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Discover the important role of Quantity Surveyors in construction and property investment! They're experts in estimating construction costs and maximising tax deductions for your investment property. Learn how they can help you navigate depreciation schedules and ensure your projects stay within budget and on track. Key points: • Construction cost estimation and project management • Expertise in tax depreciation for residential and commercial properties • Importance of accurate depreciation assessments for maximising tax benefits Explore more in our comprehensive guide:

FINAL ACCOUNT OF A CONSTRUCTION CONTRACT The final account stage of a contract is the process during which the quantity surveyor determines the final cost of a project, based on the following documents: — The form of contract — Original priced bill of quantities — Variations — Drawings — Agreed contractor claims. For public sector projects in particular the final account acts as the final part of the audit trail, allowing all financial transactions relating to the contract to be clearly traced with the contract bills of quantities being the starting point. For a private sector client it may not always be necessary to produce a fully detailed final account as long as the client is convinced that the final project has delivered value for money.

Where the employer and contractor have been unable to reach an agreement on the valuation of a variation and the quantity surveyor has taken on this responsibility he must carry out the task in accordance with the Valuation Rules (clauses 5.6 to 5.10 of the JCT). In this situation the quantity surveyor has the right to decide which is the appropriate method and means of valuing a variation.

Interim valuations: Most standard forms of contract have a provision to pay the contractor on a stage payment or quantum meruit basis, as the work proceeds. Without this provision the contractor would have to wait until the end of the contract before receiving payment and this would clearly be un- workable from a cash flow perspective. The stage payments or interim accounts are prepared usually on a monthly basis by the contractor’s surveyor and the client’s quantity surveyor.

Are you a professional in the property or construction sector? Whether you’re an architect, lawyer, quantity surveyor, or engineer, have you considered if you can apply a 0% VAT (zero-rate) to your services related to residential properties? Dive into our latest newsletter to explore this and more! 👉https://ow.ly/YlUe50Te7PQ #PwCNamibia #TaxNewsletter #TaxMatters #NamibiaTax

Understanding the complexities of quantity surveying and tax deprecation requires detailed knowledge of several aspects. Here are the top five complex areas: 1. Division 43 and Division 40 Depreciation: The complexities of these areas include identifying and categorising assets (Div. 40) as well as determining eligibility based on construction dates and the type of structure (Div. 43). Each asset has a different effective life, depreciation rate and only buildings constructed after certain dates qualify for deductions. 2. Estimating Historical Construction Costs: There are instances where the exact costs of historical improvements are unknown. Quantity surveyors must estimate these costs using construction standards, inflation indices, and must adhere to ATO guidelines to ensure that these are reasonable and based on reliable data. 3. Low-Value Pooling and Immediate Write-Offs: Identifying eligible assets and managing the low-value pool requires detailed tracking and being updated with legislative changes. 4. Component Depreciation: Detailed analysis and breaking down a property into its individual components such as roofing, plumbing, and electrical systems are required to correctly classify and depreciate each component. 5. Strategic Asset Replacement: Timing asset replacements and disposals as well as balancing adjustments require strategic planning, detailed record-keeping, and correct calculation. The complex aspects of each of these areas emphasises the importance of precise classification, detailed record-keeping, and staying updated with legislative changes. To effectively navigate these complexities and maximise tax benefits, collaborate and engage a qualified quantity surveyor like Koste. Call us at 1300 669 400. #Koste #KosteTaxDepreciation #taxdepreciation #quantitysurveying #trustedquantitysurveyors

Selling your investment property? Don’t overlook the power of an updated depreciation schedule. This simple step can boost your tax deductions by accounting for the wear and tear on your property, improving your cash flow before you even think about listing. Updating your schedule ensures you're maximising every possible deduction, which can make a big difference in your overall return. It’s a smart move to enhance your financial position before you sell. Got questions about other steps you can take before selling? We’re just a call away. Need a good Quantity Surveyor? We love the team at MCG Quantity Surveyors

Measurement and pricing of variations: The JCT 05 clause 5.4 gives the contractor the right to be present when variations are measured. In practice, measurement of variations can take place on site, by the employer’s quantity surveyor who then passes it to the contractor for checking and agreement, or by the contractor as part of the interim valuation process, which has to be checked and agreed by the employer’s quantity surveyor. Once agreed, variations are included in the final account and included in interim certificates.

Now it’s time for the fun bit – the first valuation! So, what happens? Usually, the first valuation date is one month after the start of the contract, and on the nearest working day each month after that. This date is an important one, since it’s the earliest trigger point for all other dates, making sure that the contractor is acting diligently and that they know when payments are due to them so that they can cover the costs of materials and trades. Once the first valuation is submitted by the contractor, or the quantity surveyor acting on their behalf, they will issue their assessment of the works complete on or before the date specified in the contract. This is based on either the contract sum analysis or against a payment schedule depending on the method of valuation chosen within the contract. Want to know more about how we can help you? Head to these places: 🌐 - www.harrisonclarke.co 📞 - 023 8155 0051 📧 - [email protected] #projectvaluation #contractor #charteredsurveyors #surveyorslife

Why choose a Quantity Surveyor for your sum insured? Our experts, armed with NZ-developed world-leading technology and current construction costs obtained from the construction projects we are working on, provide the most accurate valuations, ensuring certainty for your asset. Discover the difference: https://lnkd.in/g8f7me_7 #QuantitySurveying #AccurateValuation #HomeRenovation #BuildingConfidence #ConstructionExpertise #InsuranceValuation