Overview
The Quantity Survey method is a comprehensive and accurate technique utilized primarily by appraisers to determine the reproduction cost of an improvement (building or structure). It involves an exhaustive, itemized inventory of all materials, labor, and overheads necessary to recreate a structure exactly as it exists. This method is often favored for its precision, despite being time-consuming and requiring a deep level of detail.
Examples
Continuing the description from above, here is an example table illustrating a simplified quantity survey:
1| Item | Cost |
2|--------------|--------|
3| Site preparation | $5,000 |
4| Cement | $10,000 |
5| Masonry | $15,000 |
6| Lumber | $25,000 |
7| Fasteners | $5,000 |
8| Siding | $15,000 |
9| Roof cover | $10,000 |
10| Labor | $30,000 |
11| Fees | $5,000 |
12| Financing | $10,000 |
13| **Total cost** | **$130,000** |
Frequently Asked Questions (FAQ)
Q1: Why is the Quantity Survey method considered more accurate than other cost estimation methods? A1: The Quantity Survey method is highly detailed, covering every component and corresponding cost involved in construction. This includes material quantities, labor rates, and even overhead costs, thus providing a closer and more exact estimate compared to other generalized methods.
Q2: Who typically performs a Quantity Survey? A2: Quantity surveys are usually conducted by professional appraisers or quantity surveyors who possess the necessary expertise in assessing detailed construction costs and understanding building processes.
Q3: What is the difference between a Quantity Survey and the Cost Approach? A3: While the Cost Approach is a broader appraisal method that estimates property value based on the replacement cost minus depreciation, the Quantity Survey is specifically focused on calculating the cost to reproduce the structure in exact detail.
Q4: How does a Quantity Survey impact real estate valuation? A4: By providing a precise reproduction cost, the Quantity Survey method helps in deriving more accurate property valuations, which can influence lending, insurance, and investment decisions.
Related Terms with Definitions
Cost Approach: An appraising method where the value of a property is determined by summing the land value and the depreciated value of the improvements.
Reproduction Cost: The cost to construct an exact replica of a building, using the same materials and construction methods, without any depreciation adjustments.
Quantity Surveyor: A professional who specializes in estimating the cost of construction materials, labor, and other related expenses.
Depreciation: The reduction in the value of an asset over time, due to wear and tear, obsolescence, or other factors.
Online Resources
- Royal Institution of Chartered Surveyors (RICS): Comprehensive resources and guides on quantity surveying and cost estimation practices. RICS
- American Society of Professional Estimators (ASPE): Offers certification and educational resources for professional estimators. ASPE
- National Institute of Building Sciences (NIBS): Provides information and tools for integrated building sciences including cost estimating. NIBS
References
- “Valuation of Real Estate” by Appraisal Institute
- “The Dictionary of Real Estate Appraisal” by Appraisal Institute
- “Construction Quantity Surveying: A Practical Guide for the UK’s MQS Certification” by Donald Towey
Suggested Books for Further Studies
- “Estimating Building Costs for the Residential and Light Commercial Construction Professional” by Wayne J. Del Pico
- “Construction Quantity Surveying: A Practical Guide for the UK’s MQS Certification” by Donald Towey
- “Construction Management and Quantity Surveying” by Vincent Gruis
