Party wall is a shared wall that is present between a semi-detached house and a terrace in order to divide the homes of two separate owners or to mark the extent of individual properties. It may refer to a garden wall (excluding the fence) that separates two properties and/or is used by both owners. Any type of excavation that is located close to a neighbor's property (within 3-6 meters based upon the depth of the new foundations) is also considered to be a party wall. A Party Wall Award is needed during the following construction projects.
- Conversion of lofts
- Excavation of basements
- Extensions
- Internal renovations
According to the Party Wall etc Act-1996, the party wall damage refers to any type of damage which has been caused by the construction work and the responsibility usually rests upon a building’s owner, who is responsible for the construction work, to repair the damages. You are supposed to perform the following tasks if you plan to perform some type of construction work on the party-wall.
- As a building owner, you are supposed to serve the owner of adjoining property with a Party Wall Notice.
- You are supposed to appoint an ‘agreed’ party wall surveyor (accepted by both owners) if there is a dispute. The owner of the adjoining property may appoint a separate (individual) surveyor.
- You are supposed to complete a ‘Schedule of Condition Report’ of the adjoining property.
- The appointed surveyor/surveyors draw up a party-wall award that is final and is supposed to be upheld by both parties unless it is appealed by either party.
It is important to remember that completing the ‘Schedule of Condition Report’ is a vital step for a property-owner who is recommending for the construction work. This report needs to be completed by an experienced Party Wall Surveyor. This report details the evidence (written and photographic) that was found after surveying the condition of the areas of adjoining owner’s property if the construction work is likely to adversely affect these areas. This survey is performed before starting any type of construction work. These data can protect the interests of the owners of both properties if any damage is reported due to construction.
What Happens in the Event of Any Damage?
The owner of the adjoining property must notify a party- wall surveyor regarding the damage. If there are separate surveyors for both properties, then it is essential to notify both surveyors. The owner of the adjoining property has three options after notifying the surveyor.
- In the first scenario, the owners of both properties discuss amicably and agree upon a particular course of action without involving the party-wall surveyor or surveyors. It is the most amicable arrangement. In this arrangement, the owners of both properties decide how to repair any damage or how to compensate an ‘adjoining owner’. This type of arrangement is beneficial for a ‘building owner’ who applied for the construction work to be done, as he/she need not incur the cost of appointing a professional surveyor in this scenario. It is important to remember that the cost of appointing a professional may be greater than the expense of repairing a minor damage.
- In the second scenario, the appointed party-wall surveyor/surveyors point out the scope of repairing works depending upon the details of the Schedule of Condition Report. A written ‘schedule of repair works’ is drawn up by one surveyor or both surveyors. According to the Party Wall Agreement, the adjoining owner allows the building-owner’s contractors to repair the damage to the party-wall as scoped by the appointed surveyor/surveyors. An ‘adjoining owner’ may even request that the party-wall surveyor/surveyors ensure that the repairs have been carried out properly in accordance to the agreement.
- In the third scenario, an ‘adjoining owner’ may demand financial compensation from a building-owner for the damages to the party-wall instead of agreeing to the restoration. An ‘adjoining owner’ may appoint a building contractor of his/her choice to repair the damage instead of letting the contractor of a building-owner do this task.
How to Determine the Repairing Expense?
Determining the appropriate cost of repair is not easy, as it often leads to a discord between two neighbors. The appointed party-wall surveyor/surveyors may provide a list of three/four contractors and may ask the ‘building owner’ and ‘adjoining owner’ to get quotes from these contractors for the repair work. It enables the surveyor/surveyors to correctly determine the cost of repair. A surveyor or both surveyors will select the most appropriate contractor for a job and will decide for the fund to repair any damage.
It is possible to determine the cost of repair in another way. The BICS (Building Cost Information Service) is the industry standard ‘cost-guide’ that most party-wall surveyors refer to when determining the repairing expenses. The RICS (Royal Institute of Chartered Surveyors) also recommends using this ‘cost-guide’ in order to determine the repairing expense. In this scenario, a ‘building owner’ is notified to transfer the amount to the ‘adjoining owner’ once the repairing expense has been determined by a surveyor based upon the BICS.