The Act came into force on 1 July 1997 and applies throughout England and Wales.

It provides a framework for preventing and resolving disputes in relation to party walls, boundary walls and excavations near neighbouring buildings. It is based on some tried and tested provisions of the London Building Acts, which applied in inner London for many decades before the Act came into force.

Anyone intending to carry out work (anywhere in England and Wales) of the kinds described in the Act must give Adjoining Owners notice of their intentions. Where the intended work is to an existing party wall (section 2 of the Act) a notice must be given even where the work will not extend beyond the centre line of a party wall.

Adjoining Owners can agree with the Building Owner’s proposals or reach agreement with the Building Owner on changes in the way the works are to be carried out, and in their timing. Where there is no written consent or agreement, the Act provides for the resolution of ‘disputes’.

• Various work that is going to be carried out directly to an existing party wall or structure (see Questions 4 to 19)
• New building or free standing wall at or astride the boundary line between properties (see Questions 20 to 25)
•  Excavation within 3 or 6 metres of a neighbouring building(s) or structure(s), depending on the depth of the hole or proposed foundations (see Questions 26 to 29).

 The Act recognises two main types of party wall.
 
 Party wall type (a)
 
 A wall is a "party wall" if it stands astride the boundary of land belonging to two (or more) different owners.
 Such a wall:

•  is part of one building (see diagram 1), or
•  separates two (or more) buildings (see diagram 2), or
•  consists of a “party fence wall” (see diagram 3) 

A wall is a "party fence wall" if it is not part of a building, and stands astride the boundary line between lands of different owners and is used to separate those lands (for example a garden wall). This does not include such things as wooden fences.
 
 Party wall type (b)
 
 A wall is also a “party wall” if it stands wholly on one owner’s land, but is used by two (or more) owners to separate their buildings (see diagram 4).
 
An example would be where one person has built the wall in the first place, and another has butted their building up against it without constructing their own wall. Only the part of the wall that does the separating is "party" - sections on either side or above are not "party".
 
The Act also uses the expression "party structure". This is a wider term, which could be a wall or floor partition or other structure separating buildings or parts of buildings approached by separate staircases or entrances (for example flats) – see diagram 5.

The Act provides a Building Owner, who wishes to carry out various sorts of work to an existing party wall, with additional rights going beyond ordinary common law rights. Section 2 of the Act lists what work can be done. The most commonly used rights are:

• to cut into a wall to take the bearing of a beam (for example for a loft conversion), or to insert a damp proof course all the way through the wall
• to raise the height of the wall and/or increase the thickness of the party wall and, if necessary, cut off any projections which prevent you from doing so
• to demolish and rebuild the party wall
• to underpin the whole thickness of a party wall
• to protect two adjoining walls by putting a flashing from the higher over the lower, even where this requires cutting into an Adjoining Owner’s independent building. 

If you intend to carry out any of the works mentioned in Question 4, you must inform all Adjoining Owners - see Questions 7 and 8. You must not even cut into your own side of the wall without telling the Adjoining Owners of your intentions - but see Question 6.

The Act contains no enforcement procedures for failure to serve a notice. However, if you start work without having first given notice in the proper way, Adjoining Owners may seek to stop your work through a court injunction or seek other legal redress.

An Adjoining Owner cannot stop someone from exercising the rights given to them by the Act, but may be able to influence how and at what times the work is done - see Question 10.

The Act also says that a Building Owner must not cause unnecessary inconvenience. This is taken to mean inconvenience over and above that which will inevitably occur when such works are properly undertaken.

The Building Owner must provide temporary protection for adjacent buildings and property where necessary. The Building Owner is responsible for making good any damage caused by the works or must make payment in lieu of making good if the Adjoining Owner requests it.

In specific circumstances where party walls are demolished and rebuilt (s.2(2)(b) of the Act) section 11(5) provides that the cost of the work shall be shared. Where use is made of party walls previously built at the cost of the Adjoining Owner, the Act makes provision for a fair payment to be made to the Adjoining Owner.

Some works on a party wall may be so minor that service of notice under the Act would be generally regarded as not necessary.
Things like:

• drilling into a party wall to fix plugs and screws for ordinary wall units or
• shelving
• cutting into a party wall to add or replace recessed electric wiring and sockets replastering

may all be too minor to require a notice under the Act.
 
The key point is whether your planned work might have consequences for the structural strength and support functions of the party wall as a whole, or cause damage to the Adjoining Owner’s side of the wall. If you are in doubt about whether your planned work requires a notice you might wish to seek advice from a qualified building professional.

Essentially, an Adjoining Owner is anyone with an interest greater than a yearly tenancy in the adjoining property.

The adjoining property may have a freehold owner, a leasehold owner and/or a long term tenant, each or all of whom may be an 'Adjoining Owner' under the Act.

Where there is more than one owner of the property, or more than one adjoining property, it is your duty to notify all Adjoining Owners.

It is obviously best to discuss your planned work fully with the Adjoining Owners before you (or your professional adviser on your behalf) give notice, in writing, about what you plan to do. If you have already ironed out possible snags with your neighbours, this should mean that they will readily give consent in response to your notice. You do not need to appoint a professional adviser to give the notice on your behalf.
 
 Whilst there is no official form for giving notice under the Act, your notice must include the following details:

• your own name and address (joint owners must all be named, e.g. Mr A & Mrs B Owner)
• the address of the building to be worked on (this may be different from your main or current address)
• a full description of what you propose to do (it may be helpful to include plans but you must still describe the works)
• when you propose to start (which must not be before the relevant notice period has elapsed).

The notice should be dated and it is advisable to include a clear statement that it is a notice under the provisions of the Act.
 
 (It is advisable to seek professional advice prior to issuing a Notice, as to whether the intended works are notifable, as once a notice is issued the process has to complete through to an Award, incurring fees).
 
 You may deliver the notice to the Adjoining Owner(s) in person or send it by post. Where the neighbouring property is empty or the owner is not known, you may address the notice to "The Owner", adding the address of the premises, and fix it to a conspicuous part of the premises.

You do not need to tell the local authority about your notice.

At least two months before the planned starting date for work to the party wall, and one month for a Party fence wall. The Adjoining Owner may agree to allow works to start earlier but is not obliged to even when agreement on the works is reached. The notice is only valid for a year, so do not serve it too long before you wish to start.

A person who receives a notice about intended work may:

• give his consent in writing, or
• dissent from the works proposed, in writing (the procedure explained in Question 11 below, comes into play or
• do nothing.

If, after a period of 14 days from the service of your notice, the person receiving the notice has done nothing, a dispute is regarded as having arisen - see Question 11.
 
 A person who receives notice about intended work may, within one month, give a counter-notice setting out what additional or modified work he would like to be carried out for his own benefit. A person who receives a notice, and intends to give a counter-notice, should let the Building Owner know within 14 days.
 
 If you receive a counter-notice you must respond to it within 14 days otherwise a dispute is regarded as having arisen - see Question 11.
 
 As mentioned in Question 8, your notice should not come as a surprise. If you have already ironed out possible snags with your neighbours, this should mean that they will readily give consent in response to your notice.
 
 It should be noted that where consent is given you are not relieved of your obligations under the Act, for example to avoid unnecessary inconvenience or to provide temporary protection for adjacent buildings and property where necessary. The notice of consent is simply confirmation that, at that time, there is nothing 'in dispute'. Should a difference arise at a later date (for example in respect of damage caused) the procedure explained in Question 11 then comes into play.

The best way of settling any point of difference is by friendly discussion with your neighbour. Agreements must always be put in writing. It is prudent to have a Party Wall Award drawn up even with consent, to aviod disputes during or after the works which may result in any defects/problems being blamed on you as Building Owner. The Party Wall Award would include times, access and a detailed schedule of condition prior to commencing.

If you cannot reach agreement with the Adjoining Owners, the next best thing is to agree with them on appointing what the Act calls an "Agreed Surveyor" to draw up an "Award". The Agreed Surveyor should NOT be the same person that you intend to employ or have already engaged to supervise your building work - see Question 12.

Alternatively, each owner can appoint a surveyor to draw up the award together. The two appointed surveyors will select a third surveyor (who would be called in only if the two appointed surveyors cannot agree).

In all cases, surveyors appointed under the dispute resolution procedure of the Act must consider the interests and rights of both owners and draw up an award impartially.

Their duty is to resolve matters in dispute in a fair and practical way.

Where separate surveyors are appointed by each owner, the surveyors must liaise with their appointing owners and put forward the respective owners’ preferred outcome. However, the surveyors do not act as advocates for the respective owners. They must always act within their statutory jurisdiction and jointly prepare a fair and impartial award.

The term "surveyor" is defined in the Act as any person who is not a party to the matter. The surveyor should have a good knowledge of construction and of administering the Act. As Chartered Surveyors and members of The Pyramus & Thisbe Club we offer first class service in this regard.
 
 You and your neighbour should not choose the person you have engaged to supervise the building works to be the "Agreed Surveyor". It is difficult to be the person responsible for ensuring the completion of the work at the same time as giving full regard to the rights of the neighbours. Your neighbour may also be less inclined to agree to jointly appoint a person to resolve a dispute if that person is already engaged by you in another capacity. 

The surveyor (or surveyors) will prepare an "award" (also known as a "party wall award"). This is a document which:

• sets out the work that will be carried out
• says when and how the work is to be carried out (for example, not at weekends if the buildings are domestic properties)
• specifies any additional work required (for example necessary protection to prevent damage)
• often contains a record of the condition of the adjoining property before the work begins (so that any damage to the adjoining land or buildings can be properly attributed and made good)
• allows access for the surveyor(s) to inspect the works while they’re going on (to see that they are in accordance with the award).

It is a good idea to keep a copy of the award with your property deeds when the works are completed. 

The surveyor (or surveyors) will decide who pays the fees for drawing up the award and for checking that the work has been carried out in accordance with the award. Usually the Building Owner will pay all costs associated with drawing up the award if the works are solely for his benefit. 

The Award is final and binding unless it is amended by the Court. Each owner has 14 days to appeal to the county court against an award. An appeal should only be made to the county court if an owner believes that the surveyors’ determination is fundamentally wrong.

An appeal should not be undertaken lightly and an owner considering an appeal may well wish to seek legal advice.

Your agreement with the Adjoining Owner, or the award in the event of a dispute, will set this out.

The general principle in the Act is that the Building Owner who initiated the work pays for it if the works are solely for his benefit. However, there are cases where the Adjoining Owner may pay part of the cost, for example:

• where work to a party wall is needed because of defects or lack of repair for which the Adjoining Owner may be responsible (in full or in part).
• where an Adjoining Owner requests that additional work should be done for his benefit.

Where the dispute resolution procedure is called upon, the award may deal with apportionment of the costs of the work. The dispute procedure may be used specifically to resolve the question of costs if this is the only matter in dispute.

If a dispute has arisen and the neighbouring owner refuses to appoint a surveyor under the dispute resolution procedure, you can appoint a second surveyor on his behalf, so that the procedure can go ahead - see Questions 11 and 12. In these circumstances you will not be able to appoint an “agreed surveyor”. Your own surveyor will advise you on the appointment of a second surveyor on behalf of the Adjoining Owner.

Under the Act, an Adjoining Owner and/or occupier must, when necessary, let in your workmen and your own surveyor or architect etc., to carry out works in pursuance of the Act (but only for those works), and allow access to any surveyors appointed as part of the dispute resolution procedure.
 
 You must give the Adjoining Owner and occupier notice of your intention to exercise these rights of entry. The Act says that 14 days’ notice must usually be given. It is an offence, which can be prosecuted in the magistrates’ court, to refuse entry to or obstruct someone who is entitled to enter premises under the Act, if the offender knows or has reasonable cause to believe that the person is entitled to be there.
 
 If the adjoining property is closed (for example an unoccupied property) your workmen and your own surveyor or architect etc. may enter the premises after following proper procedures if they are accompanied by a police officer.
 
 You should discuss access for other works with your neighbour. It is often in the best interests of the Adjoining Owner to allow access voluntarily to build a wall or carry out works for which there is no statutory right of access, as this will allow a better finish to the side of the wall that they will see.

Adjoining Owners’ rights include:

• appoint a surveyor to resolve any dispute;
• require reasonably necessary measures to be taken to protect their property from foreseeable damage;
• not to suffer any unnecessary inconvenience;
• be compensated for any loss or damage caused by relevant works;
• ask for security of expenses before you start significant work so as to guard against the risk of being left in difficulties if you stop work at an inconvenient stage.

If you plan to build a party wall or party fence wall astride the boundary line, you must inform the Adjoining Owner by serving a notice - see Questions 7 and 8. You may want to base your notice on Example Letter 4. However, there is no right to build astride the boundary without your neighbour's agreement in writing - see Question 22.

You must also inform the Adjoining Owner by serving a notice if you plan to build a wall wholly on your own land but up against the boundary line.

The Act contains no enforcement procedures for failure to serve a notice. However, if you start work without having first given notice in the proper way, Adjoining Owners may seek to stop your work through a court injunction or seek other legal redress.

At least one month before the planned starting date for building the wall. The notice is only valid for a year, so do not serve it too long before you wish to start.

If the Adjoining Owner agrees within 14 days to the building of a new wall astride the boundary line, the work (as agreed) may go ahead. The expense of building the  wall may be shared between the owners where the benefits and use of that wall will be shared.
 
 The agreement must be in writing and should record details of the location of the wall, the allocation of costs and any other agreed conditions.
 
 If the Adjoining Owner does not agree, in writing, within 14 days, to the proposed new wall astride the boundary line, you must build the wall wholly on your own land, and wholly at your own expense. However, you have a right to place necessary footings for the new wall under your neighbour’s land – see Question 23 - subject to compensating for any damage caused by building the wall or laying the
 foundations. There is no right to place reinforced concrete under your neighbour’s land without their express written consent.
 
 You may start work one month after your notice was served.

Unless your neighbour objects, you may start work one month after your notice was served. You have the right to place footings and foundations extending under the Adjoining Owner’s land. However, there is no right to place reinforced concrete foundations under your neighbour’s land without their express written consent.
 
 The wall will be built wholly at your own expense and you will have to compensate any Adjoining Owner for any damage to his property caused by the building of the wall, or the placing of footings and foundations under his land.

If there is a disagreement about any work of the kinds covered in Questions 22 and 23, including compensation, the dispute can be settled by surveyors under the Act.

Depends.  The Act does not contain any provision that could be used to settle a boundary line dispute; however, when dealing with a line of juncture (build on boundary line) notice, surveyors have jurisdiction to decide on validity and as such where the bouindary is. But there are limitations of what information surveyors may have access to in their role as party wall surveyor, particularly for example if one party is not cooperating with surveyors. Each case would have to be considered on it's merits.

Boundary disputes can be resolved through the courts or through alternative dispute resolution procedures (which may be simpler, quicker and cheaper), for example mediation, decision by an independent expert or arbitration.

The surveyor(s) can assist the owners in reaching agreement but cannot normally decide who is right if the boundary location is in dispute

See Question 18. 

If you plan to:
- excavate, or excavate and construct foundations for a new building or structure, within 3 metres of a neighbouring owner’s building or structure, where that work will go deeper than the neighbour’s foundations (see diagram 6); or
- excavate, or excavate for and construct foundations for a new building or structure, within 6 metres of a neighbouring owner’s building or structure, where that work will cut a line drawn downwards at 45° from the bottom of the neighbour’s foundations (see diagram 7)
 
 you must inform the Adjoining Owner or owners by serving a notice - see Questions 7 and 8.
 
 Note that, for the purposes of section 6 of the Act, “Adjoining Owners” may include your next-but-one neighbour if they have foundations within 6 metres.
 
 The notice must state whether you propose to strengthen or safeguard the foundations of the building or structure belonging to the Adjoining Owner. Plans and sections showing the location and depth of the proposed excavation or foundation and the location of any proposed building must also accompany the notice.
 
 The Act contains no enforcement procedures for failure to serve a notice. However, if you start work without having first given notice in the proper way, Adjoining Owners may seek to stop your work through a court injunction or seek other legal redress. 

At least one month before the planned starting date for the excavation. The notice is only valid for a year, so do not serve it too long before you wish to start.

If the Adjoining Owner gives written notice within 14 days agreeing to the proposed works, the work (as agreed) may go ahead. If the Adjoining Owner does not respond, or objects to the proposed work, a dispute is regarded as having arisen - see Questions 11 to 17.

After the work has been completed, the Adjoining Owner may request particulars of the work, including plans and sections.

See Question 18. 

If your neighbour intends to carry out building work which involves one of the following categories:

• work on an existing wall or structure shared with another property (section 2 of the Act) - see Questions 4 to 18
• building a free standing wall or a wall of a building up to or astride the boundary with a neighbouring property (section 1 of the Act) - see Questions 19 to 24; or
• excavating near a neighbouring building (section 6 of the Act) - see Questions 25 to 28
  

they must notify you in writing before they start work see Question 8, 20 and 26. 

If you receive a notice from your neighbour you should reply to it in writing within 14 days of receiving it. You do not need to appoint a professional adviser to respond to the notice on your behalf.
 
 You can agree or disagree with what is proposed.
 
 If you do not respond to a notice about an intended new wall built up to (but not astride) the line of junction, the work can commence after the one month notice period. The Building Owner may place any necessary footings and foundations under your land (but not reinforced concrete foundations without your prior written consent).
 
 If you do not respond, in writing, within 14 days to a notice about an intended new wall built astride the line of junction, the Building Owner must build the wall entirely on his own land. The work can commence after the one month notice period. The Building Owner may place any necessary footings and foundations under your land (but not reinforced concrete foundations without your prior written consent).
 
 If you receive a notice about work to an existing party structure, or a notice about excavations within 3 or 6 metres of your foundations, and you have not responded, in writing, within a period of 14 days from receipt of the notice, a dispute is regarded as having arisen. The procedure explained in Questions 11 to 15 then formally comes into play.
 
 If you disagree with the work described in a notice under the Act you should explain why. The Building Owner can then consider your objection and perhaps amend his proposal. Agreement might then be reached, without the need to use the formal dispute resolution procedure.

You should let your neighbour know (in writing) about the Act. 

Unfortunately this is quite common, notifiable work under the Party Wall etc Act 1996 ("Act") to include building on the boundary line, works to a party wall or ceiling seperating properties and excavation within 3m of a masonry structure or party fence wall where the depth of the foundations will be surpassed.  

Your neighbour, referred to under the Act as the "building owner", may be be ignoring the Act out of ignorance or intentionally to save costs. You should act asap and contact us in order to discuss how much work has been undertaken and for us to issue a letter at no cost to you, to the building owner advising him/her of the Act and requiring an undertaking for him/her to stop notifiable work and comply with the Act, otherwise a court injuction may be sought with a cost claim against him/her on an indemnity basis.  It is rare for a building owner to carry on work after being sent a letter and open themselves up to possible significant court costs;  therefore obtaining a court injunction is not usually required. We have been involved in common law cases, where a County Court Judge has ordered that the dispute should be resolved via the Act.  

The Act contains no penalties for failure to serve a notice, therefore, if notifiable works are complete and as such a court injunction to stop work would be fruitless.  Any dispute or damage caused will be a common law issue and resolved in court or Alternative Dispute resolution unless the building owner agrees to use the Act to resolve a dispute.  

If so then a retrospective award may be issued to regularise the unlawful work. The Act includes no provision for notices or awards to be made retrospectively, but the courts have confirmed that work can be authorised retrospectively if the surveyors feel that it is capable of being authorised.  If the building owner works have caused damage to the adjoining owner's property, then compensation may be awarded to the adjoining owner for costs to undertake remedial works.  The surveyors cannot however, award for demolition of works undertaken by the building owner, this would be dealt with at court. 

See Questions 11 - 17.
 
Where the proposed works are minor and/or not intrusive on your building or land, you may have only minor objections that you cannot agree or perhaps simply want some assurance that the correct procedures are followed.
 
 In these circumstances, and particularly in residential circumstances where surveyors fees would significantly increase the project costs, the appointment of an agreed surveyor to resolve the dispute is preferable, especially so if the proposed surveyor is not otherwise involved in your neighbour’s project.

See Question 18.
 
Even where you object to what your neighbour is building on his land, it is often to your benefit to allow access, for example for scaffolding or to allow pointing of the wall, as the wall will probably be visually more acceptable if access is given.

If there is a risk that you will be left in difficulties if the Building Owner stops work at an inconvenient stage, you can ask him, before he starts work, to make available an amount of money that would allow you to restore the status quo if he fails to do so.

The money remains his throughout, but if, for example, you need to have a wall rebuilt, you, or more commonly the surveyors, can draw on that security to pay for the rebuilding.

This provision is usually reserved for particularly intrusive or complex works.

No. The Act does not change the ownership of any wall, nor does it change the position of any boundary. Boundaries can still run through the centre of a wall, so that each owner may technically own half of a wall. However, it may help in understanding the principles of the Act if owners consider themselves joint owners of the whole of a party wall rather than the sole owner of half or part of it.
 
 The Act sets out what rights an owner has in relation to works to a party wall and what he is obliged to do before he can exercise those rights.

A party fence wall is defined as a wall that stands on the land of different owners, seperating adjoining lands without forming part of a building.  It does not qualify as a party fence wall under the Party Wall etc Act 1996 if:

1. If the wall is solely on one owner's land.

2. It is a garden fence made of timber or concrete posts, even if your title 

    deeds label a fence as a "party fence", this indicates shared maintenance but is unrelated to the Party Wall etc Act 1996.  

To confuse matters the Act refers to "...a boundary wall, being a prty fence wall..."  A boundary wall is also a party fence wall if it sits over the boundary line.  

If it sits on one side of the boundary line entirely on your property, it is just a boundary wall and not a party fence wall and the outer face usually marks the boundary. This means that you have exclusive rights to do what you want, and your neighbour has no right to touch it, not even knock a nail into the wall. 

Like a party wall, you cannot permanently demolish a party fence wall without your neighbour's agreement. However, you can undertake repairs or rebuild it, typically sharing costs with the adjoining owner if repair is necessary by serving notice to the adjoining owner. If the repairs are necessary due the actions of one of the owners, then costs can be defrayed accordingly.

Yes, but only in relation to works covered by the Act, and only when the correct notices have been given and the procedures correctly followed.

No, so long as the Adjoining Owner agrees, in writing, to the work starting earlier than as stated in the notice.

It is good practice to prevent debris collecting in (or animals entering) the small gap between two adjacent independent structures and the Act allows for any works “incidental to the connection of a structure with the premises adjoining it”. There are several proprietary products that can effectively seal the gap between two buildings without having to cut into or permanently fix to either building. The Building Owner erecting the second structure would usually carry out this work. 

Party wall awards normally include a number of standard general clauses:

• A clause stating that the wall separating the building owner’s and the adjoining owner’s premises is a party wall within the meaning of the party wall act or that the adjoining owner’s building stands close to or adjoins the building owner’s premises within the meaning of the act. This is important as only works on the party wall or (in the case of excavations) within certain distances of the party wall fall within the party wall award system. If there are problems with any other works on the site, they have to be dealt with under common law.

• A clause noting that a “schedule of condition” signed by both surveyors is attached to the award.

• In the case of a major excavation, it is advisable for a full schedule of condition to be done of the entire adjoining building and any structures belonging to the property, together with photographs. There should also be a photographic schedule of the contents and state of the garden and plants where appropriate. These days, the photographic record is often stored electronically on a file to which reference is made in the award itself.

• A clause noting that the party wall as described in the schedule of condition is sufficient for the present purposes of the adjoining owner. This is to make clear that there has been no request from the adjoining owner for additional work to be done on the party wall on his behalf. If such work is required, see clauses in section 7 below.

• A clause noting that drawings of the agreed works are attached to the award and have been signed by both surveyors.

• A clause making clear that the surveyors will not take responsibility for any designs.

• A clause declaring that the award will be null and void if the permitted works do not commence within 12 months from the date of signature. This 12-month cut-off is laid down in the party wall act.

• A clause declaring that nothing in the award shall be held as conferring, admitting or affecting any right of light or air. This again reflects a provision in the act (section 9) and is to make clear that, although the act may give the building owner the right to do the works he is doing, it does not affect any other rights.

• A clause undertaking that signed versions of the award will be given to both owners immediately and an unsigned copy to the adjoining owner’s surveyor. In practice, the adjoining owner’s surveyor usually gets a photocopy of a signed version.

• A clause declaring that the surveyors reserve the right to make any further awards that may be necessary. The party wall award concluded at the beginning of the works sets out the agreement of the two surveyors as to how the work shall be done and other ancillary matters, such as the requirement to put right any damage. If circumstances change – e.g. an unexpected problem arises during the building works requiring a deviation from the agreed works – the surveyors will normally make a supplementary or addendum award. Similarly, if a dispute between the owners arises which cannot be decided under the terms of the existing document, for instance if there is an argument over the amount of damage, the surveyors have to get together and make a judgement. They must then set out their judgement in a supplementary award. If they cannot agree, a third surveyor must be called in to decide the matter. There may be several addendum awards during the course of a big and complicated project like a basement excavation.

The award has to make provisions on who should pay the fees of both the surveyors. The party wall act does not lay down who is responsible for the fees, so theoretically the surveyors have the right to determine any allocation between the owners as they see fit. However, as the building works are for the benefit of the building owner, it is standard practice for the party wall award to provide for all the fees to be met by the building owner. This includes fees for the work in connection with the preparation of the award; inspections of the works; and, if necessary, checking the schedule of condition on completion to check whether there has been damage. If the work benefits the adjoining owner as much as the building owner – for instance if a party wall needs to be rebuilt because it has not been properly maintained – then the costs would normally be shared between the owners.

• The adjoining owner does not normally have to pay his surveyor’s fees for advice given after a party wall notice has been served but before a party wall award has been signed. But any advice sought by the adjoining owner before a party wall notice has been served must be paid for by him.

• The fees will normally cover periodic inspections of the work. They will not, however, cover constant supervision of what is happening on the site, as this is not the job of the party wall surveyors but of the supervisory personnel employed by the building owner. However, if a problem arises, such as undue damage to the adjoining owner’s property, then the latter can reasonably expect his surveyor to look at it, even if an inspection is not due.

• The award may also provide for a further fee to cover any work required by the surveyors if for some reason different or additional works are required – e.g. if an unforeseen snag emerges such as unexpected flows of water or ground conditions that make the planned building methods unsuitable, and an addendum award needs to be prepared.

• In the case of major basement excavations, some damage is probably inevitable. So an award dealing with a basement excavation might also provide for a further fee to be payable (again by the building owner), to cover the reasonable costs of the preparation of a schedule of damages and if necessary a schedule of works to make good the damages, as well as any necessary inspections of the remedial works to ensure that they have been adequately carried out.

• The award will also normally provide that, in the event of a third surveyor being called in to resolve disputes, his fees shall be met by the building owner, the adjoining owner or both of them as the third surveyor sees fit. Usually the third surveyor will decide that his fees are payable by the party whom he finds against.

• It is likely to be reasonable in any complicated structural works for the adjoining owner’s surveyor to employ a structural engineer to advise on the proposed work and on their execution, and it is normal (although not specifically required by the act) for the reasonable fees of the structural engineer also to be met by the building owner. This needs to be covered in the party wall award.

• The award may also provide that, if there are disagreements at the end of the work over the damaged caused, any independent advice needed from a structural engineer shall be given by a structural engineer other than the one involved in overseeing the works on behalf of the building owner, and his reasonable fees will be met by the building owner if the damage is found to have been caused by works covered by the act. This is to cover the situation where the adjoining owner has not employed a structural engineer but one is needed because of a dispute on damage.

• The case of van Maanan v. West Greenwich Developments LLP (2009) has raised some doubts over the direct recoverability of surveyors’ fees from the building owner. Although these are likely to be ultimately recoverable as a civil debt (for instance the courts could put a charge against title), to avoid arguments over the building owner’s obligation to pay the fees awarded, a separate exchange of letters with the building owner can be arranged to place the matter on a clear contractual basis.

The award normally includes a “method statement” or detailed description of the work to be carried out, including any under-pinning, together with appropriate plans and diagrams. Although the decision on the works to be carried out lies with the building owner, section 7(1) of the party wall act requires the building owner to avoid “unnecessary inconvenience” to any adjoining owners or occupiers; and section 10(12) says that an award may determine “the time and manner of executing any work”. On the basis of these sections, if the adjoining owner’s surveyor considers that the same result can be achieved without delay or extra cost by methods or in a sequence that would cause less disturbance to the adjoining owner, he may seek to negotiate changes to the original proposals as part of the preparation of the award. Changes would only be agreed, however, if they were considered “reasonable”. Anything that added substantially to the costs or the time the project would take would be unlikely to be considered reasonable.

• In some cases, there may still be uncertainties making it desirable that further investigation of certain issues, e.g. potential groundwater problems, should be undertaken. In such cases, the award could require these extra investigations to be done – and any necessary extra design work – before work begins, or at certain points in the work. But it would be unreasonable to hold up making an award before every issue has been investigated if work not affected by the issues can be started before the investigations are complete.

• The award also normally provides that no material deviation from the agreed works shall be made without prior consultation with and agreement by the adjoining owner or, in the event of a dispute, by the appointed surveyors. So although the adjoining owner can object to changes, it is ultimately up to the surveyors to decide if they are reasonable or not.

• The main problem for adjoining owners tends to be the appalling noise, vibration and dirt caused over a long period by basement developments. Normally, the building owner moves out for the duration of the works and so does not suffer any noise nuisance. But the neighbours cannot do so and have to put up with what can be quite horrendous noise from pile-drivers, compressors, drills and construction traffic. As the party wall act specifically binds the building owner to avoid “unnecessary inconvenience” and the surveyors have powers to “determine the manner of executing any works”, it is tempting for the lay person to think that restrictions can be placed to control noise etc. in the party wall award. Unfortunately, in practice it is not so easy for various reasons:
  • It is generally accepted by the courts that construction is necessarily a noisy, dirty business and that neighbours have to accept this. The party wall system was originally devised to facilitate construction, not to make it more difficult. It is not considered reasonable to slow the work down or to do it in a more expensive way just because it reduces the inconvenience to the neighbours – although a responsible building owner may well be prepared voluntarily to do things in a way that reduces the ordeal of the neighbours, especially as he will be living among them.
  • The courts also take the view that there is other legislation in place to deal with problems of noise pollution, traffic etc. This is of course true, although many would consider much of the legislation both hard to use and inadequate.
  • There is also the problem that the party wall award system applies only to work covered in the party wall act, i.e. work actually on (or under or over) the party wall, or – the case of excavations – within a specified distance of the adjoining owner’s building. In practice, it is impossible to distinguish which noise or other nuisance factor is caused by the work covered by the party wall act and which by other work on the site – a compressor and construction traffic, for instance, will probably be serving work on various parts of the site.

• Nevertheless, there is some scope for dealing with these matters in the party wall award. It is, for instance, fairly standard for the method statement to include a clause requiring the building owner to remove any temporary screens, hoardings or scaffolding as soon as they are no longer required and to clear away dust and debris from time to time as necessary. It would also be possible to include reference to any council code of best practice.

• The method statement could include other measures to minimise nuisances such as noise if it is clear that the nuisance comes only from the work within the ambit of the party wall act. It could for instance require noise monitors or specify the use of sound reduced compressors, electrically powered machinery (as opposed to petrol or diesel), appropriate acoustic enclosures, “silent” demolition techniques, no sheet piling with diesel or air driven impact or drop hammer, the removal of plaster from pre-20th century brickwork by hand held hammer and bolster, etc. Again, however, a test of reasonableness must be applied by the surveyors – i.e. they must be satisfied that it is really necessary and appropriate to specify any of these for that particular project.

The award will normally provide that the building owner may start work fourteen days after completion of the award, although he is not obliged to do so – i.e. he can decide not to proceed at all, or only with some of the works. If he does not start within 12 months, the award lapses.

• There is nothing specific in the party wall act that requires the building owner to give advance warning of the works (except that work may not begin less than 14 days after the party wall award unless the adjoining owner agrees). But much potential friction can be avoided if the adjoining owner is kept fully in the picture as regards the expected timing of the works (and also as regards when they are complete, which is not always obvious). So it may be appropriate to ask the building owner to inform the adjoining owner say one week in advance of the day on which the works will commence and of their expected duration and the timing and duration of the main stages. It is also helpful if the building owner provides a programme of the different stages of the works, and of any changes to the programme as the work progresses. But all this can normally be done informally.

• It is not always clear when work has been completed. So it could be useful to include a clause requiring the building owner to inform the adjoining owner and his party wall surveyor when the works are complete. Note, however, that the work under the party wall act may in some cases be completed before other work on the site.

• The act (section 6(9)) requires the building owner, if requested on completion of the works, to supply the adjoining owner with plans and sections of the works done. This can be useful in the case of subsequent problems and it may be worth reiterating this requirement (i.e. making it a formal requirement) in the party wall award. If the works could interfere with some future building plans of the adjoining owner, there may be a case for the plans, together with a signed copy of the party wall award (including any addendum awards) and any consents obtained to be kept with the deeds, or possibly even registered against them, so as to facilitate any claim for compensation in the future. See also the section on special foundations.

• The act requires works to be prosecuted “with due diligence” and the party wall award ceases to have effect if this does not happen (s.3(2)). A clause is often included in party wall awards to reflect this requirement, although strictly it should not be necessary. It is up to the surveyors to judge whether there has not been due diligence. There is an old court case (Joliffe v. Woodhouse) which provides a precedent for unreasonable delay being considered unnecessary inconvenience and for damages to be payable if it happens.

This varies between local authorities, for example The Royal Borough of Kensington and Chelsea, when granting planning permission for a basement development, normally includes an “informative” on restricting the works to certain hours (usually 8.00-18.30 Monday to Friday and 8.00-12.30 on Saturday). Although the council is often prepared to take action under noise pollution legislation if the hours are not observed, it has no other legal power to enforce these restrictions, so there is advantage in having the restriction set out in the party wall award as well.

While noise is unavoidable, it can be rendered a lot more tolerable if particularly noisy work such as pile-driving and drilling can be restricted to certain hours when it least inconveniences the adjoining owner, for instance when the neighbour is out at work or away from home; or only in the mornings if the neighbour works from home in the afternoon; or outside a regular rest period for children or the elderly or infirm. The City of London, for instance, expects developers to sign up to refraining from noisy work between 10.00-12.00 and 14.00-16.00, thus giving neighbours at least four hours of peace during the working day. It is worth considering, therefore, a clause restricting the noisy work to certain days or hours where this would not impose unreasonable costs on the building owner. It needs to be borne in mind, however, any restriction on when noisy work can be performed risks delaying the completion of the works as a whole. Moreover, hours that suit one adjoining owner may not suit the one on the other side.

It should be noted that any restrictions on timing in the award would bind the building owner only in relation to work under the party wall act; works on other parts of the site could proceed outside any agreed hours. But the noisiest works are likely to be those covered by the act, and a considerate building owner could normally be relied upon to restrict noisy work over the whole of the site.

The building owner may not install reinforced concrete foundations, called “special foundations” in section 7(4) of the party wall act, extending under the adjoining owner’s land (including under the party wall) without the adjoining owner’s express consent. It may in some circumstances be in the adjoining owner’s own interest to have his wall underpinned by special foundations, as they may provide greater stability, and if consent is given, this should be recorded in the award. However, if the adjoining owner does agree to special foundations, there may be future cost consequences, so agreement should not be given lightly. In particular:

If the adjoining owner, or a subsequent owner of his house, at some time in the future wants to build his own basement extension or do work adding to the load on the party wall, he may find that his costs are increased as a result of the existence of the special foundations. In such circumstances, section 11(10) of the act gives him a right to claim the extra costs back from the building owner. This right has no time limit, but if several years have passed and the building owner’s house has changed hands and there is no readily available evidence, it may not be that easy to exercise the right. So it may be advantageous for a condition of consent to be that the building owner should attach to the title deeds and or register with the land registry both the plans of the foundations and the agreement to allow them. This could form part of the party wall award. The adjoining owner should similarly attach this information to his deeds.

Another situation arises if the adjoining owner wants later to make use of special foundations for his own purposes, for instance for putting in his own extra floor. Section 11(11) of the act provides that if the special foundations have been financed solely by the building owner, he may then claim back a due proportion of the cost. If, therefore, the adjoining owner decides to consent to special foundations, he may wish to negotiate as a quid pro quo an agreement that the building owner and his successor will not exercise this right. Again this should be registered against the deeds.

If the adjoining owner does agree to special foundations, he has a right under section 4(1) of the act to require that they be placed at a greater depth than proposed, and/or that they be built to a greater strength than proposed to accommodate any building he has in mind to build later, using the foundations. He will need to serve a “counter notice” on the building owner to assert this right, and a description of what has been agreed should be recorded in the award. However, he would normally be expected to bear the cost of any work done purely for his convenience rather than because it is necessary for the stability of his building. The allocation of costs will normally also be dealt with in the party wall award.

The party wall act (section 4) also allows the adjoining owner, once he has been served with a party wall notice, to serve a "counter notice" to require the building owner to undertake additional works on the party wall, such as repairing or renewing chimney copings, breasts, jambs or flues, for his (the adjoining owner's) convenience (in practice decisions on such works will normally be taken by the surveyors when they are negotiating the award, but it will be for the owner to serve the "counter notice"). The party wall award should describe the agreed works and also set out how the costs (including the surveyors' fees) are to be allocated between the two owners. Generally, anything that is of benefit only to the adjoining owner is charged to him.

In the case of excavations, the act (section 6(3)) also provides for the building owner, either of his own volition or if required by the adjoining owner, to underpin or otherwise strengthen the foundations of the adjoining owner's building “so far as may be necessary”. This must be done at the building owner's expense. It is up to the surveyors to decide whether such work is necessary. If they do, the party wall award will describe the works that have been agreed.

If the building owner intends, as part of his works, to “lay open” the adjoining premises, for instance by demolishing a party wall so as to leave the adjoining owner’s building temporarily exposed to the elements, under section 7(3) of the party wall act he is required to take measures at his own expense to protect the adjoining owner’s building (for instance by hoarding or some other temporary construction, and possibly some arrangement for heating the adjoining owner’s premises). He must also under section 11(6) pay a “fair allowance in respect of disturbance and inconvenience” to the adjoining owner or occupier, and this should be provided for in the party wall award. It is rare for such laying open to be necessary, and there is no guidance as to what a fair allowance might be. If the adjoining owner can show that he will incur actual loss – e.g. that he needs to rent accommodation elsewhere because he cannot carry out some normal activity because of the laying open, it might be appropriate to base any allowance on the actual rental costs. Otherwise an amount might be awarded based on a notional rental value for the part of the building laid open.

Section 12(1) of the act provides that an adjoining owner may require the building owner to give security (e.g. in the form of funds in escrow) so as to provide protection if for example the building owner leaves the work unfinished, and the adjoining owner has to pay for expensive reconstruction work. Section 12(1) refers to work by the building owner “in the exercise of the rights conferred by this act”. Until recently, this was thought to exclude excavations on the building owner’s own property, even if they are covered by section 6 of the party wall act. The case of Kaye v. Lawrence (2010) has however established that an adjoining owner can request security against any works under the party wall act, including adjacent excavations.

Until recently the provision on giving security was little used. But following the Kaye v. Lawrence case, and with the increasing popularity of basement extensions in residential areas carrying the very real risk of damage to neighbouring properties, they have become increasingly common in party wall awards dealing with such extensions. The act is not very clear on what exactly the security can cover, and some surveyors have taken the view that it applies only to dealing with the consequences of the work on the site being left unfinished or badly done – e.g. leaving the adjoining building no longer weatherproof. However, many surveyors are comfortable with providing for the funds to be released only after any damage to the neighbouring property (as established by the surveyors) has been put right.

Security will not be appropriate in all cases. Such a request must be reasonable – i.e. there must be a good reason for supposing that such security may be needed, as there normally is in the case of underground excavations which carry a relatively high risk of damage to the adjoining buildings. Such security is likely to be particularly important when basement excavations are carried out by developers or companies rather than individuals, especially if they are based overseas.

There are various forms of security that can be considered. The most usual would be for the building owner to pay a sum into an independent bank account held jointly by the party wall surveyors or a firm of solicitors, so that the adjoining owner can be compensated for damage out of these funds should the building owner or his contractor be made bankrupt or be otherwise unable or unwilling to pay any sums awarded. It is usual for the party wall award to specify that the building owner will be responsible for any charges or fees arising from the administration of the account, and will also be entitled to any interest accruing on the funds lodged in the account.

The sum would need to be agreed between the surveyors, and will depend on the individual situation, but should represent a realistic estimate of the possible cost of remedial works. For potentially damaging works such as basement excavations under terraced houses, it would be reasonable to consider a worst case scenario of the work being abandoned and the neighbour having to enter the site to carry out works to protect against damage, or a major subsidence of the party wall. It should also take account of the state of the adjoining owner’s property. For instance, if the owner has recently had his house expensively redecorated to a very high standard, a greater provision would be appropriate than where the adjoining owner’s property has old and shabby decoration that is due for renewal anyway. Over the past few years it has become quite common for high value security to be provided in central London, in some cases in sums running to the hundreds of thousands of pounds.

When a firm of solicitors holds funds, the funds are normally releasable on demand by the person providing the security. So if the surveyors decide that the funds should be held by solicitors, it is advisable to ensure that there is a binding agreement that the funds cannot be released until at least two of the three surveyors agree.

Some damage may not become apparent until after completion of the works. It could be appropriate, therefore, to keep a portion of the funds in escrow for six months or a year after completion of the works if such subsequent damage (e.g. widening of cracks) is thought at all likely – although not all surveyors will agree to this. It would also be appropriate in such cases to provide for monitoring to continue during that period.

Where the work is being undertaken by a subsidiary company, if the parent company is a large and well-resourced firm, an alternative to a bank deposit or escrow account might be to require a parent company guarantee.

It should be noted that, where an adjoining owner requires the building owner to carry out extra works for his convenience, the building owner can ask for similar security under section 12(2) of the act.

Especially (but not only) when no security has been arranged, it is usual in party wall awards to require the building owner to have appropriate insurance in place. This should be an all risks policy and should cover not just the main contractor but any works undertaken by sub-contractors (as in complicated basement developments some of the work is almost invariably sub-contracted out). It may be worth specifying that the policy should be a “JCT 6.5.1 or 21.2.1” policy under the JCT standard building contract for minor works, which avoids the need to prove negligence by the contractor, although there is no right to insist on this.

In cases of potentially damaging works, it may also be advisable to provide for the adjoining owner to be able to claim directly on the insurance policy taken out by the building owner or his contractor to cover the works, so as to avoid having to rely on the building owner having to make a claim before the adjoining owner can be paid. There has been at least one case where a building owner based outside UK jurisdiction simply refused to make a claim under his policy. This again can form part of the party wall award.

It is usual for the party wall award to include a number of general clauses specifying that the building owner must:

• Execute the works so as to avoid any unnecessary inconvenience to the adjoining owner or occupier. The words “unnecessary inconvenience” reflect section 7(1) of the act which says that “a building owner shall not exercise any right conferred on him under this act in such a manner or at such a time as to cause unnecessary inconvenience to any adjoining owner or occupier.”

• Pay all the costs of the works, including any statutory fees; observe the building regulations and any other statutory requirements;

• Undertake all work in a in a proper and workmanlike manner in sound and suitable materials in accordance with the terms of the award, to the reasonable satisfaction of the appointed surveyors.

• Take all reasonable precautions and provide all necessary support to uphold and retain the adjoining owner’s land and buildings.

• Hold the adjoining owner free from liability for any injury or loss of life to any person or damage caused by, or in consequence of the execution of the works.

Particularly in the case of subterranean development, some more specific clauses may be judged appropriate, for instance requiring the building owner to:

• Arrange monitoring of the effect of movement as a result of the works on the adjoining owner’s building (for instance monitoring any cracks in the neighbouring property) both before the works begin (to establish a baseline) and during the course of the works and for a period of say six months following completion of the works, the results of the monitoring should be made regularly available to the adjoining owner’s surveyor;
  
  
• Make good the faces of any walls of the adjoining building which are exposed by pulling down and not covered by rebuilding;
  
  
• Fill any voids occurring under foundations with concrete;
  
  
• [Where there is any risk to drains] arrange for a CCTV survey to be prepared of the adjoining owner’s drains before the work begins and then again on completion of the works and make the report available to the said surveyors. In some cases it may also be appropriate to require all old drains, wells and cesspools to be traced and emptied;
  
  
• [Where works are in a flood-risk area, or near the water table, or near local underground springs or streams] take appropriate measures to protect the adjoining owner’s property from water damage during the construction.

Although it is impossible to guarantee that any works will cause only minimal damage, as so many unexpected factors can arise during the construction phase, most surveyors would expect that the project should be designed to avoid other than “very slight” or “level 1” damage (1mm) on a recognised scale of structural damage. For particularly large and risky subterranean developments, however, there is always a risk that events during construction will cause greater damage. It may be sensible, therefore, to insert into the party wall award a requirement for monitoring and for trigger points which would require the works to be reassessed if damage exceeded a certain level, say +/-5mm.

The act (section 8) provides for certain rights of entry for both parties, and this is normally dealt with in the party wall award.

During the works, the building owner or his workmen and contractors can during normal working hours enter the adjoining owner’s land insofar as this is necessary for the execution of the works or for removing “furniture or fittings” – this could be anything from removing flowerpots out of the way of the work to erecting or dismantling protective screens. It is generally accepted that the building owner can erect scaffolding on the neighbour’s land if it is necessary, but must remove it as soon as it is no longer needed. Before entering the adjoining owner’s property, notice must be given. Details of access should be determined by the appointed surveyors when agreeing an award, and should include such restrictions and safeguards as are necessary to protect the adjoining owner. Note that the right of access only applies to works under the act; if the neighbour needs access to the adjoining owner’s premises for works on parts of his property not covered by the party wall award, he will need to proceed under the Access to Neighbouring Land Act 1992. This allows a person to apply to the county court for an access order allowing him to enter his neighbour's land to carry out repairs – although normally the necessary access is negotiated in a friendly fashion between the neighbours.

The party wall surveyors appointed by the two owners (including the third surveyor) must also be given access to the adjoining owner’s premises to carry out their duties, again after giving appropriate notice (section 8(5) and (6)), and this too should be dealt with in the award.

Given that there have been complaints about contractors unnecessarily entering the adjoining owner’s premises (e.g. taking a short cut across a garden), and about contractors blocking access to garages etc., it is sensible for the party wall award to spell out the requirement on the building owner to carry out the works, so far as is practicable, from his side of the boundary; and to give reasonable notice when access is required to the adjoining owner’s premises (the standard notice is 14 days except in emergencies). Note that a reasonable right of access cannot be refused under the act.

Other standard clauses should make clear that the building owner’s surveyor shall be permitted access to the adjoining owner’s property from time to time during the progress of the works at reasonable times and after giving reasonable notice in accordance with the act (again 14 days is normal); and that the adjoining owner’s surveyor shall have access to the building owner’s premises at all reasonable times during the progress of the works.

In accordance with the act, the party wall award will include a clause requiring the building owner to make good all structural and/or decorative damage to the adjoining owner’s property in materials to match the existing works and of at least the same standard. It is normal to specify that the manner and timing of any such making good shall be agreed by the adjoining owner. If the adjoining owner so requests, payment can be made in lieu of carrying out the work to remedy the damage. It is for the surveyors to agree on what damage has been caused by the works and also, if payment is to be made in lieu, to decide how much this should be.

If the party wall has a window or vent or other opening in it, or for instance eaves, this may constitute an easement which cannot be interfered with under the act, so the building owner is obliged to reinstate these features if the adjoining owner wishes to retain them. In such circumstances the party wall award may specifically require the building owner to reinstate all windows, vents and eaves in the party wall.

Normally, damage to the adjoining owner’s property is repaired only when the works are completed. There may be a case, however, for certain types of damage to be repaired immediately they occur. It may therefore be appropriate to agree that, if the works cause damage to doors or windows so that they no longer function effectively or if the works cause any part of the adjoining owner’s property to cease to be weather-proof, or if any part of the adjoining property is left in a dangerous condition, the building owner shall, if the adjoining owner so requests, effect the necessary repairs to restore full functionality, weatherproofing and/or safety, including making good, as soon as is practicable after the damage becomes apparent.

If the building owner needs to use the neighbour’s garden to get access to his works, he may cause quite a lot of damage to the garden. Even if he does not need access, the dust and noise from building works can kill plants and render the adjoining owner’s garden unusable for extended periods of time. So it is appropriate for the award to include provisions to protect the garden as far as possible, e.g. by moving flower-pots or even transplanting plants in advance of the works (although again there could be problems about including such a clause if other work is being done on the site and that is partly responsible for the dust etc). It would also be appropriate to provide that any plants, flower-pots or other garden furniture damaged as a result of the works should be replaced by like plants, shrubs and trees, or other plants or furniture, a of equivalent cost as agreed by the adjoining owner, at the completion of the works. Provision should also be made if appropriate for lawns to be reinstated and topsoil replaced. But the surveyors would as always apply a test of reasonableness in deciding what should be required.

Section 7(2) of the act which requires the building owner to compensate adjoining owners and occupiers “for any loss or damage which may result to any of them by reason of any work executed in pursuance of this act.” To reflect this, it is standard practice for awards to include a clause to the effect that the building owner shall pay the adjoining owner’s costs for loss incurred as a result of the building owner’s works, the costs to be determined by the surveyors. This clause covers loss or damage other than the damage to the adjoining owner’s building, which is covered by the “making good” provisions.

However, proving loss or damage is not straightforward. First it has to be proved that it is due to the works carried out under the act and not those for instance on another part of the building site (although in practice, if the main work is the construction of a basement within the distances laid down by the act, it can be argued that without the work falling within the act the project would not have gone forward and therefore the loss can be attributed to it).

The authorities are also divided on what constitutes loss. The RICS guidance suggests that the adjoining owner must have experienced an actual loss or damage rather than simply an inconvenience, and that the loss must also be capable of quantification (i.e. in financial terms) by the surveyors. Bickford-Smith and Sydenham (party walls: law and practice), on the other hand, tentatively suggest that it might be possible to claim for non-tangible losses such as loss of a beautiful view when a wall is raised. The Pyramus and Thisbe Club (the party wall act explained) suggests that it is not possible to claim, for example, for loss of trade caused by the building site next door, but a claim could be made for the closure of a business (this view is presumably based on the 1907 case of Adams v. Borough of Marylebone where the judge said that loss of business was not good enough). Frame (party wall etc. act 1996 – misunderstandings and guidance), on the other hand, considers that loss of business could be covered and Bickford-Smith and Sydenham consider the provision wide enough to cover “interference” with a business carried out next door, or loss of a chance to sell a property advantageously.

Not surprisingly in the light of these differing views, different surveyors adopt different approaches. But the following are the sorts of cases where some surveyors may feel that it is appropriate to provide for compensation for loss, albeit only in extreme circumstances. In all cases, however, it would need to be proved that the problem arose because of the work being carried out under the party wall act.

Compensation for adjoining owner or occupier normally working from home having to rent an office or suitable alternative accommodation elsewhere. However, this would normally be awarded only in extreme cases. Frame (party wall etc. act 1996 – misunderstandings and guidance) quotes a case where the adjoining owner was a writer who needed a very quiet environment in which to work. The surveyors awarded compensation in recognition of the fact that he had to move to alternative accommodation during the noisy part of the works. A reasonable building owner should accept that this is necessary, at least for certain types of work, and might be prepared to reach a voluntary agreement with the adjoining owner, as the extra expense would be small compared to the costs of the work.

Compensation for loss of earnings. Eileen Kelliher v. Ash Estates Ltd and Normand Developments Ltd [2013] established that in principle loss of earnings can be claimed (the claimant’s case was that unnecessary delay and disturbance had delayed her recovery from convalescence after a serious illness; the judge did not consider her claim proved on the facts of the case, but agreed that loss of earnings could be claimed under s.7(2) of the party wall act).

Compensation for alternative accommodation. This is not normally provided, but might be considered by some party wall surveyors in extreme circumstances, for instance in the case of particularly frail occupants of adjoining property such as invalids and the very elderly (we know of at least one case where the two years of noise associated with a basement development is believed to have hastened the death of the elderly lady living next door).

Compensation if the adjoining premises would normally have been rented out but where for instance the tenant has terminated his lease as a result of the work, and the property cannot be relet or can only be let at a lower than normal rent because of the works. This would be based on an assessment of the rental income foregone. To prove what that income might be, it might be necessary to put the premises on the market at a normal rent and to show that there were no takers. If a tenant gave notice because of the noise, that also would be a good proof of the problem.

Compensation for loss of use of adjoining owner’s premises for some regular purpose for which the owner is paid (examples might be where the premises are rented out to film companies for use as a set, or the garden is regularly opened for charity). Again, proof might be required. If there was an actual advance booking that was cancelled because of the works, or it can be shown that the garden is regularly opened at a certain time of year, the situation should be reasonably simple. It would be more difficult if it cannot be proved that there definitely would have been a booking.

Compensation for losses associated with not being able to sell the property while the works are going on. There would need to be evidence that the owner was planning to sell, or that an event had arisen during the works making a sale imperative. The compensation could also only cover the costs of the sale being delayed – e.g. interest foregone on the sum for which the house would have sold – unless it can be proved that the adjoining owner had been deprived of an opportunity to sell the property at a higher price than he would otherwise have achieved. In the case of an unoccupied property, e.g. one that has been recently inherited by the adjoining owner, it might be possible to claim expenses associated with the delay of the sale – e.g. council tax and maintenance. Generally, however, there would be considerable difficulties in working out what compensation would be appropriate.

Compensation at a weekly rate for loss of use of the garden as a result of the works, for instance because of noise or dust. We know of at least one case where this has been awarded. The compensation could be restricted to those parts of the year when the owner could reasonably expect to be using the garden, e.g. April to October. It could also be restricted to for instance the back garden, as most people do not use their front garden for sitting etc.

This is difficult territory, however. It is often better, therefore, to appeal to the better nature of the building owner and to come to a separate arrangement over compensation for such losses – the cost of which would only be a tiny fraction of the cost of a major basement extension. Compensation for adjoining owner to live elsewhere if his house is rendered temporarily uninhabitable by works to repair damages caused by works under the act is likely to be more easily negotiated and could be covered in an addendum award.

One minor problem is the setting off of burglar alarms on adjoining premises by vibration from the works. The costs to the adjoining owner of calling out a key-holding company are something that could be claimed.

It is normal for the award to make clear that the building owner shall bear the costs of the making of any justified claims by the adjoining owner under the party wall award.

Note that there is court authority that surveyors cannot award costs of legal proceedings, or of draft proceedings for nuisance which have not actually been issued. However, the adjoining owner’s costs of taking legal advice in relation to the party wall aspects is capable of being validly included in an award.

Unfortunately one item for which no compensation is payable is the time that adjoining owners need to spend on administration dealing with the works next door. This can be enormous and can really interfere with someone’s working life.