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Typical Scope of Work for a Machinery and Equipment Appraisal

November 18, 2010

Typically, before performing a machinery and equipment appraisal, a CMEA will outline the scope of work required by an assignment. The USPAP (Uniform Standards of Professional Appraisal Practice), to which all CMEAs adhere, has published guidelines to help machinery and equipment appraisers know what to include in the scope of work. The minimum standards for scope of work include the client’s expectations and the steps taken by other appraisers involved in similar assignments. 

When you engage a CMEA, he or she will typically follow these steps before determining the value of your machinery or 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

A specific scope of work is a necessary first step in any appraisal. If one doesn’t exist, an appraisal may not stand up to scrutiny in a court of law. 

The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage. 

By: NEBB Institute

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