What is the Valuation Threshold and why does it matter?

Valuation Threshold: No, it’s not in a door way.

vocabularyWhen you think of a threshold, I’m sure you imagine a doorway, perhaps with a blushing bride being carried over one.  In this case, it’s financial in nature.

This perplexing term is the Valuation Threshold and it has quite a bit of influence on the direction and scope of your construction project.

The Valuation Threshold is a dollar value set each year by the State of California’s Architect’s Office. Its purpose is to determine how much of the project should be dedicated to ADA Code Compliance.

Still perplexed?  Yes, it is a complex issue; perhaps the following chart will shed some light on how it may affect your building and your project’s budget.

ADA Valuation Threshold

For example, if your project valuation (cost) is $60,000, excluding the costs for paint, flooring, and a few other exemptions, then $12,000 (20%) will have to be put toward ADA improvements from the outside in (path of travel, doors, restrooms, etc. per CBC 2010, Section 1134.b.).  However, once the project is valued higher than the threshold, then the entire building will have to be brought up to current ADA codes and standards.

2015’s Valuation Threshold is $ 147,863.00.

The Valuation Threshold may be unchartered waters for you, but at Riggins Construction & Management, Inc. we come across ADA issues with every project.  And, as they say, the proof of the pudding is in the eating.

A client remarked about his building in Carlsbad:

“I especially appreciate your understanding and navigation through the shoals and hazards of the assorted city agencies… a major challenge met!”

For further consultation on your individual project, please feel free to give our office a call at (714)  953-6333.

More of our vocabulary posts.

From State Architect’s Office from the State of California’s website:

Valuation Threshold for Alterations, Structural Repairs or Additions to Existing Buildings
Per 2007 California Building Code Section 1134B.2.1 Exception 1, the 2012 valuation threshold is $136,060.00 and will be updated again in January, 2013.
The annual valuation threshold is based on the January, 1981 threshold of $50,000.00 as adjusted using the ENR 20 Cities Construction Cost Index, as published by Engineering News-Record, McGraw-Hill Publishing Company, for January of each year.

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