The numbers in a PCA

The dollar figures in a PCR are opinions of cost: preliminary, order-of-magnitude budget figures meant to give the user a general grasp of the property's physical condition (E2018-24, 3.2.35, 10.1). They price the suggested remedies for material physical deficiencies (E2018-24, 10.1). Actual costs will most probably differ, with the remedy chosen, materials, field conditions, the contractor, market conditions and other factors (E2018-24, 10.3.2). Within the PCR the opinions should be split into immediate costs and short-term costs, with long-term costs set apart when included (E2018-24, 10.3.7). They are not the PCA's fee.

What counts as a physical deficiency

A physical deficiency is deferred maintenance or an easily visible defect in material building systems or components found during the PCA (E2018-24, 3.2.40). The definition leaves out de minimis conditions and those that routine maintenance, minor repairs or normal operating maintenance can remedy (E2018-24, 3.2.40.1).
Material means pertinent to the assessment's objectives and likely, to a reasonable observer, to sway what any party to it judges or does (E2018-24, 3.2.31).
De minimis describes a condition that, in the consultant's sole opinion, is no imminent threat of harm to occupants and either can be handled by routine maintenance or would cost less than the agreed reporting threshold to correct (E2018-24, 3.2.16).

For each material physical deficiency the guide recommends a suggested remedy, which may be further research or testing (E2018-24, 11.2.1).

What gets no opinion of cost

Opinions of cost should cover physical deficiencies, not work that is cosmetic or decorative, part of a renovation program, tenant improvements or finishes, enhancements to reposition the property in its market, done for a warranty transfer, or routine preventive maintenance and de minimis or immaterial repairs (E2018-24, 10.2). Where finding the cause and the right remedy may need specialists, testing, intrusive evaluation, probing or more research, the consultant need not price the remedy unless user and consultant agree to widen the scope (E2018-24, 6.4.3). In those cases the guide recommends an opinion of the cost of the further study (E2018-24, 10.3.6).

The threshold

The guide intends opinions of cost to suit the property's value and complexity and the user's purpose and risk tolerance, and not to be minor (E2018-24, 10.3.1). Opinions under $3,000 are to be left out of the PCR, but where more than four separate like items each fall under it and together pass $10,000, they should be included (E2018-24, 10.3.1). For large or high-value properties these amounts may mean little, and the user may adjust them if the change is disclosed in the Executive Summary under its Deviations from the Guide heading (E2018-24, 10.3.1). The guide notes that most PCRs report material life-safety and building code violations whatever their cost (E2018-24, 10.3.1, Note 1).

How the opinions are built

Sources. Unit costs from the user, the owner's own past costs, the consultant's cost files, published commercial cost data, contractors, vendors or suppliers, or other qualified sources (E2018-24, 10.3.5).
Line items. Each should show approximate quantity, unit and unit cost; a deficiency too complex for that may carry a lump sum (E2018-24, 10.3.5).
Construction costs only. Opinions should be limited to construction costs of the kind the contractors doing the work supply; business costs, general conditions, design and construction management fees, and indirect costs should be left out (E2018-24, 10.3.5).
Approximate quantities. The consultant is not meant to produce exact quantities or exact locations (E2018-24, 10.3.4). Opinions may rest on extrapolated representative observations, conditions the consultant judges highly probable, information received, or commonly encountered EULs or RULs (E2018-24, 10.3.3).

The Executive Summary should schedule the physical deficiencies of the primary improvements with their suggested remedies and the opinion of cost (E2018-24, 11.4.2).

The categories

Immediate costs correct deficiencies needing action now: conditions the consultant judges to put life safety at immediate risk, conditions that left alone would be expected to cause or contribute to failure of a system or component or a significant rise in its repair cost, or recorded or reported building or fire code violations (E2018-24, 3.2.28).
Short-term costs remedy deficiencies whose repair or replacement deserves priority even when it is not urgent (E2018-24, 3.2.53). The definition names no period of months or years.
Long-term costs are opinions of cost for expected replacement of systems and components over an evaluation period the user defines (E2018-24, 3.2.30). Unless user and consultant expressly agree, they are not meant to cover enhancements or upgrades (E2018-24, 3.2.30.1).

Long-term costs and useful life

The guide's nonmandatory appendix says long-term costs may be included by agreement and rest on remaining useful life (E2018-24, X1.2.5). It says items expected to wear out after the immediate and short-term periods but within the agreed term, and above an agreed threshold, should be included; routine maintenance, items expected to outlast the term, and items others are responsible for are generally left out (E2018-24, X1.2.5). The same appendix says long-term figures can differ significantly from actual costs, an inflation factor is no economic forecast, the figures guarantee no service life, and they are not suitable for setting the reserves of common interest properties such as condominiums (E2018-24, X1.2.5.1 to X1.2.5.4). It adds that a user budgeting for them should allow for variation and add allowances for unexpected costs, design, permitting and fees, which the guide excludes (E2018-24, X1.2.5.5). E2018-24 says nothing about lenders, escrows or loan programs.

Expected useful life (EUL): the estimated average service life, in years, before material repairs are needed, for an item installed new and kept up as it should be (E2018-24, 3.2.24).
Remaining useful life (RUL): a subjective opinion of how many years an item is estimated to keep serving its purpose before it warrants replacement; quality, installation, maintenance, climate and use all affect it, and it is no guarantee (E2018-24, 3.2.50, 3.2.50.1).
Effective age: an opinion equal to EUL less RUL, which may be more or less than actual age (E2018-24, 3.2.21, 3.2.21.1).

This page is general reference. It does not assess any property. ASTM E2018-24 is the standard and is not reproduced here; the judgment of the consultant on the facts governs.