Client
Needs
Dilapidations Assessment & Negotiation of Settlement
The tenant had undertaken substantial fit-out and alteration works in 2019, but after Covid, the office space was no longer required so they wanted to vacate the premises early by terminating their lease.
What
We Did
Harris Associates undertook an interim Dilapidations assessment to estimate the likely Dilapidations claim and provided strategic advice to the tenant to enable them to assess their options.
We acted on behalf of the tenant to assess the Dilapidations liability, estimation of costs and provide the client with strategic advice to limit the claim.
Project Complexities
As the tenant had been in occupation for 10 years, there were a number of different leases, variations and licences for alterations which Harris Associates reviewed in detail, in order to understand the full extent of the tenant’s Dilapidations liabilities.
We
Provided
Review of Lease & Licence for Alterations documentation
Engagement with tenant facilities and maintenance teams
Comprehensive site surveys
Preparation of budget costs with input from cost management
Issue of interim Dilapidations Assessment Report
Review of Landlord’s Schedule of Dilapidations.
Liaison and negotiation with Landlord’s Surveyor
Agreeing the financial settlement (circa 40% saving against original claim)
Final
Result
The client was provided with a detailed assessment to ensure sufficient funding was budgeted for the Dilapidations claim. The client then opted to instruct Harris Associates to negotiate a financial settlement in lieu of undertaking the Dilapidations works themselves. Harris Associates were able to negotiate and reduce the claim in the region of 40%, compared with the original claim served by the Landlord’s surveyor.
