Types of Schedules of Condition
There are multiple for reasons for why a schedule of condition may be required, below we’ve listed the most common types and how why they are valuable in each instance.
Schedule of Condition for Commercial Leases
A schedule of condition can be required for commercial building leases in order to agree upon the condition of a property prior to a new lease being signed. The schedule of condition ensures the condition of the commercial building is accurately reported allowing for any existing defects and costs of repair to be identified, recorded, and acknowledged by all parties ahead of a lease being agreed. This is a really important process for if you’re looking to take on a new commercial property lease, the schedule of condition report can be used for lease negotiation, as well as assigning responsibility for dilapidations and reinstatement at the end of a commercial lease period.
Schedule of Condition for Construction
A schedule of condition report can also be very valuable during construction. A report may be commissioned prior to a construction project taking place. The schedule of condition can be produced for any properties adjoining buildings in which works are taking place, or in the case of a property’s refurbishment provide an accurate record of the condition prior to work beginning. The reason for a schedule of condition in this instance is to protect against claims from adjacent buildings, who may only begin to spot defects in their own building when construction has commenced. It can additionally provide protection to the a contractor’s employer against any damage caused by a construction company to the employer’s property.
Schedule of Condition for Party Walls
Another time a schedule of condition is required is when works are taking place to neighbouring walls. The schedule of condition provides an accurate record of evidence, detailing the condition of the neighbouring property before construction work takes place. A schedule of condition can be drawn up where the Party Wall etc. Act 1996 applies, this allows commercial property surveyors to carry out a construction inspection of a commercial building to establish whether of not any damage has materialised due to the works that have taken place, and what repairs should be conducted.
What does a Schedule of Condition contain?
Most schedules of condition drawn up by commercial property surveyors contain the following pieces of information:
– The reason for the schedule of condition report being produced.
– Location of the commercial property and extent of the building being inspected.
– A general overview detailing the construction of the commercial building.
– The date, time and weather during which time the schedule of condition report inspection takes place.
– A written schedule outlining the location and nature of each item inspected (internally and externally) it’s condition and any other comments the surveyor may deem relevant. This schedule will describe the overall condition and identify existing defects or issues. eg. deterioration, leaks, staining, cracks etc.
– Which parts of the commercial property is included in the report and which aren’t.
– The purposes for which the schedule of condition may be relied upon.
– Drawings of the commercial building.
– Definitions for condition descriptors used in the report.
– Any tests that have been carried out by the commercial property surveyor.
– Photographs and videos of the current condition of the commercial building.
How long does a Schedule of Condition take to produce?
This depends why you want the schedule of condition, the level of detail required and the type of property to be inspected and recorded, is it vacant or being traded with restrictions on access etc?
Usually at least one week to ten days between inspecting and issuing a report on a shop with a flat over or similar scale building – sometimes longer for a large or complex building with services or hard to reach areas needing specialist access, cherry pickers, cranes or more to organise and clear for safe working. Speak to the surveyor early to see if there is a window available to accelerate matters or to budget time to best effect.
The output typically looks very brief but the amount of work to record the information may be similar to a building condition survey. There may be a considerable time on site to capture the relevant information on site – and even more ‘backroom’ work to prepare the typed transcript, check it, add or cross reference photographs or hyperlinks to photographs and to issue the final copy. (Don’t be tempted to rely only on photos as a record – courts usually only accept a written document if there should be a later dispute about condition! A written document referring to photos is another matter).
Who prepares a Schedule of Condition?
Of course, anyone could prepare a schedule of condition…but in reality it is likely to be undertaken by a commercial building surveyor experienced in this sort of work, able to record relevant information with speed and accuracy. Most are prepared as part of a package of documents to protect a tenant prior to committing to a lease with repairing obligations.
Remember the schedule of condition only records current defects at the time of inspection, but a skilled surveyor with good pathology experience can separately highlight concerns about latent defects which might be a problem later in a lease term and enable a prospective tenant to open a different protective dialogue with a landlord about repairs liability or the value of rent/occupancy to protect the tenants position for later.
Other consultants might assist – often building services engineers may provide advice about the condition or obsolescence of lifts or heating or a/c systems which are high risk capital cost items if they require replacement when the lease ends.
Some schedules of condition are prepared as part of a Party Wall Award as a record before potentially disruptive works commence – these are usually simpler in scope and address only parts of the property in the ‘risk’ zone.
What are the limitations on a Schedule of Condition?
The scope and extent of the survey are typically imposed by time and amount of access available, how extensive a survey the client will fund and proportionality to the assessed level of risk of expensive repairs liabilities ensuing.
Most surveying practices have a more or less standard Terms of Engagement for a building condition inspection, this often excludes use of a ladder over 4 metres for inspections.
But standard terms are just a starting point and can be varied to create a ‘bespoke’ service. This is where a conversation with the surveyor is key to achieving a useful schedule. If there is good information or marketing particulars available describing the property a surveyor can assess the likely time and any special requirements to undertake the inspection and can advise the client on fees to obtain the most extensive or relevant inspection and report feasible. Is a scaffold tower or cherry picker required to look at high level flat roofs, or gain entry to roof spaces and tank rooms? Is fall arrest equipment in date to enable safe access to the roof? There will be numerous other points to consider.
There are always likely to be some areas where inspections will not be undertaken – it would be rare to expose building foundations without good cause for example.
Services are not always tested and visual commentary provided – be aware though that M+E and services often constitute a significant part of the repairs value at the end of a lease so full reporting of condition and legal advice on the repairs and other lease clauses are frequently vital and the fee should reflect sufficient time for dialogue between lawyers and surveyors so the implications can be fully considered prior to a binding commitment to a lease.
