UNIVERSITY OF NIGERIA, ENUGU CAMPUS DEPARTMENT OF …

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UNIVERSITY OF NIGERIA, ENUGU CAMPUS DEPARTMENT OF ESTATE MANAGEMENT A REPORT PRESENTED I N PARTIAL FULFILLMENT OF THE STUDENT INDUSTRIAL WORK EXPERIENCE SCHEME (SIWES) PRESENTED BY FIRM ATTACHED: JIDE TAIWO AND COMPANY INDUSTRIAL BASED SUPERVISOR: MRS. BLESSING K%ELQ MAY TO OCTOBER 2007

Transcript of UNIVERSITY OF NIGERIA, ENUGU CAMPUS DEPARTMENT OF …

Page 1: UNIVERSITY OF NIGERIA, ENUGU CAMPUS DEPARTMENT OF …

UNIVERSITY OF NIGERIA, ENUGU CAMPUS

DEPARTMENT OF ESTATE MANAGEMENT

A REPORT

PRESENTED I N PARTIAL FULFILLMENT OF THE STUDENT

INDUSTRIAL WORK EXPERIENCE SCHEME (SIWES)

PRESENTED BY

FIRM ATTACHED: JIDE TAIWO AND COMPANY

INDUSTRIAL BASED SUPERVISOR: MRS. BLESSING K%ELQ

MAY TO OCTOBER 2007

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DECLARATION

I humbly declare that this Industrial Training Work Experience

Scheme Report was done by me to my best knowledge.

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DEDICATION

I am dedicating this work to my family, more especially to my father

whom has been my source of income right from the beginning

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ACKNOWLEDGEMENT

I' am grateful to the mgt of Jide Taiwo & co Estate Surveyors &

valures of no 21 wharf road Apapa Lagos.

My sincere gratitude goes to my industrial based Supervisor Mrs.

Blessing Kalu who encourages me and spent her time to teach me in

this practical work.

I will not fail to mention my Sincere gratitude to the Department of

Estate management for acquiring me the knowledge.

I humbly acknowledge the student Industrial Training work

Experience Scheme for giving me the opportunity to practical zed my

profession.

Finally my gratitude goes to God Almighty whom in his infinite mercy

saw through this industrial training.

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TABLE OF CONTENT

Declaration - - - - -

Dedication - - - - -

Acknowledgement - - - - -

Table of Contents - - - - -

CHAPTER ONE

1.1 Introduction - - - - -

1.2 History of JlDE Taiwo & Company - -

1.3 The Firms Nature of Business - -

CHAPTER TWO

2.1 Departments and Functions Administration

Department - - - - -

2.2 Finance and Accounts Department -

2.3 Agency Department - - - -

2.4 Property Management Department -

2.5 Valuation Department Procedure Unit Function

CHAPTER THREE

3.1 Task Assigned 1 Experience Gained - -

CHAPTER FOUR

4. I Problems Encountered - - - -

4.2 Problems Associated with Valuation Department

4.3 Problems Associated with Assets Valuation -

4.4 Defect in Site Details - - - - -

4.5 Relevance of the Siwes Programme - -

CHAPTER FIVE

5. I Conclusion and Recommendations - - -

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CHAPTER ONE

INTRODUCTION

HISTORY OF JIDE TAIWO COMPANY

Jide Taiwo and company (JTC) is an astute firm of estate surveyors and

valuers and facility managers, incorporated in 1980 and registered with the

estate su rveyors and valuers registration board of Nigeria (ESVARBON) to

practice the profession of real estate surveying and valuation throughout

the federation.frC provides highly specialized and professional services in

the areas of human and material resources development and technical

support needed in the management and consultancy services. They are

well equipped with groomed seasoned professionals versed in the property

market, competent to management of properties, development and

valuation of asset/properties. Their key objective is to offer end-to-end

human and material resources initiatives and solution whilst ensuring the

success of our clients in the global property market, management,

development and valuation.

THE FIRM'S NATURE OF BUSINESS

The firm has its

the last 24 years. Ji(

services in the r

a General ~ e a

a Real Estate .4

a Property Vatu

rn Project Manal

a Facility Mana

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CHAPTER TWO

2.1 DEPARTMENTS AND FUNCTIONS ADMINISTRATION

DEPARTMENT

The head ofice main activitic

depicted in the organisational chart. 1

for all functions relat

maintenance, informal

3s are administrating and units as

-he administrative unit is responsible r. I . .- .,,. .

2.2 FINANCE AND

The management or tmance aepartment IS neaaea ~y a cnarterea

accountant who ensures the execution of the following activities. The

objectives of the firm are run by its business in a profitable manner, in

order to realize its objectives and maintain adequate accounting records.

The following accounting procedures are specified to ensure that:

The firms assets, liabilities, income and expenses are recorded

daily ted for

The accounting and financial recordings are completed and valid

and accoun

accurate.

The provisions of timely information for management in the day

to day running of the firm

Preparation of periodic accounts and reports to provide a firm

basis for measurinq performance and rr

2.3 AGENCY DEPAF

The word agency 15 d LVI IL I~LCU~I LUIIUIL~OI I 11 I WIIILII CI ~ C I I CY CILL un

behalf of another called the principal. It is a wide area of activity, which is

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not limited or exclusive to real estate as a discipline. Agency practice

basically involves assembling a collection of properties for sa!e,

auctioneering or lease, advertising and security buyers or tenants as the

case may be.

At Jide Taiwo and Co this depar

sections/units, they are as follows;

i. Commercial unit

ii. General letting unit

iii. Sales and auctioning unit

iercia The comn 1 unit is responsibl

properties, managernentimaintenance and

unit involves in --"-ction of leases in

department, least val and possible tern

I n this unit, esraIe surveyor in charge IS conrracrea ro carry our me

transfer of request interests in a particular property. The transfer can be in

the form of assignment of sublease, short/long tenancies or outright

disposal.

The Jide Taiwo and Co also offers agency service like:

Advice on the sale, purchase or leasing of land and building.

Advice on the fair open market or rental values of property.

2.4 PROPERTY MANAGEMENT DEPARTMENT

Real property as an investment requires to be profitably managed to

nourish the investor and the user and even the property asset thus, to

successfully produce the expected net return on investment. Therefore

property management in its entirety is an important aspect of the

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professional services of the estate surveyor and valuer. It is the process of

overseeing the operation and maintenance of real property to achieve the

objectives of the property owner. Specially, property management involves

the prudent organisation of human and material resource with the aim of

achieving defined objectives in real estate investment. Its practice provides

a robust basis for pro.mpt decision making in the up-keeping of property

resources including facilities and harmonizing the dominant interests of the

landlord and various tenants in the estate as contained in lease agreement

executed thereto. ~jective of property management is to ensure that

the properties perrorm and achieve physical economic and functional

efficiencies. The prime function of property management is to ensure that

the use to which .a property is put is the most suitable having regard to its

physical character, the demand of its legal and economic attributes.

Property management embraces a wide variety of interrelated activities, its

core function areas includes: letting and management, maintenance and

lease administration, rent collection and remittance, service charge

account, etc. Jide Taiwo and Co uses both the traditional approach and

computerized property management , it involves in performing certain ser-

vices on behalf of a nronertv owner s r ~ h as rent collection. servina of

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Source management properties in high, medium and low-density

areas for residential and commercial purposes and add to

manager portfolio of the firm

The department is subdivided into two units:

I. Regular property management unit and

ii. Commercial property management unit.

2.5 VALUATION DEPARTMENT PROCEDURE UNIT FUNCTION

Valuation is the basic'and attributed discipline of the valuer because

the

the

ability to place a monetary value on an interest in land and property

underlines all the other professional pursuits of agency, management,

developments and investment. The valuer expertise assesses the capital or

fair market value of any property at a certain time. Jide Taiwo and Co

operates central valuation system in Lagos with four major zones namely

Apapa central valuation, Victoria Island, Lagos Island and Ikeja.

The central valuation office Apapa is headed by an executive team

while sourcing officers operate from their respective zones. Jide Taiwo and

Co offers valuation of

machinery including furr

of mortgage, insura~

sale/purchases, rental

commerc

interest in landlbuilding and assets, plant, and

~iture, fixtures, fittings and equipment for purpose

nce, compensation, rating, balance sheet,

merger and acquisition bids, privatization and

TI- qrtment is divided into four(4) units namely;

~evallaauon un11 and

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Thus

Industrial revaluation unit.

the valuation department is subsequently split two inspection

teams to meet up with the demands of their numerous clients--the

valuation sourcing and valuation execution.

The Valuation Sourcing Team:

This is a team of estate surveyors and valuers assigned for the

responsibilities for sourcing for fresh instructions from banks, insurance

companies brokers, oil companies, government, manufacturing companies,

accounting firms, industrials etc.

They assigned to acknowledge all instructions and terms of service

formally stated in accordance with NIESV scales of charges or as may be

agreed under negotiation, also to introduce professional to management

and agency clients on regular basis for valuation and revalidation

proposals.

THE VALUATION EXECUTION SYSTEM

This is team of estate surveyors and valuers assigned strictly to carry

out the valuation practice in collaboration with the four units mentioned

either via inspection, measurement and/or survey of property, market

survey and analysis, collection of data and computation and their analysis,

preparation of valuation reports and recommendations.

Regular valuations are executed and delivered with a maximum period

of two days whilst industrial valuations within a period agree with the

client. Valuation reports are signed by the partner/manager in charge of

central valuation in four hard cover copies and distributed as follows: three

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lcer ens proper L- A -. -.

(3) copies to the client, one retained in the office while soft: copy is stored

in the disk. The head of ~ x ~ r l l t i o n team in conjunction with the

administrative off u re keeping of valuation records and all

equipment/instrucuons allocates such as: register of valuation briefs,

register of executed iobs, fees notes, data banks, files, disk bank, and

manuscript/calci ).

There are d i ~ ~ e r e r ~ ~ types of valuation executed by Jide TAiwo and Co

during my 1.T programme. I was opportune to participate in two' different

types such as follows:

Land/building valuation and valuation of plant and machinery (assets

valuation). The land and building valuation involves of land to those with

structures constructed on them. The valuation of interest in land and

building is that estimation of the market worth/value at a particular time,

for a specific purpose. There are procedures that are followed in every

valuation work, the receipt of written instruction from the client to the firm

stating down the terms and conditions; property to valued, location and

description of the property, then an advance payment will be made and a

suitable date fixed to carry out inspection.

After the inspectio~, the valuer makes sure that the report gets to the

client in less than 72 hours.

I n the case of land/building valuation, direct replacement cost are

applied to get the vahe of the building and added to site value to get the

capital value. The value of the site is derived by comparative method after

the capital value is derived; the land value is added to arrive at the open

market value. This is the first value that appears on fee note (receipt) of

valuation certificate of th- t,-.lan-.t;nm ~ n n f i r C Thn n n ~ t 1,1111n ir thn fnrrn

sale value/liquidation i

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method used in deriving the value of building differs depending on the

type of building being valued. After physical inspection of the subject

property and collection of information valuation report writing requires

professional skill such as follows:

Letter of transmittal, photograph of subject property, situation

(description of subject property), location sketch, site data,

accommodation (constructional details ie property data, floor plan and

services), statemen limiting conditions, relevant information and

assumptions, basis . Auation (type of property and purpose of

valuation), valuation certificate. The plant and machinery valuation

involves the estimation of the market worth of a company's assets at a

particular time, for specific purpose. It could be carried out for any of the

purpose earlier stated.

The type of valuation is carried out by assessment of the plant and

machinery using the open market value or the gross current replacement

cost and applying the appropriate rate of depreciation and obsolescence.

The plant and machinery valuation report/certificate is a comprehensive

~n

01

a!

a1

rc

t k

~t a p3

I . . .

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Indicates location and condition of assets therefore assisting loss

adiusters. insured in the event that the risk insured against all

ac~vcs a3 a oasis for measuring manamm~nt nwfnrrnanr~

against set st

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CHAPTER THREE

ACTIVITIES DURING THE SJWES PERIOD

3.1 TASK ASSIGNED/EXPERIENCE GAINED

I discovered timeless ideas that have added enormously to my

experience and personal life in the intinery of this programme. Because of

this opportunity, I am now able to bring together in summary the best way

succulents hard-hitting to the points that make my profession successful

as I wished.

The different areas I was involved in during SIWES programme at

Jide Taiwo and Co feature my active participation in the valuation

department which .in turn exposed me to different areas of this noble

profession and generally to the operation of the organisation. The majority

of the work assigned and carried out was under the valuation department

described as follows; in valuation department, my work by assignment was

basically to assist the valuation sourcing team that assigned for the

responsibilities for sourcing for fresh instructions from banks, industries

and companies etc, and also I work in collaboration with valuation

execution team on inspections, measurement/survey of subject properties.

I was assisting in getting the materials/equipment needed for valuation

and inspection ready and ensure that the inspection/valuation day is

negotiated with the client to keep specific time and day before the

inspection start.

During the execution of valuation I participated in taking reading by

using tape, making sketches of the state, layout plan, location sketch, floor

plan and construction details, assist in preparing the valuation report using

firm's template/format and make sure that the report gets to the clients on

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time. I attended to clients calls and prepared an engagement letter

detailing the understanding of the client's requirement. I assisted in

preparing valuation costing proposals and followed up the clients request

for feedback and payment of the valuation fee, assisting in making a

requisition to the administrative until for catering services, assist in

developing and printing of photographs of subject properties and

submission of the valuation reports to the clients.

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CHAPTER FOlJR

PROBLEMS ENCOUNTERED

There are numerous impediments touching various aspects of

operation in different departments. Invariably, the various challenges in

relation to the nature of their respective activities consequently give

barriers to the targets of the firm. Some of the problems commonly

encountered in department I was fully participated are described as

follows;

PROBLEMS ASSOCIATED WITH VALUATION DEPARTMENT

Human factors financial inducement/valuation with client's

intent:

A lot of clients induce the valuer financially to be able to get the

value that will just be enough to take care of their obligations if the asset

is not up to that value and constituting the problem of over valuing the

subject, registration of valuation report from clients while they are

expecting high value from the valuation report or late in presentation of

valuation report delayinglnon-payment of valuation fee which deterrent

the valuation targets.

PROBLEMS ASSOCIATED WITH ASSETS VALUATION

Due to the manual method involving extensive computation on

replacement costs of each items, nothing the book value, depreciating and

upgrading lasted.for long time, which contributing a lot of typogra,~hical

and computational errors.

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DEFECT I N SITE DETAILS/DISHONESTY I N THE INFORMATION

SUPPLIED BY CLIENTS

Due to incorporates attitude of the operator of plant and machinery

the estate surveyor and valuer in charge sometimes end up in gathering

deficient information i.e. Price list, type, modelmake and other features.

Double Counting: This is a situation where the surveyor in charge took

the detailed inspection of plan and machinery inspection in place of the

landlbuilding inspection.

RELEVANCE OF THE SIWES PROGRAMME

Invariably, students have been privileged to undertake the SIWES

programme that provides a better opportunity to practicalize all the

knowledge they acquire in school and equip them fit into the labour

market in the near future. It gives students a glimpse of the labour market

and how to carry on in it near the future. It also offers students a chance

to meet people and learn how to deal with them professionally. I n this

aspect I had every reason to enjoy my SIWES because not only the office

and working environment rather I got to the operations of the organisation

and different aspect of the real estate business. This gave me a sense of

purpose and direction, in my chosen career. I also got to meet a lot of

people while I was exposed to the operations of the organisation, banks

and establishments such as Nigeria Bottling Company, Central, Bank of

Nigeria, Zenith Bank Plc, First City Monument Bank, Cheveron, Exxon

Mobil, EIF Oil Marketing Nigeria Ltd and Nigeria Maritime Authority etc.

therefore, I have tested a bit of the task and challenges ahead of me in

terms field associated with this noble profession in respect of profession

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and practice such as Accounting, Economic, Architecture, Building And Law

Etc.

I discovered timeless ideas that have added enormously to my

experience and personal life in the course of undertaking SIWES and

because of this opportunity I am able to bring in focus the summary of the

best relevance of SIWES programme.

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CHAPTER FIVE

GENERAL APPRAISAL OF THE PROGRAMME

5.1 CONCLUSION AND RECOMMENDATIONS

The SIWES is a programme introduced into the tertiary institutions

in collaboration with ITF that offers the students an opportunity to

practicalise all the knowledge they acquire in school. It is an opportunity

for the students to try and fit into the labour force thereby learning more

beyond what they taught in school.

I also learn how very necessary it is to manage all resources

available to me no matter how small it was and also the value of earning a

living.

I would strongly recommend that students industrial work

experience scheme (SIWES) should be introduced in those departments

where it does not exist like accounting and business management so as to

expose the students to the practical aspect of their discipline. It would also

give them a sneak preview of the labour market and enable us (as

students) attribute more appreciation of the act of having to earn a living.