Letter of Intent from client: To engage the services of an Estate Surveyor and Valuer, say for the valuation of the assets of a company or corporation, the first step is to get in contact with the firm by issuing a Letter of Intent requesting that the firm undertakes to carry out the valuation of the assets of the company. The letter can go further to express the urgency of their request and demand that the firm gets in touch urgently to discuss the desire to hire their services.
Respond to client brief in writing: Since this brief is in writing, it is incumbent on the firm to respond also in writing, accepting or rejecting the offer. Where there is an acceptance, as will usually be expected, this acceptance must also be in writing. But there is nothing wrong if the Principal Consultant of the firm or any Senior Surveyor should call the client on phone and inform him that their firm has received their offer and will immediately get in touch in writing. Where there is offer and acceptance, a contract is made on the offer. There has to be a discussion between both parties, and it is the duty of the Estate Surveyor and Valuer to direct the client, who may not know much about the processes of carrying out an Assets Valuation. He needs not only to be educated but also to be put through all the requirements for the assignment.
Valuation brief: As a standard of practice, the Nigerian Institution of Estate Surveyors and Valuers advise that practitioners discuss a valuation brief with the commissioning client before proceeding with its execution, the issues that should be raised during such a briefing are outlined below:
- Essential documents: Upon the confirmation of client’s brief, a request is made of essential documents including location map and site plan (if available and a copy of the title deed).
- Clarification of conditions of engagement: Unless the conditions under which an engagement to carry out an Assets Valuation is unequivocally stated and fully understood, it will be presumptuous for a Valuer to assume that his client understands or will understand the details he will need to guide him for the valuation.
- Client’s needs and requirements: To achieve client’s satisfaction and minimise the scope of misunderstanding and subsequent dispute, it is essential that whenever possible the Estate Surveyor and Valuer should seek to establish and understand from the onset, the client’s needs and requirements. (In some cases the use of standard conditions of Engagement and a written agreement that will apply between the Estate Surveyor and Valuer and client on a continuing basis will facilitate this). The process also enables the Estate Surveyor and Valuer to satisfy himself that he is able to meet these needs and requirements and for the Client and/or his professional advisers to know in advance what they can reasonably expect to receive and what responsibilities the Valuer will and will not accept.
- The Estate Surveyor and Valuer must seek to establish the purpose of the valuation or appraisal from the client and/or his professional advisers, so that the Valuer can adopt an appropriate basis of valuation. If the Client declines to reveal the purpose, the Estate Surveyor and Valuer must advise the Client in writing that he, (the Estate Surveyor and Valuer), will be obliged to state this in his Report and insist on its inclusion in any published reference to the valuation.
- Documentation of services to be provided: Since disputes may arise many years after a valuation or appraisal has been provided, it is important to ensure that the agreement between the parties is contained in, or evidenced by comprehensive documents. The use of standard Conditions or Model Conditions of Engagement provided in the RICS Manual is recommended. Where these are inapplicable or not adopted, the principles underlying them, especially those concerned with the definition of assumptions and exclusions of responsibility, must be adopted to meet the needs of the situation. If the conditions or terms in them are to be of contractual effect, it is essential that they are expressly incorporated in the agreement when it is being formed, rather than being introduced at a later stage. Nevertheless, if a need to change the agreement arises as it is being implemented; the changes agreed should be confirmed in writing. What we have are only Guidance Notes on Assets Valuation, The purpose of documenting all agreements reached is to avoid denial by one party on a crucial item in the conditions of engagement which may prompt the client to expect more than he deserves from the Estate Surveyor and Valuer. The Estate Surveyor and Valuer should not allow the desire to carry out a valuation and claim a fee stop him from ensuring that his conditions of engagement are thoroughly discussed, explained, and agreed upon.
- Etcetera.
