Dilapidation Survey

What is a Dilapidation Survey?

A Dilapidation Survey is undertaken by a Commercial Building Surveyor in order to complete a Schedule of Dilapidations. Prior to undertaking a Dilapidation Survey a Commercial Building Surveyor will obtain all the necessary information that will assist with understanding a tenant’s lease obligations. The documentation that is usually available and should be reviewed as part of the Dilapidation Survey include a Lease, Licence for Alterations and Schedule of Condition. A Commercial Building Surveyor will review all this documentation prior to completing the Dilapidation Survey.

The Commercial Building Surveyor will then undertake the site inspection part of the Dilapidation Survey. The on site Dilapidation Survey will comprise recording the condition of the property, any disrepair, alterations to the building, and decoration condition. As part of the Dilapidation Survey the Commercial Building Surveyor should take photographs and record quantities which will assist them with costing the Schedule of Dilapidations.

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What is included in a Dilapidation Survey?

A Dilapidation Survey involves attending site to record the condition of the property. Following completion of a Dilapidation Survey a Commercial Building Surveyor will complete a Schedule of Dilapidations. The Schedule of Dilapidations forms part of the Dilapidation Survey process. The Dilapidation Survey report will include a preambles section which will set out the relevant lease obligations applicable to the Dilapidation Survey. The Dilapidation Survey will then go on to schedule out the breaches that have been recorded as part of the Dilapidation Survey. The schedule will be set out to include items of repair, reinstatement, decoration and statutory compliance.

Why do I need a Dilapidation Survey?

A Dilapidation Survey is necessary as commences the Dilapidation process. The Dilapidation Survey will assist a tenant with understanding their liability at lease expiry and vice versa the Dilapidation Survey will enable a landlord to understand the condition of a building and the likely works that will be required in order to yield-up the premises.

The Dilapidation Survey will potentially go on to set out a scope of agreed works that either the tenant or landlord will undertake. If the works set out in the Dilapidation Survey are to be undertaken by the landlord then it is imperative to agree the scope with the outgoing tenant. The Dilapidation Survey may also be used to assist with negotiating a cash settlement.