When do you need an Independent Expert Construction Valuation
If you have a significant amount owing/disputed under your contract and are considering going to Adjudication then you will need a proper Construction Valuation of the works and because it is a legal means of claiming for monies owed, you will need to provide evidence of the money owed to you. Simply saying someone owes you money does not make it so.
An independent Expert Construction Valuation is a means for evidencing that you have done the work you claim has been done and that it is worth the amount you say it is. An Adjudicator looks first and foremost at the credibility of your claim and if that’s done by someone not connected to you and in a professional manner that will be a major plus in your favour. Remember Lawyers do not provide valuation services so whilst they can help with the lodgement of your claim; it is up to you to get a proper Construction Valuation to support your claim.
To do this you should have an Expert Construction Valuation done as close as possible to the date of when payment was due and not received – the reference date under the Act. If you are a Contractor or Subcontractor then the usual trigger for when to obtain an Independent Expert Construction Valuation is when you receive a payment schedule from the Owner/Principle/Architect/Engineer/Builder advising that your progress claim won’t be paid, or will be “paid–less” than the amount requested in the progress claim. Having an Independent Expert Construction Valuation will be essential supporting documentation for your case in Adjudication, and for further claims you may need to make down the track if the matter is not fully resolved by the Adjudicator. See more on this at “Why do you need an Independent Expert Construction Valuation – 3 Good Reasons”. You should not take the risk of having the works continue past the point in time (where the payment was advised to be “paid-less” or not paid at all) without having a proper Construction Valuation having been done for the works up to that point. A retrospective Construction Valuation is usually less accurate than one done on or around the time when payment was due and video/photographic evidences will often be required to fill in the blanks.
Remember if you are a Contractor/Subcontractor then you may also need a Construction Valuation to support Loss & Expense Claims for Delay, Disruptions, Variations and other items that you may wish to submit for later on in the contract. So it is a good idea to have this done even if your strategy is not to go to Adjudication but instead to hold-off and submit a Loss & Expense Claim under the contract at a later date. In this case the necessary Loss & Expense schedules are : (a) easily prepared if they can be based on Independent Expert Construction Valuation and (b) going to be more convincing than just assertions of what you think has caused the Loss & Expense claim. See more about Loss & expense Claims at “Contractual Loss & Expense Claims or Schedules”
Therefore:
In order to greatly increase your chances of success in any Adjudication or for later Loss & Expense claims, it is recommended best practice to have an Independent Expert Construction Valuation done and submitted as part of the documents for your case.