Construction Valuation Services

Related topics:

• Cost Segregation
• Construction Fund Control
• Construction Claims Resolution
• Insurance Appraisals
• Competitive Approach
• Staffing and Qualifications
• Special Topics in Construction Valuation Services

Our Construction Valuation Services Group provides construction cost segregation for federal tax purposes, construction cost monitoring/auditing, valuations of machinery and equipment, and engineering studies for property tax purposes.

The group has had considerable success in obtaining large savings for clients in retail, hospitality, medical, industrial, and technological fields.

Cost Segregation

Cost segregation is the process of properly separating property to accurately classify assets for federal tax depreciation. For business, the tax savings from property cost segregation are usually very substantial. To fully comply with the multitude and complexity of tax regulations, the engineering/property accounting analysis of shorter-lived assets and costs must be professional and supportable. The Tax Reform Act of 1986 (as modified by the Revenue Reconciliation Act of 1993) lengthened the depreciable lives for buildings and other related property.

Taking more depreciation in earlier years through proper cost segregation reduces tax liabilities. For every dollar identified as a short life asset (7 year 200% D.B. from 39 year S.L.), the taxpayer realizes a present value savings of approximately 18 cents.

Arthur Consulting Group's professionals provide technical and/or litigation support for clients on prior tax years. IRS audits focus on two areas, the legal authority for classifying a property unit in a short-lived category; and the methodology employed to establish a property unit's installed cost and the audit trail documentation substantiating it, as defined in the IRS Technical Advice Memorandum 7941002.

Construction Fund Control

Responsible management of a project demands a thorough review of both the progress payments made and total outlay of funds. Arthur Consulting Group's construction specialists will inspect the work-in-place, review fund draw requests for reasonableness and accuracy, review lien releases for full payment of subcontractors on prior fund draws, standardize documentation, and independently price bulletins and change orders.

Construction Claims Resolution

Construction claims can be a serious, costly problem for owners of major projects. Claims should be resolved as they arise to avoid costly litigations. Our construction specialists are qualified to assist in analyzing and resolving construction claims. We provide advice on responding to claims by analyzing merit, determining schedule impact, and calculating damages.

Insurance Appraisals

Arthur Consulting Group's specialists will determine proper insurable value to ensure full recovery in the event of a loss, while avoiding excessive coverage; and establish a basis for preparing the required proof of loss should there be a claim. Our appraisals are designed to facilitate annual revisions necessary to keep the insurable values and property records current.

Competitive Approach

Each tax-related service provided is designed to produce an economic return to our client that is many times greater than the amount invested in the service.

Staffing and Qualifications

ARTHUR CONSULTING GROUP's clients are primarily large corporations, attorneys, government entities and real estate owners and developers. A small percentage of our work is directly with the I.R.S. and the Justice Department, for whom we have developed methodologies and provide analysis in complex questions of valuation where advanced analytical skills are required.

ARTHUR CONSULTING GROUP, INC. maintains offices in California, Texas, and New Jersey, with affiliates abroad to assist in international projects as necessary.

Our mission is to provide objective, independent analysis, supported by complete and well-documented reports, that will stand up to third party scrutiny.