Adron Homes & Property Limited

Standard Operating Procedure (SOP)

Document CON03

Directorate: Construction Directorate 

Effective Date: xx/xx/xxxx
Version: 1.0

1. PURPOSE
   • This Standard Operating Procedure (SOP) outlines the process for preparing, reviewing, and approving Interim Valuation Certificates (IVCs) for construction projects managed by the Construction Directorate.
   • The objective is to ensure accurate, transparent, and timely processing of interim valuations and payments to contractors in compliance with the Delegation of Authority (DoA) and integration with the company’s Enterprise Resource Planning (ERP) system.
2. SCOPE
   • This SOP applies to all interim valuation certificate processes for construction contracts under the Construction Directorate of ADRON.
   • It does not cover final valuation certificates, which follow a separate procedure.
   • The process leverages ERP systems for operational efficiency and record-keeping.
3. DEFINITIONS
   • Interim Valuation Certificate (IVC): A document certifying the value of work completed by a contractor for a specific period, used to facilitate interim payments.
   • Project Manager (PM): The individual responsible for overseeing the project and initiating the IVC request.
   • Resident Quantity Surveyor (RQS): The professional responsible for assessing and certifying the value of work completed.
   • Project Director (PD): The senior authority responsible for approving the RQS inputs prior to final approval.
   • ERP System: The company’s integrated software platform for managing project data, financials, and approvals.
   • DoA: Delegation of Authority, the internal policy defining approval limits and responsibilities OF ADRON.
4. Responsibilities
   • Project Manager (PM):
     • Initiates the request for an IVC.
     • Coordinates with the RQS for valuation inputs.
     • Ensures all supporting documentation is uploaded to the ERP system.
   • Resident Quantity Surveyor (RQS):
     • Prepares and submits detailed valuation inputs based on site progress.
     • Certifies the interim valuation as final once approved by the Project Director.
   • Project Director (PD):
     • Reviews and approves the RQS inputs prior to final certification.
     • Ensures compliance with the DoA and contract terms.
   • Finance Department:
     • Review and approves IVC via the ERP system.
5. PROCEDURE
   • Initiation of Interim Valuation Request
     • The Project Manager (PM) identifies the need for an interim payment based on the project schedule and contract terms.
     • The PM logs into the ERP system and creates a new IVC request, attaching relevant details such as:
     • Project Manager (Zonal PM) initiates the final valuation payment processing on the ERP using the PROJECT PERFORMAMNCE CERTIFICATES SCREEN.
   • ERP Navigation
     • Construction Project Module >>Payable Booking Process> Performance Certificate
   • Construction Zone
     • The  PM must mandatorily specify the related Construction Zone for the transaction from any of the listed zones below.
     • Simawa
     • Ibadan
     • Abuja
     • Living Fountain
   • The PM must select the Payment Voucher creation switch as ‘NO E-Voucher’. Meaning that the system should not create e-payment voucher after approval of the interim valuations as interim payments are normally made under milestone payments as indicated under section 2 above.
     • The  PM must attach interim valuations.
     • The  PM submits the initiating transaction for processing by Zonal Resident Quantity Surveyors (ZONAL RQS)
     • The system notifies the ZONAL RQS by email to treat.
   • RQS: Preparation Of Valuation Inputs
     • The RQS conducts an on-site assessment of work completed during the valuation period.
     • The RQS compiles a detailed report, including: Measurement of work done (quantities).Applicable contract rates.
     • Adjustments for variations, if any.
     • Supporting evidence (e.g., progress photos, site reports).
     • The RQS uploads the valuation report and supporting documents to the ERP system and submits it for review by the Project Director (PD).
     • RQS review, approves and submits for the attention of the Project Director
   • Review and Approval by Project Director
     • The PD reviews the RQS’s valuation inputs in the ERP system, ensuring:
     • Accuracy and completeness of the valuation.
     • Compliance with the contract and DoA limits.
     • The PD either:
       • Approves the inputs and returns it to the RQS via the ERP system, or
     • Requests revisions with comments if discrepancies are found.
     • If revisions are required, the RQS updates the valuation and resubmits it for PD approval.
     • PDD review, approves and submits for the attention of the Internal Control Officer (ZICO)
   • Internal Control Officer (ICO) Responsibilities
     • ICO review and validate all attached documents. And submits for Project Accountant
   • Project Accountant  Responsibilities
     • PA review and validate all attached documents.
   • Group Project Finance Manager (GPFM) Responsibilities
     • Group Project Finance Manager (GPFM) review and validate all attached documents.
   • Subjective Final Approval – DOA
     • Approvals Limits
     • Less than N5 m– GPFM
     • Greater than – N5m – Chairman 
   • AT FINAL APPROVAL
     • No e-payment voucher is raised.
     • System auto-raise the following entries
     • Debit Project ID with interim valuation
     • Credit Contractor
   • COMPLIANCE WITH DELEGATION OF AUTHORITY (DOA)
     • The Final’s approval ensures that valuation amounts remain within their authorized limits as per the DoA as defined in the ERP.
     • Any valuation exceeding the relevant officer’s authority must be escalated to the appropriate higher authority as defined in the DoA.
   • RECORDS AND DOCUMENTATION
     • All IVC-related documents (requests, valuation reports, approvals, certificates) are stored in the ERP system under the project’s digital folder.
     • Retention period: Minimum of 10 years post-project completion.
   • EXCEPTIONS
     • If the RQS is unavailable, the PM may request a temporary substitute with PD approval.
     • Discrepancies or disputes with the contractor regarding the IVC are escalated to the PD for resolution.