Construction & Contractors/appraisals

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Question
Hi Raja -

I'm looking for info on the accuracy of commercial property replacement cost appraisals - instances of total loss where a building needed to be entirely rebuilt, and how the actual rebuilding costs compared to the appraisal. Any idea where I might find this info?

Thanks!

Steve

Answer
Dear Steve,
         You can get information from the following sources.

1. You can get Engineering News Record (ENR Cost Index),Web site: < http://enr.construction.com/economics/>   

2.Building Cost Information Service of RICS (BCIS),Web site: http://www.rics.org and a BCIS Website:<http://service.bcis.co.uk/BCISOnline/Account/Logon> (subscription needed for BCIS).

3.RICS Red book for guidelines and standards for property valuation.http://www.rics.org

In your project,you should have a feasibility report which assess the Net Present Value (NPV)of the project/facility.At the end of Whole Life Cycle of facility the building needed to be rebuilt.You can compare the rebuilding costs i.e the present construction cost versus your appraisal including the rate of inflation.You should remember to consider the appreciation or depreciation value of the Land.

I hope this information can help you.Please do not hesitate to contact me for any more information.  

thanks,
kind regards,
Raja

Construction & Contractors

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Raja,MSc

Expertise

I can answer the topics related to the following sectors in Construction: Cost Control, Cost Engineering, Quantity Surveying, Contract Management, Commercial Management, Risk Management, Sustainable Built Environment, Procurement Strategy.

Experience

My experience related to the following sectors in Construction: Cost Control, Cost Engineering, Quantity Surveying, Contract Management, Commercial Management, Risk Management, Construction Financial Management, Sustainable Built Environment, Procurement Strategy, Design and Build. Projects: Roads, Bridges, Rail, Industrial Buildings, Residential Buildings, Hotels and Resorts, Healthcare Projects.

Education/Credentials
MSc-Quantity Surveying; CDM-Certificate in Dispute Management; Certified Cost Professional-CCP; Member-AACEI,USA; Member-Chartered Management Institute,UK; Member-CIArb,UK;

Awards and Honors
Certified Cost Professional-CCP

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