A controlled register and coordinated inspection make the scope clearer. For commercial scope, licensing and deliverables, see machinery and equipment valuation.
Build a register that can be reconciled
Each row should ideally contain asset ID and serial number, description, manufacturer and model, year of manufacture or acquisition, site and department, operating status, quantity and historical cost where available. Add specifications, capacity, operating hours, maintenance, repairs and modifications, and identify leased or third-party assets.
If records do not match the site or items are untagged, asset inventory may be needed before or alongside valuation as a distinct scope. Inventory records existence, description and location under an agreed procedure; it does not establish legal ownership or automatically produce a value.
What is considered during inspection?
Subject to scope and access, the valuer reconciles identity, location and description, observes visible condition, use, shutdown and maintenance, and understands production role and dependencies. Operation may need to be observed or a technical contact interviewed. A valuation inspection is not a safety certification, engineering performance test or warranty.
Arrange permits and safety requirements, make data plates safely accessible without changing the asset's condition, and identify equipment that cannot be run or reached.
Factors that can affect value
- Chronological and effective age: maintenance, use and refurbishment may make condition better or worse than calendar age suggests.
- Condition and capability: working, idle, incomplete or damaged assets differ, while engineering conclusions remain distinct.
- Functional obsolescence: technology, capacity, energy use or product compatibility may compare poorly with alternatives.
- Economic obsolescence: demand, inputs, regulation or industry structure may affect utility beyond physical condition.
- Market and liquidity: buyer depth, specialisation, location and substitutes affect evidence and marketability.
- Removal and installation: dismantling, transport, foundations, utilities and testing may matter under the stated basis.
- Integration: a key machine may have different utility within a line than as a separate item.
How might equipment be analysed?
The valuer may consider analysable transactions or offers, the cost of an alternative with equivalent utility adjusted for obsolescence, or other relevant evidence. Book cost, insurance value and the price of a new machine do not automatically equal the value required by the instruction.
Outputs to agree
Confirm whether values are needed by item or class; whether installations, utilities, spares, moulds or tooling are included; the currency, valuation date and location premise; and whether a data schedule is required. For a complete line, read the production line valuation guide before breaking it into components.
Frequently asked questions
Must every machine run during inspection?
That depends on scope, safety and operational availability. Non-operation is documented and may affect assumptions or the need for additional technical information.
Is book value a sufficient starting point?
Cost and dates may aid research, but book value is an accounting output, not automatically an opinion of value. The asset, market, method and purpose still need analysis.
How is idle equipment treated?
The reason for shutdown, condition, reinstatement prospects and available evidence are considered. Idle does not automatically mean zero value, just as operation does not mean no obsolescence.
Can unnumbered equipment be valued?
It may be possible if it can be identified by other means, but weak identification is recorded and may require inventory work or further evidence.
Prepare the register and specifications
Provide locations, status and purpose, and identify items unavailable for inspection or operation.