Doing dilapidations works or discussing a settlement
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A closure programme may have room for building work, or the owner may want to explore a financial settlement with the landlord. Neither route should be selected from a contractor's headline quote alone.
First ask the property advisers what obligations and options apply. A proposed settlement depends on agreement; a works plan needs an appropriate scope. This comparison helps prepare that discussion. It does not calculate a claim or recommend a settlement amount.
Compare complete arrangements
| Decision factor | Organise the advised works | Explore a financial settlement |
|---|---|---|
| Scope | What work has been professionally assessed and agreed for pricing? | Which obligations or claims would the proposed agreement address? |
| Timing | Can access, appointments and completion fit the available period? | Is there enough time to negotiate and document an agreement? |
| Management | Who will commission, coordinate and check the work? | Who has authority to negotiate and approve terms? |
| Uncertainty | What could inspection reveal after equipment leaves? | What remains unresolved if discussions do not succeed? |
| Cash | What payments fall due, and when? | What payment terms are proposed, subject to agreement? |
The RICS dilapidations standard for England and Wales describes a surveyor's advisory role, including advice on remedies and negotiation. Ask your advisers how their respective legal and surveying work will support the comparison. Other UK jurisdictions need locally appropriate advice.
Check what an initial estimate leaves unresolved
Consider a fictional workshop owner with an initial contractor estimate for reinstatement. The estimate excludes access behind installed equipment and assumes the building will be empty throughout the work.
The owner still has trading commitments in one area. The estimate is therefore not yet a price for the actual proposed arrangement. It needs a clear scope and workable access assumptions before the owner compares it with a possible settlement.
Use the surveyor briefing guide to identify the missing advice. Then consider whether work can happen before trading stops. Changes to access or working periods can affect the programme without changing what the lease ultimately requires.
Decide what certainty you need before committing
List the facts that would materially change the choice. They might include the landlord's intentions, the scope the surveyor considers appropriate, contractor availability, further investigation or the form of a proposed agreement.
Put a person and a decision date beside each question. Where a figure is provisional, label its assumptions. Do not combine an uncertain works estimate and an uncertain sale receipt to produce a falsely precise “net closure cost”.
A settlement discussion also needs a fallback. Ask the advisers what happens if no agreement is reached by the date the business needs a decision. If the premises exit date itself is disputed, use the two-scenario closure plan before making irreversible operational commitments.
Record the chosen approach only after the authorised decision-maker has the relevant advice. Keep the agreement or works instruction with the supporting records, and make clear who will report changes.
For machinery and contents that become available as part of the closure, UK Auction Group can receive an enquiry reflecting the agreed property programme. State which dates and fitted items remain subject to further decisions.
Return to Leaving business premises.
Sources
This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.