What’s the difference between a Construction Valuation and a Property Valuation

With any Valuation this requires a level of due diligence and professionalism that is not required when providing an estimate or appraisal.

A property valuation does this through research and calculation based on a number of methods to arrive at a market valuation of the property (land and building). However the building component of property valuation is usually based on a completed building, not one still under construction. The incomplete building has needs to be valued on a fair value basis rather than a market value- the actual value of the works under the contract or the amount to transfer the liability. This is a Construction Valuation which involves a site measure and comparison against the construction drawings and specifications as well as an extensive review of the construction contract as performed (up to a particular point in time) to establish the contract value of work completed under that particular contract.  It is different to a valuation which is based on market rates and prices. 

A Construction Valuation can be said to therefore take account of the specifics of the contract being valued to yield a more precise form of valuation than any market valuation would. For this reason a market valuation is not the same as a Construction Valuation required under the Adjudication schemes operating in either Australia or New Zealand.

Therefore:

In order to greatly increase your chances of success in any Adjudication, it is recommended best practice to have an Independent Expert Construction Valuation done by a Construction Valuer (not a Property Valuer) and submitted as part of the documents for your case.