10.1 Purpose—Based upon the walk-through survey and information obtained in accordance with ASTM E2018–24, general-scope opinions of costs are to be prepared for the suggested remedy of material physical deficiencies. These opinions of costs are to assist the user in developing a general understanding of the physical condition of the subject property.

10.2 Scope—Opinions of costs should be provided for physical deficiencies and not for repairs or improvements that could be classified as:

  1. cosmetic or decorative;
  2. part of a building renovation program
  3. tenant improvements/finishes;
  4. enhancements to reposition the subject property in themarketplace; (5) for warranty transfer purposes; or
  5. routine or normal preventive maintenance, repair of conditions that are de minimis or not material, or a combination thereof.

10.3 Opinions of Costs Attributes:

  1. 10.3.1 Threshold Amount for Opinions of Costs—It is the intent of ASTM E2018–24 that the opinion of costs to correct physical deficiencies
    1. be commensurate with the market value and complexity of the subject property;
    2. not be minor or insignificant; and
    3. serve the purpose of the user in accordance with the user’s risk tolerance. Opinions of cost that are less than a threshold amount of $3,000 are to be omitted from The PCR. If there are more than four separate like items that are below this threshold requirement, but collectively total over $10,000, such items should be included. This guide recognizes that for properties of large scope or market value, these thresholds may be inappropriate to be meaningful to a user, and the user may adjust the thresholds provided that they are disclosed within the Executive Summary under the heading “Deviations from the Guide".

  2. 10.3.2 Actual Costs May Vary—Opinions of cost should only be construed as preliminary, order of magnitude budgets. Actual costs most probably will vary from the opinions of cost depending on such matters as type and design of suggested remedy, quality of materials and installation, manufacturer and type of equipment or system selected, field conditions, whether a physical deficiency is repaired or replaced in whole, phasing of the work (if applicable), quality of contractor, quality of project management exercised, market conditions, and whether competitive pricing is solicited, and other factors.

  3. 10.3.3 Extrapolation of Representative Observations— Opinions of costs may be based upon the extrapolation of representative observations, conditions deemed by the consultant as highly probable, results from information received, or the commonly encountered Expected Useful Life (EULs) or Remaining Useful Life (RULs) of the components or systems, or a combination thereof.

  4. 10.3.4 Estimating of Quantities—It is not the intent of ASTM E2018–24 that the consultant is to prepare or provide exact quantities or identify the exact locations of items or systems as a basis for preparing the opinions of costs.

  5. 10.3.5 Basis of Costs—The source of cost information utilized by the consultant may be from one or more of the following resources:

    1. user provided unit costs;

    2. owner’s historical experience costs;

    3. consultant’s cost database or cost files;

    4. commercially available cost information such as published commercial data;

    5. third-party cost information from contractors, vendors, or suppliers; or

    6. other qualified sources that the consultant determines appropriate. Opinions of cost should be provided with approximate quantities, units, and unit costs by line item. If in the reasonable opinion of the consultant, a physical deficiency is too complex or difficult to develop an opinion of probable cost using the quantity and unit cost method, the consultant may apply a lump sum opinion of probable costs for that line item. Opinions of cost should be limited to construction-related costs; those types of costs that commonly are provided by contractors who perform the work. Business related, design, construction management fees, general conditions, and indirect costs should be excluded.