The Replacement Cost Assessments (also called insurance Valuations) must be completed by Section 85 of the NSW Strata Schemes Management Act 2015 No. 50, and Regulation 39 in the Strata Management Regulation 2016. Strata Managers, on behalf of the Owners Corporation, obtain reports of insurance valuations from Archi-QS a well-known and competent professional company. After that, they are presented to the insurer in order to ensure the strata building's insurance.
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Replacement Cost Assessments contain the suggested Capital Replacement Value to adequately ensure the reconstruction or partial reconstruction of a building in event of its destruction in the scenario of a natural catastrophe or fire. Although the cost of construction is the primary element of the Replacement Cost Assessment, however, there are additional significant costs to take into consideration. This includes the cost of official and professional charges as well as the cost of inflation, demolition, and removal of debris, as well as the costs of all outside groundwork.
What are the contents of the reports include?
Our experience and knowledge gained over nearly three decades of working in construction economics enable us to produce accurate and clear reports that are cost-effective and also educate our clients about the process. Our clients are guaranteed an understanding of the process and trust in the value and quality of the work we do.
The report in-depth focuses on the following elements:
- Estimated reconstruction cost
- Debris removal and demolition
- The construction process is accelerating to the point of commencement.
- Fees for professional and government services
- Expansion of the policy over the course of its life
- Capital Replacement Value
- GST Allowance