Hidden building costs can come back to bite

By James Bent, partner at Tuffin Ferraby Taylor

TRADITIONALLY dilapidations (repairs, reinstatement and redecorations required during or at the end of a tenancy or lease) have been the preserve of building surveyors.

However, the increasing complexity of building engineering services requires expert advice. This is with good reason – left to the untrained eye, hidden issues can come back to bite landlords and tenants, and add significant repair and reinstatement dilapidations costs.

Statistically, building engineering services account for in the region of 25-40% of total building costs, a figure that increases over the lifecycle of a building. Mechanical services systems can be extensive, particularly in larger office buildings, and often include complex heating and cooling systems, mechanical ventilation and building management systems.

Systems such as low temperature hot water and chilled water can fall into disrepair without displaying notable tell-tale signs. For example, if water quality is not carefully monitored and maintained, internal scaling and corrosion of pipework can occur together with reduced system performance and microbiological contamination. Pipework corrosion and microbiological contamination are major concerns as the consequential loss, disruption and costs incurred by the landlord or tenant to repair the systems are invariably significant.

Building Management Systems (BMS) frequently become unreliable and obsolete before the building services systems they monitor and control. Unless BMS software and the platforms on which they operate are updated and maintained, a BMS can quickly fall into a state of despair and become a costly, ineffective and distrusted installation. Early identification of any issues is crucial to protect tenants and landlords from hidden defects and the potentially high costs that are associated with attending to such items of disrepair.

Here in the West Midlands we have a thriving market made up of commercial offices, industrial units and retail premises. With the average lease running for between five and 10 years, hefty dilapidations claims occur with increased frequency.

Tuffin Ferraby Taylor (TFT) is unique in the building surveying industry thanks to a large in-house mechanical and engineering consultancy designed to provide clients with added peace of mind both at the start and end of their lease. This comprehensive service can help businesses to reduce their liability for dilapidations, avoiding on average up to 57% of costs associated with disrepair.

So, whether you’re a landlord or a business taking on a new lease, it has never been more important to seek expert advice not only with regard to the building structure and fabric but also in relation the building services systems which are an integral and significant component within most commercial properties.