Party Wall Awards Offer Legal Protection
If any work between neighbours comes under the Party Wall Act and a dispute develops, a party wall surveyor is needed. A party wall surveyor will see to the project and put together an agreement which will later be given to everyone concerned.
A party wall agreement which is legally binding, outlines both the building work being done and any other details about the work needed by the surveyor.
Schedule of Condition Proving Damage
Party Wall Surveyors must also draw up a schedule of condition to describe what the condition of a room or structure is in the nearby area affected by the Party Wall Act. It ensures that general wear and tear which happens to the walls, floors and ceiling, is noted beforehand so the building owners don’t face potential claims for it afterward.
If you are not able to survey your property for a Schedule of Condition, it is very difficult to provide evidence of changes to it. Therefore, it’s important to get a Schedule of Condition completed before starting any work.
What Happens if my Neighbour causes Damage in Party Wall?
It is possible for Party Wall Works to damage structures on Adjoining Owners properties, for example the roof verge, outside wall finish, patio and so on. If someone building under the Party Wall etc. Act 1996 is shown to be negligent, then the responsible builder must either give money to the Adjoining Owner affected or fix any damage to that person’s property.
Why does Damage occur in Party Wall?
A party wall may be damaged for different reasons. There is a chance the damage came about accidentally such as from nearby building works. A party wall incident might happen on purpose or as a result of the contractor not being careful (such as drilling through the party wall too deep).
For party wall works related damages, the first option available to the adjoining owner is to get the builders to correct the damage themselves; in the event they don’t, the owner can hire a builder and require the developers to cover the expense. Before carrying out repair or replacement, allow the Building Owner to either fix it or offer to pay what is fair.
How is Compensation Calculated in Party Wall?
Damage may take the form of broken plaster or a shattered window. One simple solution would be to request the contractors on the job to solve the problem. The idea might work if you believe the company or individual you decide on is skilled or experienced.
Alternatively, if the surveyors are in agreement, you should consider getting another builder and let the Building Owner bear the costs.
Otherwise, a payment in exchange for the Building Owner’s work on your property is arranged as usual. The total agreed cost must either be approved by the Owners or decided by the Party Wall Surveyors.
A major topic in the Party Wall Agreement is deciding the amount of compensation for the affected party. Should pay be requested, the Surveyors would judge the extent of the damage, compare it to industry standards and decide on a suitable amount to cover the work. The price of materials and labour at the time of building could be considered, together with the state of the Adjoining Owners property before the works.
How is Compensation Claimed in Party Wall?
The Building Owner must also instruct their contractor and anyone else involved in the works to ‘make good’ any damage caused to your property. If the contractor fails to do so, then it is the Building Owner, not you, who is legally responsible for putting things right.
You can not prevent someone from exercising the rights they are given by the Act, but you may be able to influence when and how they do the work if you can convince them through good facts and argument.
Do I need to go to Court for Party Wall Damage?
Once the Party Wall Award work has been done, party wall surveyors will once more look at the condition of the properties.
When inspecting a property, the original party wall agreement and the schedule of condition are both taken into account. The inspection is a comparison of two states: the condition of the property before any work was performed and the condition after the work was done.
The state of the property before the work is well documented, as is the nature and extent of the work performed. If any damage has occurred that can be reasonably tied to the work done under the provisions of the Party Wall Award, then the adjoining building owners are clearly permitted, under the Act, to have that damage made good.
When actual damage occurs, the party wall surveyors are required to put together a written acknowledgment to serve as the basis for a claim to the adjoining property owner's insurers. This acknowledgment typically takes the form of an addendum attached to the notice of proposed works.
The addendum details the damage, the cause of the damage, and it also estimates the amount of compensation due. The Building Owner named in the notice of proposed works is the party that is liable to pay that compensation.
Is Party Wall Insurance necessary?
Typically, the person who is ordering the works to be done is the one liable for ensuring that an Adjoining Owner does not suffer any damage as a result of those works.
If damage does happen, then it is up to the Building Owner to see that it is made good; usually that means repaired, but more often it seems to mean compensation. So you as an Adjoining Owner should need no insurance.
On the other hand, if you are the Building Owner, then what you really need is someone else—your contractor—to be insured. Make sure that's the case, and make sure the contractor's insurance policy is current.
If the Building Owner gets found liable, then they would have to pay the Adjoining Owners whatever amount the surveyors decided upon in the form of an addendum. The Building Owner would then attempt to collect that amount from their builder.
In common law, the builder has a duty to have insurance. If the contractor doesn't have insurance, that's a problem, but if the Building Owner employs a competent contractor, then the risk of damage is limited.
Can I ask for Security?
Yes, when it comes to risky work. Security is not meant to cover property damage during construction. The security is for making works safe.
Anything that is inherently risky when it comes to the work being done is a trigger for the security. The party wall surveyors will review all this and come to an agreement. Then the Building Owner pays the security into an escrow account.