What’s the difference between an Estimate and a Construction Valuation

An Estimate can be done in many ways and as such the accuracy of that Estimate is always going to be among the questions front and centre in the mind of any Adjudicator. However a Construction Valuation together will generally be accepted to be more precise then most Estimates due to way in which they are carried out including the use of an Independent Expert Construction Valuer. Estimators or Contracts Administrators apart from being not independent (working for the Contractor/Subcontractor) are familiar with preparing progress claims which are usually a form of estimate rather than a Construction Valuation. An Adjudicator apart from looking first and foremost at the credibility of your claim and whether or not it’s been done by someone connected to you (i.e. your contracts administrator or estimator) will normally look also at what method of calculation has been used. A broad brush M2 rate or % complete against programme/schedule days are both estimates fine for progress claims but not the same as a Construction Valuation.

If you are considering going to Adjudication for any claim of a significant value or complexity, then you will need a proper Construction Valuation of the works to sufficiently reveal/prove to the Adjudicator matters that an estimate is unlikely to be able to do. Remember Adjudication is a legal means of claiming for monies owed, so 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 to have been done and that it is worth the amount you say it is.  An Estimate however is unlikely to be able to serve the same purpose.

Your Contracts Administrator or Estimator who prepares your Progress Claim is most likely going to be employed by you, so even if they do know how to properly prepare a Construction Valuation, the question of impartiality and bias will remain at issue in the mind of the Adjudicator and your claim will fail as a result.

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 and submitted as part of the documents for your case.