A large dilapidations claim can be difficult to assess, particularly when a schedule contains dozens of repair, redecoration and reinstatement items.
The first mistake is often assuming that the figure at the bottom of the schedule is automatically the amount that must be paid.
Start with the lease
The lease should be the starting point.
A surveyor should consider the relevant repairing, decorating, reinstatement and other obligations before assessing whether the items in the schedule are actually supported by the tenant’s contractual obligations.
Not every defect in a commercial property is necessarily a dilapidations liability.
Check the condition of the property
The condition of the property should be considered against the alleged breaches.
This may involve inspecting:
- Internal areas.
- External elevations.
- Roofs and rainwater goods.
- Floors, walls and ceilings.
- Windows and doors.
- Services where relevant.
- Tenant alterations and installations.
The purpose is not simply to repeat the landlord’s schedule but to establish whether the identified items are supported by the available evidence.
Are the proposed works reasonable?
The scope of works can make a significant difference to the value of a claim.
For example, a landlord may propose extensive replacement when more limited repair may reasonably address the breach.
A surveyor can assess the technical scope and provide an opinion on appropriate remedial works.
What about the costs?
The claimed cost of works should also be considered.
Depending on the circumstances, this may involve reviewing quotations, rates or other cost evidence.
A surveyor’s role is not necessarily to provide a contractor’s tender, but to provide an informed assessment of the likely scope and reasonable cost of the relevant works.
Should you negotiate straight away?
It can be better to understand the technical basis of a claim before entering into detailed negotiations.
An independent assessment can identify which items appear well-founded, which require clarification and where there may be genuine disagreement.
This can make subsequent negotiations more focused.
Stokemont’s advice
If a dilapidations claim appears excessive, do not simply argue about the total figure.
Break the claim down into its individual components and assess each item against the lease, the property’s condition and the proposed remedial works.
