Valuations

Materials

Stored on site

Clause 4.13.1.2 of JCT DB 2016 states that materials on site will be included in an interim certificate, provided that they are:

  • not prematurely brought to site;
  • protected from weather and damage;
  • within the site area; and
  • for incorporation into the permanent works.

When undertaking the valuation, the private quantity surveyor (PQS) and the contractor's surveyor will agree the quantities of materials stored on site, paying particular attention to items of a large quantity or high value. A price for the materials will then be agreed, based upon the current list price of such materials, or invoices if available. Reference can also be made to the 'list of basic prices' that forms part of the contract or form of tender.

Materials on site will not form part of the valuation at practical completion, unless partial or sectional completion of the works is agreed.

Stored off-site

Materials off-site are included in valuations only in exceptional circumstances. This is due to the fact that materials may be stored many miles from site, outside the direct control of either the employer or the contractor.

The procedure for payment for off-site materials and goods is set out in JCT DB 2016 where the employer agrees to make payment for materials off-site, then such materials must be:

  • intended for the works;
  • complete;
  • set aside and properly marked to identify the employer, or at least the contractor, stating their destination as the works;
  • adequately insured against damage, loss, and so on;
  • subject to an agreement between the supplier or sub-contractor and employer that upon payment of the monies due on an interim certificate by the employer, title in the goods passes unconditionally to the employer;
  • in accordance with the contract;
  • subject to the provision of reasonable proof by the contractor to the architect that the property of the materials is with the contractor (or sub-contractor).

If the architect or employer agrees to include monies in an interim certificate, the contractor must complete a statement confirming compliance with the contract conditions regarding materials kept off-site.

It is then necessary for the private quantity surveyor (PQS) and the contractor's surveyor to arrange for the architect to inspect the materials wherever they are stored. The architect should verify that the materials are ready for incorporation into the works and advise that they are free of defects.

Upon instruction from the architect, the PQS will include the value of goods in the next valuation, shown separately as 'materials stored off-site'. The process will be repeated if necessary, for subsequent valuations, until the materials are delivered to site.

Clause 4.15.4 JCT DB 2016 offers the contractor the opportunity to list items that are uniquely identified at tender stage that will require payment for within valuations.