Building Construction, Measurement and Defects
Valuers must understand construction well enough to identify what exists, assess condition, and measure it correctly. Candidates should know the main structural forms (load-bearing masonry, framed structures), common materials, and the difference between structural elements and finishes. They should recognise common defects - settlement, damp, roof failure, structural cracking, and services deficiencies - and understand how each affects value, marketability, and insurability.
Measurement concepts include gross external area, gross internal area, and net lettable area, and the importance of consistent measurement for comparability and for lease and rating purposes. The valuer must know which measure the purpose requires and must not compare areas measured on different bases.
Traps: comparing a building measured on gross external area with one measured on net lettable area; treating cosmetic defects as structural (or vice versa); missing defects concealed by finishes; and assuming a building complies with current codes when it was built to earlier standards. Another trap is valuing a defective building as though remediated without deducting remediation cost or reflecting stigma.
Rule of thumb: describe the defect, estimate remediation cost, and then decide whether to deduct cost, apply a market discount, or both.
Worked example: A leaky roof requires replacement at 40,000. The valuer may deduct the cost from the defect-free value, and consider whether buyers would also demand a discount for inconvenience and risk. The two effects are not automatically the same.