Question

What is the primary purpose of valuation in construction?

• A. Cost estimation
• B. Property assessment
• C. Quality control
• D. Time scheduling

Hint:

\textbf{Valuation (Property Valuation / Appraisal):} The process of estimating the economic worth (value) of a property (land and/or buildings).
\textbf{Primary Purposes:}
Determining market value for sale/purchase.
Assessing value for taxation (property tax).
Valuing collateral for loans (mortgage).
Insurance purposes.
Investment analysis.
Cost estimation, quality control, and time scheduling are different aspects of construction project management.

Answer 1

The Correct Option is B

Primary Purpose of Valuation in Construction: 

Valuation in construction is primarily conducted to assess the value of a property, project, or asset. The main goal is to estimate the current worth or market value, which is essential for various purposes in the construction industry.

• Property Assessment: The key purpose of valuation is property assessment, which helps in determining the worth of a property for buying, selling, financing, or taxation purposes. This involves considering factors such as location, condition, market trends, and comparable property values.

Valuation can also be used for other reasons like project costing, insurance purposes, or in cases of disputes, but property assessment remains the primary reason for its application in construction.

Answer: Property assessment.