered that the shop was not
suitable for exploitation, while he used it, then what shall the
compensation include?
 The compensation shall include the value of losing from
daily sales.
 The transferring cost of purposes to another shop.
 Refund of rent.
  The fees relating to the shop opining.
Usually, the usufruct comes in full, especially if the
damage is in the initial and fundamental stages.

General Note:
In the field of construction, there are slight damages and other
heavy, the slight in no way does not affect the beyond such as
paint, doors and windows because they are called damage
specified.
There are damages that have consequences and effects of what
is coming and is called moving and movable damage, which
gradually move to the element that follows and adversely affect
the operation of the element's operation or may lose part of it.

This project is considered integrated and therefore any

part of it is considered essential for us in the process of
valuation.

The ground floor is similar to a human foot which carrying a

mass of its body and making him stand up and any disorder
that will make this body unable to move and the damage shall
move into the rest of the body.

Classification of stages:
Through the foregoing, the table will be referenced and the
classification of the stages to basic and secondary to determine
the accuracy of the utilization criteria.
m Description of the stage Classification
1 Upon completion of setting the basic
rules
2 Upon completion of the basic
foundation works
3 Upon completion of the beam basic
work and**** the first floor
4 Upon completion of the bricks basic
works of the first floor
5 Upon completion of the casting of basic
the slab on grade
6 Upon completion of the roof basic
works
7 Upon completion of ***** basic
8 Upon completion of the inside secondary
plastering works
9 Upon completion of Ceramic of secondary
bathrooms and kitchens
10 Upon completion of the outside secondary
plastering works
11 Upon completion of Electrical secondary
installations and waterproof for
bathrooms and kitchen
12 Upon completion of all slabs on secondary
grade
13 Upon completion of primer and secondary
putty works
14 Upon Installing the doors and secondary
windows
 15 Upon completion of Installation of secondary
sanitary materials and electrical
lights
16 Upon completion of Sewage basic
works
17 Upon completion of Dyeing and secondary
cleaning
18 operational works of home and basic and
trial period secondary

This classification is considered necessary during the

evaluation's stage because if it is a defect occurs to the basic
work, it can not talk about a ***, but the secondary is a simple
thing can be modified at any moment like the works of paint ,
lighting and plastering unlike the basic stages that are the main
incubator of the house and are important elements of
accomplish it.
It is obvious that if the defect on the basic work, this defect it
is not only limited to it but also will affect and reflect on the
rest of the stages like columns and bridges and up to the walls
and ceiling.
The program evaluation process:

The whole process of valuation is an estimate of point of view.

The most appropriate method is chosen, which we see close to
reality by a very large percentage. Therefore, our reliance on
the percentage of contribution of each stage is the closest to the
reality because it did not come out of what exists because of the
factors available and which are consistently available:
 ****
 There is a contract between the parties.
  The agreement includes building a ground floor only and
the ground floor shall bear another floors.
 The ground floor is existed on the ground.
 The Atkins office report, which referred to design flaws,
would prevent adding the rest of the floors.
 The same stages mentioned above are the same as the
stages of building in this site, even if the method is
different, there are many things that are universal and
regardless of what was used materials and methods of
casting and construction, which is not our specialty to
address.
 Mostly, valuations are based on clear principles, and this
what we have come up with through the contract.
 There is also an explanation of the value of housing
construction and an explanation of the value of the change
order no (1).
The ground floor is the basic building block for the
construction of the first floor and the upper and any
damage *** either in design or completion as required
will result in the denial of several services was supposed
to benefit the first floor and the upper.

1/Calculation of wastage percentage:

Since the foundations and rules that carry the house as a whole
is a key element to build the ground floor .foundations
considered the main support for the construction of the first
floor and the upper, such foundations have a geometrical
importance in building the house, it will affect the rest of the
other stages, which led to the exclusion of the addition of the
rest of the other floors.
If these foundations were existed, the first floor and the upper
would be established.
What are the missing stages that had led to the lack of
building of the rest of the floors?
1. foundations
2. Columns
3. ***
4. Supply of electricity and sewage.
These points and the argument on which we are based will
be explained.
 The foundations are a cornerstone in the construction
of the first floor and the upper and any weakness in the
design or completion of these rules will result in the
lack of use of these floors and will affect the next
floors.
 The ceiling is the last stage to building the first and
upper floor because it contains the head of the lower
pillars, ***, When building the floors and through
visual inspection, none were found.
If the roof is the key to pass the ground floor services
and the first floor is lacking, it is considered a means
to activate the right of non-utilization.
******
At our discretion, the rest of the stages have been excluded
because they contribute significantly to the operation of the
ground floor.
The staircase room is located on the ground floor and
therefore it remains hostage to what the owners of the houses
are decide. However, whatever the amendment, it will remain
in its place.
Now we will refer to the table of percentages and collect them
together (the shaded in a different color) to extract the value
of the loss:

m Description of the stage Percentage%

1 Upon completion of setting the 13
rules
2 Upon completion of the 2.5
foundation works
3 Upon completion of the beam 2.5
work and**** the first floor
4 Upon completion of the bricks 12
works of the first floor
5 Upon completion of the casting of 10
the slab on grade
6 Upon completion of the roof (3%)7
works
7 Upon completion of ***** 3
8 Upon completion of the inside 8
plastering works
9 Upon completion of Ceramic of 3
bathrooms and kitchens
10 Upon completion of the outside 5
plastering works
11 Upon completion of Electrical 4
installations and waterproof for
bathrooms and kitchen
12 Upon completion of all slabs on 5
grade
 13 Upon completion of primer and 5
putty works
14 Upon Installing the doors and 5
windows
15 Upon completion of Installation of 5
sanitary materials and electrical
lights
16 Upon completion of Sewage 2
works
17 Upon completion of Dyeing and 5
cleaning
18 operational works of home and 3
trial period
Note:
The ceiling ratio was estimated at 7%, but for several
considerations it will be reduced for the following reasons:
*******
When combining the following stages:
1+2+3+6+16 We will get a percentage 23%the percentage lost
in one home.
This percentage is estimated and we did not consider any geometric input or
whatever. This means that this percentage may be higher or lower according to Commented [U1]: Ashraf
the results after the detailed examination. Moreover, we failed to obtain any
geometric study indicating that during the valuation process.

2/ Finding out the lost value of the single house:

2/Before the change order No:
Throughout the aforementioned, the value of the single house before the change
order is RO 60,886(Sixty thousand eight hundred and eighty-six RO(
The value of the non-utilization of the first and upper floor before the change
order:
60,886 ×23 % = 14,003 (fourteen thousand and three RO)

The final value of the compensation for the non-utilization of the first and upper
floor of the entire project: (before the change order No: 1)
14,003 ×2191 = 30,680,573 (thirty million six hundred and eighty thousand
five hundred seventy three RO)
2/After the change order No2:
Throughout the aforementioned, the value of the single house after the change
order is RO 80,489 (eighty thousand four hundred and eighty nine RO)
The value of the non-utilization of the first and upper floor within the single
house after the change order No 1:
80,489 ×23 % =18,512 eighteen thousand five hundred and twelve RO)

Signed and stamped by

Valuation Department

The final value of the compensation for the non-utilization of the first and
second floor of the entire project: (after the change order No: 1)
18,512 ×2191 =40,559,792 (forty million five hundred fifty-nine thousand
seven hundred ninety-two RO).
Throughout all the aforementioned, the value of the average between the two
values before and after the change order can be calculated. The estimated
amount is:
35,000,000 thirty-five million RO-/
Signed and stamped by
Valuation Department

The evaluation summary:

 This value is estimated . In our point of view, it is more likely
to be real because we speak about an overall concept of the
valuation, not an unrelated element, but a self-standing project.
 The listed amount for loosing, which related to one house, is a
collector of the right of non-utilization and can be expanded in
the future to include new variables, which is the climatic factor
which can play an influential role in the operation process.
 There is a rule used by the real estate appraiser, which is the
higher the proportion of the future risk is, the higher the value
of compensation is even it is estimated and the lower the
proportion of future risk is , the lower the value is.
 ********is the result of what we have seen, the information
we have gathered and the documents and contracts entered
between the parties we have obtained.
 The absence of some details, which are accurate and the most
important thereof determining the defect geometrically and the
mechanisms adopted for fixing and methods of their application
in practice and the extent of its conformity with what is existed,
is very important.
 The absence of guidance reports by the parties is in itself a
missing element at which we must stop, especially determining
the depreciation rate that is considered a key to consider the
project throughout the evaluation angle.
 The evaluation stems from phases followed in an ongoing and
coherent manner to reach something’s value.
Signed and stamped by
Valuation Department