In today’s Property Surveying blog, we are going to be taking a look at party wall surveying procedures. We are going to be looking at the Party Wall etc Act 1996, and the allowances that Section 10 of the Act gives a party wall surveyor in respect of fee and cost recovery.
If you are reading this blogpost, undoubtedly you are either planning on undertaking construction works, whereby you have been informed that these works fall within the realm of the Party Wall etc Act 1996. Alternatively, you are likely to be an adjoining owner, whose property borders and adjoins these proposed and planned party wall construction works.
Party wall surveying procedures are in place under statute to ensure that there is a protocol and process for which certain types of construction works throughout England and Wales, to all types of properties are governed and handled.
There are a number of other blogs on our property surveying blog page that deal with the type of works that fall within the realm of the Party Wall etc Act 1996, therefore if you are still unsure of these, we would advise having a full read of these posts, or perhaps of our informative page on our website, so that you are fully abreast of them.
Section 10 of the Party Wall etc Act 1996 confirms as follows:
Where a dispute arises or is deemed to have arisen between a building owner and an adjoining owner in respect of any matter connected with any work to which this Act relates either—
(a) both parties shall concur in the appointment of one surveyor (in this section referred to as an “agreed surveyor”); or
(b) each party shall appoint a surveyor and the two surveyors so appointed shall forthwith select a third surveyor (all of whom are in this section referred to as “the three surveyors”).
In layman’s terms, this means that a party wall surveyor has the legal right to be appointed under statute when a building owner serves a Party Wall Notice for their planned party wall construction works.
One of the most typical questions that surrounds party wall works, usually from a building owner, is who is responsible for the party wall surveyor’s fees and costs.
We can categorically confirm, that in almost all cases, in fact in every case we have ever handled, it is the building owner who is legally responsible to bear and cover the party wall surveyor, or party wall surveyor’s reasonable costs and fees.
The simple logic and standing behind this, is that it would be unreasonable and unfair to expect an adjoining owner to cover the cost of a party wall surveyor, for works that bear a risk to their property and do not benefit their property.
There are, generally speaking, a number of different types of party wall surveyor fees that can become applicable, and very much depend upon the party wall scenarios and procedures that take place.
We are now going to take a brief look at these, so that you are fully advised and informed of the potential cost liability you can have if you are indeed a building owner. Or if you are an adjoining owner, the types of costs and fees, that your neighbour, the building owner, is likely to incur by progressing through the Party Wall etc Act 1996 procedures.
Party Wall Surveyor Fees
Upon the receipt of a Party Wall Notice served by the building owner upon the adjoining owner, the adjoining owner will have the legal right to dissent to the Party Wall Notice, with that dissent being followed by the appointment of a party wall surveyor.
Once formally appointed in writing, the party wall surveyor’s role will be to look at the building owner’s planned works from the perspective of the adjoining owner’s property.
Procedures such as:
- Party Wall Notice review
- Architectural plans and drawings review
- Structural plans and drawings review
- Contractor Method Statement review
- Schedule of Condition report undertaking
- Correspondence with building owner’s Design and Construction Team
- Agreement of a Party Wall Award
- Post-construction Schedule of Condition report check-off
These are all likely to take place in some shape or form.
The ultimate aim for the party wall surveyor will be to ensure that the risks and nuisances associated with the building owner’s planned party wall construction works are at the lowest possible level that they can be.
In fulfilling this duty and undertaking this role, naturally the party wall surveyor is going to incur billable time for which upon completion of the role, the building owner will need to bear the reasonably cost of.
It is important to note that if indeed the adjoining owner opts or puts forward the confirmation that they would like the party wall surveyor they have appointed to act wholly on their behalf, the building owner will also need to appoint their own party wall surveyor to liaise and correspond with their neighbour’s surveyor.
Agreed Party Wall Surveyor Fees and Costs
Another potential scenario and option that a building owner could find themselves liable for is an agreed party wall surveyor.
It should be worth noting that an agreed party wall surveyor is not an additional cost that they building owner will incur above and beyond that mentioned above. Instead, an agreed surveyor will act jointly, mutually and impartially on behalf of both the building owner and adjoining owner.
This will be in place of the building owner and adjoining owner having their own respective party wall surveyors.
As set out above, the agreed surveyor is going to undertake all of the same bullet-pointed processes and procedures as a single party wall surveyor would.
The key distinction and difference being that they act on behalf of both owners, as opposed to one (building owner or adjoining owner).
For a building owner, an agreed party wall surveyor appointment is more beneficial through the perspective of cost than a two party wall surveyor scenario.
Obviously, this would mean that the building owner only needs to bear the cost of a single agreed party wall surveyor’s fee, as opposed to two respective party wall surveyor fees.
Third Surveyor Fees and Costs
The next scenario whereby a building owner, and potentially an adjoining owner, could be liable for party wall surveyor fees and costs, is that of a third surveyor.
Third surveyors will only apply in the first option that we have discussed in this blogpost, whereby there are two different types of party wall surveyors onboard.
The first point of agreement and resolution that those two party wall surveyors will undertake and achieve is the selection of a third party wall surveyor.
The third party wall surveyor is only going to be in place to resolve any dispute and issue that can arise between the two respective party wall surveyors (building owner’s party wall surveyor and adjoining owner’s party wall surveyor).
The logic and consideration that the Party Wall etc Act 1996 has given here, is that if a third surveyor was not selected, any dispute between the respective surveyors would likely result in a stalemate.
Third party wall surveyor referrals are in all normal situations a relatively rear undertaking, and over the years here at Stokemont, there are usually less than a handful of tiles that find themselves needing the input and resolution of a third surveyor.
That being said, if indeed there is a matter of dispute between the two respective party wall surveyors, the third surveyor can be called upon to step in, advise and ultimately resolve.
Unlike the two fee scenarios above, the third surveyor’s costs are very much open for either the building owner, or adjoining owner to bear the cost of.
Much like any legal dispute, it will be the side whose case and argument is unsuccessful who bears the third surveyor’s fees.
It is, however, down to the third surveyor to determine and decide who should bear his or her reasonable fees and costs. Therefore, we would advise that careful consideration is given to third surveyor referrals, as they do indeed carry cost liability for both parties (building owner and adjoining owner).
These three different options tend to be the overall limitation to what a building owner can expect to incur in respect of fees and costs during the party wall surveying procedures and administration of the Party Wall etc Act 1996.
There are other scenarios whereby costs can be incurred, however generally speaking these tend to be reserved for your structurally-complex construction works, or alternatively for those works that may require specialist input from external parties.
We are now going to look at these different types of fees and costs, so that you are fully abreast of these.
Advising Structural Engineers
Inviting structural engineer costs can also apply, with the building owner having to bear the reasonable cost and expense of these.
It is imperative to note, that this cost will only arise on jobs of significant structural complexity, usually basement extensions, building demolition and other high-risk forms of construction work.
The logic and guidance that the party wall surveyor is given in requesting the appointment of an advising engineer, is one of formal advice through the eyes of the structural design.
The aim of the advice being to ensure that the adjoining owner’s party wall surveyor is fully abreast of all information that the advising engineer will advise them of, so that they can make an informed Party Wall Award befitting the works that are taking place.
If indeed, advising engineer fees are applicable, the party wall surveyor is going to make the building owner well aware of that at an early stage.
This will ensure that they are able to budget for these additional fees and costs, while also giving their own design engineer the ‘heads-up’ that there is going to be additional cost and discussion with the party wall surveyor’s engineer.
Security for Expenses
Security for expenses is set out by Section 12 of the Party Wall etc Act 1996 as follows:
An adjoining owner may serve a notice requiring the building owner before he begins any work in the exercise of the rights conferred by this Act to give such security as may be agreed between the owners or in the event of dispute determined in accordance with section 10.
Security for expenses gives the adjoining owner the legal right to request a sum of money to be held on account during the course of the construction works.
It is important to note that the construction works will only relate to those works that fall within the realm of the Party Wall etc Act 1996.
The building owner will need to bear the cost of the security for expenses, the logic being that the adjoining owner has some form of buffer or protection against a scenario whereby works start and for whatever reason are delayed, paused, called off or abandoned.
If this was the scenario that came into play, the adjoining owner would be able to call upon that sum of money (the security), to ensure that their property is safeguarded and put back to its former standing.
As with advising engineer fees and cost, security for expenses does tend to be relatively rear. In our experience here at Stokemont it tends to be reserved for those jobs that involve risk beyond the spectrum of the norm to the adjoining owner.
These naturally tend to things like basement extensions, deep excavations in very close proximity to the adjoining owner’s property, or the need to demolish structures on the adjoining owner’s land such as fences, walls, or other similar structures.
Making Use/Enclosure Costs
The final type of cost and fee that a building owner could find themselves liable for is making use, also commonly referred to as enclosure costs.
Under Section 11(11) of the Party Wall etc Act 1996, as follows:
Where use is subsequently made by the adjoining owner of work carried out solely at the expense of the building owner the adjoining owner shall pay a due proportion of the expenses incurred by the building owner in carrying out that work; and for this purpose he shall be taken to have incurred expenses calculated by reference to what the cost of the work would be if it were carried out at the time when that subsequent use is made.
A building owner will need to pay an adjoining owner a sum of money if indeed they are planning on making use of a party wall that the adjoining owner has built in the past.
The logic behind this is that the enclosure cost and fee reimburse the adjoining owner for the cost of the wall that the building owner is now going to be using.
Here at Stokemont, we would advise looking at this as a saving rather than a cost. Ultimately, if the wall was an in situ, the building owner would be paying the full cost of its build as opposed to half of its build, albeit that half is going directly to the adjoining owner, as opposed to a contractor.
Section 11(11) of the Party Wall etc Act 1996 is in place to ensure that adjoining owners are reimbursed for costs that they have incurred in the past, naturally balancing the scales and ensuring that the building owner does not get the benefit of a free wall for use in their planned works.
Party wall surveying fees and costs are naturally always going to be a bone of contention with building owners. A building owner is going to want to limit their financial exposure during the course of their planned construction works, which is altogether natural and to be expected.
The fees and costs that the Party Wall etc Act 1996 sets out are very much in place to ensure that proper procedures and considerations are in place, ultimately reducing risk of damage, and ensuring that the adjoining owner’s property is fully considered.
If you would like to discuss your party wall surveying procedures with out team of party wall surveyors, or perhaps you would like to discuss specific fee scenarios with us, please feel free to give us a call today or pop us an email and we will be more than happy to assist and advise you.
