VALUATION AND CERTIFICATION 0 F BUILDING PROJECTS IN

VALUATION AND CERTIFICATION 0 F 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