What is the purpose of the Quantity Survey method in estimating RCN?

The Quantity Survey method is primarily focused on performing a detailed inventory of all costs related to construction, which is central to estimating the Replacement Cost New (RCN) of a property. This method involves calculating every component required for construction, including materials, labor, and indirect costs, to provide a comprehensive breakdown of expenses. By meticulously detailing each cost aspect, appraisers can derive a more accurate valuation based on the current costs of constructing a similar new property.

This method stands out in its precision, as it considers variable factors like market conditions, material prices, and labor rates at the time of calculation. This level of detail helps ensure the estimated costs reflect contemporary economic realities, making it a crucial tool for appraisers dealing with the Replacement Cost approach.

Other options do relate to aspects of real estate and appraisal practice, but they do not pertain to the core purpose of the Quantity Survey method. The focus on estimating construction costs through a detailed inventory is what sets this method apart and highlights its significance in appraisals that require RCN estimates.