Mitigation of Alleged Dilapidations Liability

In light of the then soon to determine leasehold interest of the client, and following receipt of a schedule (claim) of dilapidations from the landlord, Node Building Consultancy were instructed to represent the tenant client's interests. Briefed to ensure that any outcome arrived out offered good value and was a fair and true representation of the leasehold obligations, an appropriate strategy was required.

Determining Fact from Fiction

True to the nature of almost all dilapidations claims is the inclination of a landlord claimant's assessment of breach and remedy to employ subjectivity, typically in favour of the author's paymaster. In order to ensure that the client's brief were fulfilled, it would be necessary not just to assess and understand the validity of any claimed breach nor appropriateness of the sought remedy, but the estimation of associated costs.

Variables and a Preference for Certainty

The multi-occupation nature of the office accommodation concerned, held on internal only repairing terms, coupled with a buoyant economic centre geographic location acted to bring a breadth of wider considerations to the challenge provided. Although no diminution valuation advice was sought at the outset it was reasonably assumed that, given the wider specifics of the claim, proof of loss could be a key consideration, further complicated by the possibility that a new occupier may mitigate any potential for claimant loss via agreeing letting terms with little regard for existing demise condition.

Through further dialogue it was also determined that certainty carried great value for the client and a preference existed to conclude the matter amicably and in a timely fashion, having regard for the proposed date of exit and transition of operations into new space.

Delivering an outcome to brief necessitated a wholistic approach to claim negotiation, seeking to work with, rather than against, the claimant in the spirit of the 'Dilapidations Protocol' and toward a justified, timely. conclusion. Following the development of a proven mitigation strategy at the outset, sufficient time were afforded to this negotiation stage to ensure all avenues were available to client to act to minimise lialbity, whilst maintaining control.

Contestation and Exploration

In parallel with the preparation and exchange of Scott Schedule responses with the claimant's representatives, having regard for the aforementioned wider landlord and tenant considerations, a carefully determined scope of works were designed, specified and put to tender. The return of tender offers were then used to assist the elemental negotiation process, whilst affording the client the ability to attend works within the preferred timeline window, should landlord's preference be for tenant client to attend works or should a negotiation impasse be reached.

Having acted to secure the client's position by ensuring best value was achieved through the availability of choice options to conclude the matter, landlord's scope of negotiation materially diminishes in lieu. Strategy implementation to this effect then acts to yield a basis for favourable forward negotiation through to conclusion or the attendance of works to extinguish alleged liabilities. 

The implementation of the appropriate strategy, bespoke to the client's desired outcomes, acted to enable amicable conclusion in a timely manner. The means of conclusion yielded no necessity for the attendance of works by the client, allowing focus to be maintained on primary business operations and transition to new office space seamlessly.

Dilapidations Expertise and Project Proficiency in Parallel 

Through the employment of acute, specialist, knowledge and understanding of principles applicable to matters of dilapidations, coupled with precedent and statute law implication, Node Building Consultancy were again able to deliver a highly client favourable outcome in the form of a significant saving, relative to the alleged claim sum at the outset. 

Only through the application of these dilapidations specific expertise, in parallel with a broader understanding of and capability to deliver project works benefits, could all client objectives be met. The identification of a need to afford the process sufficient time at the outset in order to yield the best client outcome in inclusion was key, coupled maintaining a viable means of conclusion via the attendance of works should other avenues have been exhausted.