The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal
As part of a typical machinery and equipment appraisal, the appraiser will outline the scope of work involved in an assignment. The USPAP (Uniform Standards of Professional Appraisal Practice) has put forth guidelines that machinery and equipment appraisers should include in the scope of work. The minimum standards for scope of work include the expectations of the client and other users and the actions of other appraisers who carry out similar assignments.
When you engage an appraiser, these are the steps that an appraiser typically will take prior to determining the value of your machinery and equipment:
Identify the assets to be appraised
Define the purpose of the appraisal
Establish the valuation date for the appraisal
Determine the appropriate valuation concepts and approaches to be used
Determine the type of valuation study to be completed
Select the type of appraisal report to be provided
Check the availability of data and information
The scope of work is the first step in any appraisal. Without a specific scope of work, the conclusions of an appraisal may not stand up to scrutiny.
