The TFT Dilapidations Flowcharts are an industry first. They explain and demystify the various steps involved in a typical end-of-lease dilapidations dispute, identifying how a dilapidations liability is calculated. For the first time, complex issues such as the classification of fixtures and chattels, the reinstatement of alterations and disrepair are explained visually. The dilapidations dispute resolution process and options are also identified.
We hope the TFT Dilapidations Flowcharts will become a useful industry-standard resource for both clients and other surveyors to help improve the dilapidations process. At present, partly because dilapidations disputes can be highly complicated but partly also because many who dabble in dilapidations do not know the background to the issues, dilapidations disputes can become contentious, costly and time consuming. The TFT Dilapidations Flowcharts are part of our effort to improve this area of practice.
Repair covenants – often a brief but critical piece of wording
In his article first published by RICS in the December 13/January 14 issue of Building Surveying Journal, Neil Gilbert, Partner and Head of Dilapidations at Tuffin Ferraby Taylor explains the definitions behind lease repair covenants and the need for brief but accurately written repair covenants. Surveyors need to understand the implications and underlying meanings behind the wording as the detail and theme of the covenant can be easily missed.
UK Dilapidations claims outside of England and Wales can be a minefield for the unwary. Dealing with dilapidations claims on a nationwide basis calls for a much broader understanding.
TFT’s new white paper: ‘How Dilapidations differ across the UK – an outline of the regional variations’ addresses the differing obligations and terminology applicable in Scotland, Northern Ireland and the Channel Isles.
A good example is the very recent Jersey Sports Stadium v Barclay Private Clients (2013) case passed in the Jersey Royal Court which saw the court considering the cost of works and the diminution in value and preferring the guidance given in Ruxley v Forsyth (1996) over that in Joyner v Weeks. This is an essential piece for anyone involved with commercial leases outside England or Wales.
The PLA Dilapidations Protocol sets out to avoid litigation and yet three cases have recently come to court. They all test established dilapidations principles and their outcome will interest anyone involved in this area.
We have produced a new TFT White Paper on the first of these, the Hammersmatch Properties v St Gobain case, which is highly interesting as it reiterates the appropriate measures and remedies for disrepair whilst focusing on the need for robust valuation advice.
Following on the heels of recent dilapidations claims which have come to court, this case, Twinmar Holdings Ltd v Klarius UK Ltd, provides useful guidance when claiming damages for terminal dilapidations and serves as a reminder that disrepair cannot always be pre-determined by obvious failure.
On 1 January 2012 the Dilapidations Protocol was adopted as a formal pre-action protocol under the Civil Procedure Rules. From this date onwards all dilapidations surveyors must adhere to its principles and requirements, and a failure to do so will result in cost sanctions.