Omanghana
The Ghana Institution of Surveyors has rejected suggestions that significant differences in compensation valuations for road projects necessarily indicate professional misconduct or deliberate inflation.
According to the institution, variations between assessments prepared by private valuers and figures produced by government agencies can result from legitimate technical, legal and market-related factors.
The clarification follows concerns raised by the Minister for Roads and Highways about substantial differences between compensation claims submitted on behalf of affected property owners and valuations conducted by the Land Valuation Division of the Lands Commission.
Valuation Differences Require Technical Examination
In its response, the Ghana Institution of Surveyors said discrepancies should be examined through established valuation and reconciliation processes before conclusions are drawn about the conduct of individual professionals.
The institution explained that property valuation is not always capable of producing one identical figure, particularly when assessments are conducted at different times or rely on different information and methodologies.
Changes in market conditions, the condition and use of a property, the applicable valuation date and the type of compensation being assessed can all influence the final estimate.
GhIS therefore cautioned against treating every difference between private and state valuations as evidence of fraud or intentional overpricing.
Timing and Market Conditions Affect Values
The effective valuation date is one of the major factors determining the amount of compensation payable for land and property affected by public infrastructure projects.
Property prices, construction costs and rental values can change considerably during periods of inflation and currency depreciation. When a private assessment is prepared at a different time from a government review, the two valuations may reflect different economic conditions.
Delays in reviewing or paying compensation claims may also widen the difference between an earlier assessment and the current cost of replacing the affected property.
GhIS said the valuation date and the market evidence available at that time must therefore be considered when comparing figures.
Different Heads of Claim May Be Included
The institution also explained that compensation assessments may cover more than the market value of land and buildings.
Depending on the circumstances and applicable law, an affected owner may submit claims relating to disturbance, relocation costs, loss of business, severance or injurious affection.
Severance may arise where only part of a property is acquired, leaving the remaining portion less useful or less valuable. Injurious affection refers to a reduction in the value of retained property caused by the acquisition or the resulting public project.
A private valuer acting for a property owner may include these additional claims, while an initial government assessment may focus on a narrower set of items. This can produce substantially different totals even when both parties use recognized valuation principles.
Any such entitlement would still need to be supported by evidence and assessed under the relevant legal framework.
Valuation Methods Can Produce Different Results
GhIS further noted that valuers select methods based on the type, location and use of the affected property.
A residential building may be assessed using comparable property transactions or replacement costs. Commercial property could require an income-based approach that considers rent and potential earnings, while agricultural land may involve crop values, productivity and the economic use of the land.
The cost approach, comparative sales method and income capitalization method can produce different results because each considers the property from a different perspective.
Professional judgment is also required when selecting comparable properties, estimating depreciation and evaluating the effect of compulsory acquisition on the remaining land.
Initial Claims Are Subject to Negotiation
According to the institution, compensation reports submitted by private valuers generally represent the professional position of the affected property owner at the beginning of the assessment process.
The figures are not necessarily final amounts that the state must accept without review.
The Land Valuation Division is expected to examine the claim, inspect the affected property, review supporting evidence and prepare its own assessment. Differences are then addressed through technical meetings, reconciliation and negotiation.
Where the parties cannot agree, the dispute may be resolved using the legal procedures available for compulsory acquisition and compensation matters.
GhIS said this process is designed to ensure that affected owners receive fair compensation while protecting public funds from unsupported claims.
Institution Reaffirms Commitment to Professional Conduct
The Ghana Institution of Surveyors reaffirmed its commitment to ethical practice and professional accountability.
It said members are required to comply with established valuation standards and disciplinary rules. Allegations of deliberate inflation, collusion or other misconduct should therefore be supported by evidence and investigated through the appropriate professional and legal channels.
The institution indicated that it would not shield practitioners found to have breached professional standards. However, it maintained that a difference in valuation figures alone should not be treated as proof of wrongdoing.
GhIS Calls for Greater Collaboration
GhIS encouraged closer cooperation among the Ministry of Roads and Highways, the Lands Commission and recognized professional bodies.
Regular technical engagement could help harmonies valuation procedures, clarify acceptable heads of claim and reduce delays in assessing compensation.
The institution also proposed clearer documentation requirements and consistent use of valuation dates and market evidence. These measures could make it easier to identify the reasons for discrepancies and resolve disputes more efficiently.
GhIS said compensation processes must strike a balance between protecting the public purse and respecting the constitutional property rights of people whose land, homes or businesses are affected by road construction.
According to the institution, transparent assessments, professional dialogue and evidence-based reconciliation offer a more reliable approach than assuming that every valuation difference results from misconduct.
Source: Omanghana
