Navigating the Party Wall Act 1996 requires a solid understanding of various procedures, not least of which is the fee structure for party wall surveying. Whether you’re the Building Owner or Adjoining Owner, knowing who pays what, and what determines the costs, is vital for managing your construction project smoothly and avoiding disputes. Here’s an in-depth guide to help you understand how party wall surveying fees work.
How the Party Wall Act 1996 Works
The Party Wall Act is designed to regulate works that affect shared boundaries, such as party walls and excavations near neighbouring properties. If you intend to carry out works that fall under the scope of the Act, you must serve a formal notice to the Adjoining Owners. Once they receive the notice, they have three options:
- Approve the Work: If they agree to the proposed works, the process moves forward.
- Disagree but Agree to a Surveyor: They can dispute the works but agree on a surveyor to resolve the matter.
- Disagree and Appoint Their Own Surveyor: If they disagree with the notice, they may appoint their own surveyor to manage the situation.
Once this is settled, the next question on everyone’s mind is the party wall surveying fee. So, who pays and how is the cost determined?
Who Is Liable for Party Wall Surveying Fees?
In general, the Building Owner—the person carrying out the work—is responsible for the party wall surveying fees. This makes sense, as the Building Owner is initiating the project that may cause disruption or potential damage to the Adjoining Owner’s property.
However, this doesn’t always mean the Building Owner only pays for their surveyor. In many cases, they will also be responsible for paying the fees of the Adjoining Owner’s surveyor.
The Fee of the Adjoining Owner’s Surveyor
While the Building Owner is responsible for both surveyors’ fees, the costs for the Adjoining Owner’s surveyor can vary based on several factors:
1. Distance Between the Surveyor’s Office and the Worksite
Travel time is a crucial consideration. Surveyors may charge more if the worksite is far from their office. To keep costs reasonable, the Building Owner’s surveyor will often provide an estimate for travel time, considering factors like roadworks and congestion.
2. The Complexity of the Works
The more complex the project, the higher the likelihood that the Adjoining Owner’s surveyor will need to consult with additional professionals (e.g., structural engineers). This is especially common for major works like basement excavations. More consultation means higher fees.
3. Quality of the Building Owner’s Surveyor’s Work
If the Building Owner’s surveyor produces a thorough, detailed, and clear Party Wall Award, the Adjoining Owner’s surveyor will likely have less to do. The less work involved, the lower the associated fees for the Adjoining Owner’s surveyor.
4. Resources Available to the Adjoining Owner’s Surveyor
The more information and resources the Adjoining Owner’s surveyor has access to, the less time they will need to spend on the project. For instance, if the Building Owner’s surveyor already has well-documented design drawings and plans, it will reduce the time and cost needed for the Adjoining Owner’s surveyor to review them.
Reviewing the Adjoining Owner’s Surveyor’s Timesheet
Each party wall project is unique, so the specific tasks on the Adjoining Owner’s surveyor’s timesheet may vary. However, here are some of the tasks commonly included:
- Reviewing the Initial Notice & Design Drawings
The Adjoining Owner’s surveyor will evaluate the works proposed by the Building Owner. - Exchanging Appointment Letters
Appointing the surveyor and ensuring the proper formalities are followed. - Property Condition Assessment
The surveyor will assess the condition of the adjoining property before work begins, which is crucial for identifying damage later on. - Reviewing the Draft Award
This includes reviewing the Party Wall Award and the Schedule of Condition before they are finalized. - Agreement on Outstanding Points
The surveyor will work with the Building Owner’s surveyor to resolve any issues. - Finalizing and Approving the Award
Once everything is agreed, the Adjoining Owner’s surveyor will approve the final documents.
The cost for these tasks will be reflected in the timesheet, and the Building Owner’s surveyor will typically review it to ensure it is fair and reasonable.
Negotiating Party Wall Surveying Fees
While the Building Owner is generally responsible for both surveyor’s fees, the actual fee can still be negotiated. If the proposed fees for the Adjoining Owner’s surveyor seem unreasonable, the Building Owner’s surveyor will negotiate on their behalf. This could involve rejecting high travel costs or excessive hourly rates, leading to multiple rounds of negotiations.
If the two surveyors cannot agree on a fair fee, a third surveyor may be appointed to act as a neutral party and arbitrate the matter. This third surveyor’s fee is usually split between the two parties, but most people try to avoid this option to keep costs low.
Can the Adjoining Owner Pay for Surveyor Fees?
While the Building Owner generally covers both surveyors’ fees, there are specific cases where the costs are shared. Section 11(4) of the Party Wall Act indicates that fees can be split when the work benefits both parties. For example, if the Building Owner is rebuilding a shared garden wall that has become defective, both parties may share the costs of the surveyors.
Additionally, the Adjoining Owner may be responsible for some of the costs if:
- They requested additional work beyond what was originally planned.
- They ask their surveyor to handle issues unrelated to the Party Wall Act.
- They decide to involve a third surveyor, and that surveyor finds in favour of the Building Owner.
Summary: Who Pays What?
- Building Owner: Typically responsible for both their own surveyor’s fees and the Adjoining Owner’s surveyor’s fees.
- Adjoining Owner: May have to contribute if they request additional work, ask for work unrelated to the Party Wall Act, or if the third surveyor agrees with the Building Owner’s position.
At Simple Survey, we are here to guide you through the complexities of the Party Wall Act, including understanding the fees and ensuring that all costs are fairly allocated. If you have any questions or need assistance with your party wall agreements, don’t hesitate to contact us. We can offer expert advice on everything from surveying fees to dispute resolution.
Contact us today for more information!