Disclaimer:
Please note that this
general guidance only, and should not be relied on for specific matters or
points of law.
All costs and fees
quoted are approximate and based on current prices based at time of writing.
Raised party wall - London Photograph by Bernard Humphrey-Gaskin |
Following points need to be considered by Building Owners when undertaking building works that come under the jurisdiction of the Party Wall etc Act 1996 (the “Act”). Please note that the list below is not exhaustive, as issues could arise differently on specific cases, and other areas and sections of the Act or case law may become prevalent:
NB: Party wall surveyors
are meant to be impartial, non-bias and appointed to resolve disputes for
matters under the Act
1. All building works that come under the “Act”, should allow
for in their budgets the costs for party wall negotiations. For general
guidance only, allow for the following:
.1 Surveyor to the Building Owner (BOS):
a. 1 to 2 hours work per adjoining owner for service of notices. This
would include land registry searches, preparing notices and serving notices.
(eg: a
property with five adjoining owners, could have hours serving notices in the
range of 5 to 10 hours work).
b. 8 to 10 hours works per adjoining owner for party wall
negotiations, preparing Schedule of Condition, the Award and publishing the
Award.
(eg: a
property with five adjoining owners, could have party wall negotiations in the
range of 40 to 50 hours work).
c.
1 to 2 hours works per adjoining owner following publication of
Awards for general issues and sign off, assuming NO damage has occurred.
.2 Surveyor to the Adjoining Owner (AOS):
a. 6 to 10 hours works per adjoining owner for party wall negotiations,
preparing Schedule of Condition, the Award and publishing the Award.
(nb: an
adjoining owners surveyor that deals with more than one adjoining owner, would
naturally charge more)
b.
The adjoining surveyor would normally have his costs written into
the Award, which would allow for a sign off.
c.
Sometimes, depending on the nature of the works, an interim visit
would also be costed into the Awards, in such circumstances allow for a further
1 to 2 hours.
d.
Additional fees and costs are always allowed for in the Award for
damage, based on hourly rates.
.3 Hourly rates for party wall surveyors currently vary from:
100 to 150 £/hr generally, although there are some surveyors in London charging
upto £275 £/hr and more. The Act states reasonable costs (thus including the
surveyors fees), which really depends on what is determined as reasonable.
Hence Adjoining Surveyors fees (currently) could range from £600 to £1500 £/hr
per adjoining owner. The fees for the Building Owners surveyors fees are agreed
by contract, and are based on hourly rates.
.4 Hence, projects that have two Adjoining Owners, one each
side (i.e: terraced house) could give rise to the following current party wall
costs (fees):
BOS = £ 2250 to £ 3000 + VAT (based on my fees at £125 £/hr +VAT )
AOS = £ 1200 to £ 3000 +
VAT (ie: two surveyors)
Please note that projects beside flats would have greater number
of adjoining owners and the costs (fees) would reflect this, although my fees
are mitigated slightly by duplication of Awards etc, but they normally are higher
especially if each adjoining owner decides to use their own surveyor.
2. Schedule of Conditions (SOC).
.1 Schedule of Conditions are not a
requirement or obligation under the Act.
.2 It would be upto the party wall surveyors to determine the
dispute and any damage that may result as a result of the undertaking of the
works. Hence, it is prima facia evidence that damage has occurred if it can be compared
to a SOC that has been undertaken, and normally placed in the Award prior to
the works starting.
.3 The surveyors would not normally wish to do a SOC for areas
that appear remote from the works, or the works involved are of a minor nature.
.4 Just because the SOC has not recorded an area that was later
claimed to be damaged, this does not remove the obligation for putting right
that damage by the Building Owner (BO).
It is down to the surveyors under the Act to determine whether the damage was
as a result of the works, quite often it is assumed that it is, unless some
other compelling evidence can be given to the contrary.
.5 If the nature of the works change in any way, then the
Building Owner should inform the surveyors, as what was previously not considered
within the SOC may now need to be included.
3. All building works that come under the “Act”, should allow
for the possibility of damage.
.1 It is not easy to assess costs prior to the damage occurring,
as this will depend on the damage that has resulted from the works.
.2 It is the responsibility of the Building Owner to either pay
for, or get the damage put right. i.e: The Building Owner, cannot claim that
they are awaiting costs or insurance pay out from the contractor prior to
putting the damage right.
.3 It is within the rights of the adjoining owners to ask for
money in lieu payments. This is normally written within the Award as a reminder
of this right under the Act. It is becoming more frequent that the adjoining
owners are preferring to ask for money in lieu, instead of having the
contractor who undertook the works and (in their eyes) caused the damage, to
undertake the repairs.
.4 Surveyors costs will be charged at an hourly rate, so
protracting or delaying the issue of dealing with the damage could only incur
additional costs (fees).
.5 Normally, a schedule of damage and making good is undertaken
by the surveyors at additional costs (fees).
.6 Normally the adjoining owners get their own prices in for
the surveyors to agree. I always want three quotes to be given. I do like the
Building Owner to arrange for another independent person to quote. The prices
for making good have to be reasonable, and therefore I generally find that the
contractor that caused the damage can never really provide a reasonable cost to
put it right, after all we are looking at money in lieu, and not for him to put
it right.
.7 Normally, it is better to agree amicably the payment in lieu,
otherwise another Award will be written to determine this, and upheld in the
courts if necessary, and thereby causing additional costs and fees.
4. It is advisable that the works to be undertaken under the
“Act” are clearly defined on the drawings.
.1 Confusing drawings, with discrepancies or which are poorly coordinated
will cause a lack of confidence in the works that are to be undertaken. This
will cause additional time by the surveyors and it will be reflected in the
fees charged.
.2 Also certain types of structural work (i.e: underpinning,
piling etc), could result in additional costs (fees) from the adjoining
surveyors appointing independent structural engineers to check the proposals.
It is the design structural engineer's responsibility to come up with proposals
that are best suited for structural work in relation to the Party Wall Act that
and would best suit their client.
.3 The Awards need to reflect the actual works to be
undertaken. Any changes in the proposed works may require new or additional
notices, and/or agreements and/or Awards. Hence, the surveyors should be informed
of any intended changes immediately. Again this will be reflected in the costs
(fees) of the surveyors.
.4 It is not the job or the responsibility of the surveyors to
undertake the design. Their responsibility is to resolve the dispute (or deemed
dispute) between the Building Owner and Adjoining Owner (AO), as result of the
proposed works shown on the Notices (i.e: with drawings attached), or that has
been undertaken in pursuant of the Act (whether a notice has been served or not),
in order to determine damage or other matters (eg: security, enclosure costs
etc)
5. Site plans, indicating adjoining buildings / adjoining
owners.
.1 It would be very useful if all designers provide a "to
scale" drawing indicating the site boundaries, boundary walls, boundary
party walls and nearby buildings, including those to the rear and sides, and
the exact location of the proposed works related to these other structures and
buildings.
.2 It would be very useful if the Building Owner or the design
team discover as much out as possible as regards the adjoining properties and
owners, as this will save time and costs in the serving of notices.
6. Special foundations
.1
These are basically reinforced
foundations.
.2 It appears to be common practice in basement works, that the
structural engineer proposes special foundations.
.3 The Building Owner has no right to place special foundations
on the adjoining owners land without written consent to do so by the adjoining
owner. If consent is not given then the foundation works need to be undertaken
using wider, mass filled foundations without reinforcements.
.4 If special foundations are allowed, and the adjoining owner
subsequently decides to undertake their own works to which the special
foundations cause additional costs, then the Adjoining Owners can claim for
these costs against the Building Owner.
7. Enclosure costs
.1 If the adjoining owner had already extended the party wall,
either raised it or even lowered it (i.e: basement construction), then the
building owner shall pay for the privilege of using it (enclosing upon it).
.2 Enclosure costs are based on half of the current price to
construct the wall (due proportion).
.3 Building Owners should view this enclosure costs as a
benefit, as they have avoided in having to build the wall themselves at full
cost. They are only paying for half the costs in doing so.
8. Third Surveyor (TS)
.1 Either party (BO or AO) or the surveyors appointed can call
upon the Third Surveyor to resolve matters that cannot be agreed on.
.2 Approaching the TS is quite often used to determine the fees
of the AOS, if they appear to be unreasonable. However, a well-formed time
sheet (or identification of his/her hours used), normally shows whether the
surveyor is being reasonable in his/her fees. The BOS fees are agreed by
contract and are therefore not part of the Award.
.3 BOS or AOS, must get approval from their appointing owners
prior to calling on the TS, as there are likely to be high costs in resolving
the disputed matters. TS fees are currently in the region of £250 to £300 per
hour + VAT.
.4
The TS requires to be paid before
he determines the dispute by way of Award.
9. Awards
.1 Both the BO and AO can appeal any Award made by the surveyors
(including the TS) in county court, within 14 days following its publication.
Therefore, it is important to understand the Award and its conditions.
.2 The Award and the Act would not allow any deviation from the
works shown in drawings within the Award, without prior approval.
.3 Once the 14 days have lapsed, the Award, which is a legal
document is conclusive, the conditions of which can be upheld in court.
10. Security for expenses
.1 Following a recent court case, Kaye v Lawerence (2010),
security for expenses are becoming a more common request.
.2 Security is a financial burden placed on the Building Owner,
upon serve of notice by the Adjoining Owner.
.3 If the amount of security cannot be agreed then this is a
dispute that can be resolved by the surveyors by way of Award. This would incur
additional costs (fees) for the surveyors.
.4 Also, with the current economic climate, I imagine security
will start to be almost common practice. Adjoining Owners do not want to have
the problem of the party wall being exposed and left open, as the contractor or
even building owner goes bankrupt without some method of remedying the issue.
11. Conclusion
I hope the above general points help the Building Owners, in order
to identify the areas, especially costs that needs to be considered and built
into any building works that are beside and adjoining other properties.
The best way for the Building Owner to look at the Act, is as an enabling
Act that gives certain rights that under common law would not be permitted
(i.e: trespass). If you can also imagine that it is also meant to be a
neighbourly Act that protects and compensates Adjoining Owners' properties from
potential and actual damage, without having to take matters to court under a civil
action, where matters can get really expensive. ( Recent case law:
Jones-Lovegrove v Ruth-Ruth (2011) )
Disclaimer:
Please note that this
general guidance only, and should not be relied on for specific matters or
points of law.
All costs and fees
quoted are approximate and based on current prices based at time of writing.
Links to my websites
Almost complete - Extension - Croydon, UK - designed by Bernard Humphrey-Gaskin principal of abp Chartered Architects ( abp Architects ) , Bromley architects.