Scope of Work Rule

Scope of Work Rule

A July 2006 amendment to the Uniform Standards of Professional Appraisal Practice (USPAP) which changed the emphasis of rules already in place and removed some technical requirements formerly necessary for appraisals. The Rule provides that for each appraisal, appraisal review,and appraisal consulting assignment,an appraiser must

• Identify the problem to be solved

• Determine and perform the scope of work necessary to develop credible assignment results

• Disclose the scope of work in the report

References in periodicals archive ?
The organizations further asked the agencies to review their regulations in light of recent changes to appraisal standards, such as the Scope of Work rule that provides more client flexibility.
Riach suggests that the Scope of Work Rule has made the job of the reviewer both easier and more difficult: "easier because the appraiser has to lay out the scope of how he/she will solve the appraisal problem.
The Scope of Work Rule clearly sets forth the requirement to identify the problem to be solved.
USPAP's Scope of Work Rule clearly sets forth the requirement to identify the problem to be solved (Table 1).
When the services include an appraisal or appraisal review, appraisers will continue to comply with the Scope of Work Rule, the Record Keeping Rule and Standards 1-3 and 6-10 (as appropriate).
The definition of "scope of work" was revised to address differences in the application of the definition and the Scope of Work Rule.
The biggest changes are elimination of the DEPARTURE RULE and introduction of the SCOPE OF WORK RULE.
USPAP required extensive editing to incorporate the new SCOPE OF WORK RULE and to delete references to the DEPARTURE RULE and the related terms Binding Requirement, Specific Requirement, Complete Appraisal and Limited Appraisal.
The Scope of Work Rule clarifies the standards for the type and extent of research and analysis performed by the appraiser in an appraisal assignment.
In adopting the 2006 revisions, the Appraisal Standards Board has indicated that the appraisal process has not changed and that the concepts in the Scope of Work Rule are not new to USPAP However, there is greater emphasis on the appraiser's process of problem identification and development of an appropriate scope of work," the regulators wrote.
The Appraisal Foundation's new Scope of Work Rule in the Uniform Standards of Professional Appraisal Practice that takes effect July 1, 2006, puts the focus squarely on the need for timely, precise communication in the development and reporting of value.
The ASB released its first exposure draft on July 15 of proposed revisions to USPAP in regard to the Scope of Work Rule.