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

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.