Machinery And Equipment Condition Definitions
- Very Good (VG)
This term describes an item of equipment in excellent condition capable of being used to its fully specified utilization for its designated purpose, without being modified and not requiring any repairs or abnormal maintenance at the time of inspection or within the foreseeable future.
- Good Condition (GC)
This term describes those items of equipment which have been modified or repaired and are being used at or near their fully specified utilization, but the effects of age and/or utilization indicate that some minor repairs may have to be made or that the item may have to be used to some slightly lesser degree than its fully specified utilization in the foreseeable future.
- Fair Condition (FC)
This term describes those items of equipment which are being used at some point below their fully specified utilization because of the effects of age and/or application and which require general repairs and some replacement of minor elements in the foreseeable future to raise their level of utilization to or near their original specifications.
- Scrap Condition (X)
This term is used to describe those items of equipment which are no longer serviceable and which cannot be utilized to any practical degree regardless of the extent of the repairs or modifications to which they may be subjected. This condition applies to items of equipment which have been used for 100% of their useful life or which are 100% technologically or functionally obsolescent.
Comment: Condition affects value. For more reliable results we need to conduct a personal inspection of the equipment. In most cases, a Desktop Appraisal will not meet this requirement.
The purpose of the appraisal, along with the type of value definition, determines the criteria the appraiser considers in developing…