2010 Conference Communique

1.   The institute of Appraisers and cost Engineers (a division of the Nigerian Society of Engineers) held her first technical conference on Thursday, 1st July 2010 at the Raw Materials Research Development Council auditorium.

2.   The theme of the conference is the Nigerian Engineer in valuation and cost engineering practice.

3.   The objective of the institute is to promote the science and art of engineering valuation, cost engineering and Engineering economy with attention to details on ethics, experience, professional judgment and best practices.

4.   The institute identifies with the basic definition of:

    1. Engineering appraisal/valuation as an art of estimating the value of specific property where professional engineering knowledge and judgment are essential.  Such properties include engineering valuation of mines, factories, buildings, plant and machinery, industrial plants, public utilities, engineering constructions etc.
    2. Cost engineering as that area of engineering practice where professional engineering Judgment and experience are utilized in the application of scientific principles and  techniques to the problems of cost estimation, cost control, profitability analysis, planning and scheduling and project management
    3. Engineering economy as the financial side of the decision that engineers make as they work to  position a firm to be profitable in a highly competitive market  place

5. The institute noted the various laws that empower engineers to practice valuation in Nigeria. This include.

  1. The Industrial Inspectorate Act CAP 18 LFN 2004
  2. Companies and Allied Matter Decree No 1 of 1990 Sec  554 & 603 and section 137;
  3. Companies and Allied Matters (amendment) Decree No 46 of 1991;
  4. Engineers Registration etc (amendment) Decree No 27 of 1992;

6.  The institute recognizes that engineering valuation and cost engineering are multi disciplinary activities and therefore encourage her member to engage themselves in areas of core competences.

7. The Institute aligned it’s position with The official pronouncement of the Association of Professional Bodies of Nigeria on non exclusivity of valuation practice.

8.  The institute also noted that it is unethical for fees on valuation activities to be based on percentage of the outcome of valuation and consequently recommend that professional fees should be based on man hour rates.

9.  Engineering Valuation is needed in Portfolio Management, Merger and acquisition, Corporate Finance, Sales and buy-over, for legal and tax reasons, Insurance purposes, loan purposes, buying and selling of second hand properties, utility rate computation, etc.

10. The Institute is of the opinion that Cost Engineering if properly applied in our socio – economic activities can bring down the total cost of projects in the country.

11. It was observed that Bureau for Public Procurement (BPP) is a major Cost Engineering Establishment; there is therefore need for more collaboration between the Bureau and the Institute of Appraisers and Cost Engineers (IA&CE).

12.  Public and private organizations are encourage to engage the services of accredited valuers and cost engineers for value addition.

13. The Institute reiterated its call that the definition of ‘Inspector’ in the Industrial Inspectorate Act should be amended to allow the participation of engineering valuers, cost  engineers, and engineering economists from the private sector in the work of the Industrial Inspectorate Department .In view of the massive activities expected in the industrial sectors in aid of the realization of Vision 20-2020 programme, IID needs to be upgraded to the status of a Commission, with Commissioners drawn from public and private sectors.

Engr.Otis Anyaeji
FNSE FNIMechE A.Val ACostE AEEcon
Chairman

Engr. L. Ike Iwenofu
MNSE MNSChE A.Val ACostE
Secretary

INSTITUTE OF APPRAISERS & COST ENGINEERS
(Division of the Nigerian Society of Engineers)
Member,INTERNATIONAL COST ENGINEERS COUNCIL
1st July, 2010.

INSTITUTE OF APPRAISERS & COST ENGINEERS

A Division of
The Nigerian Society of Engineers
[Home][Principles of Valuation Practices & Code of Ethics][Faculty][ Training Course Outline][Training Course Timetable][History][Constitution][News]