Developed together by appraiser and agency.
Defines general parameters of work.
Prepared before appraisal work starts.
May be updated as needed
The scope of work is a written statement agreed upon by the appraiser and the agency describing the appraisal work the appraiser is to do.
It should be developed cooperatively by the assigned or contract appraiser and an agency official who is competent to both represent the agency's needs and respect valid appraisal practice.
The scope of work should describe what the agency and the appraiser each are to do, and what is the mutually expected outcome of the assignment/contract.
Although this is a revised approach from what was required in the past relative to abbreviated and detailed appraisal formats, actually greater flexibility is afforded. Under the new rule, once a "scope of work" has been developed, existing appraisal formats that agencies have in use can continue to be utilized if they fit the scope that has been developed.
BACKGROUND: The scope of work concept is coming into wide acceptance. Not only does this Rule adopt it, but The Appraisal Foundation is working on scope of work in the USPAP context. Their latest Exposure Draft (2/15/2005) proposes to define Scope of Work as: "the type and extent of research and analysis in an assignment." Their draft Scope of Work Rule proposes "An appraiser must properly identify the problem to be solved in order to determine the appropriate scope of work. The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results." The draft further comments: "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, type and extent of data researched, and the type and extent of analysis applied to arrive at opinions or conclusions." The draft also comments, "Appraisers have broad flexibility and significant responsibility in determining the scope of work . . . " We agree with and support these statements, and anticipate continuing convergence with USPAP as we and the Appraisal Standards Board "flesh out" the scope of work concept.