 This method of valuation can be adopted for tenements which are rarely let, hence rental evidence is normally not available, and in respect of which the receipts and expenditure method is considered inappropriate.This valuation method may be applicable to properties such as oil depots, golf courses, recreation clubs and other similar tenements.The contractor's method assumes the construction of a hypothetical alternative equivalent to the tenement being valued with all costs, including land acquisition costs and fees, taken as at the valuation reference date with appropriate adjustments for age and obsolescence.