DIY REINSTATEMENT PAYS DIVIDENDS
20th July 2020
When Parexel Ltd decided to shut their operations at Lady Bay, they approached Richard Brown of NG Chartered Surveyors to defend against their landlord’s dilapidations claims on 5,400 sq ft of offices and a 5,500 sq ft warehouse building.
The landlord’s initial claim for repairs, reinstatement and decorations on the two-storey offices, including fees, came in at £175,000. The bulk of the works involved reinstating the heavily partitioned offices into open plan format.
At the same time, the client also decided to vacate a warehouse building which had been converted to a staff canteen, break-out and recreational area, for which the landlord’s initial claim for dilapidations was £150,000.
The extent and detail of the landlord’s claims were overall not unreasonable. However, NG director Richard Brown noted that substantial cost savings could be made by Parexel having the works undertaken themselves prior to the end of the respective leases.
In parallel with negotiating contentious items with the landlord, Richard obtained competitive quotes for the works, which the client instructed to proceed. The works on both buildings were completed and signed off by the landlord.
The saving to the client on revised costings, reduced overheads and fees, as well as removing loss of rent and associated heads of claim, saved the client approximately £47,000 on the offices and around £67,000 on the warehouse canteen.
The aggregate cash saving to the client on both jobs was circa £114,000, which equated to a 35% reduction on the landlord’s original claim.
“The benefits of undertaking the works themselves rather than paying the landlord cash were clearly evident to Parexel, and I commend them for having the faith to follow our recommended course of action”.