2014 Specifications Guidelines Valuation Best Practice

2014 Valuation Best Practice
Specifications Guidelines
Part 1
Valuation Best Practice 2014 Specifications Guidelines
Enquiries to:
Valuer-General Victoria
Land Victoria
Department of Sustainability and Environment
570 Bourke Street
Melbourne VIC 3000
Tel: (03) 8636 2573
To view this document on the Internet or download as an Acrobat PDF, go to www.dse.vic.gov.au/valuation
For further information about the Department of Sustainability and Environment, go to www.dse.vic.gov.au or contact the
DSE Customer Service Centre: 136 186 (Australia-wide)
ISSN 1441-2039
© The State of Victoria, Department of Sustainability and Environment, 2012. Published by the Victorian Government Department of Sustainability
and Environment, Melbourne, August 2012
© The State of Victoria Department of Sustainability and Environment 2012
This publication is copyright. No part may be reproduced by any process except in accordance with the provision of the Copyright Act 1968.
Authorised by the Victorian Government, 570 Bourke Street, Melbourne.
For more information about DSE visit www.dse.vic.gov.au or contact the DSE Customer Service Centre on 136 186
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Valuation Best Practice 2014 Specifications Guidelines
How to use this document
These guidelines will assist councils to:
 prepare the contract for valuation and related services;
 manage the contract;
 improve the quality of valuations and property databases; and
 better define the relationship between council, valuer and Valuer-General Victoria (VGV).
Valuation Best Practice 2014 Specifications Guidelines revise the 2012 guidelines used by most
councils. They incorporate changes and initiatives as a result of consultation with government,
industry municipal valuers, feedback throughout the 2012 general valuation and the Valuation
Best Practice (VBP) survey conducted in February 2012.
General Conditions of Tendering and General Conditions of Contract are not included in these
guidelines. However, clauses relating to performance of all stages of the valuations have been
included in Section 5 of this document.
Issues to consider
Valuation of Land Act changes
Recent changes to Valuation of Land Act 1960 (Section 10) give councils the option to
nominate the Valuer-General as the valuation authority. Councils need to consider this if
offering a contract term exceeding one general valuation. In addition, future contracts need to
allow for adjustment to terms and conditions to accommodate changes as a result of changes
to VBP specifications guidelines in the future.
Fire Services Property Levy
Valuations will be required of all real property subject to the levy in accordance with the Fire
Services Property Levy Act 20121. This will include all properties subject to the levy that are
currently non-rateable.
Combined and specialist contracts
Councils may consider combining with adjoining municipalities to tender jointly. This can be
achieved by combining a number of municipalities in one tender. Alternatively, councils may
wish to combine property types across municipalities such as residential, rural,
commercial/industrial or specialist.
Contract management
Council is responsible for management and delivery of the contract. Valuer-General Victoria
(VGV) audit municipal valuations to ensure statutory compliance and VBP standards are
maintained throughout Victoria.
A strong working relationship between council and valuer is vital to ensure that:
 required services are delivered on time throughout the project;
 emerging issues are addressed early;
 council data and valuation standards are met;
 current technologies and techniques are used where useful and cost-effective;
 relationships with council staff that support or rely upon the valuation are developed; and
 emerging value trends and possible rate shifts are identified early.
1
The Act is expected to be assented in 2012
Valuation Best Practice 2014 Specifications Guidelines
VGV recommends regular progress meetings between council and its valuer. Monthly meetings
are suggested, but this vital process should be tailored according to council’s needs.
Council needs to be fully aware of its responsibilities under these guidelines, with regard to:
 management of the contract to deliver the outsourced services;
 management of its relationship with Valuer-General Victoria;
 requirements of the Valuation of Land Act 1960 (VLA); in particular, payments to contract
valuers in accordance with Section 7A;
 ongoing IT support;
 access to and use of Geographic Information Systems (GIS);
 maintenance and storage of its property and valuation databases;
 importing and exporting of data from council mainframes and valuation software;
 determination of general property inspection programs;
 electronic transfer of data from other council sources (e.g. building, planning and rates);
 completion of Schedule of Data Responsibility (Appendix A) before tendering for services;
and
 requirements of the contractual arrangements with other rating authorities for the provision
of data to the Valuer-General.
Contract performance
Meeting timelines and prescribed outputs are critical contract management issues. The
initiatives included in these guidelines will enable faster and easier assessment of the
valuation’s progress.
Council needs to add clear measures, including penalties, to encourage meeting due dates in
the contract.
Due dates
Due dates for each stage are set out in Table 5B of Section 5 of this document. These dates
must not be exceeded; however, earlier final delivery dates could be determined according to
council’s requirements.
How to use these guidelines
To create contract or tender specifications, review these guidelines thoroughly. Council can
insert, change or delete information where required. These sections are set out in grey.
Copyright
Please note that these specifications are copyright, except for use by Victorian municipalities.
Questions
Should you have any questions regarding the specifications guidelines, contact the Valuation
Best Practice team:
Email: [email protected]
Stephen Jarvis (Deputy Valuer-General Rating Authority Valuations)
Terry Maguire (Manager Certification Rating Authority Valuations)
Doug Marcina (Spatial Information Manager)
Toby Dargaville (Administrative Manager)
8636 2578
8636 2571
8636 3042
8636 2573
Valuation Best Practice 2014 Specifications Guidelines
Electronic or additional copies
Additional copies of these guidelines are available from Toby Dargaville, Administrative
Manager, Rating Authority Valuations, Valuer-General Victoria (VGV) or you can download the
specifications at www.dse.vic.gov.au/valuation > Council valuations > Valuation Best Practice
Specifications Guidelines.
Acknowledgments
VBP 2014 specifications guidelines were prepared in July 2012 by Valuer-General Victoria,
Land Victoria, Department of Sustainability and Environment.
VGV would like to thank members of the Municipal Group of Valuers, Revenue Managers
Association and all other respondents to the March 2012 VBP survey for the valuable feedback
that assisted formulation of this document.
Valuation Best Practice 2014 Specifications Guidelines
Contents
Description
PAGE
1. Overview
2
1.1
Summary of valuation services requested
2
1.2
Introduction
2
1.3
Key changes to the general valuation process
3
1.4
Stage summaries
4
1.5
Due dates – 2014 General Valuation
5
1.6
Project plan
6
1.7
Definitions
6
2. Information for tenderer
9
2.1
Financial information
9
2.2
Definitions of rate classifications
9
2.3
Valuation summary
9
2.3.1 VGV certification of work prior to progress payments
2.3.2 Qualifications and experience required by contractor
10
10
2.4
Supplementary valuations
10
2.5
Objections, inquiries and applications To VCAT
11
2.6
Specialist properties
12
2.7
Data and systems
12
2.7.1 Mainframe and software systems
2.7.2 Storage of data elements
12
12
Information and services to be provided by council
13
2.8.1
2.8.2
2.8.3
2.8.4
2.8.5
2.8.6
13
13
13
13
14
14
2.8
2.9
Building approvals information
Planning information
Sales information
Geographic Information System (GIS)
IT services
Information from 2012 General Valuation
Approved authority and identification
2.10 Location and resources for services
2.10.1
2.10.2
2.10.3
2.10.4
2.10.5
2.10.6
2.10.7
2.10.8
2.10.9
Location of services
Resources for services
Computer use and access
Stationery, printing, photocopying and postage
Telephones
Charge for use of council resources
Title searches and professional advice
All other resources and costs
Payment for resources by contractor
2.11 Ownership, confidentiality of data and conflict of interest
2.11.1 Ownership of data
2.11.2 Confidentiality of data
2.12 Criteria, procedures and penalties for default
14
14
14
14
15
15
15
15
15
16
16
16
16
17
17
Valuation Best Practice 2014 Specifications Guidelines
2.13 Occupational health and safety
18
2.14 Insurance required by the contractor
18
3. Conditions of tendering
20
3.1
Summary schedule
20
3.2
Evaluation table for provision of rating valuation services
21
4. Tender form and schedules
24
4.1
Introduction
24
4.2
Instruction to tenderers
24
4.3
Additional information required with tender
24
4.4
Tender form
25
4.5
Tender schedules
26
5. Specification of service
5.1
40
2014 General Valuation
40
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
44
46
52
56
62
64
Stage 1 General preparation and statistical analysis
Stage 2 Preliminary Valuations – Residential And Rural Property
Stage 3A Preliminary Valuation – Specialist Properties
Stage 3B Commercial and Industrial Property
Stage 4 Final Valuations Residential and Rural Property
Stage 5 Valuation Return
5.2
Supplementary Valuations
67
5.3
Inquiries, objections and applications to VCAT
70
5.4
Asset valuations for financial reporting
73
5.5
Other valuation services
74
5.5.1
5.5.2
5.5.3
5.5.4
74
74
74
74
Compensation valuations
Valuations for public open space
Valuations before sale
Other valuations
Valuation Best Practice 2014 Specifications Guidelines
Section 1
Overview
Section 1 – Overview
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Valuation Best Practice 2014 Specifications Guidelines
1. Overview
1.1
Summary of valuation services requested
This section summarises the services requested and highlights the key elements of the tender.
The following services are the subject of this tender:
2014 General Valuation
Complete valuations for all rateable properties, and non-rateable properties subject to the fire
services property levy and any other non-rateable properties, as at the prescribed date of
1 January 2014.
2014 Supplementary valuations
Undertake supplementary valuations, as specified by council under this contract, as at the
prescribed date of 1 January 2014.
2012 Supplementary valuations
Undertake supplementary valuations including non-rateable properties subject to the fire
services property levy, as specified by council under this contract, as at the prescribed
date of 1 January 2012.
2014 Objections, inquiries and applications to VCAT
Manage customer objections, inquiries and applications to VCAT subsequent to the completion
of the 2014 General Valuation.
2012 Objections, inquiries and applications to VCAT
Manage customer objections, inquiries and applications to VCAT to the 2012 General
Valuation in the 2012–2013 and 2013–2014 rating year.
Asset valuations for financial reporting
To undertake valuations of the council’s real estate assets and provide separate land and
building values for financial reporting purpose as at the required dates, in accordance
with AASB116.
Other valuation services
To provide other valuation services by mutual agreement between the parties.
1.2
Introduction
This tender relates to the tendering of valuation services for providing the 2014 General
Valuation and related services.
The quality and timeliness of the delivery of the valuation and related services by the contractor
is vitally important because council and other rating and taxing authorities are dependent on the
valuation. Council will make financial decisions based on the valuation and property data
provided by the contractor.
The valuation process generates over XX per cent of council income and therefore council
could suffer significant detriment if the valuation services provided are inaccurate. There is also
a significant customer service focus associated with the service, which impacts on council’s
public image.
Section 1 – Overview
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Valuation Best Practice 2014 Specifications Guidelines
Council’s property databases will provide the contractor with a sound base on which to
undertake the valuation.
Tenderers must demonstrate their commitment to maintain complete confidentiality of council’s
information, both during and after the valuation task.
Tenderers must also demonstrate that no conflicts of interest will be created during or after the
valuation process. If any potential conflicts of interest arise, the tenderer must demonstrate how
it will protect council from any conflict of interest allegations.
1.3
Key changes to the general valuation process
The 2014 guidelines expand upon those introduced for VBP 2012, adding a small number of
changes:




inclusion of additional properties to be valued for the fire services property levy
provision of revised templates to simplify reporting and data requirements;
inclusion of additional and amendment to existing data elements in the data specification;
and
statistical reporting on the added value of improvements for rural residential properties.
Continuing emphasis is placed on:
 regular meetings between council and contractor to review progress against the project
plan;
 the consistency of levels of value across municipal boundaries;
 Sub-market Group (SMG) composition;
 using the project plan as a dynamic project management tool;
 statistical testing of valuations against sales;
 spatial representation of valuations as a quality control tool;
 commercial/industrial statistical tolerances and site value sales ratios;
 valuation conferences;
 substantiating values of specialist properties; and
 improving quality of property databases.
2014 Valuation process
Section 5 of this document sets out requirements for the 2014 General Valuation in detail.
Specific requirements, tasks and outputs for each stage follow general requirements.
Requirements are set out as follows:
 General – overall requirements for the stage;
 Tasks – specific tasks to complete the stage;
 Outputs – mandatory outputs required for the stage to meet VBP and be certified/approved.
Section 1 – Overview
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Valuation Best Practice 2014 Specifications Guidelines
1.4
Stage summaries
The valuation process is divided into five stages:
Stage 1 – Preparation
This stage involves general preparation, planning and statistical analysis of the previous
valuation against recent sales. Stage 1 can be submitted from 1 January 2013 and must be
completed by 28 February 2013.
Stage 2 – Preliminary Valuations – Residential and Rural Properties
This is the major stage for residential and rural valuations when the majority of inspections and
field data verification are completed. Preliminary valuations, to a nominated date*, can be
submitted from 1 April 2013 and must be completed by 31 October 2013. A final review of
values occurs in Stage 4, prior to valuation return.
Stage 3A – Preliminary Valuations – Specialist Properties
Stage 3A comprises the preliminary valuation of all specialist properties as nominated in
Appendix H. Valuation conferences are held to exchange relevant information and compare
levels of value. Valuations are to be submitted from 1 June 2013 and must be completed by 31
August 2013. The final reviewed specialist property valuations are submitted in stage 3B.
Stage 3B – Commercial and Industrial Properties
Stage 3B comprises the valuations of commercial and industrial properties. Valuation
conferences are held to compare levels of value with adjoining municipalities. Final valuations
including 3A must be completed by 31 January 2014.
Stage 4 – Review and Final Valuations – Residential and Rural Properties
Stage 4 comprises a review of Stage 2 preliminary values based on an analysis of subsequent
sales evidence. Valuation conferences are held prior to this stage to compare levels of value
with adjoining municipalities. Final valuations can only be submitted from 1 January 2014 and
must be completed by 31 March 2014.
Stage 5 – Valuation Return
Stage 5 comprises the return of the valuation to council, completion of the valuer’s final report
and provision of the returned valuation and data to VGV. Stage 5 must be completed by 30
April 2014.
*Nominated preliminary valuation date for Stage 2
Council requires the preliminary valuations to be made to a nominated date: either a fixed date
of 1 July 2013 or a series of rolling dates from 1 February 2013.
Any submission to council must be:
In the case of a
‘fixed date’

Not to be earlier than 1 July 2013
In the case of a
‘rolling date’

Made to a nominated date based on current evidence

Submitted not more than 60 days after the nominated preliminary
date
Section 1 – Overview
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Valuation Best Practice 2014 Specifications Guidelines
1.5 Due dates – 2014 General Valuation
Each stage can be submitted any time through the designated period for that stage, but must be completed by the specified due date.
Due dates – 2014 General Valuation
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 APR 14
STAGE 1 –
Statistical Analysis
completed by 28
February
STAGE 2 - Preliminary Residential and Rural Valuations completed by 31
October
STAGE 3A – Preliminary
Valuations – Specialist
Properties completed by 31
August
STAGE 3B – Commercial and Industrial
completed by 31 January
STAGE 4 – Final Residential
and Rural Valuations completed
by 31 March
STAGE 5 Valuation Return
completed by 30
April
Section 1 – Overview
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Valuation Best Practice 2014 Specifications Guidelines
1.6 Project plan
The project plan remains the key document for monitoring progress of the valuation project.
Throughout the 2014 valuation, the project plan may change, as required by each stage and as
a result of review at monthly meetings with the council contract manager.
Tenderers must submit an initial project plan (refer to Section 4 of this document) with their
tender, to schedule completion of their work in each stage by the specified due dates.
1.7
Definitions
Definitions of terms commonly used in this tender specification:
Council contract manager
The council manager responsible for management, discharge and day-to-day operation of the
contract.
Data elements
Information components set out in Appendix A and J, and required to be collected, revised,
stored and maintained under this contract.
Descriptors
Other information components used to identify, describe or explain a valuation.
Inspection
On-site examination of property to collect or confirm data requiring quantitative assessment
(factual data such as land or building areas) or qualitative assessment (e.g. grading of building
condition, quality of style).
Levels of value
Analysed unit(s) of value applied.
Prescribed date
Date prescribed in Section 11 of the Valuation of Land Act 1960 at 1 January of every even
calendar year.
Sale date
Date of contract (date on which the contract of sale was signed – not the settlement date).
Sale price
Consideration (transaction price) for a property.
Specialist property
Significant or unique properties that possess one or more of the following qualities:
 major revenue significance to council;
 unique property type; and
 rarely sold and/or leased.
Examples of these properties include major shopping centres, emerging industries, major
manufacturing/production, quarries etc.
Section 1 – Overview
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Valuation Best Practice 2014 Specifications Guidelines
Sub-market Group (SMG)
A set of properties, grouped by land values and other market characteristics or attributes
common to the group, such as land use or improvement type.
VLA
The Valuation of Land Act 1960.
Valuation return
General valuation, completed, signed and dated by valuer, and given to council.
Value drivers
Data elements or other information components used to calculate a valuation.
Section 1 – Overview
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Valuation Best Practice 2014 Specifications Guidelines
Section 2
Information for tenderers
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
2. Information for tenderers
<< Insert general information about municipality>>
<< Insert description of council area; statistics about municipality (size, land area etc);
rate base – no of assessments, total value >>
2.1
Financial information
The council’s total budgeted income for 2012–2013 is << insert>>, of which << insert>> million
is represented by rates and charges income.
<< Insert information about council budget >>
Council currently collects rates based on the << NAV / CIV / SV >> as follows:
<< Insert information on council valuation base (NAV, CIV or SV), council rates and
charges >>
2.2
Definitions of rate classifications
Council levies rates on all rateable properties, within the following differential rate
classifications:
<< Insert details of current differential rating regime, rating classifications and rate in $
applicable >>.
Rate classification
General rate
Other classifications
2.3
Rate in $
Number of assessments
Valuation summary
In accordance with Section 11 of the Valuation of Land Act 1960 and the Fire Services Property
Levy Act 2012, all Victorian councils are required to conduct a general valuation every two
years. This contract requires a general valuation of all rateable properties and non-rateable
properties subject to the fire services property levy (FSPL), and non-rateable properties to be
made, as at the prescribed date of 1 January 2014, by the due dates specified (see Section 1.5
of this document) and to be returned by 30 April 2014.
A summary of council’s valuation assessments (including non-rateable properties) as at 1 July
2012 is provided in the following schedule.
Non-Rateable properties subject to the Fire Services Property Levy (F.S.P.L)
Council requires certain non-rateable properties to be valued in accordance with FSPL Act
2012. A list of these properties is attached in Appendix N
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
Number of
assessments
2012 SV
2012 CIV
2012 NAV
Residential
Commercial
Industrial
Rural
Non-rateables
required for FSPL2
Other non-rateables
In providing a lump sum price, tenderers should make an allowance for variations to the total
number of assessments above. There will be no fee adjustment on a pro-rata basis based
on the number of assessments.
The contract manager for the contract will be << valuation services contract manager>> or
any other person nominated from time to time by council.
<< Valuation Company >> undertakes the current valuation contract for all valuation services
within the municipality.
2.3.1 VGV certification of work prior to progress payments
All general valuation work made by the contractor is subject to the provisions of Section 7A of
the VLA.
Progress payments of the lump sum components of the 2014 General Valuation contract will be
in accordance with the fee schedules in Section 4 of this document. Payments will be made
subject to the General Conditions of Contract and the certification of the work by VGV.
2.3.2 Qualifications and experience required by contractor
Council may only appoint person(s) of required qualifications and experience to make
municipal valuations, in accordance with Section 13DA of the VLA.
The qualifications and experience specified by the Minister for persons making council
rating valuations was gazetted on 5 May 2010 (See Appendix M).
The contractor must demonstrate it holds the required qualifications and experience when
completing the schedules within Section 4 of this document.
The contractor is responsible for the supervision, checking and approval of any valuations made
on its behalf, to meet the requirements of this contract.
2.4
Supplementary valuations
2012 level
Supplementary valuations are undertaken on a << insert frequency e.g. monthly/quarterly >>
basis.
Council is responsible for updating its databases with data from 2012 level supplementary
valuations.
2
See separately provided table for list of properties subject to FSPL. Appendix N (To be completed once FSPL
legislation finalised.
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
However, the contractor is required under this contract to prepare and maintain the databases
in all other cases and to ensure the 2014 General Valuation is made using current, accurate
data.
Council has established a building permit cost threshold of << insert $ cost of works
threshold >>. Council reserves the right to vary this threshold at any time, but undertakes to
consult with the contractor regarding any proposed change.
All permits with a value equal to or in excess of this value will be required to be forwarded to the
contractor for preparation of a supplementary valuation (if found to be required), unless
otherwise specified.
All permits with a value below this value will not require a supplementary valuation, but the
contractor will be required to amend and update any data elements required by council, and/or
the Valuer-General, where the data has been changed by the completion of works/permit. The
contractor is at all times required to maintain the accuracy and currency of the database(s).
Council estimates that approximately << number >> building approvals are issued each year
where the cost of works estimated in the building permit does not exceed << insert $ cost of
works threshold >>.
A summary of supplementary valuations undertaken in recent years is as follows:
Rating year
Residential
Number of Assessments
Rural
Other
2009–2010
2010–2011
2011–2012
Totals
As set out in Section 13DFA of the VLA: within one month of returning a supplementary
valuation to council, the valuer must submit a report of the valuation in the prescribed form to
Valuer-General Victoria for certification.
2.5
Objections, inquiries and applications To VCAT
Council deals with inquiries and objections as follows:
Insert details about council’s processes for:
 phone inquiries and on-site inquiries about the valuation;
 provision of general information on municipal valuations to potential objectors; and
 arranging appointments with valuers.
Council will require the contractor to be on-site at council offices for <<insert days/weeks>>
following issue of the annual rate notice (see Section 5.3 Inquiries, objections and applications
to VCAT of this document).
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
A summary of objections, inquiries and applications to VCAT received in the last two years is as
follows:
Number of Assessments
2010–2011 year
2011–2012 year
Inquiries
Council objections
Land tax objections
Applications to VCAT
2.6
Specialist properties
Council requires certain properties to be valued as specialist properties (detailed requirements
in Stage 3A). A list of these properties is attached in Appendix H.
2.7
Data and systems
2.7.1 Mainframe and software systems
Council currently utilises the <<Insert full name and version of mainframe system>> as its
corporate database. << Add details about upcoming replacement or major changes
planned for this database, including timeframe for changeover. >>
For valuation purposes, council owns and operates the <<Insert full name and version of the
valuation software system >> software system. << Add details about upcoming
replacement or major changes planned for this database, including timeframe for
changeover. >>
The contractor may only use an alternative software system if approved by council. Any
approved alternative system must be compatible with the council’s existing system and comply
with VBP output requirements.
Council’s Geographic Information System is based on <<Insert name of software, e.g.
Mapinfo, ESRI, Aussoft >> and the product used throughout the council for mapping and
spatial analysis is <<Insert full name and version of geographic information software
system >>.
2.7.2 Storage of data elements
The Schedule of data responsibility (Appendix A) provides a detailed breakdown of the data
elements held by council, identifying the party responsible for the review/collection of data
elements during the general valuation.
Council holds data elements required by VGV and additional data elements council requires in
the following locations and formats:
Insert details of format and location of Appendix A data elements.
Include an explanation of the links between the databases or systems in which data is
held. Explain how the data is maintained and updated to/from the council’s mainframe
system.
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
2.8
Information and services to be provided by council
2.8.1 Building approvals information
On properties for which a building permit has been issued, and works are likely to have been
completed, council will provide the following information:
 occupancy permits or Final Inspection Notices; and
 relevant building office file(s) and approved plans.
Such information will be provided in an electronic database, updated << monthly>>.
2.8.2 Planning information
Council will provide current relevant information for:
 planning permits issued by council;
 plans of subdivision that have been certified and registered with Land Registration Services;
 the current planning scheme in force, amendments to the scheme and proposed schemes;
 council register of significant properties unable to be demolished (in whole or in part); and
 current Victorian Heritage Register.
Such information will be provided in an electronic database, where possible, and updated
<<monthly>>.
2.8.3 Sales information
Council maintains an up-to-date database of sales information in an electronic format. Council
will provide the contractor with <<monthly>> updates of this database, including records of:
 Notices of Acquisition;
 Property Inquiry Notices (where required); and
 other records of sales maintained by council.
2.8.4 Geographic Information System (GIS)
Council has a GIS, << name of system>> managed by
<< Name and contact details of GIS manager >>.
<< Insert details about the GIS – extent of deployment and use within council, possible
changeover of system etc>>
Performance of this contract requires preparation of a number of electronic maps (refer to
Section 5 of this document) by the contract valuer. The spatial representation of valuation data
is required to identify valuation changes and assist valuation quality control and exception
reporting.
Council will provide the resources of its GIS officer to advise the contract valuer in the
development of the required maps. Access to council’s GIS, for the performance of these
services, is subject to the following qualifications.
Council will provide full access and use of a licensed copy of GIS on council premises.
Council will provide an introductory training session to explain its GIS and its use within
council to the contractor.
Technical training on use of the GIS is the responsibility of the contractor at their cost;
however, council will permit limited use of its GIS at council’s offices for training
purposes. Additional licensed copy/ies for the use of the contractor off-site are the
responsibility of the contractor at their cost.
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
In addition to Vicmap Property, council will make available the following digital spatial
layers: elevation contours, rural road numbering, aerial photography, etc.
VGV recommends that contractors obtain their own mapping software for use on mobile
computing devices, as electronic mapping is essential to the valuation process.
2.8.5 IT services
Council will provide IT services/support over the life of the contract in order to achieve the
following outcomes:
 network support on the << municipality>> standard operating environment;
 extraction of required information for valuer from council systems;
 extract of information for VGV; and
 data transfer and reconciliation between council’s and contractor’s systems and databases.
2.8.6 Information from 2012 General Valuation
Prior to tendering, council will make available the relevant databases for examination by
registered prospective tenderers, including the following:
 valuation and property data held on council’s corporate or other databases;
 electronic spreadsheets and files used to calculate or record 2012 valuations; and
 property/valuation hardcopy files.
Note: All tenderers should ensure they are fully aware of the extent and
quality of records held on council’s valuation and property database(s).
Council accepts no responsibility to tenderers that have not made the
appropriate inspection of databases and/or records prior to lodging tenders.
2.9
Approved authority and identification
Council will supply the contractor with appropriate authority and identification to enable property
inspections to be undertaken and information to be collected.
Council will also provide the contractor with standard letters/templates, where required.
Upon commencement of the contract, the contractor must make a declaration that the valuation
and return will be impartial and true, in accordance with Section 13DH of the VLA.
2.10 Location and resources for services
2.10.1 Location of services
Valuation services under this contract are to be provided from the following location:
<<address of council offices where valuation services workstations are provided>>.
2.10.2 Resources for services
Council will make available to the contractor at least <<two>> workstations for the sole use of
the contractor. Each workstation will comprise:
 desk/workbench;
 clerical chair;
 networked PC;
 computer terminal and PC network connections suitable to operate and support
valuation software to be used for 2014 General Valuation;
 telephone; and
 file storage facilities.
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
These facilities will be supplied at no charge to the contractor along with power, lighting, airconditioning, cleaning and telecommunications. Access to these facilities outside of council’s
normal business hours will be at council’s discretion and subject to any reasonable security
checks.
2.10.3 Computer use and access
Council will provide access to its PC network system for the purposes of the contract.
External access to council systems will be at the discretion of council’s contract manager and
information technology manager.
2.10.4 Stationery, printing, photocopying and postage
A restricted supply of stationery, printing, photocopying and postage, considered
necessary for performance of contract services, will be supplied or paid for by council.
2.10.5 Telephones
Council will provide the contractor with telephone handsets connected to the local
network through the main switchboard. The council will pay the cost of all local calls
only.
2.10.6 Charge for use of council resources
Subject to negotiation, council may be able to provide additional workstations, telephone
and computer resources to the contractor. If available, these additional services will be
provided at a cost to the contractor to be negotiated with council.
2.10.7 Title searches and professional advice
The cost of all council approved title searches, legal advice and other professional
advice considered necessary by council will be borne by council
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
2.10.8 All other resources and costs
Any and all other resources and costs other than those noted above as being supplied
by council, are the responsibilities of the contractor.
2.10.9 Payment for resources by contractor
All payments for resources used by the contractor will be invoiced on a <<insert
frequency>> basis, unless otherwise advised.
2.11 Proprietorship, confidentiality of data and conflict of interest
The issues of confidentiality of data, and conflict of interest are critical from council’s point of
view. Although council has a legal entitlement to obtain information in undertaking valuation
services, as described in this contract, it is also under a legal obligation to maintain the
information’s complete confidentiality.
Outsourcing of council valuations may well create an actual or perceived conflict of interest,
where the contractor has a client(s) who owns, manages or controls property within the
municipality. The contractor must provide council with a clear, comprehensive statement on
how it will address an actual, potential or perceived conflict of interest and issues arising from it
during the life of this contract and in the future. The statement must be made before acceptance
of the tender. A contractor, without advising council, can undertake no new personal or
business interests involving potential conflicts of interest.
If at any time, any valuer, employee or representative of the contractor has any potential conflict
of interest, personal or business, in any property or with any owner of a property being valued,
then this interest must immediately be declared in writing to council for a direction.
The contractor must provide council with a full description of how it will deal with any conflict of
interest issue, including the following:
 those circumstances the contractor would perceive to be a conflict of interest;
 how valuations can be undertaken when the contractor establishes that there is or could be
seen to be a conflict of interest;
 how the contractor would deal with a situation when a client of the contractor objects to a
rating valuation; and
 using and disclosing information only for the primary purpose for which it was collected.
2.11.1 Proprietorship of data
Council and the Valuer-General remain the custodians of all the data and information used in
the valuation process. All data and information provided by council or collected by the
contractor must be returned to council upon completion of each general valuation under this
contract.
Data and information includes valuations, calculations, spreadsheets, databases, files, maps,
analyses and systems, whether electronic or hardcopy.
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
2.11.2 Confidentiality of data
In the process of collecting information and valuing properties, the contractor will have access
to sensitive council information and business and private information concerning ratepayers. All
data accessed by or collected by the contractor must at all times be kept confidential and not
disclosed to any party without the prior written approval of council.
The data must not be used for any personal gain by the contractor, or by the contractor’s
business, any employee, subcontractor or agent of the contractor, or any other person, body or
organisation receiving the information or data through the contractor or any employee,
subcontractor or agent of the contractor.
The contractor must provide council with a statement as to how it will maintain confidentiality of
data during and after the life of this contract.
Failure to observe this condition will be a breach of the contract.
2.12 Criteria, procedures and penalties for default
Criteria, procedures and penalties for default of contract shall be as follows:
Penalties
Penalty lump sum deductions will apply as follows:
Stage 2:
No progress payments for Stage 2 valuations not submitted to council by
the due date. The balance of any outstanding Stage 2 payment as stated in
Schedule 2c (iii) will be reduced by 20 per cent and incorporated in the fee
payable at Stage 4.
Stage 3A:
Payment for Stage 3A valuations not submitted by the due date will be
reduced by 2 per cent of the relevant fee as stated in Schedule 2c (iii) per
week for any overdue period.
Stage 3B:
Payment for any Stage 3B SMG(s) not submitted by the due date will be
reduced by 2 per cent of the relevant fee as stated in Schedule 2c(iii) per
week for the overdue period for any outstanding Stage 3B work.
Stage 4:
Payment for Stage 4 valuations not submitted by the due date will be
reduced by 2 per cent of the balance of the fee for overdue Stage 2 and
Stage 4 SMG(s) per week, after the due date.
Serious Default
Serious Default of the contract shall occur if the contractor breaks the requirements for:
 completion of the valuations by the due dates for each of Stages 2-5, agreed with
council; and
 ownership, confidentiality of data or conflict of interest.
If this event occurs the council may give the contractor seven (7) days notice – in writing
– to show cause why the contract should not be terminated.
Failure to meet performance criteria
If the contractor continues to fail to meet the contract performance criteria set out in the
specifications, then the contractor may be given seven (7) days notice – in writing – to
show cause why the contract should not be terminated.
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
2.13 Occupational health and safety
<< Municipality>> Council recognises and meets its requirements and obligations to staff, the
public, contractors and other persons under the Occupational Health and Safety Act 2004. To
this end, the ability of the tenderer to work with << municipality>> Council in continuing to do
so, and also to meet its own obligations under the VLA will be assessed as part of this tender.
<< insert further details about councils OH & S policies >>
2.14 Insurance required by the contractor
The contractor must carry an adequate level of professional indemnity insurance. An
adequate level is considered to be coverage for $X million.
The contractor must carry a minimum level of $X million of public liability insurance.
Details of the insurance carried must be set out in the tender document.
If the contractor does not carry the required insurance, the contractor should indicate in
the tender form the contractor’s willingness to obtain the required insurance.
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specification Guidelines
Section 3
Conditions of tendering
Section 2 – Information for Tenderer
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Valuation Best Practice 2014 Specifications Guidelines
3. Conditions of tendering
<< To be prepared by municipality, but to include the following summary schedule and
evaluation table >>
3.1
Summary schedule
Condition 1
The proposed contract is for:
2014 General Valuation (lump sum amount)
2012, 2014 supplementary valuations (rate per valuation)
Objections, inquiries and applications to VCAT (rate per objection, daily rate
per application to VCAT, and daily rate for Inquiries)
Asset valuations
Other valuation services
Condition 2
The tender reference is contract number: << tender reference number >>
Condition 3
The tenderer must submit an original plus XX copies of the tender
Condition 4
Council contact officer
<<valuation services manager>> is:
Name:
<< Insert name >>
Address:
<< Insert address >>
Telephone:
<< Insert telephone >>
Facsimile
<< Insert facsimile >>
Condition 5
A pre-tender meeting/briefing may be arranged by further notification to
tenderers.
Condition 6
Information supplied by the tenderer as required in Sections 4 and 5 of this
document will be used as the basis for selecting contractor(s). The
evaluation of the tenders will be carried out in accordance with the following
evaluation table.
The evaluation table sets out the evaluation criteria in order of importance in
the evaluation process. Each criterion is described with its relevant measure
and method of measurement.
Weighting factors are designated for each criterion and indicate a weight out
of 100. These weightings will be used to aggregate and compare each
tenderer’s evaluated ability to meet the criteria.
Each tender will be individually assessed against each evaluation criterion
and given a raw score on their ability to meet the specified requirements.
Section 3 – Conditions of Tendering
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Valuation Best Practice 2014 Specifications Guidelines
3.2
Evaluation table for provision of rating valuation services
CRITERION
Capability (Quality)
Capacity (resources)
Price
Financial viability
DESCRIPTION
Ability to provide works and
services that meet the
specified requirements,
including the performance
criteria.
Ability to supply works and
services in the quantities
required within the
timeframes required.
Competitive bid in
comparison to other tenders.
Ability to maintain service for
the life of the contract.
Section 3 – Conditions of Tendering
MEASURE
Proven record of
specification compliance in
past contracts, and quality of
systems employed.
Sufficient resources to
ensure reliability of supply of
services.
Ability to carry out work
within the required
timeframes.
Tendered prices.
Evidence of financial
stability.
METHOD OF MEASURE
(ASSESSMENT OF THE FOLLOWING:)
Demonstrated project management skills, including the ability to manage
staff and resources.
1. Demonstrated municipal performance including the ability to meet
delivery timelines in accordance with Valuation Best Practice.
2. Demonstrated municipal performance and statement of knowledge of
service requirements and Victorian local government rates and budget
processes.
3. Knowledge of municipality and its property types.
4. Details of computer skills relevant to the contract, and knowledge and
experience of the existing valuation software system and mainframe
system in use within council and/or local government.
5. Statement of technical ability, research and analysis skills relevant to the
contract, including knowledge of current valuation principles, VGV
standards, relevant legislation and applicable case law.
6. Statement of experience with and skill in use of Geographic Information
Systems (GIS), particularly with property.
7. Statement of qualifications and experience of personnel and record of
compliance with API CPD program.
8. Reference check.
9. Record of Occupational Health and Safety compliance, and WorkCover
training.
10. Record and standard of service delivery to customer service standards
including quality assurance certification.
1. Resources and staffing required to be committed to the contract.
2. Current and intended contractual commitments and extent of nonmunicipal practice.
3. Previous contractual performances.
4. Details of proposed project plan to complete the contract.
5. Range of services offered by the tenderer.
Comparison of all components of the tender price with other submitted tender
prices.
1. Financial statement in business profile and demonstrated business
viability.
2. Insurances
WEIGHTING
=35%
=35%
=30%
yes/no
yes/no
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Valuation Best Practice 2014 Specifications Guidelines
Section 4
Tender form and schedules
Section 4 – Tender Form and Schedules
23
Valuation Best Practice 2014 Specifications Guidelines
4. Tender form and schedules
4.1
Introduction
The information provided by tenderers in response to the tender form and schedules will form
the basis of the tender evaluation. The tender form and schedules generally correspond with the
evaluation table in Section 3 of this document.
Tenderers’ responses will be evaluated in accordance with the tender evaluation process and
the evaluation criteria described in ‘Conditions of tendering’ in this document. It is each
tenderer’s responsibility to provide sufficient detail in the tender by the tender closing time.
Tenderers should not expect to be given further opportunity after that time to provide additional
information.
4.2
Instruction to tenderers
To assist in the evaluation of tenders, tenderers must prepare and submit their tender in
accordance with ‘Conditions of tendering’ in this tender document. The tender shall comprise
the fully completed:
 tender form;
 tender schedules; and
 additional information required with tender.
The tender schedules and additional information comprise a structured sequence of request for
information. Tender responses must be similarly structured, with each response to each
schedule request being capable of standing alone.
All tender schedules are to be annexed to the ‘Tender form’. Where responses are requested,
other than on the pro formas provided, tenderers must also include the tender schedule
number, the tenderer’s name, the date and the tenderer’s signature on each page of their
response.
Where a consortium submits the tender, the tender schedules are to be completed in respect to
each member of the consortium.
4.3
Additional information required with tender
The tenderer must provide the following additional information with the tender and this
information will be used as part of the tender assessment:
Details of insurance held or proposed by the contractor
These should include cover for professional indemnity, WorkCover and public liability.
Certificates of currency must be submitted before the contract commences and if renewed
during the contract period.
Declaration of major existing clients
Prior to appointment and during the term of the contract, the contractor must provide a
declaration of major existing clients with property in the council district or any potential conflict of
interest in the council. Major existing clients must include major clients for whom work has been
done in the last two years.
Section 4 – Tender Form and Schedules
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Valuation Best Practice 2014 Specifications Guidelines
4.4
Tender form
TO:
<<Municipality>>
<<Address>>
Name of tenderer
of
Tenders to perform the work specified in these tender documents for the amounts set out below.
SERVICE
2012
2014
$ GST inclusive
$ GST inclusive
General Valuation – Rateable assessments
General Valuation – Non-Rateable assessments subject to
fire services levy (refer to appendix N)
General Valuation – Non-rateable assessments not
subject to fire services levy
Supplementary valuations (per valuation)
Objections, inquiries and applications to VCAT
Objections, where adjustment is :
By LESS than 10% of original valuation
By MORE than 10% of original valuation
Due to council data error
Inquiries
Appeals
Asset valuations for financial reporting
Per objection
Per objection
Per objection
Per day
Per day
Fixed lump sum
Senior
Hourly rates $
Daily rates $
Other valuation services ($ GST – Inclusive)
Delete relevant part(s) if not tendering for this work.
Signed:
Position:
For and on behalf of:
Company A.C.N.:
A.B.N:
Telephone number:
Date:
Witness:
Witness name:
Witness address:
Date:
Tender closing time:
*See schedule 2c(i )
Section 4 – Tender Form and Schedules
25
RATE
Junior
$
$
Valuation Best Practice 2014 Specifications Guidelines
4.5
Tender schedules
Schedule 1 – Schedule of experience and capability
Tenderers are to complete each of the attached schedules of experience and capability pro
formas titled:



Schedule 1a – Past performance and current commitments;
Schedule 1b – Business structure information; and
Schedule 1c – Financial stability, referees.
Tenderers are to provide the following details, within or attached to the schedules of experience
and capability:

Provide a brief company profile and history, including a current organisational chart
summarising numbers of all professional and ancillary staff by seniority and discipline.

In addition to the information provided under the above item, provide details on specific
aspects of your experience that benchmark and illustrate your ability and quality of work in
regard to the services described in Section 5 Specification of service of this document.

Provide details of other experience and resources you consider relevant, including previous
experience in working with local government, State Government or Federal Government, list
of awards or accreditations received, etc.

Provide details of projects completed, demonstrating project management skills, including
the ability to manage staff and resources to meet the due dates specified in this contract.

Provide a statement detailing your experience and knowledge of Victorian local government
processes, and the needs of council for timely delivery of valuation services.

Provide a statement detailing your knowledge and experience with property/rates software
and mainframe systems in use within local government.

Provide a statement detailing your firm’s technical ability to undertake the valuation tasks,
including research and analysis skills and demonstration of your ability to research changes
impacting upon municipal valuation, including legislation and court precedents.
Section 4 – Tender Form and Schedules
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Valuation Best Practice 2014 Specifications Guidelines
Schedule 2 – Schedules of plan for proposed service:
Tenderers are to complete the attached schedules of plan for proposed service pro formas,
titled:



Schedule 2a – Plan of specified personnel;
Schedule 2b – Project plan; and
Schedule 2c, 2d and 2e – Fee schedules.
and provide the following details within or attached to the Schedule of Plan for Proposed
Service:

Describe the valuation software systems to be used and whether they meet VBP output
requirements.

Describe in detail your proposed work plan and methodology to achieve the specific service
objectives described in the ‘Specification of service’ (refer Section 5 of this document),
demonstrating your ability to provide the type and level of services specified.

Provide details and the assurance of the availability of sufficient skilled personnel throughout
the full term of the contract.

Describe your contract management control and reporting systems, and provide typical
report samples.

Identify and define the major risks and your contingency plans that will ensure all outcomes
specified under the proposed contract are achieved. Your response should also include
management of industrial and environmental risks.
Schedule 3 – Schedule of quality assurance:
Tenderers are to complete the attached tender schedule pro forma titled:

Schedule of quality assurance.
Section 4 – Tender Form and Schedules
27
Valuation Best Practice 2014 Specifications Guidelines
Schedule 1 – Schedule of experience and capability
1a – Past performance and current commitments
Statement of relevant municipal experience
Contract for Services SIMILAR IN NATURE previously executed or current.
Municipality
Service
Contract
value $
Completion
date
Contact name
of
client’s
supervisor
Contact
phone
number
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
Other contracts CURRENTLY OPERATING OR RECENTLY COMPLETED
Client
Service
Contract
value $
Completion
date
Contact name
of
client’s
supervisor
Contact
phone
number
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
Section 4 – Tender Form and Schedules
28
Valuation Best Practice 2014 Specifications Guidelines
Schedule 1 – Schedule of experience and capability
1a – Past performance and current commitments
Identify your core business, main client base and state the percentage of your work that
is directly associated with the type and nature of service specified for this contract.
Detail your firm’s history of municipal valuation and property experience, including
experience with objections, inquires and appeals.
Section 4 – Tender Form and Schedules
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Valuation Best Practice 2014 Specifications Guidelines
Schedule 1 – Schedule of experience and capability
1b – Business structure information
Contractor’s Name:
This information is for assessment purposes only.
a)
Tenderers must attach a copy, or copies, of particulars of any petition, claim, action,
judgment or decision likely to adversely affect the contractor’s performance under the
contract.
b)
Date incorporated
c)
List name/s of sole trader, partners, director, manager and company secretary
Name
d)
/
/
Position
% Shareholding
List parent, subsidiary and associated companies
Company name
Relationship
A.B.N.
Signature of authoriser
Printed name of signatory
Position of authoriser
Dated this
day of
20
THIS SCHEDULE MUST BE ANSWERED IN FULL AND IS TO BE SUBMITTED
WITH THE TENDER
Section 4 – Tender Form and Schedules
30
Valuation Best Practice 2014 Specifications Guidelines
Schedule 1 – Schedule of experience and capability
1c – Financial stability and referees
Contractors name:
This information is requested for assessment purposes only.
This schedule is to assess the tenderer’s financial capability to execute the works.
Banker/s
Name
Address
Contact phone number
Accountant/s
Four Largest Creditors
I / WE AUTHORISE
the <<Municipality>> to seek information, if required, from the tenderer’s
principal bankers and/or accountants, auditors, creditors or other
business reference contacts.
I / WE AFFIRM
that ALL information, requested and offered, is both accurate and factual.
Signature of authoriser
Printed name of signatory
Position of authoriser
Dated this
day of
20
THIS SCHEDULE MUST BE ANSWERED IN FULL AND IS TO BE SUBMITTED
WITH THE TENDER
Section 4 – Tender Form and Schedules
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Valuation Best Practice 2014 Specifications Guidelines
Schedule 2 – Schedule of plan for proposed services
2a – Plan of specified personnel
Contractors name:
The tenderer is to specify the key project personnel proposed for this contract in the table below. Attach curriculum vitae and qualifications documentation
of the key personnel listed below.
Staff name
Function
eg J Smith
Valuer
Qualification/
experience
Percentage of full-time position
allocated to project
Project area
Certified
Practising Valuer
80% FT
Rural
Signature of authoriser
Printed name of signatory
Position of authoriser
Dated this
day of
20
THIS SCHEDULE MUST BE ANSWERED IN FULL AND IS TO BE SUBMITTED WITH THE TENDER
Section 4 – Tender Form and Schedules
32
Valuation Best Practice 2014 Specifications Guidelines
Schedule 2 – Schedule of plan for proposed services
General Valuation and non rateable properties subject to the fire services property levy*3
Complete the attached project plan Schedule 2b, setting out the timetable to be followed to achieve completion of all SMGs by the due dates.
Complete the attached Schedules 2c, 2d and 2e to allocate the General Valuation lump sum fee to each SMG.
The project plan is developed on the basis that the Stage 2 preliminary valuation will be undertaken on a rolling date/fixed date (1/07/13)*
2b – Project plan– 2014 General Valuation
Stage
Due Dates
Stage Description
General Preparation and
Statistical Analysis
Preliminary Valuations –
Residential and Rural
Properties
Sub-market Group
Assessments
Completion Date
ALL SMGs
ALL assessments
Insert date for completion of
Stage 1
Insert SMGs for Stage
2
Number of
assessments in SMGs
Insert date for completion of
SMG to meet stage dates
Preliminary Valuations –
Specialist Properties
Insert SMGs for Stage
3A
Number of
assessments in SMGs
Insert date for completion of
SMG to meet stage dates
31 January 2014
Final Valuations –
Commercial and Industrial
(including 3A properties)
Insert SMGs for Stage
3B
Number of
assessments in SMGs
Insert date for completion of
SMG to meet stage dates
4
31 March 2014
Final Valuations –
Residential and Rural
Properties
Insert SMGs for Stage
4
Number of
assessments in SMGs
Insert date for completion of
SMG to meet stage date
5
30 April 2014
Valuation Return
ALL SMGs
ALL assessments
Insert date for completion of
Stage 5
1
28 February 2013
2
31 October 2013
3A
31 August 2013
3B
* For fixed date requirements see Section 5 Stage 2.
3
Each FSPL assessment should be completed in the appropriate stage dependent on property type based on the AVPCC.
Section 4 – Tender Form and Schedules
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Valuation Best Practice 2014 Specifications Guidelines
Schedule 2 – Schedule of fees for proposed services
2c (i) – Total lump sum fee schedule – 2014 General Valuation and non-rateable properties subject to the fire services property levy
Property type
Assessments
$/Assessments
Fee $
Total fee summary $
Total fee Residential and Rural:
Residential
Rural
Total
Total fee Commercial and Industrial
Commercial
Industrial
Total
Total fee Specialist
Specialist
Total
$
TOTAL LUMP SUM:
Section 4 – Tender Form and Schedules
34
Valuation Best Practice 2014 Specifications Guidelines
Schedule 2 – Schedule of plan for proposed services
2c (ii) – Fee schedule – 2014 General Valuation and non-rateable properties subject to
the fire services property levy – total fees
Stage 1
VGV recommend that the Stage 1 fee be no less than 10 per cent of total lump sum fee for
2014 General Valuation and non-rateable properties subject to the fire services property levy.
Stage 2
VGV recommend that no less than 60 per cent of the total fee for residential and rural
assessments is allocated to Stage 2.
Stage 3A
VGV recommend that no less than 60 per cent of the total fee for specialist properties be
allocated to Stage 3A.
Stage 3B
VGV recommend that no less than 80 per cent of the total fee for commercial, industrial and 20
per cent of the total fee for specialist properties be allocated to stage 3B.
Stage 4
VGV recommend that no less than 20 per cent of the total fee for residential and rural
assessments is allocated to Stage 4.
Stage 5
VGV recommends Stage 5 fee be no less than 10 per cent of the total lump sum fee for the
2014 General Valuation and non-rateable properties subject to the fire services property levy.
Section 4 – Tender Form and Schedules
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Valuation Best Practice 2014 Specifications Guidelines
Schedule 2 – Schedule of fees for proposed services
2c (ii) – Stage fee schedule – 2014 General Valuation and non-rateable properties subject to the fire services property levy
Rural and Residential (R & R)
Stage
Title
Weight
Fee $
Commercial, Industrial and Specialist
(C I & S)
Weight
Stage 1
General preparation
10%
Insert fee – 10% R & R
10%
Stage 2
Preliminary Residential and
Rural Valuations (R & R)
60%
Insert fee – 60% R & R
N/A
Stage 3A
Specialist Property Valuations
N/A
60%
Stage 3B
Final Commercial, Industrial
Valuations
N/A
80%
Stage 4
Final Residential and Rural
Valuations
20%
Insert fee – 20% R & R
N/A
Stage 5
Valuation Return
10%
Insert fee – 10% R & R
10%
Fee $
Insert fee - 10% C, I & S
Insert fee - 60% Specialist
Insert fee - 80% C & I+ 20%
Specialist
Insert fee - 10% C, I & S
TOTAL LUMP SUM:
Section 4 – Tender Form and Schedules
36
Total fee per stage $
$
Valuation Best Practice 2014 Specifications Guidelines
2d – Stages 2 and 4 SMG’s fee apportionment schedule
2014 General Valuation and non-rateable properties subject to the fire services
property levy – Residential and rural property
Stages
Sub-market Group
No. of
assessments
TOTAL:
2
Preliminary
valuation
$
4
Final
valuation
$
*
SMG
total
$
SMG rate
per
assessment
$
*
* Total must compare with total shown on 2c(ii)
2e – Stage 3B SMG’s fee apportionment schedule
2014 General Valuation and non-rateable properties subject to the fire services
property levy – Commercial, industrial properties
Sub-market Group
SMG
Total
$
No. of
assessments
TOTAL:
SMG rate
per
assessment
$
*
* Total must compare with total shown on 2c(ii)
Section 4 – Tender Form and Schedules
37
Valuation Best Practice 2014 Specifications Guidelines
Schedule 3 – Schedule of quality assurance
Contractor’s Name:
This schedule is intended to assist the <<Municipality>> to determine the tenderer’s
capabilities in relation to what can reasonably be expected for a quality outcome. The general
expected outcomes include compliance with the specification, guaranteed reliability of product,
timely supply of services, customer service of the highest standard and appropriate risk
management programs.
1.
Does your organisation have a documented quality system?
o Yes o
2.
If you answered YES to question 1, is your quality system certified by an accredited
body? If so, please supply the following details:
Registration No.:
ISO standard:
3.
Name of certifying body
If you answered YES to question 1, will the valuation services required under this
contract be delivered by that part of your organisation that is quality assured?
o Yes o
4.
No
No
If you answered NO to question 1, are you actively working towards the certification of a
quality system?
o Yes o No
5.
When do you anticipate achieving this?
Signature of authoriser:
Printed name of signatory:
Position of authoriser:
Dated this
Day of
2012
THIS SCHEDULE MUST BE ANSWERED IN FULL AND IS TO BE SUBMITTED
WITH THE TENDER
Section 5 – Specification of Service
38
Valuation Best Practice 2014 Specifications Guidelines
Section 5
Specification of service
Section 5 – Specification of Service
39
Valuation Best Practice 2014 Specifications Guidelines
5. Specification of service
Fire Services Property Levy
Tasks and outputs for non-rateable properties subject to the fire services property levy are
consistent with the requirements outlined below
The tender requests:

Lump sum prices for the services associated with the:
2014 General Valuation of all rateable assessments and non-rateable assessments subject
to the fire services property levy (FSPL)
2014 General Valuation of all non-rateable assessments not subject to the fire
services levy (Properties subject to the fire services levy to be defined in the Fire
Services Property Levy Act 2012)

Unit prices for the services associated with the:
Supplementary valuations as at the prescribed date of 1 January 2014
Supplementary valuations as at prescribed date of 1 January 2012

Unit Prices for the services associated with the:
2014 General Valuation – inquiries, objections and applications to VCAT
2012 General Valuation – inquiries, objections and applications to VCAT

Schedule of rates for other services
Asset valuations for financial reporting
Other valuation services
5.1
2014 General Valuation
Prepare the 2014 General Valuation in accordance with the General requirements (Table 5A),
the timetable (Table 5B), and Stages 1–5 below.
Table 5A – General Requirements
Topic
General valuation
Requirement
Site value (SV), capital improved value (CIV) and net annual value
(NAV) for all rateable assessments and non-rateable assessments
subject to the FSPL
Site value (SV), capital improved value (CIV) and net annual value
(NAV) for all non-rateable assessments
completed by the due dates to standards required by legislation,
council and VGV.
Record all data, calculations, analysis and valuations electronically.
Statutory requirements
Comply with all statutory and regulatory requirements in the:



Section 5 – Specification of Service
Valuation of Land Act 1960
Local Government Act 1989
Valuation of Land (General and Supplementary Valuation)
Regulations 2003
40
Valuation Best Practice 2014 Specifications Guidelines
Topic
Supervision of work by
contractor
Requirement
All general valuation work is the responsibility of the person(s)
appointed under Section 13DA(1) of the VLA.
Each << month>>, provide council with a written progress report
detailing achievements and progress against the project plan.
Improve and maintain the accuracy and quality of property databases
Data quality
used for preparing all valuations.
Consult with the council contract manager to determine the general
Property inspections
inspection program before conducting inspections in Stage 2.
Externally inspect all properties in the general inspection program.
Inspect properties internally where feasible and practical (e.g. via real
estate agency open-for-inspections)
Maintain a detailed schedule of properties and SMGs inspected in the
2014 valuation. Schedule must include address, name of inspector
and date of inspection.
Provide personnel conducting inspections with written instructions to
ensure inspection data is collected, and qualitative codes are applied
in a consistent manner.
2014
Valuation Commercial and Industrial Property
inspection requirements Inspect all non-residential and non-rural assessments (including all
commercial, industrial, and other property groupings not elsewhere
specified).
Progress report
Specialist Properties
Conduct a full inspection of the properties nominated in Appendix H to
ensure that all elements of the property are captured.
Residential and Rural Property
A general program of property inspections for 2014 must be
completed. This program must ensure that the valuation data is of
sufficient quality to meet the requirements for certification.
The program must include:
 any pre-existing contractual obligations;
 all relevant sales;
 all supplementary valuations;
 anomalies detected in tracking graph (refer Appendix C);
 anomalies found after the initial running of the valuation model
completed as part of Stage 2; and
 any other properties required by council.
And must have reference to:
 objections to / Inquiries on the 2012 General Valuation; and
 changes to the Victorian Heritage Register;
The number of properties inspected will not be less than 33 per cent of
the total number of residential and rural assessments (exclusive of
sales, objections and supplementary valuations).
Section 5 – Specification of Service
41
Valuation Best Practice 2014 Specifications Guidelines
Topic
Requirement
VBP stage
requirements
All stage submissions are to comply with the VBP tasks and outputs
as set out in Section 5 of the VBP 2014 Specifications Guidelines. The
Valuer-General Victoria issues templates that comply with the
mandatory outputs. These are to be used in all submissions.
Meetings
Attend meetings with the council’s manager valuations and/or VGV as
required.
Council may call meetings to discuss progress against project plan
with contractor and VGV. Where required, changes to the project plan,
necessary to meet due dates of the contract, will be determined and
advised in writing.
Attend meetings called by VGV under Section 7 of the VLA.
Differential rating
requirements
Section 5 – Specification of Service
Identify and classify properties in accordance with council rate
classifications. (Set out in Section 2 Information for Tenderers of this
document).
42
Valuation Best Practice 2014 Specifications Guidelines
Table 5B – Timetable for 2014 General Valuation
Stage
1
2
3A
3B
4
5
Title and key tasks
Preparation and statistical analysis
General preparation and statistical analysis of recent sales against the 2012 valuation
(all properties).
Recommended completion date
28 February 2013
Preliminary Residential and Rural Valuations
Prepare preliminary valuations for all residential and rural properties.
31 October 2013
Specialist Properties
Prepare preliminary valuations for all Specialist Properties
31 August 2013
Commercial and Industrial Properties
Prepare FINAL valuations for all non-residential and non-rural properties, including 3A
specialist properties.
31 January 2014
Final Residential and Rural Valuations
Determine FINAL valuations for residential and rural properties.
31 March 2014
Valuation and data return
Valuation Return, Valuer’s Final Report, and provision of valuation databases.
30 April 2014
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Valuation Best Practice 2014 Specifications Guidelines
5.1.1 Stage 1 General preparation and statistical analysis
To be completed no later than 28 February 2013
This stage comprises four main components:
 General preparation
The data and valuations returned for 2012 are audited to identify data and valuation issues. The
valuer should review any previously identified anomalies as well as objections to the 2012
valuations, and determine whether these were random or due to particular problem areas
(confined to specific SMGs or property types).
 Sub-market Group review
Tracking graphs are used at Stage 1 to assess the validity of the SMGs and monitor market
changes. All available sales evidence from 1January 2012 up to 30 days prior to the date of
submission must be used. Further information on tracking graphs is provided in Appendix C.
 Identification of specialist properties
Stage 3A is the preliminary valuation of specialist properties as defined in Appendix H. The
properties are required to be listed at Stage 1.
 Project plan and inspection program
Develop a project plan that shows the completion dates for SMGs in Section 4 – Schedule 2b of
this document. The council will use the project plan to monitor the progress of each stage
against the due dates for completion.
Stage 2 and 4 submissions must be provided in meaningful parcels (minimum of 10 per cent of
the total assessments) and not the whole stage as a single submission.
Results of Stage 1 statistical tests will be used to help the contractor arrive at, in consultation
with council, an agreed project plan for Stage 2, 3A, 3B and 4. The plan will schedule the order
in which SMGs must be completed, giving priority to properties and SMGs in greatest need of
review.
The project plan may be reviewed during the valuation, in consultation with the council contract
manager, to account for changed priorities and discovery of data or valuation anomalies.
Priority must be allocated to SMGs that:
 return results outside tolerances for statistical tests;
 show under- or over-valuation on the tracking graphs (+/-20%);
 had multiple objections; or
 were designated for general inspection as part of an ongoing inspection plan from previous
revaluations.
COD Tolerances
The COD tolerance for SMGs to be reviewed at stage 1 if the COD is outside the tolerance
(greater than 15) then the SMG composition needs to be investigated and reported upon.
For further information refer Appendix C and D of this document.
Templates
VGV issues templates for each stage. These should be used by valuers to assist compliance
with the VBP 2014 output requirements.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
Stage 1 Tasks and outputs
Statutory
declaration
Project
plan
Specialist
Properties
Statistical analysis and SMG
review
Preparation
Task
Audit 2012 valuations and data collected
for and/or used for the valuation, in council
valuation software databases, and
spreadsheets.
Ensure that distinct property
types/AVPCCs are allocated separate
SMGs,
e.g. Rural Residential, Residential
Units/Flats
Output (provide electronically)
Using the VGV templates:
Briefly describe the council software
databases and spreadsheets that will be
used to complete the valuation.
Discuss any anomalies in the 2012 valuation
data identified in the audit.
List each SMG, its type (e.g. Residential,
Commercial) and the number of
assessments in each SMG.
Research amended legislation, court
decisions, planning amendments, industry
developments, and council policy
requirements that may impact upon the
2014 valuation.
Briefly describe how any of these factors
may affect the 2014 valuation.
Produce tracking graph and conduct ratio
tests, as set out in Appendix C and D.
Provide tracking graph and tracking ratio
statistics for each SMG, in accordance with
Appendix C and D.
Use tracking ratio statistical results to
review SMG composition.
Briefly explain any changes required to be
made to SMG composition.
Determine SMGs requiring priority review
in the 2014 valuation.
List in order of priority, SMGs requiring
review based on:
 tracking graph (estimated per cent
change per annum);
 tracking ratio statistics (SMGs failing
tolerances); and
 location/clustering of 2012 objections.
List the Specialist Properties to be valued
at Stage 3A (Appendix H).
Provide a list of the Specialist Properties to
be valued at Stage 3A, including assessment
number(s), property name, AVPCC, brief
description of the properties, and nominated
valuer.
Revise project plan to incorporate SMGs
identified as needing priority review in
2014.
Provide the project plan for all stages of the
2014 valuation.
Make statutory declaration to council that
valuation and return will be impartial and
true, as required under Section 13DH of
the VLA.
Provide a copy of signed statutory
declaration.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
5.1.2 Stage 2 - Preliminary valuations – Residential and rural property
To be completed no later than 31 October 2013
This stage requires preparation of preliminary valuations for all residential and rural properties
completed on a whole SMG basis.
Submissions of work must be provided in meaningful parcels (minimum of 10 per cent of the
total assessments for rural and residential) as per the project plan and not the whole of Stage 2
as a single submission.
This is the major stage of the valuation process, in which residential and rural property
valuations are developed to an advanced stage. A review of these preliminary valuations occurs
in Stage 4.
The main valuation processes occur within this stage, namely:
 sales are inspected and property data updated where applicable;
 sales are analysed, levels set and look-up tables are created;
 the valuation models are run, statistics and spatial maps are produced to test validity of the
valuation and to identify anomalies;
 field inspections are undertaken to amend data errors or other inadequacies identified and
to meet the inspection requirements of the contract; and
 submit valuation to VGV for certification when satisfied that all statistical tolerances are met
and maps appear spatially consistent
Meetings with council contract manager
Regular progress in developing the preliminary valuations will be monitored at monthly
meetings between council and contractor.
Preliminary valuation date
Council requires the nominated date to be either a fixed date of 1 July 2013 or a series of rolling
dates from 1 February 2013.
Council requires preliminary valuations to be made to the nominated date. If available, sales
evidence within 30 days of the nominated date must be relied on.
Any submission to council must be:
In the case of a
‘fixed date’

Not to be provided earlier than 1 July 2013
In the case of a
‘rolling date’

Made to a nominated date based on current evidence

Submitted not more than 60 days after the nominated preliminary
date.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
Penalty for failure to complete Stage 2 by 31 October 2013.
Preliminary valuations must be completed in accordance with this contract by 31 October 2013.
After this date:
 council will not accept preliminary valuations;
 outstanding Stage 2 submissions must be valued as at 1 January 2014 (the prescribed date)
and will be the final Stage 4 submission of work;
 no progressive payments will be payable for Stage 2 work; and
 penalties will apply as per Clause 2.12.
Sales evidence
The contractor must make every reasonable effort to investigate market evidence sourced as
close as possible to the valuation date.
Council will provide, on a regular basis, a list of sales lodged with it; however, with the
significant time lag for formal sales notification (acquisition and disposition notices), the
contractor is required to also obtain sale information from alternate sources. These should
include local estate agents, public sources (auctions, open-for-inspections, newspapers and
Internet) and commercial sale reporting services (where cost-effective).
Treatment of non-fixed chattels
Residential and rural property sales normally do not include an amount for non-fixed chattels.
An allowance for chattels in the sales analysis is only appropriate if these items are identified as
non-fixtures and listed with the sale price/contract.
General inspection program
A general program of property inspections for 2014 must be completed. This program must
ensure that the valuation data held is of sufficient quality to meet the requirements for
certification.
The program must include:
 2014 inspection requirements determined by existing contractual obligations;
 all relevant sales;
 all supplementary valuations;
 anomalies detected in tracking graph (refer to Appendix C);
 anomalies found after the initial running of the valuation model completed as part of Stage 2;
and
 objections to/inquiries on the 2012 General Valuation
Inspections will be sufficient to ensure that VBP certification requirements are met. The number
of properties inspected will be no less than 33 per cent of the total number of residential and
rural assessments and include all sub-market groups over a period of three
revaluations.(exclusive of sales, objections and supplementary valuations).
The name of the person making the inspection and the date of inspection must be recorded, to
allow the status of inspection program to be evaluated at any time.
The contractor is responsible for all personnel conducting inspections, to ensure coding and/or
collection of data is undertaken in a professional, consistent manner.
Valuation tolerances
The following valuation tolerances are to be met for Stage 2 submissions:

Median sales ratio
0.9–1.0

Coefficient of dispersion
<10.0

Price related differential
0.98–1.03
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines

Difference between average change in
SV and CIV for sold and unsold properties
<10%
For further information refer Appendix D and E.
Valuation border conferences
Valuers will be required to confer with valuers of adjoining municipalities.
The valuation of properties in adjoining municipalities will be compared to ensure they are
valued:
 at consistent levels of value in accordance with the VLA;
 using all the current available market evidence; and
 using appropriate valuation methodology
The exchange of information will focus on:
 site values of lands along or near to municipal borders;
 added values for main improvements;
 methodology and values for special use properties; and
 relevant sales.
Templates
VGV issues templates for each stage. These should be used by valuers to assist compliance
with the VBP 2014 output requirements.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
Stage 2 Tasks and outputs
Preparation
Task
Upgrade, test and review valuation
software/spreadsheets for 2014.
Test mainframe and software capabilities,
interoperability and links.
Output (provide electronically)
Using the VBP templates
Provide details of any changes that have been
made since Stage 1.
Reconfigure SMGs identified for review at
Stage 1.
Prepare sales database from council records
and all other available sources.
Sales Analysis
Conduct a sales analysis for each SMG or
group of SMGs:
 track sales since January 2012 as set out
in Appendix C;
 check information on sale properties
against existing valuation and its data and
correct errors where necessary;
 inspect sale properties and correct/collect
property data where necessary;
 determine sales to be used in analysis; and
 analyse sales evidence on corrected data.
Classify all sales from 1/1/2012 into the
following categories:
 simp (sale improved);
 svac (vacant land sale);
 ex (excluded sale); and
 trk (tracking sale).
Provide valid justification for sales that have
been excluded.
Display and describe the method used to
analyse sales for:
 vacant land; and
 improved properties.
The analysis must ascribe a value to each
component of the property so that the sum of
each equates to the sale price:
 land (e.g. $/m², $/ha, $/lot);
 main dwellings/buildings (e.g. $/building
$/m²);
 minor buildings; and
 other improvements.
Provide the following information to clarify the
sales analysis methodology:
 legend for spreadsheet codes, row or
column headings or other descriptors;
 impact of planning scheme or other
planning issue;
 impact of heritage registration or related
issue;
 impact of permit or permit refusal; and
 allowances for site improvements.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
Preliminary Valuations
Task
From sales analysed, develop level of values
to be applied.
Calculate preliminary valuations for all
residential and rural assessments.
Spatially represent valuation data and check
for consistency.
Calculate sales ratio statistics as set out in
Appendix D for each SMG.
Output (provide electronically)
Provide:
 adopted levels of value for components
used in valuation calculations (e.g. value
ranges, look-up tables, matrices); and
 adjustment or influencing factor tables that
adjust the adopted levels of value in the
valuation calculation (e.g. age, condition,
area, location, or any other negative or
positive influencing factors).
Name of person making inspection and
inspection date must be recorded to allow
status of inspection program to be evaluated
at any time.
Comment on the generated mapping. Identify
any trends, anomalies or outliers that have
been identified as a result of your analysis of
the required maps and how these findings
have impacted on the valuations.
Undertake property inspections on
assessments:
 identified as anomalies or outliers in the
mapping and statistical review; and
 as required under the terms of the contract.
Confer with valuers from adjoining
municipalities.
Complete preliminary valuations for all
residential and rural assessments and submit
to council.
Comment on consistency of levels of value
along municipal boundaries.
Provide the valuation data for each SMG or
groups of SMGs including the following:
 all components used to calculate valuation
(including data elements, value tables,
individual adjusters, codes, descriptors,
value drivers etc);
 base site value;
 all site influence factors used (percentage
change) and total site influence
adjustment;
 total value for main building;
 all main building influences (percentage
change of each) and total building
influences;
 total value for minor buildings;
 all minor building influences (percentage
change) and total of influences on minor
buildings;
 total value for improvements; and
 last sale price, date and sale use.
Provide annotation or documentation to
explain the application of adopted values,
calculation of any valuation and how the
valuation calculation works.
Provide spreadsheet codes, row or column
headings (include legend).
Section 5 – Specification of Service
50
Preliminary Valuations (statistical analysis)
Valuation Best Practice 2014 Specifications Guidelines
Task
Calculate sales ratio statistics as set out in
Appendix D on completed valuations.
Output (provide electronically)
Provide individual sales ratio on sale properties
(refer Appendix D).
Conduct exception reporting and analysis of
value shifts, as per Appendix E and F.
Provide a summary of sales ratio statistics for
each SMG.
Discuss the conclusions drawn from the sales
ratio statistics, providing justification where
tolerances have not been met.
Discuss conclusions drawn for SMGs where
few sales exist. When there is no sale
evidence for a SMG, discuss how levels of
value and influencing factors have been
applied.
Provide value shift statistics for sale and nonsale properties, as set out in Appendix E, and
provide reasons/explanations if tolerances
were not met.
Provide exception reports as set out in
Appendix F.
Track sales since January 2012 as set out in
Appendix C.
Provide tracking graph and consider market
shifts since the 2012 valuation for each SMG.
Comment on whether applied values capture
market shifts.
Provide valuation GIS maps as per Appendix
G.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
5.1.3 Stage 3A Preliminary valuation – Specialist properties
Valuations to be completed no later than 31 August 2013
The municipality has specialist properties that possess one or more of the following qualities:
 major revenue significance to council;
 unique property type; and
 rarely sold and/or leased.
This stage requires the contractor to prepare preliminary valuations for all properties prescribed
by council in Appendix H. The valuer is required to utilise the available MGV/VGV specialist
property templates when assessing the valuations for these properties. If templates are
unavailable the valuer is required to provide council with a separate spreadsheet setting out the
detailed valuation methodology and calculations for each specialist property.
Inspection requirements
To ensure all relevant property data is collected, valuers are to undertake comprehensive
inspections of the prescribed properties in Appendix H and meet with, or contact, the
owner/occupiers.
The name of the person making the inspection and date of inspection must be recorded, to
allow status of inspection program to be evaluated at any time.
The contractor is responsible for all personnel conducting inspections, to ensure coding and/or
collection of data in a professional, consistent manner.
Data collection
The valuer is to collate all available information on these properties and document meeting with
representatives of the owner/occupier to obtain/discuss information regarding the municipal
valuation of the property, including up to date:
 sale and/or lease information on the property;
 rent and outgoings schedules;
 details of both land and building areas;
 schedules of plant and equipment;
 details of any planning amendments/permits affecting the property since the previous
valuation;
 capital expenditure on property since the previous revaluation; and
 data as specified in the specialist property guideline papers if applicable.
Sales and rental information
Given the specialist characteristics of these assessments, the contractor must obtain sale and
rental information from both within and outside this municipality.
It is acknowledged that the due date for this stage is prior to the prescribed date. The valuations
placed on these assessments are preliminary and will be assessed for satisfactory valuation
progression. The final valuations are to be submitted in Stage 3B where any amendments
deemed necessary can be made.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
Penalty for failure to complete Stage 3A by 31 August 2013
Penalties will apply as per Clause 2.12.
Valuation Conferences
Valuers will be required to attend conferences convened by Valuer-General Victoria under
Section 7 of the VLA.
At the valuation conferences, the valuation of properties of similar characteristics in
municipalities across the state will be compared to ensure they are valued:
 at consistent levels of value in accordance with the VLA;
 using all the current available market evidence; and
 using appropriate valuation methodology.
Templates
VGV issues templates for each stage. These should be used by valuers to assist in compliance
with the VBP 2014 output requirements.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
Data validation on subject property
Preparation
Stage 3A Tasks and outputs
Task
Output (provide electronically)
Identify specialist properties:
 confirm with council, the schedule of
specialist properties as per Appendix
H;
 research comparable properties within
Victoria; and
 refer to VGV specialist guidelines
papers where applicable.
Using the VGV templates:
Conduct comprehensive inspection.
Document meeting with representatives of the
owner/occupier to obtain/discuss information
regarding the municipal valuation of the property.
Obtain from owner/occupier schedules of
land and building areas, all other
improvements, and plant and equipment.
Obtain current lease and occupancy
information (tenancy and outgoings
schedules).
List all specialist properties.
Comment on the quality and relevance of the
data obtained.
Obtain full sale history of subject
property.
Any other relevant information for the
subject property (see specialist
guidelines papers where applicable).
Sales, lease and cost analysis
Obtain details of capital expenditure
since previous revaluation.
Collect lease data for each specialist
property type:
 research lease of comparable
properties; and
 analyse leases to determine rental
levels to be adopted.
Collect sales data for each specialist
property type:
 research sales of comparable
properties; and
 analyse sales for each specialist
property type.
Display and describe the method used to analyse
leases.
Include rental analysis spreadsheets showing a
breakdown of rental evidence into components
of value applicable to the specialist property type.
Describe the method used to analyse sales for:
 vacant land; and
 improved properties.
Include detailed sales analysis spreadsheet for
each specialist property type. Each sale to be
analysed down to all components of value
applicable to the specialist property type.
Research replacement cost for each
specialist property type where applicable.
Section 5 – Specification of Service
54
Preliminary valuations
Valuation Best Practice 2014 Specifications Guidelines
Task
Output (provide electronically)
Prepare valuations for each specialist
property.
Provide an overview of the valuation methodology
adopted for the various specialist properties in
addition to individual spreadsheets showing
valuation calculations.
Attend VGV convened specialist valuation
conferences.
Complete exception reporting as set out in
Appendix F.
MGV/VGV Specialist Property Guidelines
templates should be used if available.
All adopted assumptions and levels must be
supported and substantiated with market
evidence.
Provide the valuation data and evidence for each
property including all components used to
calculate valuation on individual spreadsheets.
Provide Exception Reports as set out in
Appendix F.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
5.1.4 Stage 3B Commercial and industrial property
Final valuations to be completed no later than 31 January 2014
General inspection program
All commercial and industrial properties are to be inspected. Record the name of the person
making the inspection and inspection date to allow status of inspection program to be evaluated
at any time.
The contractor is responsible for all personnel conducting inspections, to ensure coding and/or
collection of data is undertaken in a professional, consistent manner.
Sales and rental information
Contractor must use current market sales and rental evidence sourced as close as possible to
the valuation date.
Rental evidence should be drawn from rental questionnaires, on-site interviews with
occupiers/owners (as necessary) and local commercial and industrial property managers.
With the time lag for formal sales notification to council (acquisition and disposition notices), the
contractor must obtain sale and lease information from alternative sources. These should
include local estate agents, public sources (auctions, open-for-inspections, newspapers and
Internet) and commercial sale and lease reporting services.
Penalty for failure to complete Stage 3B by 31 January 2014
Penalties will apply as per Clause 2.12.
Valuation conferences
Valuers will be required to attend conferences convened by Valuer-General Victoria under
Section 7 of the VLA.
At the valuation conferences, the valuation of properties in adjoining municipalities will be
compared to ensure they are valued:
 at consistent levels of value in accordance with the VLA;
 using all the current available market evidence; and
 using appropriate valuation methodology.
Conferences will focus on:
 site values of lands along or near to municipal borders;
 added values for main improvements;
 methodology and values for special use properties; and
 exchange of sales and rental information.
Valuers must prepare a minimum set of information for exchange and discussion at the
valuation conference (Refer Appendix I). This information must be provided two weeks prior to
the conference date.
Section 5 – Specification of Service
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Valuation Best Practice 2014 Specifications Guidelines
Valuation tolerances
The following valuation tolerances are to be met for Stage 3B submissions:

Median sales ratio
0.85–1.0

Median Site Value sales ratio
0.90–1.0

Median Rental ratio
0.85–1.0

Coefficient of Dispersion
<15.0

Difference between average change in SV and CIV
or sold and unsold properties, and NAV for leased
and ‘other’ properties
<10%
For further information refer Appendix D and E.
Templates
VGV issues templates for each stage. These should be used by valuers to assist compliance
with the VBP 2014 output requirements.
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Preparation
Stage 3B Tasks and outputs
Task
Upgrade, test and review valuation
software/spreadsheets for 2014.
Review composition and/or boundaries of
SMGs and reconfigure SMGs as required.
Output (provide electronically)
Using the VGV template, address in submission:
 details of software system on which the
Stage 3B has been undertaken; and
 list SMGs identified, provide overview of
characteristics and market commentary.
Identify SMGs requiring priority research.
Collect lease information. Using all
available sources collect and collate all
current lease and occupancy information
(tenancy and outgoings schedules on
properties under management within
municipality).
For special use properties, research
lettings of comparable properties.
Report on the methods used to collect up-to-date
rental information and comment on the standard
of data obtained.
Report on the percentage of current rental data
referenced against the total number of leased
properties. A minimum requirement of 70 per cent
should be achieved.
Prepare rental database from surveys and
tenancy/outgoings schedules, and other
sources.
Lease analysis
Analyse lease evidence.
Display and describe the method used to analyse
leases.
Updated lease data to be shown in spreadsheets.
For new lettings or rent reviews in 2012
and 2013 (or prior to 2012 if required):
 check lease information against
existing valuation and its data; and
 update database with current lease
information.
Classify all rentals from 1/1/2012 into the
following categories:
 ar (analysed rent); and
 er (excluded rent).
Determine rent
levels/tables/schedules/matrices.
Include rental analysis spreadsheets showing a
breakdown of rental evidence to the most
appropriate unit of value for the property type.
Rental tables/matrices derived from rental
analysis with commentary on the conclusions
drawn from rentals analysed per SMG.
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Task
Collect sales data for each SMG or group
of SMGs:
 prepare a sales database from
council records and all available
sources; and
 for special use properties, research
sales of comparable properties.
Output (provide electronically)
Classify all sales from 1/1/2012 into the following
categories:
 simp (sale improved);
 svac (vacant land sale);
 ex (excluded sale); and
 trk (tracking sale).
Provide valid justification for sales that have been
excluded.
Sales analysis
Verify sales information for each SMG or
group of SMGs:
 check sales information against
existing valuation data and correct data
as required;
 reconcile sales of multiple
assessments with respective header
assessment; and
 inspect all sale properties, confirm
property data where necessary.
Analyse sales for each SMG or group of
SMGs:
 analyse sales of vacant and nearvacant land to an appropriate unit rate;
 analyse improved sales to derive an
‘analysed site value’;
 analyse added value of improvements;
 calculate passing yields on lease
properties and imputed yields on
properties sold with vacant possession;
and
 direct comparison rates per square
metre, where appropriate.
Prepare look-up tables/matrices.
Include sales analysis spreadsheets.
Each sale to be analysed down to the most
appropriate unit of value for the property type:
 land (e.g. $/m2, $/ha, $/lot etc.);
 main buildings (e.g. $/item, $/m2 etc.);
 other improvements (e.g. $/item, $/m2 etc.);
 site improvements (e.g. $/item, $m2 etc.);
 residual land value (e.g. $m/2, $ha, $/lot etc.);
 passing net rent, where available (e.g. $/m2,
$/pa etc.);
 Itemised outgoings;
 market capitalisation rates (passing and
imputed); and
 land and buildings value (per m2).
Provide a report with the following information to
clarify the sales analysis methodology:
 legend for spreadsheet codes, row or column
headings or other descriptors;
 impact of planning scheme, zoning, permit or
permit refusals or other planning issues;
 impact of heritage registration or related
issues; and
 any other allowance made in analysis.
Provide look-up tables/matrices derived from
sales analysis for:
 site values;
 capitalisation rates;
 improvement values; and
 adjustment or influencing factors adopted.
Address by SMG in submission:
 key sales used and brief market commentary;
 adopted levels of value for components used
in valuation calculations (e.g. value ranges,
look-up tables, matrixes); and
 adjustment or influencing factor tables that
adjust the adopted levels of value in the
valuation calculation.
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Task
Calculate valuations.
Output (provide electronically)
Name of person making inspection and date of
inspection must be recorded to allow status of
inspection program to be evaluated at any time.
Spatially represent valuation data and
check for consistency.
Provide valuation GIS maps as per Appendix G.
Comment on the generated mapping. Identify any
trends, anomalies or outliers that have been
identified as a result of your analysis of the
required maps and how these findings have
impacted on the valuations.
Undertake further property inspections on
assessments and update data as required.
Provide the valuation data for each SMG or group
of SMGs all components used to calculate
valuation (data elements, value tables, adjusters,
codes, descriptors, value drivers etc.) including
the following:
 indicate all master/slave assessments;
 adopted net rent;
 itemised outgoings;
 capitalisation rate;
 individual cap rates for components;
 EAV;
 base site value;
 total of site influence factors (percentage,
sum of factors etc.);
 total value for main building;
 total of main building influences (percentage,
sum of factors etc.);
 total value for minor buildings;
 total value for improvements;
 previous and proposed SV, CIV and NAV;
and
 adopted valuation approach.
Complete final valuations.
Calculate sales ratio statistics as set out in
Appendix D on completed valuations.
Final valuations
Conduct exception reporting and analysis
of value shifts, as per Appendix E and F.
Address in the submission:
 how valuation calculation works (include an
example);
 spreadsheet codes, row or column headings
(include legend); and
 discuss valuation approach adopted,
capitalisation, summation or direct
comparison.
Provide sales ratio statistics as set out in Appendix
D.
Provide value shift statistics for sale and non-sale
properties, as set out in Appendix E, and provide
reasons/explanations if tolerances not met.
Provide exception reports as set out in Appendix
F.
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Task
Prepare final valuations for each specialist
property.
Complete exception reporting as set out in
Appendix F.
Output (provide electronically)

.

3A final valuations

Section 5 – Specification of Service
Provide an overview of the valuation
methodology adopted for the various
specialist properties, in addition to individual
spreadsheets showing valuation calculations
All adopted assumptions and levels must be
supported and substantiated with market
evidence.
Provide the valuation data and evidence for
each property including all components used
to calculate valuation on individual
spreadsheets.
Provide Exception Reports as set out in Appendix
F.
Identify changes to the preliminary 3A valuation
setting out rationale for those amendments.
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5.1.5 Stage 4 Final valuations residential and rural property
To be completed no later than 31 March 2014
This stage finalises valuations for all residential and rural properties as at the prescribed date.
Stage 2 valuations are reviewed to incorporate changes required due to analysis of sales not
previously analysed and matters identified in the Stage 2 audit.
Stage 4 submissions must not be returned prior to 1 January 2014 to ensure the valuer has
taken into account all relevant sales evidence.
Penalty for failure to complete Stage 4 by 31 March 2014
Penalties will apply as per Clause 2.12.
Valuation conferences
Valuers will be required to attend conferences convened by Valuer-General Victoria under
Section 7 of the VLA. (Refer to Appendix I).
At the valuation conferences, the valuation of properties in adjoining municipalities will be
compared to ensure they are valued:
 at consistent levels of value in accordance with the VLA;
 using all the current available market evidence; and
 using appropriate valuation methodology
Conferences will focus on:
 site values of lands along or near to municipal borders;
 added values for main improvements;
 methodology and values for special use properties; and
 exchange of sales and rental information.
Valuers must prepare a minimum set of information for exchange and discussion at the
valuation conference
Valuation tolerances
The following valuation tolerances are to be met for Stage 4 submissions:

Median sales ratio
0.9–1.0

Coefficient of dispersion
<10.0

Price related differential
0.98–1.03

Difference between average change in SV and CIV
for sold and unsold properties
<10%
For further information refer Appendix D and E.
Templates
VGV issues templates for each stage. These should be used by valuers to assist compliance
with the VBP 2014 output requirements.
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Stage 4 Tasks and outputs
Task
Conduct a sales analysis as per Stage 2,
including sales up to and beyond the
prescribed date where available.
Sales analysis
Track sales since January 2012.
Output (provide electronically)
Using the VGV templates;
 provide sales analysis outputs as per
Stage 2; and
 provide tracking graph (as per Appendix
C) and consider market shifts since 2012
valuation for each SMG.
Calculate valuations.
Spatially represent valuation data and check
for consistency.
Calculate sales ratio statistics as set out in
Appendix D for each SMG.
Review and inspect properties identified as
anomalies or outliers in the mapping and
statistical review and update data as required.
Final valuations
Complete final valuations.
Calculate sales ratio statistics as set out in
Appendix D on completed valuations.
Conduct exception reporting and analysis of
value shifts, as per Appendix E and F.
Section 5 – Specification of Service
Using the VGV templates:
 provide final valuations and supporting
documentation as per Stage 2;
 comment on whether applied values
capture market shifts (by reference to
tracking graph);
 provide value shift statistics as per
Appendix E;
 provide exception reports as per
Appendix F; and
 provide valuation GIS maps as per
Appendix G.
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5.1.6 Stage 5 Valuation return
To be completed no later than 30 April 2014
Stage 5 is the return of the final valuation to council and a statutory report (Section 7AA of the
VLA) to the Valuer-General.
Council seeks to comply with the Auditor-General’s recommendation that VGV certification of
the valuation be completed before it is used. The contractor must work closely with council and
VGV to ensure satisfactory completion of the valuation, and comply with statutory and VBP
requirements.
Statutory report
The report must be completed in the format prescribed by the Valuation of Land (General and
Supplementary Valuation) Regulations 2003. As part of the report, the contractor must complete
form 2 in the regulations. This form sets out valuation totals for the main land use categories
and requires a brief summary of the factors affecting valuation changes in these categories.
Valuation return
The ‘return’ of a general valuation refers to the process and time point when complete and final
valuations, accompanied by a signed and dated declaration, prepared by the contractor are
‘returned’ or handed over to council
The valuation return is the point in the valuation process where the valuations recorded
represent the contractor’s final product and determinations.
Subsequent changes to the valuation after its return to council can only be made via
supplementary valuation or by direction of Valuer-General or the Minister.
Valuation totals within the contractor’s final report (Form 2) must match those in the
returned valuation (Form 3).
Certification
If the Valuer-General is satisfied the valuation is generally true and correct, he shall certify this
to the Minister who may declare that the valuation is suitable to be adopted and used (Section
7AF of the VLA).
Templates
VGV issues templates for each stage. These should be used by valuers to assist compliance
with the VBP 2014 output requirements.
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5.1.7 Proprietorship of Valuation Databases
Councils remain the custodians of all the data and information used in the valuation process. All
data and information provided by council or collected by the contractor must be returned to
council upon completion of each general valuation under this contract.
Data and information includes valuations, calculations, spreadsheets, databases, files, maps,
analyses and systems, whether electronic or hardcopy.
Data must be transferred electronically and loaded into council’s software system or mainframe,
in consultation with council’s IT manager.
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Stage 5 Tasks and outputs
Return of valuation
Task
Carry out Exception Reporting as per
Appendix F.
Prepare:
 Form 3 Schedule of Data Formats; and
 Form 2 Report of General Valuation.
Output (provide electronically)
Provide exception reports as per Appendix F.
Where exceptions are identified, provide
valid reason.
Provide a copy of the 2014 General
Valuation, in accordance with Appendix J
(Schedule of Data Formats).
Ensure the Form 2 and Form 3 totals match.
Statutory Return of General Valuation to
council.
Completed Valuer’s Final Report (in the
format prescribed by the Valuation of Land
(General Valuation) Regulations), signed and
dated by contractor, in accordance with
Appendix K.
Return all data and information including
valuations, calculations, spreadsheets,
databases, files, maps, analyses and
systems, to council, as per contract.
Provide Declaration of Valuation Return.
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5.2
Supplementary valuations
Council is committed to the regular undertaking of supplementary valuations. Supplementary
valuations are important because:
 a current and updated valuation database contributes to rating equity;
 a regular ongoing process of review ensures enhancement of data quality; and
 data accuracy significantly contributes to customer service satisfaction.
Instructions to value
In consultation with its contractor, council will prepare a listing of properties to be valued.
Council will issue instructions:
 identifying the properties to be assessed;
 the date by which the valuations are to be prepared; and
 the information available to the valuer to undertake the valuations.
Council will provide the listing as an electronic spreadsheet, containing:
 existing valuation and property data held on the property;
 sales details, and
 permit details, including certificate of occupancy where available.
Supplementary valuation cycle
Supplementary valuations must be prepared for return to council in batches each <<insert
frequency e.g. month / quarter>>.
Supplementary valuations must be returned to council within <<insert number of weeks>>
from the date of request by the contract manager.
Reasons for supplementary valuations
Reasons for supplementary valuations are set out in S13DF of the VLA.
Council uses the recorded permit cost as the major trigger point for considering a
supplementary valuation.
Permit cost threshold
Council’s contract manager has established a threshold cost of <<insert $ permit cost
threshold>>.
Council reserves the right to vary this threshold at any time, but will consult with the contractor
regarding any proposed change.
All permits with a value equal to or in excess of this value will require a supplementary
valuation, unless otherwise specified.
All permits with a value below this value will not require a supplementary valuation (unless
otherwise specified). However, the contractor is required to update property databases, in any
event, to ensure an accurate general valuation for these properties.
Creation of new assessments
New rate assessments will be created by <<title, name and contact details of responsible
officer>> before issuing supplementary valuation instructions.
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Maintaining currency and accuracy of property databases
Council requires the contractor to update property databases to maintain their accuracy and
currency, thus ensuring an accurate record of the property is held at all times and an accurate
general valuation of the property can be calculated.
Property records/databases must be amended to account for any changes to a property that
materially changes its data elements, rate classification, valuation or description.
Refer to the Schedule of Data Responsibility – Appendix A.
Separate contractor for 2014 supplementary valuations
Where 2014 level supplementary valuations are performed by another valuation contractor,
council will ensure property databases are updated promptly and without delay, according to
VBP standards.
Provision of building and planning information
Council will provide relevant information necessary for preparing supplementary valuations, as
set out in Section 2 Information for Tenderers of this document.
However, tenderers should note that where permit files and/or certified plans are not available,
the contractor will be required to obtain necessary information from alternative sources.
Deferral of supplementary valuation requests in early 2014
Council is committed to assisting the contractor to complete the 2014 valuation.
To maximise the opportunity for the contractor to meet due deadlines, council will refrain from
requesting supplementary valuations in the period 1 January 2014 to 31 March 2014.
Certification of Supplementary Valuations
In accordance with Section 13DFA(1) of the VLA: within one month of returning supplementary
valuations to council, the valuer must submit a report of the valuation in the prescribed form to
the Valuer-General. Templates will be issued by VGV to assist valuers’ compliance with this
section.
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Table S
Supplementary valuations
Item
Preparation
Council
information on
property
Responsible
party
Tasks
Council contract
manager
Determine and identify properties for supplementary
valuation.
Council
Provide instructions for supplementary valuations,
including electronic list of properties to be valued.
Provide electronic copy of building permits register (and
planning permits register, if required).
Provide permit files and certified plans, where available.
Provide plans of subdivision, notification of title
registration, planning scheme and other documentation
or information required to complete valuation.
Valuation
Contractor
Create new rate assessments.
Inspect property, collect and review property data (if not
otherwise available).
Calculate and review valuation as at the prescribed
date.
Return
Contractor or
Council
Sales analysis and valuations to standards required by
VBP 2014.
Return valuations to council in batches and forward a
copy on the VGV standard template, according to
statutory requirements.
Update/input data for supplementary valuations.
Update/input data for changes to properties below
value of works threshold.
Supplementary valuations
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Update/input data for changes to properties not
requiring supplementary valuation, but for which data is
required to be amended for the general valuation.
Outputs
Full electronic copy of supplementary valuations,
complete with:
 all data elements (whether used or not in
calculation);
 all in a format specified by council; and
 submit to Valuer-General in the prescribed form
(VGV template) in accordance with Section 13DFA
(1) of the VLA .
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5.3
Inquiries, objections and applications to VCAT
A well-managed customer inquiry and objection process is important to council’s corporate
standing and its customer satisfaction. A critical component of this service is a prompt and
informed response to all property valuation inquiries.
Council requires the contractor to have sufficient staff available to respond to ratepayer inquiries
and objections throughout the objection period, as set out in Section 2.5 of this document.
The peak time for inquiries is the initial four weeks after the annual rate notice is issued and the
first week after installment notices and supplementary valuation notices are issued. It should be
noted that an additional objection period will apply pursuant to the issue of land tax notices.
All inquiries and objections should be responded to in accordance with statutory guidelines.
The contractor must also follow council’s customer service objectives.
General tasks
Inquiries
Respond to and resolve to council’s satisfaction all forwarded inquiries; or, as directed by the
council contract manager, respond within the required response times.
Fee Schedule is to account for inclusion of all contractors’ specific tasks in Table O below.
Objections
The contractor must treat all objections, in accordance with Part 3 of the VLA.
The compulsory exchange of information pursuant to ‘high valued’ properties (Section 20 of the
VLA) will apply.
The contractor must provide documentation of any adjustment recommendation, including all
correspondence and communication with the objector, as well as research for and conclusion of
the objections.
The schedule fee is to account for inclusion of all contractors specific tasks in Table O below.
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On-site attendance
Contractor to attend council offices during the following periods to perform the tasks related to
handling inquires and objections.
Period
Annual rate notice
Instalment notices
Supplementary valuation notice
Land Tax notice
Attendance on site
<<XX>> business days from <<date>>
<<XX>> business days from <<date>>
As required
As required
Required response times for handling inquiries and objections
Council requires the contractor to provide the following services within the following period(s):
Item
Valuation inquiries from ratepayers
Required response time
Where written response required – within
<<X>> business days of receipt by contractor.
Where verbal response required – within
<<X>> business days of receipt by contractor.
Objection
Applications to VCAT
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In accordance with VLA
In accordance with VLA
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Table O
Inquiries and objections
Specific tasks
Item
Preparation for
inquiry/objection
period
Responsible
party
Council
Tasks
Before inquiry/objection period, council and
contractor will prepare and implement a plan to deal
with anticipated inquiries, allocating necessary
resources.
Determine and advise opening and closing dates of
objection period (refer Section 18 of the VLA).
Council will prepare general information on the
valuation process and related local issues to provide
to inquiring ratepayers, local media, councillors and
staff.
Managing inquiries
Contractor
Attend council offices for the inquiry/objection period
agreed, as directed by council.
Manage valuation inquiries in the period(s) agreed
with council.
Resolve inquiries wherever possible.
Document issue and resolution for property file.
Advise council of required corrections/data changes.
Where resolution fails, advise of objection process.
Council
Provide general information on valuation and related
local issues.
Make corrections/data changes, as advised by
contractor.
Provide resources as required.
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Item
Manage objections
Responsible
Party
Contractor
Tasks
Process objection in accordance with statutory
requirements.
Research and prepare documentation necessary to seek
resolution of the objection. Properly document the
outcomes according to council’s obligations as the
valuation authority.
Prepare Notices of Disallowances and/or Notices of
Recommendation to VGV, as required.
Council
Provide contractor with objection notices within X days of
receipt.
Provide facilities for ratepayer interviews.
Council will prepare all correspondence,
documentation and Notices of Disallowance and/or
Notices of Recommendation within statutory
timeframes.
Applications to VCAT
The contractor must treat all applications to VCAT or appeals to the Supreme Court in
accordance with Part 3 Division 4 of the VLA, the Victorian Civil Administrative Appeals Tribunal
Act 1998 and any relevant VCAT practice notes.
This includes preparing valuation reports and/or other documents for any tribunal/court hearing
and attendance at any hearing as an expert witness.
Fees for services in regard to applications to VCAT or appeals will either be at the daily rates
outlined in the tender form or by direct agreement with the contract manager.
5.4
Asset valuations for financial reporting
All properties owned or controlled by the council must be valued for asset purposes every two
years. The relevant date during the life of the contract is <<insert relevant date>>. The
valuations must be completed as close as possible to the relevant financial reporting date to
avoid council delays in completing their end of financial year statement. The valuations must be
undertaken in accordance with the requirements of Australian Accounting Standards AASB116,
the Municipal Accounting Regulations and any other standards specified by council.
Separate valuations must be prepared for both the land and improvements in accordance with
fair value concepts. The properties have been apportioned into groups of like usage, as follows.
<<insert asset groupings>>
Any new additions to the list of properties to be valued must be categorised in accordance with
the above asset classes.
As at 30 June <<insert year>>, there were a total of <<insert number>> properties, with a
total capital value of <<insert total CIV>>.
The contractor may reasonably rely on information regarding land and building areas within
existing council records when undertaking the asset valuations for financial reporting. However,
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the contractor will be required to amend the records where changes in description are identified.
Tenderers should discuss valuation methodology with the contract manager before lodging a
bid. This will clarify council’s requirements on issues such as heritage properties, underlying
land use classification, rates of depreciation and classification of assets considered surplus to
council requirements.
A schedule of council owned or controlled properties as at <<date>> is attached, refer
Appendix M (council to insert).
The Asset Valuation section of VGV can be contacted for further information regarding the
provision of ‘fair value’ for financial reporting purposes under AASB116.
www.localgovernment.vic.gov.au > publications & resources > asset management and financial
> Guidance Note: Fair Value Asset Valuation Methodologies for Victorian Local Governments
5.5
Other valuation services
During the life of the contract, council may request the contractor to undertake valuation
services not directly associated with the rating or asset valuations. However, council reserves
the right to engage other service providers to provide some or all of the unspecified services at
its discretion. These additional services may include the following:
5.5.1 Compensation valuations
Provide valuations, advice and negotiations for potential and actual compulsory acquisition
purposes in accordance with the provisions of the Land Acquisition and Compensation Act 1986
and the Planning and Environment Act 1987.
5.5.2 Valuations for public open space
Provide valuations and the handling of inquiries, objections and appeals for public open space
lands under the Subdivision Act 1988 and any relevant Planning Scheme.
5.5.3 Valuations before sale
Undertake valuations as required by the Local Government Act 1989 in the six-month period
before the date of sale of any council property.
5.5.4 Other valuations
Undertake other property valuations for council for a variety of purposes including insurance,
sale, purchase, lease, road closure and feasibility purposes.
The contractor should provide an hourly or daily rate for providing these and other services if
the contract manager wishes to engage the contractor on an hourly or daily rate basis.
Alternatively, the contract manager may wish to engage the contractor on a fixed fee basis,
negotiated at the start of each instruction.
For valuation associated with the purchase, sale or lease of land to State Government
departments and agencies, council’s valuer must comply with the requirements of the
Government of Victoria Policy and Instructions on the Purchase, Compulsory Acquisition and
Sale of Land (August 2000) compiled by the Department of Innovation, Industry and Regional
Development and available at www.dse.vic.gov.au > property, titles and maps>
valuation>government valuations.
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