Read more than the letter of appointment
You may be asked to sign a letter appointing a surveyor under the Party Wall etc. Act 1996 and a separate set of terms of business. Sometimes the fee conditions are hidden inside the appointment letter itself.
Do not assume that either document is simply an administrative formality. Look for wording that makes you responsible for the surveyor’s full invoice, any amount not recovered from the building owner, or any difference between the fee claimed and the fee awarded.
A statutory appointment does not require a blank cheque
Section 10(2) requires appointments to be in writing. It does not require an adjoining owner to sign a separate contract guaranteeing every charge the surveyor chooses to make.
Written service terms can explain useful matters such as scope, complaints and communication. The warning sign is an extra payment obligation, whether it appears in those terms or in the appointment letter. Read the substance rather than relying on the document’s title.
Claimed fees and awarded fees are different
The Act provides for reasonable costs under section 10(13). In an ordinary matter carried out solely for the building owner’s benefit, the building owner usually pays the reasonable costs of preparing the award. An hourly rate or an invoice does not, by itself, establish what must be awarded.
Suppose a surveyor claims £3,000 but the award allows £1,500. A shortfall clause may be intended to let the surveyor pursue you for the remaining £1,500. That is a very different arrangement from one in which the surveyor accepts the fee determined through the award.
A fee being reduced does not automatically make you liable for the balance. Nor should you assume that a signed payment clause can safely be ignored. Any separate contractual claim depends on the wording, the circumstances and applicable law.
Why this should make you cautious
A surveyor who tells you the service is free, then asks you to guarantee unrecovered charges, is giving you a reason to pause. You should know the financial risk before you appoint them.
Coburns’ view is that a surveyor undertaking the ordinary statutory role should be willing to accept the reasonable fee determined through the award, rather than ask the adjoining owner to guarantee an additional fee shortfall. An open-ended demand for more is a warning sign of a fee-driven approach, especially where the surveyor will not explain or limit your exposure.
This is a criticism of the payment arrangement. The existence of written terms alone does not prove misconduct, and separately requested services may properly have their own agreed fees.
Wording to question before you sign
- “You are responsible for all our fees, whether or not recoverable from the building owner.”
- “Any shortfall between our invoice and the awarded fee is payable by you.”
- “If the building owner does not pay, you must pay our charges.”
- Uncapped charges for correspondence, cancellation, recovery action or work outside the statutory appointment.
These are illustrative examples. Ask what the wording means in pounds, when it would apply and whether it can be removed. A verbal assurance that “it never happens” does not amend a written obligation.
Ask for a clear written answer
You can ask:
“For your statutory party wall work, will you accept the fee determined through the award, without requiring me to pay any difference between your invoice and that fee? Please also explain whether I would have to pay if the building owner fails to pay, and identify any separately chargeable services before I appoint you.”
If the answer is evasive, or the surveyor refuses to clarify an unlimited commitment, consider another surveyor before making the appointment. A statutory appointment cannot simply be withdrawn under section 10(2), so these questions are best resolved first.
Keep separate services separate
Boundary advice, private consultancy and assistance with court proceedings may fall outside the statutory role. If you want those services, agree their scope and price separately. They should not be bundled into an appointment in a way that obscures your liability.
An award can also allocate costs to an adjoining owner where appropriate. Declining a private shortfall guarantee does not prevent the statutory process from determining who should pay particular reasonable costs.
If you have already signed
Request the appointment letter, the complete terms, a breakdown of the charges and an explanation of the legal basis for any extra payment demand. If a contractual claim is threatened, obtain advice on the documents before accepting liability or assuming the clause is unenforceable.
Choose a surveyor whose fee arrangement is clear before you appoint them. Be wary of promises of a free service accompanied by terms that make you personally responsible for fees beyond the award.