Replacement Cost Report
Our knowledge and experience built over almost three decades in construction economics allow us to accurately provide a comprehensive report, compliant to the Strata Titles Act.
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What is a Replacement Cost Report?
In South Australia, the Strata Titles Act 1988 – section 31 (The Regulation) states that a Strata Corporation must insure buildings and building improvements to replacement value, which includes any costs associated with replacement, such as demolition, surveying, architectural or engineering work.
A Replacement Cost Report is used to calculate the costs associated with covering a residential or commercial building in the event of a total loss. It needs to be undertaken independently to ensure that the costs associated are accurate and it is then provided to the insurer with the recommended capital replacement value needed to adequately reconstruct a building.
What does an Archi-QS Replacement Cost Report Covers?
Our knowledge and experience built over almost three decades in construction economics allow us to accurately provide comprehensive reports that are affordable and can be easily read by our clients, whilst fulfilling the requirements of the insurers and The Regulation.
Our detailed Replacement Cost Report takes into consideration the following factors:
- Estimated reconstruction cost
- Demolition and removal of debris
- Escalation to commencement of construction
- Professional and authorities fees
- Escalation over life of policy
- Inflation
- Capital replacement value
- GST allowance
How Often Should Replacement Cost Reports be Reviewed?
Fluctuations in the property market can affect the economy, supply and demand, cost of construction and more. Replacement Cost Reports should be updated at a minimum every 5 years, but we recommend updating your Replacement Cost Report yearly to avoid under or over-insuring the property, particularly with the exponential rise in construction costs in the wake of Covid-19.
Why Use a Quantity Surveyor for a Replacement Cost Report?
A Replacement Cost Report needs to be carried out by a qualified individual. A quantity surveyor is a construction cost expert that is qualified to carry out replacement cost assessments. Though property valuers are commissioned to do the same, they may inaccurately include irrelevant costs such as land and market value as they are not construction cost experts. An accurate replacement cost assessment can minimise inflated insurance premiums and help with the maintenance of strata funds, whilst adequately insuring the strata property.
How do I Get a Quote?
Email us at admin@archi-qs.com.au with a copy of the strata plan and we will get back to you with a fee proposal.