Methods Used to Estimate Cost New (Méthodes servant estimer le coût à neuf)

- Quantity Survey Method The most comprehensive and accurate method of cost estimating is the quantity survey method. A quantity survey is a computation that reflects the quantity and quality of aIl materials used and aIl categories of labour hours required. Unit costs are applied to these figures to arrive at a total cost estimate for materials and labour; then the contractor adds a margin for contingencies, overhead, and profit. - Unit-In-Place Method ln the unit-in-place, or segregated-cost, method, unit costs for various building components as installed are applied to the number of components or to linear, area, volume, or other appropriate measures of these components. Using this method, the appraiser computes a unit cost based on the actual quantity of materials used plus the labour of assembly required for each square metre of area. The costs are taken out of guides of which the most widely spread are "Marshall & Swift Valuation Service" and the "Manuel d'affaires municipales du Québec". - Comparative-Unit Method The comparative-unit method is used to derive a cost estimate in terms of dollars per unit of area or unit of volume. The method employs thknown costs of similar structures adjusted for market conditions and physical differences. Indirect costs may be included in the unit cost or computed separately. If the comparable properties and the subject property are in different construction markets, the appraiser may need to make an adjustment for location. - Cost-Index Trending Method The Cost-Index Trending Method assumes that the replacement cost is simply the original construction cost times a cost index.