The purpose of this paper is to investigate the level of discrepancy in the valuation process adopted by valuers in the study area with a view to provide solution.
The study is based on both structured questionnaire and content analysis of valuation reports. In total, 185 (41 percent) structured questionnaires were randomly distributed to practicing estate surveying firms; out of 450 firms in Lagos, 173 were retrieved and used for analysis. However, the content analysis was based on 54 valuation reports on plants and equipment to investigate the extent of compliance to valuation process, standard and best practices among practitioners.
The findings from the study show that most of the practitioners lack the expertise to carry out plant and machinery (P&M) valuation, and there is evidence of poor application of methodology and lack of adherence to standards.
The findings from this study will reinforce the need for specialization and enforcement of standard in plant and equipment valuation practice, which will enthrone consistency, uniformity and reliability.
This study is the first to deal with methodology lapses in plant and equipment valuation in the study area. Ashaolu (2016) worked on the inter-disciplinary nature of plant and equipment valuation, whereas Otegbulu and Babawale (2011) worked on valuer’s perception or potential sources of inaccuracy in P&M valuation in Nigeria.
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