RICS professional standards and guidance, UK Dilapidations ...

1 Guidance noteRICS professional standards and guidance, UKDilapidations in England and Wales7th edition, September 2016 DilapidationsPublished by the Royal Institution of Chartered Surveyors (RICS) Parliament Square London SW1P 3AD responsibility for loss or damage caused to any person acting or refraining from action as a result of the material included in this publication can be accepted by the authors or by the RICS building Surveying professional 978 1 78321 168 5 Sixth edition published as Dilapidations April 2012 Royal Institution of Chartered Surveyors (RICS) September 2016. Copyright in all or part of this publication rests with RICS. No part of this work may be reproduced or used in any form or by any means including graphic, electronic, or mechanical, including photocopying, recording, taping or Web distribution, without the written permission of the Royal Institution of Chartered Surveyors or in line with the rules of an existing licence.

2 Every effort has been made to contact the copyright holders of the material contained herein. Any copyright queries, please get in touch via the contact details above. Dilapidations in England and WalesRICS guidance note, UK7th edition, September 2016iiDilapidationsEfiective from 1 December 2016 RICS guidance noteAcknowledgmentsDilapidations guidance note seventh edition was produced by the building Surveying professional group board, which wishes to express its sincere thanks to the working group members:Chair: Jon Rowling FRICS (Goodrow)Alan Cripps FRICS (RICS)Terry Davis FRICS (TN Davis)Danielle Drummond-Brassington (CMS Cameron McKenna)Brian Kilcoyne (Lewis Silkin) Paul Spaven FRICS (Tuffin Ferraby Taylor)Christopher Sullivan FRICS (Malcolm Hollis)Martin Turley MRICS (Liverpool John Moores University)Thank you to the following who prepared the chapter on diminution valuations.

3 Terry Davis, FRICS, TN DavisDavid Gilbert FRICS (Lambert Smith Hampton)Andrew Outterside FRICS (Vail Williams)David Shortall FRICS (Alexander Reece Thomson)Tom Whalley MRICS (Savills)Simon Crust FRICS (Promission)Finally, thank you to everyone who has reviewed drafts, in particular Guy Fetherstonhaugh QC HonRICS (Falcon Chambers). from 1 December 2016 RICS guidance noteContentsAcknowledgements ..iiRICS professional guidance ..1 Glossary of terms ..31 Scope .. General .. Areas covered .. Naming conventions ..42 Role of the surveyor .. General .. Parties and surveyors behaviour .. Adviser .. Expert witness.

4 Dispute resolver ..63 Taking instructions .. General .. Fees ..84 Documentation .. General ..95 Inspection .. General ..106 Schedules of Dilapidations and Scott Schedules .. General ..117 Dilapidations during the lease term .. General .. Remedies .. Interim Schedules of Dilapidations ..138 Dilapidations at the end of the lease term .. Remedies .. Terminal Schedules of Dilapidations .. Supersession .. Surveyors endorsements .. Quantified Demand .. The Response .. Sending/service.

5 Dialogue/stocktake ..179 Dilapidations claims against landlords .. General .. Remedies .. Subsequent steps ..1910 Diminution valuations .. General .. Taking instructions .. Enquiries .. Valuation methodology .. Reports ..22 DilapidationsivDilapidationsEfiective from 1 December 2016 RICS guidance note11 Break clauses .. General .. Sending/service of documents .. Negotiations ..2412 Settlement of disputes .. General .. Negotiations .. Alternative Dispute Resolution (ADR) .. Litigation .. Settlement of break option disputes.

6 Offers to settle .. Settlement agreements ..27 Appendix A Format of a costed Schedule of Dilapidations ..28 Appendix B Format of a Quantified Demand ..31 Appendix C Format of a Response ..33 Appendix D Format of a Scott Schedule ..35 Appendix E Suggested text to send to landlords to request confirmation of intentions ..36 Appendix F VAT ..37vEfiective from1 December 2016 RICS guidance from 1 December 2016 RICS guidance noteDilapidationsRICS professional standards and guidanceInternational standardsRICS is at the forefront of developing international standards . In addition to RICS Valuation professional standards , other international standards are being developed.

7 Working in coalitions with organisations around the world, acting in the public interest to raise standards and increase transparency within markets, International Property Measurement standards (IPMS ), International Construction Measurement standards (ICMS), International Land Measurement standards (ILMS), International Ethics standards (IES) and others will be published and will be mandatory for RICS members. Most RICS professional statements link directly to these standards and underpin them. Where that is the case, RICS members are advised to make themselves aware of the relevant international standard(s) (see ) and the overarching principles with which the associated professional statement complies.

8 Members of RICS are uniquely placed in the market by being trained, qualified and regulated by working to international standards and complying with professional guidance notesThis is a guidance note. Where recommendations are made for specific professional tasks, these are intended to represent best practice , recommendations that in the opinion of RICS meet a high standard of professional members are not required to follow the recommendations contained in the guidance note, they should take into account the following an allegation of professional negligence is made against a surveyor , a court or tribunal may take account of the contents of any relevant guidance notes published by RICS in deciding whether or not the member acted with reasonable the opinion of RICS.

9 A member conforming to the practices recommended in this guidance note should have at least a partial defence to an allegation of negligence if they have followed those practices. However, members have the responsibility of deciding when it is inappropriate to follow the is for each member to decide on the appropriate procedure to follow in any professional task. However, where members do not comply with the practice recommended in this guidance note, they should do so only for good reason. In the event of a legal dispute, a court or tribunal may require them to explain why they decided not to adopt the recommended practice. Also, if members have not followed this guidance, and their actions are questioned in an RICS disciplinary case, they will be asked to explain the actions they did take and this may be taken into account by the Panel.

10 In some cases there may be existing national standards that may take precedence over this guidance note. National standards can be defined as professional standards that are either prescribed in law or federal/local legislation, or developed in collaboration with other relevant addition, guidance notes are relevant to professional competence in that each member should be up to date and should have knowledge of guidance notes within a reasonable time of their coming into guidance note is believed to reflect case law and legislation applicable at its date of publication. It is the member s responsibility to establish if any changes in case law or legislation after the publication date have an impact on the guidance or information in this from1 December 2016 RICS guidance status definedRICS produces a range of professional guidance and standards documents.