VALUATION AND CERTIFICATION 0F
BUILDING PROJECTS IN NIGERIA.
1. Valuation of building works
2. Valuations on insolvency
3. Valuation of variations
4. Certificate issue under building contract
5. Interim certificate and valuation
Conclusion and Recommendation
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
1. VALUATION OF BUILDING
WORKS
Building valuation is jointly carried out by the quantity surveyor and the
main contactor based on work done and service of labour engaged as well
as material, plants and equipments supplied to the construction site either
monthly or on basis of stages of work progress. In preparing valuation,
there are some cogent factors that must be put into consideration so as to
achieve a realistic valuation. Such factors include accuracy, date, and extent
of
measurement.
Others
include
preliminary
items,
nominated
subcontractors, and unfixed materials on site.
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
IMPORTANT ITEMS ON VALUATION
Accuracy:- The valuation for certificate should be made as accurate
as possible.
Date:- It will be found convenient to arranged the date at the
beginning of the contract.
Extent of Measurement:- The extent to which measurement will be
necessary in making valuation for certificate will depend on the nature
of the job and the stage it has attained.
Preliminary Items:- Each valuation will take into account the pricing
of the preliminary bill or preliminary items.
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
IMPORTANT ITEMS ON VALUATION
Nominated Subcontractor:- In building of a valuation from a priced
bill, all prime cost sums for nominated subcontractors should be omitted
and dealt with separately later.
Unfixed Materials on Site :- Besides the value of work done, most form
of contract allow payment to be made to the contractor for unfixed
materials brought to the site or where the standard form is used, stored
ready for the contract, though possibly subject to a higher rate of
retention.
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
2. VALUATION ON INSOLVENCY
In the event of the contractor becoming insolvent, it is prudent to
make a valuation of the work executed by taking the necessary
measurement of the work up to the stage at which work cease or is
continued by another contractor. The purpose of this valuation is to
ensure that all parties may be aware of the financial position of
some estimate of money outstanding to the insolvent contractor
can be made.
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
3. VALUATION OF VARIATIONS
Methods of valuing variation include;
1. Use of contract rates
2. Negotiation base on contract rate
3. Negotiation base on fair rate
4. Use of day work rate
5. Fair valuation
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
4. CERTIFICATE ISSUED UNDER BUILDING
CONTRACT
Interim certificate:- Interim Certificates is the one that confirms that
work has been carried out to the architect’s satisfaction, as determined by
visual inspection.
Practical
completion
certificate:-
Practical
Completion
Certificate transfers possession of the building to the client, and the
Making Good Defects Certificate trigger the release of the retention.
Final completion certificate:- The Final Completion Certificate
will only be issued when the architect is satisfied that there has been full
compliance with the contract.
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
5. INTERIM CERTIFICATE AND
VALUATIONS
The amount stated as due in an interim certificate shall, subject to
any agreement between the parties as to stage payments, be the
total value of the work properly executed and of the materials and
goods delivered to or adjacent to the Works or stored in any other
location approved by the Architect in consultation with the
Employer for the use thereon less any amount which may be
retained by the employer (as provided in clause
30.3 of standard form of building contract in Nigeria) and less any
installment(s) previously paid under these Conditions.
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
CONCLUSION
At the early consultation and ideas stage, it is notoriously difficult
to attach an accurate estimation of what the construction costs will
be for any but the simplest building projects. Market conditions
may change, and in an area of, or at a time of, high demand for
good builders, tenders can come back much higher than originally
forecast. Therefore the need for valuation and certification of
building work should be taken with a sense of seriousness by all
the parties involved since it is an important aspect that cannot be
ruled out under building contract administration.
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria
RECOMMENDATION
Architects, quantity surveyor and contractors are expected to
exercise reasonable skill and care when carrying out their work.
This means that they should be suitably qualified, have adequate
resources to meet the project’s requirements and the necessary
proficiency to fulfil their instructions satisfactorily. They should
ensure they are informed and up-todate with guidelines and
statutory requirements relating to the project. A failure to exercise
reasonable skill and care is not necessarily an indication of either
professional misconduct or incompetence.
ARC 807: Professional Practice and Procedure
Department of Architecture, Federal University of Technology, Akure, Nigeria