Home The Contractors method

The Contractor’s method is a cost method of valuation, and can sometimes be used when comparative, profits or investments methods cannot be used. The situation often occurs if a property has a specialist nature, meaning there are no market transactions. The method assesses all the costs of providing a modern equivalent property, and thereafter adjusting it to reflect the age of the subject property. This method is often referred to as the ‘method of last resort’ due to its unreliability, as the market value is determined by the economic forces of supply and demand, not by the cost of production.