Legal and Regs - RCA's

Question 1

What is an RCA?

Answer 1

It’s an assessment to determine the cost to restore a property to a condition equal to but not better than when new.

Question 2

What are the types of RCA?

Answer 2

1. Day One Reinstatement
   Most buildings are insured on a Day One Reinstatement. These policies allow claims to be settled on a ‘new for old’ basis if repairs are carried out.

The sum insured is made up of two elements:

• Declared Value: the cost for rebuilding
• Inflation provision: Percentage uplift to cover inflation during the insurance year.

2. Reinstatement Less Wear and Tear

Cost of rebuilding, taking into consideration it’s state of repair. Surveyors value the property on a reinstatement basis, but depreciate elements based on the current condition.

Question 3

On what basis should a property be measured for RCA’s?

Answer 3

IPMS2 (International Property Measurement Standard 2)

Question 4

What factors should be considered that would affect the rebuild costs?

Answer 4

1. Location factors – take into account local variations in construction costs.
2. Demolition
3. Party Wall
4. Listed Building - LA advice to whether the property is listed, the category of listing, is it whole or part of the building?
5. Foundations
6. Local Authority Fees (Building control, planning)
7. Professional Fees (Architects, Engineers, Surveyors etc.

Question 5

What abnormal costs should you consider with an assessment of a listed or specialist building?

Answer 5

1. Cost of Vernecular/ bespoke materials
2. Specialist construction techniques (e.g ornamental stonework, leadworks
3. Involvement of heritage bodies (Listed building consent, Historic England)

Question 6

Where would obtain building costs for the RCA?

Answer 6

1. BCIS (Building cost information service) – produces costs adjusted to geographical location, size, age and quality of the property.
2. In house costings – Tendered market rates for similar projects
3. Bespoke rates – from a QS to generate rates for specialist architypes.

Question 7

What did you consider to be ‘Special Features’ at Milton Keynes?

Answer 7

Anything that would require specialist materials and/ or craftsmanship. The was a glass atrium to the one of the building.

Question 8

What did you ascertain the Reinstatement period for Milton Keynes?

Answer 8

• Redesign period (including demolition, site clearance, design, tender, optioning consents.
• Construction period

Question 9

Can you take me though the process when carrying out the RCA for Milton Keynes?

Answer 9

Desktop Review

1. Confirmed the demise, fixtures, fittings and contents to be insured
2. Confirm exclusions
3. Available info, plans, drawings
4. Check listed status, conservation areas

Survey

1. Methodically took check measurements of the property against the measured plans provided (GIA)
2. Sufficient site notes (structure, construction, finishes, special features)