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Not considering lease terms and obligations carefully when specifying works. Failure to follow the terms of the leases closely can lead to the cost of works not being recoverable.
Taking a builder’s advice about what works to do rather than taking expert advice. Everybody is keen to save money and often professional fees might appear to be an unnecessary expense. However it is far more expensive in the longer term to proceed with the wrong works, or do the works in the wrong way. It is vital to ensure that the works being proposed are reasonable and carefully considered. The advice of a Chartered Building Surveyor is invaluable in considering the timing and extent of the works required.
Not getting a detailed specification prepared and having properly comparable estimates.
Getting Consultation and Section 20 Notices wrong. This is a very complex area of law and is increasingly the subject of dispute and litigation. The advice of a Solicitor and Chartered Surveyor are really essential if mistakes are to be avoided. If these procedures are not followed in detail it may affect the ability to recover the cost of works.
Making last minute changes to the contractors, or the works to be carried out. Sometimes changes are required but if so, careful consideration must be given as to whether further formal consultation should take place.
Commencing works or signing building contracts without all the funds being available. This can lead to a breach of the building contract terms and result in unnecessary dispute with the builders.
Not drafting a formal contract. To ensure there are clear terms for payments, quality of works, contingency sums and retentions etc. These assist the smooth running of the works and help avoid disputes. And where disputes do arise there is a process for resolving them.
Trying to manage the works without the services of a Building Surveyor. Building work is a complex process with plenty of scope for things to go wrong. Having a Chartered Building Surveyor overseeing and administrating the works gives you invaluable assistance and expertise.
Not having any system for making quick decisions. Groups of resident Directors need to consider how they will make decisions as the works progress. Delays in makings decisions or changes of mind can sometimes lead to unexpected claims for additional costs by the contractor. Where there are number of Directors, forming a working group with a single spokesperson appointed to deal with the surveyors and builders is ideal as it enables clear quick decisions to be made more easily.
John Byers is a Director of of LBB Chartered Surveyors