The Quantified Demand
The Quantified Demand should set out clearly its composition and substantiate the monetary sums sought as damages in respect of the breached clauses to repair, redecorate and reinstate alterations (this being the Schedule of Dilapidations).
The document can also contain any other items of loss claimed (e.g. loss of rent, Rates, interest, fees etc.).
It should specify whether or not VAT applies (this may be erroneously sought in practice, a complex area upon which we can advise.)
The Quantified Demand legislation states that the figure being claimed for should be “restricted” to the landlord’s “likely loss”. This sum of money is not necessarily the same as the total cost of works that are calculated to address all of the breaches of the lease contract.
As an example, the Quantified Demand should not have any repair items included that are likely to be “superseded”, or made redundant, by the landlord’s plans for the property upon taking back control of it.
This is called Diminution in Value and is a regulation that we can employ to save you significant sums, relative to a claim negotiated purely on a “cost of works” basis between chartered building surveyors.
Developing A Dilapidations Strategy
It is the service of this Quantified Demand which inevitably gives rise to the dispute. The tenant will wish to minimise what it has to pay, whilst the landlord wants to maximise the money it receives in damages.
The Dilapidations Protocol outlines the conduct of negotiations and presentation of respective positions that the courts expect the parties to follow prior to litigating. This includes an expectation of engaging in Alternative Dispute Resolution (ADR), usually mediation if negotiations fail.
As a result of this Protocol, very few disputes actually end up in court. This allows both parties to avoid the costs of an expensive and time-consuming court case.
Balancing confidence in achieving the ‘best’ outcome depending on your position as landlord or tenant with the risk of mediating or litigating, requires the highest calibre of both chartered building surveyors and chartered valuation surveyors.
At Dilapsolutions, we uniquely provide both distinct and equally essential disciplines of chartered surveyor. We, therefore, work with clients to develop a dilapidations strategy long before a dispute arises, for both landlords and tenants.
This assists both with budgetary planning and a tailored holistic approach that embraces the client’s key objective, whilst minimising unwanted disruption and stress.