PROFESSIONAL PRACTICE AND VALUATION:- NOTES

1.01 Architect as an Artist Administrator:-

➢ Architect because of his creative abilities creates buildings for centuries to last and inspire future
generation.
➢ He is a co-ordinator of all the consultants and specialists like structural engineers, Acoustic consultants,
HVAC consultants, Mechanical Electrical and Plumbing (MEP) consultants .
➢ The word ‘Architect’ is derived from two Greek words, namely Arch meaning ‘Chief’ and Tecton
meaning ‘Carpenter of builder’, Hence, Architect means Master Builder.
➢ Architect consultation is a NOBLE PROFESSION and not a trade or Business.
➢ Profit is not the primary objective like in Business or trading. Manufacturing

1.02 Architect’s Integrity of Profession and Code of Conduct:-

➢ Ethics is a branch of moral science where a professional body decides to abide by certain codes of
conduct by mutual agreement.
➢ Architect renders consulting service to the client and looks after his interest in most economic and
efficient manner.
➢ He receives as remuneration as consulting fees from the client only.
➢ He is debarred from accepting any gifts, in cash or kind, from vendors / contractors.
➢ He can not compete with his professional colleagues by reducing fees.
➢ He can not advertise his services.
➢ He gets more jobs by word of mouth publicity, looking to his integrity, creativity works and satisfied
clients.
➢ He renders his services for designing Low Cost Housing for the underprivileged section of the society,
Public Amenity buildings by charging token fees to meet the actual expenses.
1.03 Duties and Liabilities in profession:-
➢ He is duty bound to Client, Council Of Architecture, professional colleagues, and community.
➢ He keeps himself abreast of all latest development in the field of construction by applying
new materials, techniques to render the building more economic and long lasting
aesthetically pleasing.
➢ He has to make his client aware of all the matter relating to the project with all integrity and
not hide anything deliberately.
➢ His role is also to act a quasi arbitrator to interpret conditions of contract, should a dispute
arise before seeking arbitration under Arbitration Act.
1.04 3 - Basic Stages of Architectural Consultation and Scale of Fees:-
➢ Preliminary Stage : Take instructions, Design brief from client, Visit Site, Prepare Site Analysis Report
for client to advise on suitability of the project,
Prepare Schematic / Conceptual sketches showing fully developed design and discuss with client to
modify if required, Prepare final design portfolio and get client’s approval, Proceed to the next Stage
of services...
(Stage 1 Completed : Fees due : 10 to 15 % of the Total fees as per preliminary estimated cost of the
project)
➢ Working Drawing Stage: Obtain Commencement Certificate from Municipal Corporation, Prepare
working drawings in consultations with various consultants like structural engineers, H.V.A.C. and
M.E.P. consultants, Invite experienced and capable contractors to quote by inviting public / private
tenders, negotiate and finalize contractor in consultation with client and draw up Contract Documents
to proceed with execution of work at site.

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 ( Stage 2 Completed : Fees Due 50 to 55 % of the total fees as per approved design Less amount received
earlier)
➢ Supervision Stage: Organize site to commence work. Issue drawings for commencing work, Supervise
Periodically and advise client on quality of work, Get defects rectified in Defect Liability Period, Certify
Completion, Obtain Building Completion Certificate, Occupation Certificate, Hand over Possession of
the building to the client,
( Stage 3 Completed: Fees Due : Remaining amount as per cost of execution less received earlier)
The above Stages can be divided into sub-stages depending on the size of the project and its complexity
as per mutual agreement with the client.)

1.05 Professional bodies : Apart from Council of Architecture, membership of which is mandatory, other
volunteer bodies are as follows:-
• Indian Institute of Architects, Head office in Mumbai, Various chapters in states all over India (I.I.A.)
• Practicing Architects, Engineers and Town Planners Association ( P. E. A. T. A.)
• Indian Institute Of Interiors designers, (I,I,I,D,)
• Institution of Valuers
1.06 Architect’s Act, 1972, Council Of Architecture, Its Role and responsibilities
▪ Post Independence era, there was a spurge of building activities all over India and many
scrupulous element and non-architects started calling themselves as architects detrimental
to the society’s needs.
▪ Some members of IIA, Mumbai felt the need to frame an Act with due process of law i.e.
Passing in Lok Sabha, Rajya Sabha, Getting President’s approval and publish in Govt.
Gazzette for implementation in the year 1972 and hence ‘Architect’s Act, 1972’ came into
force in 1972.
▪ Under the Architect’s Act, 1972, Council of Architecture was formed to look after the
Professional Practice
1. by registering only qualified architects having qualified from recognized architecture
colleges ,
2. Maintain Minimum Standards of infrastructure and faculty available in a college by regular
inspection of colleges imparting Architectural Education,
3. Initiate disciplinary action against erring members / unscrupulous elements and
4. conduct and regularize Architectural Design Competitions for prestigious Government
projects / buildings by creating healthy competition amongst the designer architects.
5. ARCHITECT – word is derived from Greek words “arch” meaning ‘chief’ and word
“tekton”
6. Meaning ‘carpenter’ or ‘builder’- Truly architect is the Chief (or Master) Builder.
7. Architect profession is a Noble Creative Profession and not a trade or business.
8. PROFESSION V/s. BUSINESS
9. Profession : Involves some branch of learning and science and rendering of consultancy
and / or supervisory service. Profit is not the ONLY motive unlike in business. It is a
profession like various disciplines like law, medicine, accountancy, business
management etc.)
10. Business: Includes any trade, commerce or manufacturing activity where profit is the
only MOTIVE.
11. ARCHITECTURE is art or science of design, construction or style or appearance of any
structure with aesthetic character.

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 12. Architect profession is governed by the following factors such as ethics, Council of
Architecture of which he is a member, Professional brothers and Community or Society.
13. ETHICS is a branch of moral which treats the duties that a member of the profession
owes to
14. Client, C.O.A. and other Professional bodies of which he is a member, fellow architect
brothers and Society.
15. He is employed by client to design and get the work executed in the most economical
and efficient manner with reasonable care, loyalty, skill and without any negligence.
16. He is solely remunerated by client as professional fees and he is debarred from accepting
any discounts, gift or commissions from the traders or contractor/s.
17. He has to comply with all rules and regulations of local & authorities and
18. Not to compete with fellow architects by charging lower fees.
19. Architect gets work by a) previous jobs, b) recommendations by friends / relatives, c) by
specialization, d) social contacts e) through competitions.
20. He can’t solicit work by advertising.
21. However, articles with photographs may be written in magazine, Newspapers etc.
22. Failure to comply with the above may lead to professional misconduct and attract action
u/s 30 of the Architect Act, 1972.
23. Architect’s duty towards –
24. COUNCIL OF ARCHITECTURE: -
25. It is mandatory to get registered with Council of Architecture, New Delhi by paying
requisite fees after graduating (B. Arch. Degree) from recognized Institute affiliated to a
recognized University.
26. A member shall abide by rules and regulations of C.O.A.
27. PROFESSIONAL BROTHERS:-
28. Not to exhibit a spirit of unhealthy competition by reduction of fees or offer any other
inducements to clients.
29. Even if a client leaves one architect for any reason and approaches another architect at
any stage, latter architect shall not accept the job in absence of No Objection Certificate
from former architect. (This is not so in trade or business.)
30. COMMUNITY (SOCIETY):-
31. Architect’s service to the community as per following-
32. Originates designs of structure with aesthetics,
33. Contributes to public health, safety and welfare,
34. Leaves his creations for guidance of generations,
35. Designs low cost housing for commercially weaker sections of the society.
36. ARCHITECTS ACT, 1972:
37. Post independence, a lot of development started taking place and many engineers
started acting as architects and the need was felt by Indian Institute of Architects, a
volunteer body, to have a registering body to register qualified architects graduating
from architecture colleges
38. It was also felt the need to regulate architectural education with certain minimum
standards.

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 39. After the act was passed in both Loksabha and Rajyasbha houses, it came into effect
after duly signed by President of India and published in Gazette, “COUNCIL OF INDIA”
was formed to regulate the architecture profession and education.
40. All other qualified engineers may prepare plans and supervise building construction, but
can’t call themselves as architects and represent client in municipal offices as architects.
41. COUNCIL OF ARCHITECTURE :
Registering body of architects formed and empowered to act under the Architect’s Act
1972,
• Register qualified architects by paying registering fees,
• Take action against architects / unqualified persons acting architects and
indulging in unethical practice/s,
• Regulate architectural education with minimum standards,
• Hold and regulate architectural design competitions.

. : TENDERS :-

TENDER - Tender is a document inviting / offering contractor to quote in writing for certain Specified work
/ supply materials subject to certain conditions, time limit etc.

It can also be defined as an offer made by a party to another for execution of a specified work at
the specified cost with all the terms and conditions within specified time limit.

2. TENDER document consists of the following: -

1. Tender Notice, 2. Letter of Offer,

3. General & Special Conditions, 4. Form of Contract with conditions,

5. Specifications, 6. One set of Building Plans,

7. One set of Structural Design drawings, 8. Bills of Quantities.

3. Tenders are invited by

a. public notice ,

b. Private Invitation ( Selected or Limited Invitation )

c. By negotiation.

TYPES OF TENDERS:-

1. ITEM RATE TENDER:-Bills of Quantities contain full description of items of work to be carried out
with approximate quantities which may vary and not binding on the owner. Contractor fills in the
rates of each item (both in Figures & words). Contractor is paid for the carried out at the rates
quoted by him as per to be measured & certified by the architect.

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 Advantages: Disadvantages:

✓ More scientific as detailed analysis if ✓ Accurate working of quantities is

items is carried out by architect, required by the architect’s office,
✓ No guess work in quoting, ✓ Not suitable where more than one
✓ Eliminates risk of contractor forming a contractor is required,
cartel (ring), ✓ Comprehensive and intelligent scrutiny is
✓ Devoid of risk of any unworkable tender required to be done by preparing
being accepted. comparative statement of tenders.
✓ Time consuming.

2. LUMP SUM TENDER ;- Contractor quotes lump sum amount for complete work as per design &
specifications at the rate quoted within the specified time limit.

Advantages: Disadvantages:

✓ Total cost known beforehand,
✓ Easy for client to arrange finance,
✓ Disputes may arise as drawings and specifications
are vague, ambiguous,
✓ Additional work may crop up,as variations,
✓ Difficulty in assessing on account payment tp
contractor

3. COST PLUS / MINUS PERCENTAGE TENDER: (+/- %) :-

Contractor is paid as per the actual cost of work + agreed percentage for allowing his Profit. No bills of quantities /
schedule of rates are prepared but the owner has to be Certain of the extent of work.

Advantages: Disadvantages:

✓ Urgent work can be carried out, ✓ Close supervision is required,

✓ Without any delay, ✓ Records of invoices, delivery challans is
✓ Useful in war like situation when timely required,
completion of work is IMPORTANT. ✓ Additional staff is required for admin.
✓ Contractor will tend to waste materials.
✓ Contractor tends to use richer mix to
increase his profit,
✓ Contractor is assured of his profir in any
circumstances.

- 4. LABOUR TENDER:- Contractor carries out work as per specification and drawings on labour
charges of each item. Contractor uses his tools, plant & machinery etc. Materials are supplied by the owner.

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 Advantages:- Disadvantages:-

✓ Increase in cost of work need to be kept in
check in case of rise in cost of materials in
open market,
✓ Work gets delayed in case of materials
shortage in the market,
✓ Large storage space, stock keeping and
security is required,
✓ Wastage of materials,
✓ Return of surplus materials in good
condition will involve additional cost of
transport etc..

Tender for DEMOLITION WORK.:- Work involved is demolition of existing building up to ground /
road level and removal of all debris away from site as per terms. Contractor pays to the owner specified
amount in lieu of the salvaged materials taken away by him

e.g. wooden doors / windows / bricks / tiles / fittings and fixtures etc. taken away by him.

4. TYPICAL PUBLIC TENDER NOTICE:-

SEALED ITEM RATE TNEDERS are invited for Proposed interior and furnishing work of a school building
for ABC EDUCATION TRUST, at Anand.

Estimated Cost of work Rs. 3.00 Crores

Earnest Money Deposit Rs.3.00 Lakhs in the form of Pay Order In the name of ABC education
Trust. (1% OF THE ESTIMATED COST)

Security Deposit To be deducted from running bills at 5%

Value of Interim Rs. FIFTY LAKHS and above.

payments

Time Limit Four Calendar months from the date of commencement

Penalty for delay Rs.500/= per day or part thereof till virtual completion.

Cost of Tender Rs.5,000/= by cash ( Non-refundable)

Date of Issue of Tender ___________ during office hours from architect’s office.

Last date of submission ____________ up to 5:00 P. M.

of Tender

The owner / architect reserve their right to reject any / all tenders without assigning any
reasons thereof.

Definitions:-

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EARNEST MONEY DEPOSIT:- It is defined as Initial deposit paid along with the tender in order to show the
genuineness (Earnestness) of the contractor ( 1 t0 2% 0f the estimated cost of the work).

SECURITY DEPOSIT:- When a contractor’s tender is accepted, he is asked to deposit a further amount with
the architect varying from 2 to 3 % of the estimated cost of the work.

RETENTION AMOUNT:- It is the amount deducted from the running bills as guarantee of faithful
performance of the terms of the contract. Usually 5 to 10 % is deducted from the running bills (bearing no
Interest). 50% of the deposit amount is released upon Virtual Completion of the work.

Purpose of the Retention money is to

1. Take good defects if any before final certificate is issued,

2. To meet any claim, damagesm compensation,
3. To make necessary payments to sub-contractor in case contractor fails to do so.
4. Remaining 50% amount is released after defect liability period is over and on architect issuing
of final certificate.
5. To claim penalty for delay in completing the work,
6. Retention fund does not carry any interest.
MOBILIZATION FUND :- Its an advance amount paid to the contractor for mobilizing the
commencement of work after contract is signed.

-: CONTRACT :-
▪ An architect has a major role to play in the contract and getting the work done with Complexities
due to local geo-climatic conditions and regional variation in nature of work ranging from repairs,
New construction, road work etc. and can’t seek legal advice every now and then.
▪ Indian Institute of Architects, Mumbai has given a standard format by the name of “I. I. A. Form of
1979” heavily borrowing from Contract Form of Royal Institute of British Architects, and make it
suitable to Indian Conditions.
▪ General Law of Indian Contract Act, 1872 becomes important to
a. To resolve problems arising out of ambiguity and inconsistency,
b. Fill up the gaps unfilled by the conditions,
c. Override or control some of the conditions.
▪ Model IIA form 1979 consists of
1. Articles of Agreement,
2. General Conditions of the Contract,
3. The Appendix.
▪ Contract is executed on stamp paper of requisite value as per Indian Stamp Act, 1899 and must be
signed sealed and delivered.
▪ Unstamped contract can not be admitted in evidence before a court / arbitractor and in such case,
parties will be directed to pay necessary stamp duty and penaltyas prescribed under the Stamp Act.
▪ Discharge of the contract in the following ways:
1. By agreement,
2. By performance,
3. By being stopped by law from performing it,
4. By breach.
▪ Contract become VOID due to
1. Misrepresentation,
2. Fraud,

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 3. Mistake.
▪ Under condition 4 of IIA form of contract, owner has right to increase / decrease / ommission any
item of work.

Appendix is figurative statement of a few conditions grouped together for ready reference.
-:APPENDIX:-

Condition No. Particulars Printed matter

37(1) Defect Liability Period 12 Months
37(5) Period of Final measurement and valuation 3 Months
38(1) Date of Commencement
38(1) Date of Completion
41 Agreed liquidated damages
31(1) Value of work for interim certificate
31(3) Retention percentage
31(3) Limit of retention fund
31(6) Installment after Virtual Completion 50% of ret. Amt.
31(1) Period of Honoring certificate 15 days
Rate of interest for delayed payment 7 % / Annum

-: LEGISLATION :-
❖
VARIOUS ACTS & REGUKATIONS PERTAINING TO ARCHITECTURAL PRACTICE:-

1) Town and Country Planning Act,

2) Model Town Planning Act, 1957.
3) Zoning Regulations Act,
4) Development Control Act,
5) Municipal Act,
6) Slum Clearance Act,
7) Slum Improvement Act,
8) Land Acquisition Act,
9) Urban Land Ceiling Act (Now scrapped),
10) Rent Control Act,
11) Water and Air Pollution Act,
12) Building Bye-laws,
13) Zoning Regulation,
14) Subdivision Regulation,

BUILDING BYE-LAWS:- Building Regulations are there to look after interest of others in respect of
health and convenience while owner develops his property under Right to Property, fundamental
right guaranteed by the constitution of India.

They are instrumental

1. To control land development and to check un-authorised construction/s,

2. To limit or define the way new structure is to be built,

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 3. To specify the type of materials used,
4. To provide open spaces, for light & air and afford safety against fire, noise, smoke etc.
They are framed by a panel of experts in different fields like engineering, Public Health, Law,
General administration, and Town Planners.
It is the corporation or the Municipality who forms the bye-laws as per Corporation Act or
Municipal Act, generally passed by the Municipal Councilors / corporators and finally approved by
the Government enforced on all buildings whether constructed by the Govt., Local bodies or
private persons / agencies etc.
Government has issued National building Code (NBC) dealing with all building activities and
materials conforming to Indian Standards.
Minimum floor area for rooms:- Minimum floor area of living room, bedroom, dining room shall
be 9.00 Sq. M. (one side being not less than 2.4 M. Kitchen , store room shall be 5.4 Sq. M. ( one
side being not less than 1.80 M.)
Proportion of Built-Up area to plot are:- Floor Space Index is a ratio of Built-uo Area to the Plot
area also known as Floor Area Ratio ( F.A.R.) It is fixed by local authority. It is different for different
area and different types of buildings. In a way, it controls density of the area measured in no. of
dwellings per hector.
Height of the plinth shall be minimum 0.45 M. above road / plot level whichever is higher.
Height of living room not less than 3.00 M.
For bath / w. c. minimum height required is 2.5 M. and for passage not less than 2.00 M.
For good amount of light and ventilation, window area should not be less than 1/7 th of the floor
area of the room one side of which shall be adjacent to the open space.
Cellar / Basement – min. height 2.4 M. ventilation 1/10 th of the floor area.

FLOOR SPACE INDEX = Total covered are of all floors

Plot Area
Concepts of FSI
a. Entire FSI
b. Absolute FSI
c. Exempted FSI

Entire FSI = Absolute FSI + Exempted FSI

Absolute FSI = Plot Area (- ) Built up area for common services and amenities.

Exemted FST is related to services and amenities needed.

For plt exceeding 2,501 Sq, M,, plot area is reduced by 15% of the plot area.

COASTAL REGULATION ZONE (C.R.Z.) :- Issued in 1991 under the ENVIRONMENTAL

PROTECTION ACT AND RULES OF 1986. This is a protective legislation promulgated by a notification.

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The coastline of the country was identified as an ECOLOGICALLY SENSITIVE AREA, where development
activities were regulated.

“ COASTAL ZONE `” is a term used for including those coastal waters, wetland and shore land that is
strongly influenced by marine water.

This is the area of interaction between land and sea.

The coastal stretches of seas, bays, creeks, rivers and backwaters, which are influenced by the TIDAL
ACTION ( in the landward side ) up to 500 metres from the HIGH TIDE LEVEL (H.T.L.) and the land between
the LOW TIDE LINE and the HTL, had been declared COASTAL REGU LATION ZONE.

The CRZ covers the coastal stretches of India’s mainland and many islands including Andaman & Nicobar
islands and Lakshadweep.

Primary objective is To protect and Improve Coastal Environment of India by restricting and regulating
human activities on the coast.

CRZ notification was introduced with three main principles:-

1. To arrive at a balance between Development needs and protection of natural resources,

2. To prohibit and regulate activities which are harmful to both coastal communities and their
environment,
3. To protect and guarantee the livelihood of millions by sustainably managing coastal ecosystem.

Zones are divided in the following categories:-

CRZ –I

• Ecologically sensitive and Important areas such as National Parks, Marine Parks, Sanctuaries,
Reserve forests, wild life habitats, mangroves, corals / coral reefs, areas close to breeding and
spawning grounds of fish and other marine life.
• Area between the Low Tide Line and High Tide Line
• Areas of outstanding natural beauty / historical / heritage areas, areas rich in genetic diversity,
areas likely to be inundated due to rise in Sea level as a consequence to Global warmimg and areas
that may be declared by the central and concerned authorities at the state / Union Territory level
from time to time.

CRZ –II

Areas that are already developed up to or close to the shoreline. “developed area” is referred to as area
within municipal limits or other legally designated urban areas already built areas and are provided with
drainage, approach roads, and other infrastructures such as water supply and sewerage mains etc.

CRZ – III

Areas that are relatively undisturbed and not included in CRZ I & II.

These include coastal zone in rural areas (both developed and undeveloped) within municipal limits.

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CRZ – IV

Coastal stretches in the Andaman & Nicobar, Lakshdweep and small islands and area not designated as
CRZ I, II and III.

Norms for regularizing activities by concerned authorities at State / Inion Territory levels as per
following:-

CRZ – I CRZ – II

▪ No new construction permitted except ▪ Building shall be permitted only on the

projects relating to Dept., of atomic landward side of the existing & / or
Energy and pipes & transmission lines proposed road in the approved plan of
etc. Coastal Zone Management Plan of the
area.
▪ subject to compliance of local Town and
Country planning and local Bldg. Bye-
laws

LAND ACQUISITION ACT (1894 AMENDED IN 1991):-

For implementation of any development plan, land is acquired for creating adequate stock of urban land
for future growth and large number of public uses.

Basic principle of this act is to give top priority to the welfare of the community and that private interests
are always subordinate. However, the right to acquire is not confiscatory but imposes obligation to give
adequate compensation before acquiring land.

Land is acquired for public purpose with building standing on it trees, crops etc. Notification is published
in the Govt. gazette.

ZONING:- Zoning is defined as creation, by law, zones such as residential, Commercial, Industrial and
recreational zones in which regulations prevent misuse of lands and buildings in order to control building
types, their heights and density of the area. Zoning promotes orderly growth, health, safety and order.

Classification as under:-

1. Use zoning,
2. Height zoning,
3. Density zoning.
➢ Residential zone – 50 to 55 %
➢ Commercial zone – 2 to 5 %
➢ Industrial zone – Light, medium, Heavy – 5 t0 20%
➢ Civic zone, - 2 to 3 %
➢ Institutional zone, 1 to 2%
➢ Recreational zone. .15 to 20%

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 Height Zoning Tall buildings impair value of small neighboring houses by cutting off sunshine, air,
breeze, rending small houses unsuitable for habitation.
NET DENSITY:- No. of dwallings per Acre ( or Hector)
GROSS DENSITY:- No. of dwellings per Acre / Hector with all common amenities.

NO DEVELOPMENT ZONE:
No development is permitted in the zones declared as “No development Zone” in a Development
Plan such as Forest Land, Eco-sensitive Zone etc.

There are two types of Land :- Also known as tenures..

1. Free Hold Land - Land with free title, without any condition on the development of the land but
subject to applicable Development Control Regulations and Bldg. Bye Laws.
2. Lease Hold Land – Land on annual rent also known as ‘Ground Rent’ for a period of short lease
21, 31, 51 or long lease of 99 or even 999 years with certain conditions imposed by land Owner
(lessor) on tenant (lessee) for using / developing the land.
Holder of free hold land can develop his land complying with all local regulations, Bldg. Bye laws
with due permissions taken. This type of land is valued higher in comparison with Lease Hold Land.
Holder of Lease Hold Land can’t develop his land if lease agreement does not permit him to even
if local D. C. Regulations / Bldg. Bye Laws permit. Valued less compared to above.

-: VALUATION:-
Price is a fact and a value is an estimate of what the price ought to be.
In order to have value for a commodity, the following essentials are required:-
1. It must have utility, {Usefulness)
2. It must be scarce. (In demand)
3. It must be tradable. (Exchangeable)

e.g. Air has usefulness, but since it is freely available, and not scare, hence is of no VALUE.

We tended not to value Oxygen freely available in the air but in Covid-19 times, as the demand
increased and supply diminished, it has become a tradable commodity sold in the cylinders.

Because of heavy pollution in cities like Mumbai, QXYBARS are opened to avail of pure oxygen to
remove stress and fatigue.

Another example is that of a bungalow in a desert. It can’t have value unless, sometime in future,
some project comes up in the vicinity.

COST- The cost of a commodity is materials used, labour applied including all overheads like rent,
electricity, water, rent, taxes, transport etc.

PRICE- is Cost as above + profit @ 20-25% for the manufacturer for the effort he undertakes. It is a
price at which a commodity can be sold.

VALUE- is an estimate of what the price ought to be, assessed by a Valuer, and value will differ from
one valuer to another, as his experience and study will come into play.

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 When dealing with real estate valuation also known as Valuation of IMMOVABLE PROPERTY like land,
different types of buildings. ‘Market Value’ is worked out by the valuer.

MARKET VALUE – It is an amount which might be expected to realize on a property by a willing seller
to a willing buyer on a property in the open market. ( i. e. without any force or compulsion on either
of them.)

Gross Income – Total income + taxes and other deductions.

Net Income - +ve value of net income is profit. Profit attributed to business / industry after deducting
all expenses.

Capital cost – are fixed. They include land, construction, equipment etc. to bring the plant in
operation.

Salvage Value – Also know as scrap value.

Scrap value – Value of an asset at the end of its useful life. Also known as salvage value, break up value
or residual value.

Depreciation – is the decrease in the asset’s value. It is calculated from the date of purchase of the
asset. It is caused by unfavorable market condition, wear and tear, obsolesce effect of natural disaster
etc. on the asset.

-: BAR CHART :-
(FOR Gr + One upper floor building)

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 Month Oct. Nov. Dec.

Weeks 1 2 3 4 1 2 3 4 1 2 3 4

Operations

Excavation _____

Rubble Packing _____++++

PCC Bedding ______

RCC Footings _____

RCC Columns up to plinth

Plinth Beams

RCC columns First fl.

RCC slab First fl.

RCC columns 2nd fl.

RCC slab 2nd fl.

Staircase room

Overhead tank

Brick work Gr. Fl. , 1st fl.

With Doors / Window
frames
I Terrace parapets walls

nternal plaster Gr., 1st fl

Staircase cabin
Flooring Gr., 1st F., 2nd Fl.

Terrace waterproofing

Fixing Doors / Windows

Plumbing, Drainage

Electrical work,

Painting, Internal / External

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 Name of Work:-
Date of Commencement:-
Date of Completion:-
o Such ‘Progress Charts’ can be prepared / modified during progress of work to suit each activity and
a check can be kept on so as to finish work on due date of Completion.
o Delayed activities can be marked with different color as shown.
o Coordination with different sub-contractors and consultants becomes easy, namely in large scale
works of interior design.
o Notice how some activities can overlap as two / more activities can be carried simultaneously.
o Necessary further sub-divisions can be made of activities on different floors.
o Timely procurement of materials / finance can be organized.
o Owner / Architect can be apprised of the progress from time to time.
o Large scale projects with complexities have Project Management Consultants using software
As ‘Prima Vera’ and ‘M. S. Project’.

Compiled by Prof. Bharat Panchal= Professional Practice and Valuation 26/O4/2021. Page 15