For bank valuation / mortgage valuation, it is better to use a stage-wise schedule that separates physical progress, estimated cost incurred, and cost required to complete, rather than assigning an arbitrary percentage merely from visual appearance.

Below is a detailed illustrative schedule for a normal RCC framed residential/commercial building. The percentages should be adjusted for the actual project specifications, floor count, finishes, services and site conditions.

STAGE-WISE CONSTRUCTION COMPLETION & COST-TO-COMPLETE SCHEDULE

Illustrative overall cost distribution

Sl.	Major Construction Stage	Approx. Share of Total Construction Cost	Cumulative Completion
1	Site preparation, survey & setting out	2%	2%
2	Excavation & foundation	10%	12%
3	Plinth & ground preparation	5%	17%
4	RCC frame / structural work	20%	37%
5	Masonry & wall construction	8%	45%
6	Roof, staircase & parapets	5%	50%
7	Electrical/plumbing/HVAC rough-ins	7%	57%
8	Internal & external plastering	8%	65%
9	Flooring & wall tiling	7%	72%
10	Doors, windows & metal work	5%	77%
11	Painting & decorative finishes	6%	83%
12	Fixtures, sanitary & electrical fittings	5%	88%
13	External development	4%	92%
14	Testing, rectification & completion	3%	95%
15	Contingency/remaining minor works	5%	100%

Important: This is an illustrative valuation schedule, not a universally prescribed IBBI percentage table. Actual percentages should be derived from the sanctioned estimate/BOQ, specifications and site inspection.

1. SITE PREPARATION, SURVEY & SETTING OUT

Typical cost allocation: 2%

Work	Indicative share
Survey and site investigation	0.30%
Plot demarcation	0.15%
Site clearing	0.25%
Temporary water/electricity	0.30%
Site establishment	0.30%
Setting out/grid marking	0.20%
Mobilisation/miscellaneous	0.50%
Total	2.00%

Physical completion indicators

0–25%: Site cleared
25–50%: Survey completed
50–75%: Building grid established
75–100%: Setting-out completed and excavation ready

Valuer’s observation

Demarcation of the plot does not mean commencement of substantial building construction. It should not be treated as a significant percentage of the building’s structural cost.

2. EXCAVATION & FOUNDATION

Typical cost allocation: 10%

Includes:

Excavation
Earthwork
PCC
Footings
Reinforcement
Formwork
Foundation concrete
Pedestals
Foundation columns
Anti-termite treatment
Foundation waterproofing where applicable
Backfilling

Suggested physical assessment

Condition observed	Foundation-stage completion
Excavation partly completed	10–25%
Excavation complete + PCC	25–35%
Reinforcement/footing work underway	35–60%
Footings completed	60–75%
Foundation columns/pedestals completed	75–90%
Backfilling substantially complete	90–100%

3. PLINTH & GROUND PREPARATION

Typical cost allocation: 5%

Includes:

Plinth beams
Filling
Compaction
DPC
Ground-floor PCC
Ground-floor base
Waterproofing where required

Completion assessment

25%: Plinth beam work started
50%: Plinth beams substantially complete
75%: Filling/compaction substantially complete
100%: DPC and ground-floor base substantially complete

4. RCC FRAME / STRUCTURAL WORK

Typical cost allocation: 20%

This is one of the most important components in stage valuation.

Includes:

RCC columns
Beams
Slabs
Structural reinforcement
Formwork
Concrete
Staircase structural work
Structural projections

For a multi-storey building

The valuer should preferably assess floor-wise, rather than saying simply “RCC work 60%.”

Example:

Structural component	Completion
Ground-floor columns	100%
First-floor slab	100%
First-floor columns	100%
Second-floor slab	80%
Roof slab	0%

The percentage should then be weighted according to the structural cost attributable to each component.

5. MASONRY / WALL CONSTRUCTION

Typical cost allocation: 8%

Includes:

External walls
Internal partition walls
Brick/AAC/block masonry
Lintels
Sill construction
Chajjas where applicable
Parapet masonry

Typical assessment

Work	Approx. completion of this stage
Masonry started	10–20%
25% walls completed	25%
50% walls completed	50%
75% walls completed	75%
Masonry substantially complete	90–100%

6. ROOF, STAIRCASE & PARAPETS

Typical cost allocation: 5%

Includes:

Roof slab
Staircase
Parapet
Coping
Roof slope
Roof drainage arrangements

A roof slab being completed does not mean that the roof is fully completed. Waterproofing, drainage, protective screed and finishing may still remain.

7. ELECTRICAL, PLUMBING & OTHER SERVICES — ROUGH-IN

Typical cost allocation: 7%

Includes:

Electrical conduits
Electrical boxes
Wiring routes
Plumbing pipes
Drainage pipes
Sanitary pipework
HVAC sleeves
Fire-fighting provisions
Communication/data conduits

Critical valuation point

The valuer should distinguish between:

Concealed/rough-in work
and
Final fixtures and commissioning.

For example, electrical conduits installed in walls should not be treated as equivalent to a completely operational electrical installation.

8. INTERNAL & EXTERNAL PLASTERING

Typical cost allocation: 8%

Includes:

Internal plaster
External plaster
Ceiling plaster
Surface levelling
Corners
Architectural plaster features
Waterproof exterior treatment where specified

Suggested assessment

25%: Plastering started
50%: Approximately half completed
75%: Major plastering substantially complete
100%: Plastering completed and surfaces ready for finishing

9. FLOORING & WALL TILING

Typical cost allocation: 7%

Includes:

Floor screed
Vitrified/ceramic tiles
Marble/granite/Kota etc.
Toilet wall tiles
Kitchen tiles
Skirting
Staircase finishes

The valuer should record the type and quality of flooring, because a high-end marble/vitrified specification can materially change the cost.

10. DOORS, WINDOWS & METAL WORK

Typical cost allocation: 5%

Includes:

Door frames
Door shutters
Aluminium/uPVC windows
Glass
Ventilators
Grills
Railings
Balcony railing
Hardware
Gates

Important

A building with only door/window frames installed should not be considered fully finished under this stage.

11. PAINTING & DECORATIVE FINISHES

Typical cost allocation: 6%

Includes:

Wall preparation
Putty
Primer
Internal paint
External paint
Texture finish
Polish
Enamel
Metal painting

Typical sequence:

Surface preparation → Putty → Primer → First coat → Second/final coat

12. ELECTRICAL & SANITARY FIXTURES

Typical cost allocation: 5%

Includes:

Electrical

Switches
Sockets
Fans
Light fittings
DBs
MCB/RCCB
Final wiring connections

Sanitary

WC
Wash basins
Faucets
Showers
Kitchen sink
Bathroom accessories

Other

Water heaters
Pumps
Exhaust fans
Other specified fixtures

13. EXTERNAL DEVELOPMENT

Typical cost allocation: 4%

Includes:

Boundary wall
Main gate
Driveway
Parking
Paving
External drainage
Landscaping
Rainwater harvesting
External water/electrical works

This component can vary substantially depending upon the property.

For a large commercial/industrial property, external development can represent a considerably larger share than in a compact residential building.

14. TESTING, RECTIFICATION & COMPLETION

Typical cost allocation: 3%

Includes:

Electrical testing
Plumbing testing
Waterproofing checks
Drainage testing
Fire-fighting testing
Lift commissioning where applicable
Snag rectification
Final cleaning
Completion-related work

15. COST-TO-COMPLETE CALCULATION

This is particularly important for a bank valuation report.

Suppose:

Estimated total construction cost = ₹1,00,00,000

If the assessed construction progress is 65%, the simplified calculation would be:

Particular	Amount
Total estimated construction cost	₹1,00,00,000
Cost represented by 65% progress	₹65,00,000
Estimated balance cost	₹35,00,000

However, a professional valuation should preferably calculate the balance component-wise, rather than merely applying:

Total Cost × (100 − % completion)

because escalation, committed expenditure, incomplete work and specification changes can make the simple calculation misleading.

DETAILED COST-TO-COMPLETE FORMAT

A valuer can use the following format in the valuation report:

Sl.	Construction Component	Estimated Total Cost	Work Completed	Cost Incurred/Represented	Balance Work	Balance Cost
1	Site preparation	₹2,00,000	100%	₹2,00,000	0%	Nil
2	Foundation	₹10,00,000	100%	₹10,00,000	0%	Nil
3	Plinth	₹5,00,000	100%	₹5,00,000	0%	Nil
4	RCC structure	₹20,00,000	90%	₹18,00,000	10%	₹2,00,000
5	Masonry	₹8,00,000	80%	₹6,40,000	20%	₹1,60,000
6	Roof/staircase	₹5,00,000	90%	₹4,50,000	10%	₹50,000
7	Services rough-in	₹7,00,000	60%	₹4,20,000	40%	₹2,80,000
8	Plastering	₹8,00,000	50%	₹4,00,000	50%	₹4,00,000
9	Flooring/tiling	₹7,00,000	20%	₹1,40,000	80%	₹5,60,000
10	Doors/windows	₹5,00,000	30%	₹1,50,000	70%	₹3,50,000
11	Painting	₹6,00,000	10%	₹60,000	90%	₹5,40,000
12	Fixtures	₹5,00,000	5%	₹25,000	95%	₹4,75,000
13	External development	₹4,00,000	25%	₹1,00,000	75%	₹3,00,000
14	Testing/completion	₹3,00,000	0%	Nil	100%	₹3,00,000
15	Contingency/remaining works	₹5,00,000	—	—	—	₹5,00,000
TOTAL		₹1,00,00,000		₹59,85,000		₹40,15,000

Thus, in this illustrative example, approximately 59.85% of the cost is represented by completed work and approximately 40.15% remains.

VERY IMPORTANT DISTINCTION FOR VALUERS

A professional valuation report should preferably show three separate concepts:

1. Physical Completion

How much of the building work has actually been completed?

2. Cost Incurred / Cost Represented

What portion of the estimated construction cost is represented by the work completed?

3. Cost to Complete

What expenditure is reasonably required to bring the building to the specified completed condition?

These three figures need not be identical percentages.

For example:

A building may be physically 70% complete but represent only 62% of the total construction cost if the expensive finishing, MEP equipment and fixtures remain.

Conversely:

A project may appear physically only 60% complete but represent 75% of cost if expensive RCC/structural work or specialised equipment has already been completed.

RECOMMENDED FORMAT FOR IBBI/BANK VALUATION REPORT

I recommend inserting the following table in a valuation report:

Particular	Valuer’s Assessment
Total sanctioned/planned built-up area	____ sq.ft.
Total estimated construction cost	₹________
Estimated cost up to date of valuation	₹________
Value/cost represented by completed work	₹________
Physical stage of construction	____%
Cost-based stage of construction	____%
Estimated balance cost to complete	₹________
Estimated time required for completion	____ months
Quality/specification	Standard / Good / Premium
Construction status	Under construction / Near completion
Whether construction conforms to sanctioned plan	Yes / No / Partly
Major incomplete items	__________
Major deviations observed	__________
Basis of cost estimate	BOQ / CPWD/PWD rates / market rates / contractor estimate / other
Date of physical inspection	__________

Suggested wording in the valuation report

“Based upon physical inspection of the property and assessment of the various components of construction, the building is observed to be approximately ____% complete in physical terms. On a cost-weighted basis, the completed works represent approximately ____% of the estimated total construction cost. The estimated balance expenditure required to complete the construction to the observed/specified standard is approximately ₹________, subject to escalation in material and labour rates, changes in specifications, statutory requirements and other site-specific conditions.”

This distinction is particularly useful when preparing bank mortgage valuations, stage-wise disbursement assessments, progress reports and valuation of incomplete/under-construction properties.