Dilapidations Expert Determination
The dilapidations business has historically been a very confrontational and litigious one. Landlords inflated claims and engaged in commercial practices designed to improve the chances of securing a favourable settlement. Tenants generally understated claims and deployed equally questionable behaviours to their benefit. As a result, the middle ground for a settlement was sometimes difficult to reach and the process was long and full of risk if the dispute were to end in litigation.
The traditional way of resolving dilapidations disputes between landlords and tenants is being challenged by a cheaper, quicker process – expert determination.
Expert determination is a contractually binding method of resolving disputes without going to court. It is quicker and more cost effective, allowing the parties to move on without spending unnecessary money in litigation. Set Square’s Paul French is one of a small number appointed to the RICS president panel of experts specialising in dilapidations.
The Expert Determination Process Step-by-Step:
- The parties agree to appoint a single joint expert with the knowledge and experience to determine the dispute.
- The expert requests all documentation that the parties are able or willing to provide and ensures any without prejudice information is withheld.
- The expert then inspects the premises and undertakes whatever further investigation he/she feels is necessary to arrive at a decision.
- The expert then publishes an Early Neutral Evaluation, which is his/her early opinion on how the dispute should be resolved.
- The parties are given an opportunity to resolve the dispute through further negotiation, with the benefit of the expert’s ENE.
- If required by the parties, the expert then proceeds to finalise the determination and if required provides reasons supporting the determination.
- If required by the parties, the issue of costs can be included in the final determination.
A Solution For Every Situation
Any type of dilapidations dispute can be resolved in this way, as long as the parties can agree on the expert to be appointed. In particular, however, Expert Determination offers the best returns for smaller disputes, where the costs usually become more significant than the sum in dispute.
RICS has launched a Dilapidations Dispute Resolution Scheme, which can be called on by parties through agreement, or can be contractually incorporated into lease agreements so that it automatically operates at lease end if the parties are unable to agree on the dilapidations liabilities.
Set Square now offers a single joint expert Dispute Resolution Service, accredited by RICS, to enable clients to resolve dilapidations disputes quickly and cost-effectively, and get on with building their business.
Paul French is appointed to the RICS panel of Experts Specialising in Dilapidations and offers single joint expert resolution of dilapidations disputes throughout the UK.