The importance of the building cost estimating methods used to determine the replacement of a structure cannot be understated. Once a figure has been agreed upon by the property owner, insurance adjuster, and contractors, miscalculations prove costly. That’s largely why everyday people employ the gold standard costing methodologies embedded in the Douglas Cost Guides.
What Costing Methodologies are Used to Estimate Replacement Cost of a Building?
It’s essential to keep in mind that the replacement cost estimating methods used to arrive at a secure number must account for wide-reaching factors. It’s crucial to understand that not every replacement cost estimating tool delivers insightful residential and agricultural replacement cost estimates. These are things property owners and professionals may want to consider when working up an estimate.
Square Footage Method
Ranked among the commonly used baseline cost estimating methods, this approach calculates length, width, and height. That figure can be multiplied by the anticipated local and regional cost of labour, materials, and peripheral expenses. This is one of the methods that The Douglas Guides employ in both the residential and agricultural cost estimating tools.
Also called the “Unit-in-Place” method, it is designed to arrive at building cost estimates for a range of major construction components, such as floors, ceilings, and lighting, among others. While such cost estimating methods may be useful for tax planning, the segregated method can prove cumbersome and faulty when used for replacement cost estimating purposes.
Quantity Survey Method
Reliable replacement cost estimating requires an accurate accounting of the material needed to complete a repair or replacement. Contractors always utilize this strategy to make total materials and labour calculations.
This rarely used method involves multiplying the initial construction cost by a predetermined figure that reflects increases since the structure was built and is not recommended. Adopting an estimate based on this costing methodology can be more prone to error than the approaches used by the Douglas Cost Guide.
Accurately Estimate the Replacement Cost for Your Building
Widely considered the gold standard for accuracy, both the Agricultural and Residential Douglas Cost Guides employs 30 years of experience and the most up-to-date information to its cost estimating methods. It all begins with reliable cost estimating methods being readily available and easily accessible. The Douglas method allows property owners, insurance adjusters, construction professionals, and other stakeholders to arrive at a mutually agreeable estimate people can trust.