<abstract xmlns="http://www.w3.org/1999/xhtml">Where an investment decision on building work-in-progress (BWIP) is premised on the judgment of value, the technique of assessment must be accurate. The heuristic technique has not been able to achieve this goal. Frequent transactions in BWIP in Niger State necessitate the search for an alternative technique.This paper therefore aims to:– identify and analyze the purposes of BWIP valuations in Niger State, Nigeria,– examine the suitability of using heuristics in determining the cost of building work-in-progress, and– investigate the veracity of the use of the Nigerian Building and Road Research Institute (NBRRI)’s template of elemental percentage rates for the cost of incomplete buildings in the state.Data were obtained from estate surveyors and valuers (ESVs), registered quantity surveyors in the state, the Niger State Housing Corporation and the NBRRI. The analysis showed, among others, that heuristics, although not suitable, was the most prominent technique adopted by the ESVs for costing BWIP. Similarly, the use of NBRRI’s template for costing BWIP for residential bungalows in Minna - the Niger state capital - was validated.</abstract>

Where an investment decision on building work-in-progress (BWIP) is premised on the judgment of value, the technique of assessment must be accurate. The heuristic technique has not been able to achieve this goal. Frequent transactions in BWIP in Niger State necessitate the search for an alternative technique.This paper therefore aims to:– identify and analyze the purposes of BWIP valuations in Niger State, Nigeria,– examine the suitability of using heuristics in determining the cost of building work-in-progress, and– investigate the veracity of the use of the Nigerian Building and Road Research Institute (NBRRI)’s template of elemental percentage rates for the cost of incomplete buildings in the state.Data were obtained from estate surveyors and valuers (ESVs), registered quantity surveyors in the state, the Niger State Housing Corporation and the NBRRI. The analysis showed, among others, that heuristics, although not suitable, was the most prominent technique adopted by the ESVs for costing BWIP. Similarly, the use of NBRRI’s template for costing BWIP for residential bungalows in Minna - the Niger state capital - was validated.

Examining Heuristics for Building - Work-in-Progress Valuations in Niger State Nigeria

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Where an investment decision on building work-in-progress (BWIP) is premised on the judgment of value, the technique of assessment must be accurate. The...

Examining Heuristics for Building - Work-in-Progress Valuations in Niger State Nigeria

Published Online: Jul 17, 2018

Page range: 92 - 103

DOI: https://doi.org/10.2478/remav-2018-0019

Keywords
building, elemental cost, heuristics, valuation, work-in-progress

© 2018 Isaiah Olajide Babatunde, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Examining Heuristics for Building - Work-in-Progress Valuations in Niger State Nigeria

Published Online: Jul 17, 2018

Page range: 92 - 103

DOI: https://doi.org/10.2478/remav-2018-0019

Keywordsbuilding, elemental cost, heuristics, valuation, work-in-progress

© 2018 Isaiah Olajide Babatunde, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
building, elemental cost, heuristics, valuation, work-in-progress