Valuation of interim payment : contract terms and statutes
Valuation is a process of determining the estimated amount that a contractor is entitled to received for his performance at a particular stage or in a particular period of time under a construction contract. This process is normally carried out by certain professional specified in the contract. Stat...
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| Format: | Thesis |
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2010
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| Summary: | Valuation is a process of determining the estimated amount that a contractor is entitled to received for his performance at a particular stage or in a particular period of time under a construction contract. This process is normally carried out by certain professional specified in the contract. Statutorily, the Quantity Surveying Act 1967 authorises registered quantity surveyors to perform this task. At the same time the Act also allows other professionals to do the same if their regulating statutes express them to do the same. Contractually, the construction contracts specify other professionals to carry out this process. The question is, do the statutes that regulate those other professionals authorise them to do the same. The issue is therefore mainly relate to construing the statutory and contractual provisions. The objective of this study is to determine whether the architects and the engineers as contract administrators have the required statutory authority to do valuation work for interim payment. The scope of this research is confined to the Registration of Engineers Act 1967, Architects Act 1967 and the Quantity Surveyors Act 1967. The methodology used in this research consists of two parts. Part one is essentially reviews the literature on the theoretical and practical aspects of payments in conditions of contracts and statutes. Part two comprehensively analyses the relevant contractual and statutory provisions and the case law extracted from Lexis Nexis. The rules of interpretation are used to interpret the contractual as well as the statutory provisions. The research found that the Quantity Surveyors Act 1967 authorises registered quantity surveyors to perform the valuation work, but at the same time it does not prohibit other professionals to carry out the same task as long their respective statutes expressly provide them with that authority. Although there are express provisions in the Engineers and Architects acts that mention the term ‘valuation’ it cannot be construed as ‘valuation’ for the purpose of preparing interim payments. Therefore, it can be concluded that valuations of contractors work made by architects and engineers for the purpose of interim certificates are not valid. |
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