DILAPIDATION SURVEY  Administration of work envisaged by

SoD.
SCHEDULE OF DILAPIDATION (SoD):
 Professional fees for preparing
- Record alleged breaches of covenant and schedule of dilapidations
contain details of the contractual obligations  Sub-total, GST, total.
alleged to have been breached.
- Schedules of Dilapidation contain:
- SoD are commonly referred to in the
 Details of documents relied upon following manner:
 An itemised numbered reference
 Relevant clause of the lease  Interim Schedule of Dilapidation:
 Remedy required and cost of remedy  A schedule of dilapidation prepared in
(when relevant) contemplation of remedy of any
- The content of SoD is negotiated between alleged breaches during contractual
parties with a view to reaching a settlement. term of the lease and not relating to
- By adding additional columns to the SoD both yield-up obligations.
parties can record their respective positions,
thereby developing it into a Scott Schedule.  Terminal Schedule of Dilapidation:
- The document is prepared by building  Prepared at or shortly after the end of
surveyor. the lease term.

Costing:  Also commonly used in relation to a

Schedule of Dilapidations prepared in
- Schedule of dilapidation should be price due to
anticipation of the end of the lease
reliable and appropriate cost information,
term, which includes reference to
which is available from a number of resources,
yield-up obligations.
e.g.:
 Current building cost information
(BCIS) data and other price book data. SCOTT SCHEDULES:

 Relevant and recent tender price - A standard form of pleading that was
information on a similar nature and originally formulated by George Scott
size. (Official referee) that is used in building
 The results of consultation with and disputes.
assistance from a contractor. - Useful for clarifying extent of any dispute
- Costing should be undertaken in sufficient or disagreement between landlord and
detail to enable full understanding by the tenant.
client, other party, advisers, or the tribunal. - It shows the views of the defendant so
- Summary of costing: that the discussion with the defendant’s
 Cost of works (contractor’s surveyor is put up-to-date position before
preliminaries, overhead and profits). a tribunal where dispute is not resolved.
 - If the original SoD is found to be
exaggerated or the original response is
found to be understated, the offering party
will be at risk of a punitive order on costs.
Example of Scott Schedule:
Tenant’s obligations that included in a tenancy
agreement :
i. Pay bills on time
- Pay all charges in respect of water,
electricity and gas consumed on the
demised premises, including sewerage
charges and all other utilities supplied
to the demised premises according to
the meters and all charges
telephone (if any).
ii. Inform landlord on the structural problems
- Give landlord notice in writing of any
structural defects in demised premises.
iii. Pay rent on time
- Pay the reserved rent on the day and in
the manner aforesaid.
iv. Alteration and restoration of the premises
- Does not modify or alter the structure of
the premises without the previous
written consent of the landlord.
- Does not vanish or restore the its
original condition upon termination of
tenancy agreement.
v. Follow the property management rules
- Observe all the premise rules and
regulations made by the management
of the property.
Claims against Landlords:
- A lease that contain a landlord covenant to
repair the property and or other parts of the
building.
- a tenant cannot enforce a landlord’s
covenant/ obligation to repair within the
property unless the tenant has given the
landlord notice of the breach.
- Where there has been a breach of the
landlord’s repair covenant, the tenant may
choose to:
i. Remain in the property
ii. Temporarily vacate
iii. Sell their interest in the property or
for
sublet
i. A tenant who remains in the property might
claim for:
- Inconvenience and discomfort, assessed
by reference to the rental value of the
premise
- Damage to personal belongings
- Damage to the property
- Loss of profits
ii. The tenant who vacate might claim for:
- Cost of alternative accommodation
- Cost of moving
- Redecoration and cleaning costs
- Loss of profits
 iii. A tenant who sells or sublets might claim prepare evidence for the purpose of
for any reduction in price/rent achieved due proceedings.
to the breach. - An expert witness can only give evidence
before a tribunal by direction of that
Benefits of dilapidation survey to building
tribunal.
owner or tenant :
- the surveyor should sensibly treat himself
1. Prevent fraudulent claims, liabilities or as acting as an expert witness from the
actions. date of accepting any such instruction,
2. Mitigates blames for indirect damages to even if no formal direction has been made.
rd
3 party properties. - the obligation of an expert witness to any
3. Resolves disputes/ argument tribunal is to give objective unbiased
4. Precaution measures evidence.
5. For future reference

Roles of BS in Dilapidation Survey 3. Dispute Resolver

- Appointed as a dispute resolver by private
1. Acting as adviser
agreement between the parties in dispute
- Identify or comment on breaches of
or by other formal appointing bodies such
covenant and appropriate remedies
as the RICS Dispute Resolution Service.
- prepare schedules of dilapidations or
- surveyor should have regard to the
responses
particular requirements of the role; for
- provide or comment on diminution
example, mediator, independent expert,
valuations
arbitrator, neutral evaluator, etc.
- provide valuation advice
- negotiate with other parties with the aim of CLAIM

achieving a settlement Claims at the end of term:

- provide advice on strategy
 Happens where:
- Surveyors should undertake their
- A lease has ended or is close to ending
instructions in an objective, honest and
- The property has been or anticipated will
professional manner.
be left in a condition below covenanted
- should have appropriate experience and
condition.
expertise to undertake the instruction.
- Schedules of dilapidations or responses
 Depending on circumstances, this is
should not contain allegations of breaches
generally done by reference to:
that do not exist
- The cost of works
- The diminution in the value of the
2. Expert Witness
landlord’s reversion; or Combination of
- acts as an expert witness once he accepts
both
a formal instruction from a client to give or
  Whether the assessment of cost of
works reflects the loss depends on a
number of factors, including:
- The landlord’s intentions for the property
- Whether the landlord has carried out, or
intends to carry out the works
- Whether the property has potential for
redevelopment or refurbishment
- The market of property
- What arrangements might be made with
the new tenant
 The cost of works set out in the original
SoD may only be starting point for need
of adjustment
 Where the landlord has carried out or
intends to carry out all the works that
the tenant failed to complete,
original SoD could represent
landlord’s loss and no adjustment might
be required.
Claims During The Term
 The remedies available to a landlord
pursuing a dilapidations claim during
the term can include:
- Damages
- Forfeiture
- End to carry out the work, followed by a
claim for costs
- Specified performance
 The tenant might consider undertaking
the work to minimise the dilapidations
claim against it or to avoid losing the
lease altogether.
 Most dilapidation claims do not result in
proceedings being issued. Normally the
matter can be settled between parties
off court.
Claims Against Landlord
- A lease can contain a landlord covenant to
repair the property and or other parts of the
building (ie common parts)
- tenant cannot enforce a landlord’s
covenant/ obligation to repair within the
property unless the tenant has given the
landlord notice of the breach (no notice
required for common parts of building)
- Any notice required should be in writing, as
long as the contents are sufficient to put
the landlord on notice is required
- The landlord is generally be obliged to
make good any consequential damage to
the the property caused by the repair work, in
the addition to carrying out the work he is liable
 Where there has been a breach of
the landlord’s repair covenant, the
tenant may choose to:
- Remain in the property
- Temporarily vacate
- Sell their interest in the property or
sublet
 A tenant who remains in the
property might claim for:
- Inconvenience and discomfort,
assessed by reference to the rental
value of the premise
- Damage to personal belongings
- Damage to the property
- Loss of profits
 The tenant who vacate might claim
for:
- Cost of alternative accommodation
- Cost of moving
 - Redecoration and cleaning costs
- Loss of profits
Pre-Construction Survey
- dilapidation survey or structural survey
in Malaysia
- Inspection of the existing structural
condition of the surrounding buildings
and structures before
commencement of a demolition,
construction and development
Purpose of Pre-Construction Survey
1. To provide an accurate record, pre-
construction and post construction works,
of the building condition.
2. The survey report is undertaken as a
precaution measure should the neighboring
construction cause damage to the building
3. Will assist the building owners, contractors
and developers in the event of a claim for
damage, where the report provides written
documentation on the pre-construction
condition of the property
4. In a post-construction condition survey, a
building inspection and a comparison will
be made against the pre-construction
survey
5. A formal pre-construction survey can save
contractors and developers from thousands
or millions ringgit claim from third parties.
Steps in Pre-Construction Survey
(JAN,JUNE,DEC 18)
Step 1 : Determine the radius of surveyed area
- The radius depends on the type of work
given by the client :
 Demolition Works
 Piling Works
 Excavation works
- The radius obtain from the minimum
zone of pre-construction survey from
the edge of building or site based on
Building Engineering Authority (BCA)
Step 2: Determine work load/manpower
the - When the radius to be covered have
been acknowledge, contractor need to
determine manpower and the load to
conduct the survey.
- The further the radius, the more
manpower needed.
Step 3: Verification of existing defects/error
found
- Conduct after all the survey have been
surveyed.
- Engage the owner to reconfirm and
verified the defect to prevent dispute or
negligence.
Step 4: Post-construction survey
- Re-visit/recheck the previous
site/building within the same radius as
determined in step 1.
- To identify any further movement or
any new defect occur after contrusction
To determine radius mention in step 1 follow
: this guideline (if soklan mntk exc, tgok part
excavation then ltk dl step 1):
 DEMOLITION WORK
 For zone of not less
than 10m from the
edge of building to be
demolished.
 Demolition for landed development

 For non-landed development

 Non-displacement piles and small
 For zone of not less
displacement piles
than 35m from the edge
such as micro bored
of building to be
pile, jacked-in steel H-
demolished.
pile
 Demolition for building
 For zone of survey of
up to 5 storey height.
not less than 40m project site boundary.

 For zone of not less

 For non-landed development
than 50m from the
 Displacement piles
edge of building to be
such as RC piles,
demolished
jacked-in steel pipe
 Demolition for building
piles
more than 5 storey
 For a zone of survey
of not less than 60m

 PILING WORKS from project site boundary

 For landed development

 Non-displacement
 EXCAVATION
piles & small
 For landed
displacement piles
development
such as micro bored
 for a zone of not
pile.
less than 15m
 For a zone of not less
from project site
than 10m from project site boundary.
boundary

 For landed development

 Displacement piles such as RC piles
 For a zone of not
less than 20m
from project site
boundary.
 (DEC18)

 Development with
basement or
underground space
 In good soil : for a
zone of not less
than 30 m from project site boundary or
3 times the maximum excavation depth
(H),whichever is the larger of the 2
values

 Development with
basement or
underground
space
 In Soft soils
without Fluvial
sand/peat/peaty
clay: for a zone of not less than 60 m
from project site boundary or 6 times
the maximum excavation depth (H),
whichever is the larger of the 2 values

 Development with
basement or
underground space
 In Soft soils with
Fluvial
sand/peat/peaty clay: for a zone of not
less than 90m from project site
boundary or 9 times the maximum
excavation depth (H), whichever is the
larger of the 2 values