The collaborative effort of professionals developing the AVAA Standard Agreement for the Appointment of a Valuer is earning completion, efforts that will give those with the respected AVAA Certified Valuer (CVAu) credential a consistent and professionally robust foundation for accepting client valuation instructions.
The agreement has progressed through several rounds of drafting and review by certified valuers and others with business risk expertise in valuation. The current draft brings together the practical, professional and commercial matters that should be settled before valuation work begins. Once finalised, the agreement will provide valuers with a comprehensive agreement that can be adapted to different asset classes, clients and valuation purposes.
Importantly, the agreement recognises that valuation is an independent professional service. It makes clear that the payment of a fee does not entitle a client to influence the valuer’s methodology, professional judgement or conclusion. It also allows a valuer to suspend or terminate an engagement if their independence is compromised.
A detailed schedule records the essential elements of each appointment. These include the parties, valuation services, purpose, assets, basis of engagement, exclusions, inspection arrangements, effective date, intended users, report format, delivery timeframe, fees, expenses, assumptions and any special conditions.
Defining the purpose is particularly important and here the agreement relies on AVAA Professional Standard 17 – Valuation Definitions And Methodology. A valuation prepared for insurance replacement may be unsuitable for taxation, litigation, finance or sale. The agreement limits the use of the report to its stated purpose and identifies who may rely upon it. Any proposed reliance by another party requires the valuer’s written consent and may involve a reliance letter, amended report, additional fee or specific liability conditions.
Asset inspection is addressed in practical terms as the schedule to the agreement can specify a physical inspection, desktop assessment, remote inspection using photographs or video, document review, or another appropriate method. It also defines the limits of the investigation, including matters such as dismantling machinery, laboratory testing, title searches, structural assessments and scientific authentication.
The agreement sets corresponding obligations for the client. Clients must provide accurate and complete information, disclose material changes, provide safe and reasonable access, and cooperate with necessary enquiries. Delays, incomplete information or additional requests may affect the delivery date and fees.
Variations to a brief provided by the client are managed through a separate schedule to the agreement. Changes involving additional assets, inspections, research, meetings, revised reports, expert witness services or a different valuation purpose can be documented and approved. This gives both parties a clear record of how the engagement has changed and any resulting adjustment to fees or timing.
Other major provisions address confidentiality, privacy, intellectual property, record retention, professional indemnity insurance, payment, liability, dispute resolution and termination. The valuer retains ownership of the report and working papers while granting the client a limited right to use the final report for the agreed purpose once fees have been paid.
Ascan be expected, the agreement also makes compliance with the AVAA Professional Standards a contractual obligation.
For certified valuers, the agreement will provide more than administrative certainty. It will help manage client expectations, protect professional independence, reduce ambiguity and demonstrate that the engagement has been established with the care expected of professionals with the respected CVAu credential. Its completion will represent another important step in strengthening consistent professional practice across the valuation sector.
The AVAA Standard Agreement For The Appointment Of A Valuer is expected to be available to professionals with the respected AVAA Certified Valuer (CVAu) credential in mid-August 2026.
.
.
Interested In Finding Out More?
If you’d like more information on this initiative, send an email to standards@avaa.com.au or telephone 1300 928 165. You can also stay up to date by following AVAA on LinkedIn, X/Twitter and Facebook.
.
