Quantification of the asset is the concept of locating the monitory value of the asset. Moreover, the financial value of the assets is vital to know because of a couple of reasons. Firstly, it allows the owner to analyze the cost of any damage during project completion. Secondly, the monitory value of assets gives a rough sketch of the extra budget which is needed in case of any delay.
The asset can be quantified on the basis of financial documents which is prepared during scheduling and, on the basis of reports generated by financial experts. You can choose the quantum expert for your construction project who compare and analyze the different costs of the project such as labor cost, material cost, delay cost, and contractors cost.
This article highlights the importance of assets quantification in the successful completion of the project. The financial assessment can be done by keeping a few factors in mind such as expected delay, time value of money in case of large projects and expected future events as well.
Importance of Assets Quantification in Construction Project
To identification of the financial value of the asset is very much crucial in case of any damage and late scheduling. Moreover, it is vital to find out the primary reason for the delays such as poor decision making, bad scheduling or any unexpected events. The significance of comparing the final value of an asset is as follows.
Cost saving and Management
Proper quantification of an asset saves the overall cost of the project. Moreover, then it allows the owner to utilize the best resources and produce maximum output in minimum input. Other than that, it allows skipping those activities that are not much beneficial and consumes more cost.
The expert should have a strong understanding of a few things before comparing the cost. Firstly, the expert knows the depreciation value of every asset. Secondly, he should consider those assets as well which are not easily quantified such as intellectual property and goodwill of the companies.
Avoid Risk
The proper financial analysis minimizes the risk of errors in a project such as the expected increase in the cost of material due to the economic conditions of the country and a sudden rise in the labor cost. The Financial expert must analyze the external environment before generating the financial report of an asset.
Helpful in covering loss
It is a complex task to cover the loss during the completion of the project because it is difficult to find out the reason for the expected loss. Causes of failure in the projects are, delays due to untimely completion of individual activities. Furthermore, the delay can happen from the supplier side as well. To cover, the loss it is necessary to find out the party due to which the failure occurs.
Takes Away
It is vital to quantify the asset and find out the involvement of money in the project. Moreover, the monitory value is in the form of cost, loss, revenue and profit as well. The costs that are involved in the project is generally a labor cost, material costs, machinery cost and other and other variables cost as well.
Quantification of an asset is a complex task and project owner need expert services for this process. If you are going to start a construction project in UAE then, you can avail the services of quantum experts for the proper cost management of your construction project.
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