INTERPROPERTY SYSTEMS LTD

The standard development appraisal starts off as a relatively simple exercise at first but invariably becomes more complex because the individual elements within a scheme (eg Land Cost, Rent, Building Cost) are inter-related. This means that any change in value requires a complete re-calculation of the entire appraisal to ensure that any 'knock-on' effect is taken into account.

Most appraisal work is abortive as most schemes do not measure up financially. In each case time is wasted, but the viable schemes cannot be found unless this task is carried out.

To set up a spreadsheet model for a development requires experience in writing formulae and then the model needs to be tailored to each development scheme. The problem is compounded where differing computer skill levels exist within an organisation. Whilst spreadsheets are entirely suitable for development appraisal work, experience has shown that only a small percentage of users either have the time or inclination to use spreadsheets effectively for this task because of the time consuming complexities involved.