Portfolio - Case Study 6

Ingoing and Outgoing Dilapidations Portrait Software


We were initially appointed by Portrait Software to prepare a Dilapidations assessment ahead of surrendering their lease on a New Town property in Chester Street, Edinburgh. This established a budget of circa £160k would be required to return the property to good order at lease termination.

Completely separately we were instructed to prepare a Schedule of Dilapidations for serving upon a Tenant of Portrait Software who at that time occupied another New Town property in Melville Street. This Schedule was in turn negotiated with the Tenant, a well known firm of Chartered Surveyors, the conclusion being that the entire schedule was agreed with a works value of circa £140k. The Tenant subsequently defaulted on their obligation to repair the property prior to their vacating it, however, we successfully assisted our client’s legal adviser to recover a sum equal to the works value as well as the necessary professional fees thereon. The works were subsequently organised using a contractor known to the former Tenant to avoid any additional difficulties and the building was restored to good order. On conclusion, our Client was sufficiently impressed with the building that they chose to move into the premises themselves.

We also at the same time prepared a Schedule of Works to pro-actively deal with the Dilapidations issues that they were facing at the Chester Street property and liaised with the Landlords agents to keep them informed of our intentions thus avoiding duplication of any professional fees incurred by the Landlord, a situation which quite commonly occurs unless you are careful. These works were subsequently tendered at £160k and a final account subsequently followed within 5% thereof. The works were instigated as soon as our Client moved into the Melville Street property within a pre-arranged 3 month window.

By employing Bruce Shaw to project manage and advise on these works our Client’s inconvenience was minimised, their own and their Tenant’s lease obligations were met and the business continued to operate throughout the process.

Footnote

Businesses need to be aware of their liabilities to ensure proper budgets and planning is in place to enable them to respond to the inevitable. Early input from a professional adviser will ensure this is achieved. Ideally, the best time for advice is before the lease commences, firstly to make sure you take quality legal advice and secondly that the building’s condition is properly assessed and any liabilities fully appreciated.