Valuations

Costs associated with architect instructions (AIs) or Employers Agents instructions under JCT DB2016 that have been undertaken and completed must be included in the valuation.

When the work is the subject of a site instruction, and an AI is awaited, the work should be valued on a fair and reasonable basis, if it has been completed. It is not necessary for the whole of the variation to be completed before monies are included in the valuation. If the AI/variation is substantial, than the value of works completed should be included within the valuation.

Dayworks

If authorised and properly monied out, and signed by the clerk of works or the architect to verify that the hours stated are correct, then costs associated with the relevant dayworks should be included in the valuation.

Fluctuations

When a contract is not based upon a fixed price, the contractor may be entitled to claim additional costs or price increases arising from the effects of inflation on labour or material (or both).

No monies should be included in valuations without supporting documentation, which, when checked, should indicate that the contractor has incurred and paid the additional costs.

Claims

The assessment of loss and expense claims is a subject in its own right. It is unlikely that a surveyor will finalise such claims without guidance from his or her peers in the company.

The RICS Valuation Form does not include provision for separately stating the value of such claims. It is necessary to refer to any monies included within the valuation in the covering letter enclosing the Valuation Form.

Defective work

The value of defective work should not be included within valuations. It is not the responsibility of the quantity surveyor to identify defective work, but that of the architect.

It is best practice for the surveyor to:

• inform the architect of all future valuation dates at the outset of the project;
• request the architect to notify in writing, prior to the valuation date, of any defective work, or work not properly executed, which is of concern;
• request the architect to confirm to the contractor that defective work has been undertaken and that monies will not be included within the interim certificate.

If this procedure is adopted, the value of defective work should not be included within the valuation.

When valuing defective work, it is necessary to include any remedial costs of putting the work right. It is possible that these costs will be higher than the original value of the work included in the contract.