Valuations ‘Top 10’

In these challenging times, Emma Howarth, our Associate, has created a ‘Top Ten Tips’ to assist in valuing the works.

10. Value of Works

From the employer’s viewpoint, the value of works completed by the contractor is the value of the whole contract, less the cost of completing the works with the aid of another contractor.

9. Interim Valuations

An interim valuation must be a realistic assessment.

A low valuation creates unreasonable financial problems for the contractor, whereas a high valuation creates a risk to the employer.

8. Obligations

It is critical that the contracting parties’ obligations are met at the stated times.

7. Contract Sum

Know how the Contract Sum is made up and what is included where.

6. Prelims

Check how prelims are split and claimed. If these are split on a week-by-week basis, where is the removal of site set up?

Prelims should reflect the time left to complete the works. If the contractor slows down, we slow down their prelims!

5. Rules for paying

Check the rules for paying for materials on and off site

Rules can be found in 1.16.8 and 1.16.9 of the ‘Black Book Interim Valuations and Payments’.