Date

CPC Reference: «CPCS No.»

Project Name:«specific to sections e.g. Cambridge section.»

«Registered Valuer's Name»

«Registered Valuers' Firm»

«Valuers Postal_Address_Line_1»

«Valuers Postal_Address_Line_2»

«Valuers Postal_Address_Line_3»

«Valuers Postal_Address_Line_4»

Dear «Registered Valuer»

Valuation Instruction - «Owners name and physical address of property to be valued»

NB: Consultant to delete/change shaded text to suit your project

Instructions have been received from the New Zealand Transport Agency (NZTA), on behalf of the Crown (Land Information New Zealand - LINZ) to enter into negotiations to acquire land from the above property for a Public Work.

Further to your quote, we write to confirm our instruction to you for the expert’s assessment of the compensation to which the landowner is entitled for the acquisition as described in these instructions.

In accordance with the mandatory International Valuation Standards 2013adopted 1 January 2014 you are required to complete IVS 101 (Scope of Work). This must be agreed in writing by yourself and the Accredited Supplier, prior to you undertaking your valuation, or if subject to alteration, before the valuation and report are finalised. Please complete and return the Scope of Work attached in Appendix I.

Additionally, we recommend the use of the Terms of Engagement and the Client Contract Agreement attached in Appendix II, for your completion and return, in the event that your company does not have one.

Further to the above valuation standards, valuers should be aware of the API/PINZ Guidance Notes and the LINZ Guidelines to the Standards for Acquisition of Land under the Public Works Act 1981.

In order to assist negotiations, NZTA requires all valuers to complete their reports in accordance with this instruction and the appropriate Property Report Template for Valuations under the Public Works Act 1981 (

It is understood that you may need to tailor the report as appropriate depending on the type of property and the issues raised in your valuation. However, if you envisage the need to make other changes to the report template or anticipate having any difficulties reporting in this format please note this in your Scope of Work.

Valuation Instruction
Purpose of the Valuation
Description of Asset being valued / This valuation is being requested is for compensation purposes in accordance with Part V of the Public Works Act 1981. We therefore ask that you prepare a Market Valuation for total/ partial acquisition.
Include here a description of the valuation you are requesting, eg, include business loss, disturbance, temporary occuption, rental assessment etc».
Example 1 - The land required is a triangular shape affecting a 10 hectare title which is run with other land. The whole property comprises a 90 hectare dairy farm on Main road with a three bedroom house and an 18 aside cowshed.
Proposed Works / As part of the «Cambridge section of the Waikato Expressway » NZTA requires a total area of xxxhectares/ square metres from the above property, for the purpose of road. The area to be acquired is as follows, with further details shown in the attached supporting documentation and Land Requirement Plan.
Area x / xx hectares/ m2
Area x / xx hectares/ m2
Total: / xx hectares/ m2
Example - The completed proposed works will be a two lane over-bridge rising to its highest point approximately 75 metres to the east of the subject property. Part of the bridge embankments will be located on the subject property with the Victoria road over bridge running parallel to the subject property for 52 metres. The completed over -bridge, will be 1.5 metres above the existing ground level on the southern road boundary and 6 metres above the existing ground level on the northern boundary. The subject properties’ tanker entrance and driveway will be approximately 1.8 metres below the completed over bridge.
Please contact name here, to make arrangements for access to the property. See contact information below.
Property Information
Legal Description
(ofwhole property) / « Legal Description/Title ref/ Gazette Notice etc. »
Description of land to beacquired / [Fee simple] estate in the land shown as area [ABC] on Land Requirement Plan reference XXX
Owners Contact Details
Postal Address / «Postal_Address_Line_1», «Postal_Address_Line_2», «Postal_Address_Line_3», «Postal_Address_Line_4»
Physical Address / «Owners_Physical_Address»
Phone Numbers / Home / «Owners_Home_Phone»
Email / «Owners_email»
Mobile / «Owners_Mobile_Phone»
Other / «Owners_Other_Phone»
Reporting Requirements
Valuation Standards / Registered Valuers carrying out valuation instructions under the Public Works Act 1981 are required to comply with the following valuation Standards and Code of Ethics, including subsequent updates and amendments;
  • International Valuation Standards 2013 operative 1 January 2014.
  • Australia New Zealand Valuation and Property Standards operative 1October 2009.
  • New Zealand Institute of Valuers Code of Ethics.
  • ANZPS 1 Valuations For Compulsory Acquisitions - No Registered Valuer engaged as an expert should act as an advocate.

Special Notes / The consultant must ensure they provide enough detail to the valuer to enable the valuer to obtain an accurate visual impression of the completed proposed works before their valuation is completed. If you believe you do not have sufficient information to form an impression of the completed proposed works please contact the consultant.
Additional requirements to be provided as separate addendums:
  • Rental assessment - in addition to your valuation please provide a rental assessment of the assets acquired.
  • Condition & Repair - As a separate addendum to this report, the Valuer needs to note any significant areas of deferred maintenance or areas of property non-compliance which will require immediate expenditure by the NZTA and an estimate of the cost to repair (a cost range is acceptable).
  • Photographs of all chattels as at the date of valuation. These photos are to be used as a record of the existence and condition of the chattels for on-going property management of the property.
Please ensure your report is completed and returned within «XX working days as agreed».
GST / For Residential and Lifestyle property valuations where it is common place to quote the market value as GST inclusive, if any, the Transport Agency requires Valuers to complete a GST paragraph as per the valuation report template i.e. provide $Market Value/ Compensation, plus GST. This is to ensure that the net position of the Transport Agency is clearly defined.
PDF Format / Please send the report in secure PDF format, i.e ‘print to PDF’ rather than ‘scan to PDF’.
Health & Safety / NZ Transport Agency is committed to ensuring the health and safety of employees, contractors and visitors. This is achieved by pursuing best practices in occupational health and safety, including complying with the requirements of all relevant legislation. Please ensure that you practice good health and safety whilst working for NZTA. If an incidence does occur on your inspection and/or there is a hazard on the property please report it to the Accredited Supplier so that NZTA can be made aware of the incident and/or hazard.
Address Invoice To / NZ Transport Agency, C/- Accredited Supplier, PO Box, Town, City. Post Code
Legislation / Further information in relation to the Public Works Act
1981 ago to - Public Works Act 1981

If you have any queries in regards to this instruction or require any further information, please don’t hesitate to contact me.

Yours faithfully

CONSULTANT

Accredited Supplier’s Company

Appendices

  • Appendix I - Scope of Work
  • Appendix II - Recommended Terms of Engagement & Client Engagement Contract

Attachments (delete where not appropriate)

  • LINZ Guidelines to the Standards for Acquisition of Land under the Public Works Act 1981
  • Location Plan
  • CT/CFR
  • Land Requirement Plan
  • Longitudinal Plans
  • Photo Montage/Profile Plans/Concept Drawings
  • Mitigation Reports
  • Impact Reports (e.g. Traffic, noise, pollution)
  • Designation Planning Condition

Appendix I: Scope of WORK

a.Identification and Status of the Valuer

The valuation report will be carried out by (Registered Valuer of Company) who has the qualifications and experience to carry out a valuation of this nature. The Valuer is in a position to provide an objective and unbiased valuation and is competent to undertake the valuation.

Where the valuer relies on information from another professional that person must be qualified and an expert in their field and named in the report.

The report will also be peer reviewed by Peer Reviewer.

b.Identification of the Client and Any Other Intended Users

We have been commissioned and instructed by Consultant’s Name, Accredited SupplierCompany, City. The report may only be used by the client for the purposes of negotiation for the assessment of compensation for the subject property.

c.Purpose of Valuation

The purpose for which this valuation is being requested is for compensation purposes in accordance with Part V of the Public Works Act 1981.

d.Identification of the Asset or Liability to be Valued

The asset being valued is a 20 hectare horse breeding property located in a sought after equine and lifestyle block area on the outskirts of Anytown. Improvements comprise an average quality 1970s dwelling and garage. Farm buildings, races and fencing have been purpose built to support a thoroughbred horse breeding use and include stables, lunging ring and storage sheds. The property has been well farmed and is well presented.

We are aware that the proposed works will affect the property in the following ways:

  • The dwelling and associated domestic buildings and improvements will be removed before the proposed works begin.
  • 5 hectares of land to be acquired form the northern boundary of the subject property.
  • An over bridge will run the length of the eastern boundary with an Apex of ninemetres. The exiting ground level of the subject property will be between 1.8 metres (Northern boundary) and six metres (southern boundary) below the proposed over bridge.

e.Basis of Value

Our basis of valuation is Market Value.

A before and after valuation methodology has been used to assess the compensation payable for the partial acquisition as proposed.

f.Valuation Date

The valuation date is as at the date of inspection/specified date.

g.Extent of Investigation

A full property inspection of the subject property will be undertaken including an internal inspection of the dwelling. Details for all improvements in relation to size, construction type, age, depreciation, condition, and functionality will be obtained during the site inspection.

Research and analysis of market data will be completed in order to compile sufficient evidence to arrive at appropriate values. This includes sales information, rental evidence and additional market evidence as appropriate.

Should any information not be available it shall be reported under special assumptions within the body of the report.

h.Nature and Source of the Information Relied Upon

The nature and source of any relevant information that is to be relied upon without specific verification during the valuation process shall be agreed and recorded.

i.Assumptions and Special Assumptions

Assumptions

Assumptions are matters that are reasonable to accept as fact in the context of the valuation assignment without special investigation or verification. They are matters that, once stated, are to be accepted in understanding the valuation.

Special Assumptions

A Special Assumption is an assumption that either assumes facts that differ from the actual facts existing at the valuation date or that would not be made by a typical market participant in a transaction on the valuation date.

j.Restrictions on Use, Distribution or Publication

Use of the report is restricted to those named in Schedule 1 (b) and no distribution or publication is permitted without the express authority of the Company.

k.Confirmation that the Valuation has been undertaken in Accordance with the IVS

NZIV Code of Ethics Note; Registered Valuers should disregard the PINZ code of ethics when acting as a Valuer. No Registered Valuer engaged as an expert should act as an advocate.

This valuation has been undertaken in accordance with the International Valuation Standards operative 1 January 2012.

We confirm that the valuer has acted as a Registered Valuer in accordance with the New Zealand Institute of Valuers Code of Ethics. We also confirm that the valuer is aware of the API/PINZ Standards and Guidance notes and the LINZ Guidelines to the Standards for Acquisition of Land under the Public Works Act 1981.

Appendix II: Terms of Engagement

Schedule 1 - Information for Clients

Obligations of the Valuer

  1. Valuer’s Company (The Valuer) undertakes to perform the services using reasonable skill, care and diligence subject to any financial, physical, time or other restraints imposed by the client or necessarily resulting from the nature of the project

Obligations of the Client

  1. The client shall provide to The Valuer, free of cost, as soon as practicable following request, all information which is within the Clients, power to obtain
  2. The client must co-operate with The Valuer and not obstruct the proper performance of the services, including allowing The Valuer reasonable access to the site and other locations associated with the services
  3. As soon as the Client becomes aware of anything that will materially affect the scope or timing of the service, the Client must inform The Valuer in writing

Liability and Insurance

  1. In preparing the report The Valuer shall exercise the degree of skill, care and diligence normally expected of a competent professional. Whilst every effort will be made to ensure the accuracy of the opinions, information and forecasts expressed in this report, no liability is accepted for any incorrect statement, information or forecast within.
  2. The report will be provided for those named in the report. The Valuer does not accept responsibility to any other party.
  3. The Valuer has not and will not during the term of this Agreement or at any time after it, assume any obligation as the Clients Agent or otherwise which may be imposed upon the client from time to time pursuant to Health and Safety in Employment Act 1992 (the Act)arising out of the engagement. The Consultant and the Client agree that, for the purpose of the Act, the Consultant will not be the person who controls the place of work in terms of the Act.
  4. As our services do not extend to the full identification of structural issues, or ‘leaky building syndrome’though we will advise the client if we consider it appropriate to take separate professional advice on these matters.

Variations

  1. The client may request variations to the Service in writing and may require the Valuer to make proposals for variation to the Service which could include a variation to the fees for the Service if necessary.

Copyright of Documents

  1. The Valuer shall retain copyright of all documents it has prepared. The client shall be entitled to use them for the purposes of this valuation. The ownership of the data and factual information collected by the Valuer and paid for by the Client shall remain the property of the Valuer. The client shall have no right to use any of the documents where any or all of the fees and expenses payable to the Valuer have not been paid in accordance with this agreement.

Consumer Guarantees Act

  1. If the client is obtaining the Service for business purposes the provisions of the Consumer Guarantees Act 1993 are excluded in relation to that service.

Force Majeure

  1. Neither the Valuer nor the Client will be liable for any act, omission or failure under this agreement (except failure to meet an obligation to pay money) if that act, omission or failure arises directly from a force majeure event (being circumstances beyond the reasonable control of the party concerned, including, without limitation, extreme weather conditions, civil disruption or industry wide industrial action).

Acknowledgement of the Terms

  1. We acknowledge and accept your letter of instruction and the scope of work as set out in Schedule 1 herein, and these terms of engagement:

……………………………………………………………………………………………………………………………………

ForDate

Schedule 2 – Client Engagement Contract

Valuation Fees:Maximum valuation fee $X00.00 plus GST or $XXX.00/hour plus GST, to a maximum fee of $X00.00 plus GST(delete the option not used).

Other Fees and Expenses:Third party services requested by the Client will be paid direct to the supplier by the Client

Important Notes Forming Part of Schedule 2

Payment

1.All fee estimates supplied to the client by the Valuer’s Company (The Valuer) will be provided based on the request by the client for work to be carried out and as detailed within the written estimate/quote. Any work or services provided outside the original contract or quote, not originally detailed in the quote or contract, will be completed and invoiced separately after discussion and agreement with the Client.

2.The Valuer may charge the Client, generally by way of monthly progress claims, on the agreed fee basis, or if no basis of charging has been agreed, the Valuer may charge the client the fee on completion of the work. The Valuer may also render interim fee accounts.

4.The Client shall pay the invoiced amounts in full not later than the 20th day of the month following the month in which the tax invoice for the service is rendered to the Client by the Valuer. If any account is in dispute, the undisputed portion of the account shall be payable in accordance with the normal terms of payment described herein. Payment of the disputed amount may be withheld provided the matter is brought to the Valuers attention as soon as it is discovered. A letter of explanation setting out the particulars of this dispute shall be sent to the Valuer within 7 days of the dispute arising. If agreement between the Parties cannot be reached, the matter will proceed to the Disputes Tribunal.