To determine the total reproduction cost new of a subject building using the quantity survey method, what must the appraiser add to the sum total of the direct costs?

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To determine the total reproduction cost new using the quantity survey method, an appraiser calculates both the direct costs associated with constructing the building and the necessary indirect costs that are incurred during the construction process. This includes expenses such as architectural fees, permits, and utilities that won't be directly linked to a specific component of the building but are essential for completing the project.

Additionally, entrepreneurial profit, which represents the return on investment for the developer or builder, is also factored into this total. This is important as it provides a realistic view of the total costs and potential returns for the property development from both the builder's and investors' perspectives.

Thus, the total reproduction cost new encompasses all direct costs, along with indirect costs and entrepreneurial profit, making the sum of these components critical to calculating an accurate reproduction cost that reflects market conditions and investment expectations. This comprehensive approach ensures that appraisers arrive at a more complete and accurate estimate of the property's value based on its reproduction cost.

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