If you run an appraisal practice and don’t have enough employees to handle all of the responsibilities, or if you simply want to cut back on your workload, hiring a subcontractor might be an affordable and effective option. Consider them as an alternative to expanding fixed overhead that might be only a temporary need or a more permanent way to bridge a gap in staffing. Subcontractors can save you time and excess costs, in comparison to other options.
If you run a national practice, one of the areas where hiring subcontractors might be a good choice is field work or site visits. Some inspection companies have local contacts across the country in every state and major city that you can hire to gather photographs and additional asset information during the appraisal process. As long as you work closely coordinating scheduling and ensuring the inspection directives are clear, this may end up saving you time and money in comparison to driving for hours or flying out to the facility yourself.
Another area where subcontractors might assist you in your valuation is with industry experts who can provide supporting research and reliable opinions of value to bolster your report. If you’re working on a project where the equipment has a limited secondary market or data is hard to come by, it might be worth it for an expert in the field who buys and sells the machinery to provide you with a written summary opinion that contains the details necessary to solidify your value estimates.
Before you commit to engaging with a subcontractor, take a long look at the overall scope of work and the larger transaction involved with the appraisal. With fieldwork, ensure you are advising your client that you will remain the primary contact throughout the process and that the valuation analysis will be your work product. Advise them the inspector does not have valuation experience but is qualified to work with them to gather photos and complete a basic inventory validation with the asset listing provided.
There will be projects where you feel the only way to accomplish the fieldwork properly is to visit the site yourself or to send one of your employees, so pick and choose the projects as you see fit.
Industry expert subcontractors may come in particularly handy if you are working on a legal case where you could end up providing your report to the courts in an effort to facilitate a dispute. Judges will tend to rely more on valuations that are supported by multiple sources, and having one or two written supplemental opinions will bolster your work product.
In summary, subcontractors, if vetted properly and chosen for the right projects, can be a useful tool for equipment appraisal professionals.