The contractor's basis of valuation for rating purposes, 2nd edition

This professional standard is intended to be applicable for Contractor’s Basis rating valuations. The purpose of this document is to aid the understanding of the Contractor’s Basis for the general rating practitioner while providing a common framework of the basis for the more experienced practitioner.

This document covers:

• scope and application
  
• the approach to valuation
  
• stages of the valuation approach and
  
• material change of circumstances

This document was reissued in September 2023 as a professional standard. It had previously been published in August 2017 as a guidance note. For more information on the document category changes, see Standards document types.

The September 2023 version includes some minor amendments from the 2017, such as removing the examples previously contained at 1.3, and revisions to appendices A and B to include updated decapitalisation rates and case law references respectively. These changes were discussed with a stakeholder group containing representatives from each of the organisations that the document was published in association with.