Helpful Hint: Scope of Work
Tuesday, June 18, 2019 in Ask an Instructor
One of the most frequently asked questions among appraisers is how to write or improve the Scope of Work in their appraisal report. The USPAP Scope of Work Rule says that, "for each appraisal and appraisal review assignment, an appraiser must (1) identify the problem to be solved; (2) determine and perform the scope of work necessary to develop credible assignment results; and (3) disclose the scope of work in the report." The Scope of Work is determined by the appraiser in consultation with the client, as it is the client’s needs that direct the Scope of Work. Ultimately, the appraiser is responsible for the Scope of Work. The USPAP manual follows the Rule with a Comment that further explains the type of information that should be included in the Scope of Work.
Scope of Work includes, but is not limited to:
- The extent to which the property is identified;
- The extent to which tangible property is inspected;
- The type and extent of date researched; and
- The type and extent of analyses applied to arrive at opinions or conclusions.
The next time you begin an appraisal assignment, think about all of the parts of the Scope of Work Rule and be sure to incorporate the relevant information in your appraisal report. Remember that neither USPAP nor ISA requires you to state the exact phrase “Scope of Work” in your appraisal report, but you must include the relevant details to be in compliance.
How long should your Scope of Work be? It depends. You will want to include enough information to show that you have identified the problem and that you have determined and performed the work necessary for credible assignment results. It may be a few sentences, or it may be a few paragraphs depending on the complexity of your appraisal assignment.