In this week’s property surveying blogpost, we are going to be discussing enclosure costs, also known as making use costs, and when they are applicable under the Party Wall etc. Act 1996.
The Party Wall etc. Act 1996 sets out a specific provision whereby, if a building owner, who is commonly the party undertaking the costs, is undertaking works that gain the benefit of a structure or wall that the adjoining owner, who is commonly the neighbouring owner, has built in the past, the Act ensures that the adjoining owner is reimbursed for the costs of the original wall or structure’s construction.
The logic behind this is that the adjoining owner would have originally paid 100% of the costs of that wall at the time of their construction and therefore by using the wall the building owner is gaining the benefit of the adjoining owner’s past expense.
The Party Wall etc. Act 1996 ensures that the adjoining owner is properly reimbursed for these costs, to ensure that they are not left out of pocket. The party wall surveying procedures will see the cost of the square metreage of the wall that is being used calculated and then agreed in a Party Wall Award.
Once the cost has been agreed by either the agreed party wall surveyor, or the two party wall surveyors, the payment which will form part of the Party Wall Award will then usually be paid directly by the building owner to the adjoining owner to ensure that the financial balance is level.
Enclosure costs, or making good costs as they are referred to in the Party Wall etc. Act 1996, are a common and often hotly disputed and misunderstood area of the Party Wall etc. Act 1996, therefore ensuring that you have an experienced and qualified party wall surveyor acting on your behalf is imperative to ensure that you are given the best representation when it comes to quantifying the financial cost of the construction.
Here at Stokemont, we recommend two types of calculation, the first being the use of a BCIS calculator, which is the RICS designed construction indices. This ensures that the costs are fair, reasonable, and an arm’s length assessment.
The second is the use of contractor quotation, however, generally speaking here at Stokemont we prefer to not use this type of approach, as ultimately it places quoting contractors out of pocket for physically visiting the property and providing a quote for work that they will never need to do.
If you are planning on undertaking an extension and believe you may be enclosing upon your neighbour’s wall, or your neighbour is planning on undertaking an extension and you believe they may be enclosing on yours, give our team of experienced and qualified party wall surveyors a call now and we will be more than happy to discuss the specific making use costs relevant to your property directly.
