Overview
In many ordinary cases, the building owner pays the reasonable costs of the statutory process because the process has arisen from their proposed works. That is why adjoining owners are often told that appointing a surveyor will cost them nothing.
That shorthand is understandable, but it hides important qualifications. Costs must still be reasonable, connected with the statutory process and capable of being properly dealt with under the Act.
Where cost risk can arise
- A third-surveyor referral can generate additional professional costs that may be allocated to one or both owners.
- An adjoining owner who pursues matters outside the surveyors’ jurisdiction should not assume those costs will be transferred to the building owner.
- Court proceedings, including an appeal against an award, carry a separate costs risk.
- Some works or benefits can give rise to contributions by an adjoining owner in particular circumstances.
- Unnecessary or disproportionate professional work may be challenged rather than automatically accepted.
Ask what the work is for
The sensible question is not simply “Who normally pays?” It is “What work is actually necessary, why is it being incurred, and does it properly arise from this party-wall matter?”
A good surveyor should be able to explain what they propose to do, why it is necessary and what the likely cost position is before unnecessary expense is incurred. If additional experts, engineers or third-surveyor involvement are proposed, the adjoining owner should understand why.
Read the appointment terms carefully
Be wary of any letter of appointment or terms of business that suggest, in broad or automatic terms, that costs not recovered from the building owner will simply be charged to you. That may expose you to a liability you did not expect when you were told that the process was “free”.
Before signing, ask the surveyor to explain in plain language when you could become personally liable for their fees, what happens if another surveyor challenges the fee, and whether you would be consulted before significant additional costs are incurred.
Questions to ask before appointing
- Could I ever become liable for your fees?
- What happens if your fee is not agreed or awarded in full?
- Would I be consulted before a third-surveyor referral?
- Would I be told before another expert is instructed?
- What costs would I face if I decided to appeal an award?