Alderman Stone technical due diligence provides an independent appraisal of risk associated with the sale or purchase strategy for both standing investments and new developments. Our reports are independent and are tailored to meet individual requirements of the particular clients' property or project.

Feasibility Studies and Business Case Preparation

Undertake strategic reviews and evaluation of project options in response to the clients business requirements including formalising the business case for the project.

Cost Consultancy

Fair and reasonable? 

Cost Consultancy is the broad heading for services performed by surveyors who are concerned with the financial issues of construction projects. Its objectives can vary, depending upon the role being performed, but the key objective of best value is a constant theme. The role of the quantity surveyor has increased in scope, to take on the broader issues of management and project delivery and to play an active part in the construction process.

Service includes:

• Feasibility cost advice
• Pre-contract cost control
• Procurement and partnering advice
• Tendering and contractual documentation
• Negotiation of building contracts
• Post-contract cost control including recommendations for payment
• Preparation of final accounts
• Value management and engineering
• Economic appraisal
• Financial appraisal and due diligence
• Risk assessments
• Fire insurance valuations
• Assistance in adjudication, arbitration and litigation
• Assistance in claims negotiations for/with loss adjusters

Contact us on 02476 347171 or email us for a FREE no obligation consultation and quotation

Providing funding for development or refurbishment projects, whether debt or equity, exposes the funder to risk on a number of fronts. Budget and cash flow control considerations, together with design, procurement, programme and other aspects, all contribute to the overall risk. Alderman Stones' project and development monitoring advice has proven to be an essential support to funders in managing this environment, where the selections of contractors and the expectations of prospective occupiers are key.

We apply the skill, knowledge, expertise and professionalism combined with management qualities to extract the maximum from each contributor, to ensure that the objectives of the right building within a set time limit, planned cost and to the right level of quality can be achieved.

Alderman Stone has over 20 years experience in project and development monitoring and is also independent of investment advisors and agents.

We work with asset managers, financial institutions and property companies and tailor the scope of service required whilst coordinating the involvement of other professional disciplines where necessary.

With excellent understanding of funders', developers' and occupiers' requirements, Alderman Stone is a leading firm in construction due-diligence. Our knowledge has allowed us to take an independent and proactive stance in construction projects.

We fully monitor and appraise all financial and technical aspects of proposed developments in order to protect clients' interests by endeavouring to meet principal objectives. 

Service includes:

• Agreeing the brief.
• Appraising the proposed costs of the scheme.
• Understanding the client's financial commitment to the scheme.
• Understanding the development and funding agreement.
• Appraising the designs and specifications.
• Providing comment on the selection of the developer's consultants, contractors and sub-contractors.
• Advising on the proposed method of procurement.
• Ensuring all statutory requirements will be met.
• Monitoring programme and cost during the construction phase.
• Monitoring the quality of the works.
• Confirming to the client that practical completion has been achieved.
• Confirming to the client that making good defects has been achieved.

Contact us on 02476 347171 or email us for a FREE no obligation consultation and quotation

Disagreement and dispute often arises as a result of inadequate instructions, poor administration and difference of interpretation.
 
Disputes are costly; prevention is better than cure. Expert advice from a Chartered Building Surveyor can avoid or minimise the risk of potential disputes.
 
Where a dispute has arisen in respect of recently constructed buildings, surveys by others, or dilapidations, a Chartered Building Surveyor is the ideal choice as expert witness or Arbitrator.
 
We investigate, analyse and advise to meet our clients’ needs acting for The Court, Solicitors', Companies' or individuals'. We offer comprehensive and detailed reports to include:

• Defect analysis to all types of building
• Dilapidations/Scott Schedules
• Contract Administration Disputes
• Quality of Work and Costs
• Assess Surveys/Reports undertaken by other surveyors
• Party Wall Matters
• Boundary disputes 
• Landlord and Tenant 
• Health & Safety
• Planning Matters
• Insolvency 
• Mediation as Mediator or Expert

Our reports comply with:

• The requirements of the Royal Institution of Chartered Surveyors as set down in the 'Surveyors Acting as Expert Witnesses; Practice Statement and Guidance Note.
• Part 35 of the Civil Procedure Rules (CPR35) and it's associated Practice Direction (PD35) 
• Protocol for the Instruction of Experts to give evidence in civil claims drafted by the Civil Justice Council

When comparing quotes you should bear in mind that Courts on various occasions have rejected expert evidence because it fails to meet the standards required; in particular the questions which have to be determined are whether:

• The person has relevant expertise; and
• He or she is aware of their primary duty to the court

We have the relevant expertise and know our duty as an expert witness is to the court. The report would include all matters relevant to the issues on which our expert evidence is given and undertaken by senior, very experienced Chartered Building Surveyors only.

Defect Diagnosis 

The scientific and analytical analysis of building defects is necessary to understand the cause of component failure and the condition, strength and durability of the building elements. The assessment of failure, or non-compliance with specification, has increasingly become a pre-requisite of dispute resolution and litigation.   

"Technical expertise and wide ranging experience of building construction is essential to correctly identify the cause of building defects. However, no assessment is complete without addressing the wider commercial issues affecting, for example, the value of any investment, the relationship between landlord and tenant or the health and safety of building occupants."

Instructions typically include inspection, analysis and reporting to include as required:

• Roof durability assessments and leak detection
• All types of stone and masonry facades
• Water penetration and condensation
• Defective finishes, including coatings and sealants
• Cracking in buildings
• Fire or blast damage
• Concrete and deleterious material
• Sustainability
• Curtain walling, cladding and glazing
• Structural design and appraisals
• Conservation of the built environment  

DISPUTE RESOLUTION

Mediation

We regularly advise parties on disputes arising out of international construction and concession contracts, helping our clients to reach realistic levels of settlement through a rigorous SWOT analysis for each particular case. 

Our aim is to help avoid costly and lengthy Arbitration and Litigation proceedings and safeguard valuable business relationships.

Litigation

Our recognised expertise and ability to call upon specialist technical and financial skills in-house has created strong relationships with the legal sector.

We regularly receive instructions from leading solicitors to provide expert quantum advice in cases of litigation.

Our Approach

Alderman Stone brings together some of the unique skills within the practice and is recognized within the industry for its technical expertise and its highly commercial and pragmatic approach to problem solving and dispute resolution. 

Our first priority is to understand your needs so that we can tailor our services to achieve the best value for money.
 
 We will then prepare a proposal which states clearly:

• Our understanding of your requirements
• The approach we will adopt
• The benefits you will obtain
• Our proposed fees

All of this is for discussion and agreement with you. 

Contact us on 02476 347171 or email us for a FREE no obligation consultation and quotation

Dilapidations protect landlords by helping to ensure that the tenant sticks to the terms of their lease and returns the property in a fit state to re-let. Chartered Building Surveyors are the gold standard for dealing with dilapidation disputes including as dilapidation expert witness.  You are in safe hands we have over 25 years experience in this area acting for landlords and tenants.

We are regulated by the RICS and offer a professional service with value for money.

Strategy is important to ensure 

Strategy is important to ensure an optimum claim or defend a claim, we have full knowledge of legislation and have basically seen it all with dilapidations. 

CONTACT US FOR FREE NO OBLIGATION ADVICE

 

LANDLORD'S ADVICE

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TENANT'S ADVICE

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LANDLORD ADVICE

We offer a bespoke service to individuals,  SME’s and large corporate companies dealing with all aspects of their Dilapidations. Whether acquiring new premises, offering advice during occupation or developing a strategy for closing a site we find that our detailed understanding of Lease documents and Dilapidations practice ensures that Dilapidation costs are minimised and the risk of any legal dispute avoided.

WHAT IS A SCHEDULE OF DILAPIDATIONS?

Landlords can instruct a surveyor to prepare a schedule of dilapidations either during a lease (interim dilapidations) or at the end of the lease period (terminal or final dilapidations). These are best carried out by a chartered building surveyor, and as such will follow the RICS dilapidations guidance, in addition to the Dilapidations Protocol legislation. Tenants are normally liable for the costs of their landlord instructing a chartered surveyor to carry out a dilapidations survey and prepare a schedule of dilapidations and for repair costs.

The surveyor will carry out a dilapidations survey to assess the condition of the property. They will then prepare a schedule of dilapidations report detailing their observations. The report will discuss any breaches to the lease covenant and will note the type and costs of repair works that are needed to restore the property to the condition agreed at the start of the lease. If a schedule of condition was prepared and attached to the lease, this will be used by the surveyor to assess how the property has been altered during the term of the lease. The  Surveyor must also have regard to all other documentation including any Licences to Alter, side letters, assignment agreements or any specific obligations set out in an Agreement for Lease. .

For landlords, dilapidations ensure that they can recoup costs for remedial works required as a result of breaches of covenant by tenants. For tenants, surveyors can save them money by supporting a defence against the landlord’s dilapidations claims if the dilapidations served are disproportionate, inflated or simply incorrect.

Tenants are often unaware if their lease requires them to redecorate the property at lease termination regardless of the state of the property when the lease commenced. They are also often unaware of clauses relating to undoing any alterations that have been made, and returning the property to its original state. For this reason, instructing a surveyor with comprehensive knowledge of the legislation around dilapidations and the experience needed to accurately interpret a lease can help both landlords and tenants resolve negotiations quickly and fairly.

Most lease covenants require the tenant to pay for schedules of dilapidations and any enforcement actions. Dilapidations are very much a standard process when commercial leases are coming to an end.

SCOTT SCHEDULES

If any part of the dilapidations claim served seems to be excessive, incorrect or unfair, a chartered building surveyor can carry out an extended schedule of dilapidations known as a (Scott schedule) on the tenant’s behalf, to allow them to dispute the claims. A surveyor can also advise tenants part-way through a lease to help them understand their likely liabilities and how to minimise costs. Sometimes, an interim schedule of dilapidations is specified in the lease. These dilapidations survey reports are produced part-way through a lease and protect both landlords and tenants by ensuring everyone knows the likely reinstatement works that will be needed and the associated liabilities.

WHAT IS AN INTERIM SCHEDULE OF DILAPIDATIONS?

An Interim Schedule of Dilapidations or a Repairs Notice is something which a Landlord may want to serve during the Term if they feel a Tenant is not looking after their property correctly. The advantage of this is that it gives the tenant plenty of time to undertake the required repairs, and landlords are more likely to be able to re-let or sell the property quickly after the previous tenant has left. An interim dilapidations also offers some protection against tenants going insolvent – at least some of the works are likely to be paid for or completed before the end of the lease. As with any Dilapidations Claim the Tenants obligation is based upon the specific wording of the Lease and we can prepare a variety of notices which will remind a Tenant of their obligations.

In some cases, a simple letter is a cost-effective way of notifying a Tenant that there are some outstanding issues and that these will be addressed. In some cases, a more formal Schedule is needed to identify the specific issues of concern and identify the works the Landlord requires. In some cases, the Landlord may have already notified the Tenant themselves and a Tenant has refused to implement any work. In these cases, we can advise on how the terms can be enforced, whether by serving a Section 146 Notice to threaten forfeiture of a Lease or serving a formal Repairs Notice.

Since the case of “Jervis v Harris” the Landlord now has greater ability to enter a Tenants property undertake the works and re-cover the cost as a debt if there is provision in a Lease. This is often taken very seriously by Tenants who do not want a Landlord entering the premises and implementing works. We have acted for several Landlord’s where our Project Team have specified and tendered the works and by a Tenants Agreement the works are implemented, sometime by combining similar work to several adjoining properties to achieve best value for both Landlord and Tenants.

The Landlord does however have to be mindful that a Tenant has various legal protection, depending on how Interim Repairs are enforced, in particular under The Leasehold Property (Repairs) Act 1938.

IMPLEMENTATION OF THE WORKS

As part of the preparation of a Schedule of Dilapidations we often recommend that the required works are specified and tendered to a select list of competent contractors. This ensures there is a firm and known cost of the works to form the basis of a claim and allows works to progress as soon as the Lease ends or an agreement is reached.

We would then project manage the implementation of the work to ensure a property is ready to re-let in the shortest possible time.

OTHER HEADS OF CLAIM

In addition to the cost of works it may be possible in some circumstances to claim for other costs incurred by a Landlord or losses suffered owing to the Tenants breach of contract such as loss of rent incurred whilst works are specified and implemented, professional fees, Solicitors fees and any costs incurred in investigating the condition of the property eg, electrical test, drainage surveys etc.

IS THE TENANT LIABLE TO COMPLY WITH LEGISLATION?

In conjunction with preparing a Schedule of Dilapidations we advise on works needed under the terms of the Lease to re-let .What can be claimed under a Lease will depend upon the wording of the Lease Agreement and whilst there is often an overall requirement to comply with all Legislation this sometimes only applies during the Lease term with only a limited amount of compliance required after a Lease is expired. There is however often a requirement to provide confirmation that items such as electrical systems and gas appliances are in a safe and compliant state and that as part of implementing the works statutory costs would be incurred for example preparation of a Refurbishment and Demolition Asbestos Survey and compliance with the CDM Regulations.

HOW IS A DILAPIDATIONS CLAIM MANAGED?

Once a landlord has received a dilapidations survey report from a chartered surveyor, they can make a dilapidations claim against the tenant for any breaches of the contract. This is often done through a solicitor.

Landlords should, however, be aware that there are restrictions on the value of dilapidations that can be claimed. It cannot be more than the amount that the value of the property has decreased as a result of being in a state of disrepair (the diminuation valuation). In addition, if the landlord is planning works on the property that would render the repairs irrelevant or unnecessary, then a claim cannot be made for those repairs.

We believe a pro-active approach between parties is best.  By early dialogue and discussion it is usually possible to reach a settlement figure or agree the Scope of Works without recourse to the Courts and our approach is very much in line with the guidance set out in the PLA Dilapidations Protocol.

We have over 25 years’ experience of preparing Dilapidation settlements and our strong negotiation skills aim to reach settlement without confrontation. In some situations, a conflict cannot be avoided and we are often brought on board after a dispute has already arisen between parties. In these cases, we can act as Expert Witness for a Landlord in progressing a case to Court or whether a case is managed by Arbitration, Mediation or any other type of Dispute Resolution.

CAN A LANDLORD INCLUDE SERVICE CHARGE WORKS IN DILAPIDATIONS?

The basic principal is no.  For example, if a Tenant was liable for the internal parts only then as part of a Terminal Dilapidations claim the Landlord could not include items for the roof which would be undertaken the following year under the service charge. We sometimes find the Landlord may include an item within a Dilapidations Claim for say 50% of the roof on the basis that they are planning to implement the work the following year.

There may however be an acceptable claim for any ongoing service charge expenditure which is on a planned basis, if the Landlord can prove a Tenant is liable for costs such as loss of rent, loss of rates etc whilst dilapidation works are being tendered or implemented. It is therefore important to consider the overall service charge when coming towards the end of a Lease to establish whether a Landlord may try and include more substantial charge works in the last year of the term and whether they would have a valid claim for planned service charge expenditure as part of their other costs.

IS THERE ANY GUIDANCE TO FOLLOW FOR SERVICE CHARGES?

There is a variety of guidance provided which is helpful to both Landlords and Tenants in the management of a service charge. The main documentation we would refer to is the RICS Code of Practice for service charges in commercial property, Third Edition.

SERVICE CHARGE BUDGET

When acting for a Landlord we would often undertake a Condition Surveyof a property to establish its condition, identify backlog maintenance and provide a detailed costs report on the works needed. This is often part of an Acquisition Survey when buying a new investment.

The findings are then taken forward into the preparation of a Planned Maintenance Programme or Planned Preventative Maintenance Plan  This programme is usually for either 5 or 10 years and allows works to be planned and budgeted on a phased basis. This not only allows budgeting of expenditure, but also allows the service charge budget to be predicted over future years and avoid a dispute with the Tenants.

In some cases, Tenants could be under slightly differing Leases and each may have a different proportion to contribute. By preparing a detailed Planned Maintenance Programme alongside the service charge managed by the clients Managing Agents any shortfall works can be identified and budgeted and future conflicts avoided.

Each case is different and we offer a bespoke service, however; there are prudent actions as a landlord you could take such as:

• If your tenant does not allow access prior to lease expiry, then carry out an external inspection and further survey asap of lease expiry/break to prevent a tenant’s surveyor arguing that defects have worsened, or arisen, following lease expiry

• Many leases have a Jervis -v-Harris clause allowing landlords to enter into a property during the term of the lease to remedy serious breaches of the tenant’s duties to repair. Using this clause is well worth considering when a lease expiry (or break date) is still some way off, but you are worried about your tenant’s solvency, or the risk of their company entering into a CVA to escape any liabilities. You can then carry out the (serious) works and recover the cost from the tenant as a debt due

• A prudent tenant when letting your property will ask for a Schedule of Condition to  accurately record the condition of your property so at lease expiry it is clear what has deteriorated.  Undertaking some works at this stage should be considered to help your claim at expiry

• Legislation limits damages to the lower of the cost of remedial works, or the impact (if any) the disrepair has on the property’s value, also known as the “Section 18 Diminution in Valuation Statutory Cap”.   If your former tenant uses this ‘defence’, we are experienced in challenging it with valuations
• Follow the Dilapidations Protocol, cost consequences may apply if you do not do so. If you are not doing all the works, the Dilapidations Protocol requires you to obtain a Dilapidations Protocol report
 

 Landlord testimonial 

Gary Joseph

“Alderman Stone was recommended to me and exceeded my expectations based on my previous experience of other surveyors, a strategy was formed and executed perfectly with persuasive arguments and I received compensation beyond what I was expecting.”

TENANT  ADVICE 

We offer a bespoke service to individuals,  SME’s and large corporate companies dealing with all aspects of their Dilapidations. Whether acquiring new premises, offering advice during occupation or developing a strategy for closing a site we find that our detailed understanding of Lease documents and Dilapidations practice ensures that Dilapidation costs are minimised and the risk of any legal dispute avoided.

WHAT IS A SCHEDULE OF DILAPIDATIONS?

Landlords can instruct a surveyor to prepare a schedule of dilapidations either during a lease (interim dilapidations) or at the end of the lease period (terminal or final dilapidations). These are best carried out by a chartered building surveyor, and as such will follow the RICS dilapidations guidance, in addition to the Dilapidations Protocol legislation. Tenants are normally liable for the costs of their landlord instructing a chartered surveyor to carry out a dilapidations survey and prepare a schedule of dilapidations and for repair costs.

The surveyor will carry out a dilapidations survey to assess the condition of the property. They will then prepare a schedule of dilapidations report detailing their observations. The report will discuss any breaches to the lease covenant and will note the type and costs of repair works that are needed to restore the property to the condition agreed at the start of the lease. If a schedule of condition was prepared and attached to the lease, this will be used by the surveyor to assess how the property has been altered during the term of the lease. The  Surveyor must also have regard to all other documentation including any Licences to Alter, side letters, assignment agreements or any specific obligations set out in an Agreement for Lease. 

For landlords, dilapidations ensure that they can recoup costs for remedial works required as a result of breaches of covenant by tenants. For tenants, surveyors can save them money by supporting a defence against the landlord’s dilapidations claims if the dilapidations served are disproportionate, inflated or simply incorrect.

Tenants are often unaware if their lease requires them to redecorate the property at lease termination regardless of the state of the property when the lease commenced. They are also often unaware of clauses relating to undoing any alterations that have been made, and returning the property to its original state. For this reason, instructing a surveyor with comprehensive knowledge of the legislation around dilapidations and the experience needed to accurately interpret a lease can help both landlords and tenants resolve negotiations quickly and fairly.

Most lease covenants require the tenant to pay for schedules of dilapidations and any enforcement actions. Dilapidations are very much a standard process when commercial leases are coming to an end.

Scott Schedules

If any part of the dilapidations claim served seems to be excessive, incorrect or unfair, a chartered building surveyor can carry out an extended schedule of dilapidations (known as a Scott schedule) on the tenant’s behalf, to allow them to dispute the claims. A surveyor can also advise tenants part-way through a lease to help them understand their likely liabilities and how to minimise costs. Sometimes, an interim schedule of dilapidations is specified in the lease. These dilapidations survey reports are produced part-way through a lease and protect both landlords and tenants by ensuring everyone knows the likely reinstatement works that will be needed and the associated liabilities.

WHAT IS AN INTERIM SCHEDULE OF DILAPIDATIONS?

An Interim Schedule of Dilapidations or a Repairs Notice is something which a Landlord may want to serve during the Term if they feel a Tenant is not looking after their property correctly. The advantage of this is that it gives the tenant plenty of time to undertake the required repairs, and landlords are more likely to be able to re-let or sell the property quickly after the previous tenant has left. An interim dilapidations also offers some protection against tenants going insolvent – at least some of the works are likely to be paid for or completed before the end of the lease. As with any Dilapidations Claim the Tenants obligation is based upon the specific wording of the Lease and we can prepare a variety of notices which will remind a Tenant of their obligations.

In some cases, a simple letter is a cost-effective way of notifying a Tenant that there are some outstanding issues and that these will be addressed. In some cases, a more formal Schedule is needed to identify the specific issues of concern and identify the works the Landlord requires. In some cases, the Landlord may have already notified the Tenant themselves and a Tenant has refused to implement any work. In these cases, we can advise on how the terms can be enforced, whether by serving a Section 146 Notice to threaten forfeiture of a Lease or serving a formal Repairs Notice.

Since the case of “Jervis v Harris” the Landlord now has greater ability to enter a Tenants property undertake the works and re-cover the cost as a debt if there is provision in a Lease. This is often taken very seriously by Tenants who do not want a Landlord entering the premises and implementing works. We have acted for several Landlord’s where our Project Team have specified and tendered the works and by a Tenants Agreement the works are implemented, sometime by combining similar work to several adjoining properties to achieve best value for both Landlord and Tenants.

The Landlord does however have to be mindful that a Tenant has various legal protection, depending on how Interim Repairs are enforced, in particular under The Leasehold Property (Repairs) Act 1938.

Anticipated dilapidations

An anticipated schedule of dilapidations part-way through a lease can help tenants budget for repair and reinstatement liabilities. Here, our surveyors carry out a dilapidations schedule as if they were acting for the landlord. This allows the tenant to get a detailed picture of the items likely to be included in the terminal dilapidations and the associated costs. This can support decision-making regarding moving properties, breaking a lease and budgeting forecasts.

Negotiations and settlements

Tenants may decide to carry out the repair works themselves to avoid a large monetary claim. However, landlords often prefer a monetary settlement rather than relying on tenants to instruct the works. This often leads to negotiations, supported by surveyors, with a reduced monetary value often agreed between the tenant and landlord, rather than the tenant arranging the remedial works themselves.

The best way to avoid costly dilapidations at the end of a lease is to make sure that a schedule of condition is prepared at the start of the lease. A schedule of condition is important because it provides a snapshot of the exact condition of the property at the start of the tenancy, and can therefore be used as evidence for disputing a dilapidations claim. A pre-acquisition survey is also advisable if the lease requires tenants to keep the property in a full state of repair. A surveyor will often review your lease as part of the survey to help tenants understand exactly what will be expected of them in terms of repairs and maintenance.

OTHER HEADS OF CLAIM

In addition to the cost of works it may be possible in some circumstances to claim for other costs incurred by a Landlord or losses suffered owing to the Tenants breach of contract such as loss of rent incurred whilst works are specified and implemented, professional fees, Solicitors fees and any costs incurred in investigating the condition of the property eg, electrical test, drainage surveys etc.

IS THE TENANT LIABLE TO COMPLY WITH LEGISLATION?

In conjunction with preparing a Schedule of Dilapidations we advise on works needed under the terms of the Lease to re-let .What can be claimed under a Lease will depend upon the wording of the Lease Agreement and whilst there is often an overall requirement to comply with all Legislation this sometimes only applies during the Lease term with only a limited amount of compliance required after a Lease is expired. There is however often a requirement to provide confirmation that items such as electrical systems and gas appliances are in a safe and compliant state and that as part of implementing the works statutory costs would be incurred for example preparation of a Refurbishment and Demolition Asbestos Survey and compliance with the CDM Regulations.

We robustly respond to dilapidations claims with our experience and knowledge of legislation, expert reports on alleged breaches, specialist surveys, cost schedules, strategy advice and representation.

For instance Legislation limits damages to the lower of the cost of remedial works, or the impact (if any) the disrepair has on the property’s value, also known as the “Section 18 Diminution in Valuation Statutory Cap”.   If your landlord is not doing all the works, the Dilapidations Protocol requires your landlord to obtain a Dilapidations Diminution in Value report.

• When the Lease has ended the Landlord should comply with guidance laid down in the PLA Dilapidations Protocol otherwise they could be penalised in Court when costs were awarded cost consequences may apply if you do not do so.
• It is important to get independent evidence on the extent of the alleged property damage at.
• There is no prescribed way in which a Landlord should notify the Tenant before the end of the Term although guidance is provided in the RICS Guidance Note for Dilapidations in England and Wales 7th Edition.
• Always limit your dilapidation exposure by attaching a Schedule of Condition to the lease. This is a descriptive report with photographs recording the precise condition of the property at the start of the lease.  The repairing (and decorating) covenants then make it clear that the tenant must maintain the property in a no better (or worse) condition than at the start of the lease.  We can help to protect you by preparing a Schedule of Condition for you, on any property type and coordinate with your solicitors. 
• Tax bonus under the Financial Reporting Standard (FRS) 102, companies may be able to reduce their Corporation Tax liability by including future dilapidations in their accounts. We can assist with dilapidations liability assessments on commercial and leisure properties that can then be used for tax calculations for a cash boost and sensible advance planning to ensure that the business has funds available at lease expiry/break with no hidden surprises.

CAN A TENANT UNDERTAKE THE WORKS?

One of the main decisions any Tenants must take is whether to implement the works needed before the end of the Lease or attempt to agree a reasonable cash settlement. When working with our clients we consider a wide range of factors applicable to each scenario and develop a strategy which best suits. In some instances, a client may want to trade from a store until the very last week of the Lease in order to maximise revenue. This may outweigh any savings made by implementing the works.

In some cases, a site could be empty and there is ample opportunity to implement the works over several weeks and ensure these are completed to the Landlord’s satisfaction. In some cases, the Landlord may not be registered for VAT and by implementing the works a Tenant saves the VAT element which a Landlord can claim. By taking control of the works a Tenant can save other costs such as a Landlord’s Surveyors fees, a claim for loss of rent and interest on costs. They can also ensure they fully tender the works to obtain best value and are not faced with arguing a single cost presented by a Landlord. Under Dilapidations practice it is the Tenants decision how a repair item is undertaken and unless this fails to meet the terms of the Lease it can often be more cost effective than the method chosen by a Landlord.

DOES A TENANT HAVE TO UNDERTAKE ALL THE WORKS?

A Tenant may not decide to do all the works. With many of our clients they decide to implement the more significant items for example stripping out their fixtures and fittings, repairing the roof and implementing the most significant items and leaving some items for negotiation. In some cases, an incoming Tenant may undertake their own fit out and would not be concerned if a property had been fully decorated or repaired. Hence this gives a Tenant control over certain elements and allows negotiation over items which could be challenged.

DOES THE LANDLORD HAVE TO ACCEPT THE WORKS?

When implementing works the Tenant must however precede with caution as if it is not undertaken to an adequate standard the Landlord will often challenge the quality of workmanship and the methods of repair. We are often brought into a dispute where a Tenant considers they have undertaken extensive works and none of the works have been accepted by a Landlord. We therefore recommend you seek professional guidance at an early stage if you are considering implementing the works and ideally enter into open dialogue with your Landlord to ensure they agree the works as they progress.

CAN A LANDLORD INCLUDE SERVICE CHARGE WORKS IN DILAPIDATIONS?

The basic principal is no.  For example, if a Tenant was liable for the internal parts only then as part of a Terminal Dilapidations claim the Landlord could not include items for the roof which would be undertaken the following year under the service charge. We sometimes find the Landlord may include an item within a Dilapidations Claim for say 50% of the roof on the basis that they are planning to implement the work the following year.

There may however be an acceptable claim for any ongoing service charge expenditure which is on a planned basis, if the Landlord can prove a Tenant is liable for costs such as loss of rent, loss of rates etc whilst dilapidation works are being tendered or implemented. It is therefore important to consider the overall service charge when coming towards the end of a Lease to establish whether a Landlord may try and include more substantial charge works in the last year of the term and whether they would have a valid claim for planned service charge expenditure as part of their other costs.

WHAT IS A DILAPIDATIONS RESPONSE?

The Landlord often prepares a Schedule of Dilapidations before the end of the Term and serves on the Tenant so they can complete the work. A Tenant may be unsure whether they are liable for all the works and whether there are any alternate ways of implementing the repair? A Dilapidations Response Report would consider a Landlord’s claim in detail, analyse the terms of your Lease and advise on whether the Landlord’s claim is reasonable. Budgets can be provided for the works or the Landlord may accept a cash settlement as an alternate means of satisfying the terms of the Lease. The Response Report would form part of initial negotiations with the Landlord or their Surveyor which would allow either works to be agreed and implemented before the Lease has ended, or enter into initial dialogue over a possible settlement.

If the Landlord’s claim is issued after the end of the Lease then the Schedule would often take the form of a Scott Schedule and this would form part of negotiations. Under the PLA Protocol a Tenant has 56 days in which to issue their Response to the Landlord and there would then be a period of negotiation where each party comments on the others Response. The intention of the Protocol is to encourage settlement without progressing to a legal claim however in some cases a dispute arises and we can act as an Expert Witness should the claim progress to Court as the last resort.

We believe a pro-active approach between parties is best.  By early dialogue and discussion it is usually possible to reach a settlement figure or agree the Scope of Works without recourse to the Courts and our approach is very much in line with the guidance set out in the PLA Dilapidations Protocol.

We have over 25 years’ experience of preparing Dilapidation settlements and our strong negotiation skills aim to reach settlement without confrontation. In some situations, a conflict cannot be avoided and we are often brought on board after a dispute has already arisen between parties. In these cases, we can act as Expert Witness for a Tenant in defending a case in Court or whether a case is managed by Arbitration, Mediation or any other type of Dispute Resolution.

Tenant testimonial

Susan Harris

“I was shocked at the Landlord’s claim, Alderman Stone Chartered Surveyors were calm and persistent and reduced the claim by almost 50%”

Contact us on 02476 347171 or email us for a FREE no obligation consultation and quotation

Construction Design and Management Regulations 2015 (CDM) aims to help improve health and safety in the building industry.  

Alderman Stone offer a value for money professional tailored service to meet each individual client's requirements. 

We undertake Safety Audits and Risk Assessments and offer a complete service as Client's agent to meet Health and Safety legal requirements. covering areas such as: 

• CDM Designer/ Principal Designer,  advice on competence of designers,  principal contractor, contractors and other members of the design team,  construction site safety, health and welfare audits, Audit of construction phase health and safety plans and health and safety file compilation under Construction & Design Management Regulations 2015
• Click here for the CDM Regulations 2015 Legislation
• Click here for the HSE Guidance for Clients
• We offer specialist surveys under The Management of Health and Safety at Work Regulations 1999,  Fire surveys under The Regulatory Reform (Fire Safety) Order 2005,  Asbestos or hazardous materials under The Control of Asbestos Regulations 2006,  Disabled Access under The Disability Discrimination Act 1995 and Glazing in critical areas to BS6206.

OUR APPROACH

Our first priority is to understand your needs so that we can tailor our services to achieve the best value for money. 

We will then prepare a proposal which states clearly:

• Our understanding of your requirements
• The approach we will adopt
• The benefits you will obtain
• Our proposed fees

All of this is for discussion and agreement with you. We believe that successful projects result from a clear understanding of client requirements that are then implemented by high calibre and committed people. 

Contact us on 02476 347171 or email us for a FREE no obligation consultation and quotation

Every building suffers damage or loss at some time during its life, adequate insurance minimizes the cost and disruption. The cost of rebuilding or reinstating has to be accurately calculated to ensure a building is not underinsured.  Expert knowledge of construction costs, inflation trends, building taxes and detailed cost data systems enables Alderman Stone to provide the assessment that is necessary to effect the correct level of insurance and to avoid costly over estimating, which results in high premiums.  

If damage does occur Alderman Stone can assess the damage and coordinate with insurers to assess the damage, prepare a specification and schedule of works and administer the contract until completion.  
 

Our Approach

Our first priority is to understand your needs so that we can tailor our services to achieve the best value for money.
 
 We will then prepare a proposal which states clearly:

• Our understanding of your requirements
• The approach we will adopt
• The benefits you will obtain
• Our proposed fees

All of this is for discussion and agreement with you. We believe that successful projects result from a clear understanding of client requirements that are then implemented by high calibre and committed people.
 

Contact us on 02476 347171 or email us for a FREE no obligation consultation and quotation

The density of development within our larger towns and cities and increased awareness of environmental issues and legal rights of third parties have given rise to a range of different neighbour-related problems. 'Neighbourly Matters' is the term commonly applied to this collection of problems that developers must consider aswell as the Party Wall etc Act 1996 above such matters as, we offer the following services:

• Boundary disputes
• Rights to light advice, technical analysis, negotiation & settlement of claims
• Advice on daylighting and sunlighting amenity for planning submissions
• Negotiation of access agreements, including scaffold licences and crane oversail licences
• Advice on the provisions of the Access to Neighbouring Land Act 1992
• Advice on construction noise nuisance and the provisions of the Control of Pollution Act 1974 and Environmental Protection Act 1990
• Rights of way and rights of escape
• Preparation of schedules of condition
• Acting as expert witness in adjudication, arbitration and litigation

Our Approach

Our first priority is to understand your needs so that we can tailor our services to achieve the best value for money.

We will then prepare a proposal which states clearly:

• Our understanding of your requirements
• The approach we will adopt
• The benefits you will obtain
• Our proposed fees, the party doing the work called a building owner in the Act will usually be responsible for the affected neighbour(s) called the adjoining owner's fees too.  

All of this is for discussion and agreement with you. We believe that successful projects result from a clear understanding of client requirements that are then implemented by high calibre and committed people.
 

Contact us on 02476 347171 or email us for a FREE no obligation consultation and quotation