The Contractor’s Method

This method independently assesses the two components of a property: the building plot on the one hand, the buildings on the other.

Depending on how it is applied, this method is similar to the method by comparison, or the replacement cost method.

The replacement cost is both a value in itself (replacement value) and also a method of calculation.

As a method of calculation, the cost of replacing a building includes the land, the buildings and the services.

In terms of market value, replacement cost is generally used for quite specific and exceptional property, particularly units of heavy production when the use of the method by “comparison” or by “profit” proves difficult or impossible.