DILAPIDATION SURVEY
SCHEDULE OF DILAPIDATION (SoD):
- Record alleged breaches of covenant and
contain details of the contractual obligations
alleged to have been breached.
- Schedules of Dilapidation contain:
 Details of documents relied upon
 An itemised numbered reference
 Relevant clause of the lease
 Remedy required and cost of remedy
(when relevant)
- The content of SoD is negotiated between
parties with a view to reaching a settlement.
- By adding additional columns to the SoD both
parties can record their respective positions,
thereby developing it into a Scott Schedule.
- The document is prepared by building surveyor.
Costing:
- Schedule of dilapidation should be price due to
reliable and appropriate cost information, which
SCOTT SCHEDULES:
is available from a number of resources, e.g.:
 Current building cost information (BCIS)
data and other price book data.
 Relevant and recent tender price
information on a similar nature and size.
 The results of consultation with and
assistance from a contractor.
- Costing should be undertaken in sufficient
detail to enable full understanding by the client,
other party, advisers, or the tribunal.
- Summary of costing:
 Cost of works (contractor’s
preliminaries, overhead and profits).
 Administration of work envisaged by
SoD.
 Professional fees for preparing
schedule of dilapidations
 Sub-total, GST, total.
- SoD are commonly referred to in the
following manner:
 Interim Schedule of Dilapidation:
 A schedule of dilapidation prepared in
contemplation of remedy of any
alleged breaches during contractual
term of the lease and not relating to
yield-up obligations.
 Terminal Schedule of Dilapidation:
 Prepared at or shortly after the end of
the lease term.
 Also commonly used in relation to a
Schedule of Dilapidations prepared in
anticipation of the end of the lease
term, which includes reference to
yield-up obligations.
- A standard form of pleading that was
originally formulated by George Scott
(Official referee) that is used in building
disputes.
- Useful for clarifying extent of any dispute or
disagreement between landlord and
tenant.
- It shows the views of the defendant so that
the discussion with the defendant’s
surveyor is put up-to-date position before a
tribunal where dispute is not resolved.
- If the original SoD is found to be
exaggerated or the original response is
found to be understated, the offering party
will be at risk of a punitive order on costs.
Example of Scott Schedule: - Does not vanish or restore the its
original condition upon termination of
tenancy agreement.

v. Follow the property management rules

- Observe all the premise rules and
regulations made by the management
of the property.

Claims against Landlords:

- A lease that contain a landlord covenant to

repair the property and or other parts of the

Tenant’s obligations that included in a tenancy building.

agreement : - a tenant cannot enforce a landlord’s
covenant/ obligation to repair within the

i. Pay bills on time property unless the tenant has given the

- Pay all charges in respect of water, landlord notice of the breach.

electricity and gas consumed on the - Where there has been a breach of the

demised premises, including sewerage landlord’s repair covenant, the tenant may

charges and all other utilities supplied to choose to:

the demised premises according to the i. Remain in the property

meters and all charges for telephone (if ii. Temporarily vacate

any). iii. Sell their interest in the property or

sublet

ii. Inform landlord on the structural problems i. A tenant who remains in the property might

- Give landlord notice in writing of any claim for:

structural defects in demised premises. - Inconvenience and discomfort, assessed by

reference to the rental value of the premise

iii. Pay rent on time - Damage to personal belongings

- Pay the reserved rent on the day and in - Damage to the property

the manner aforesaid. - Loss of profits

iv. Alteration and restoration of the premises ii. The tenant who vacate might claim for:

- Does not modify or alter the structure of - Cost of alternative accommodation

the premises without the previous - Cost of moving

written consent of the landlord. - Redecoration and cleaning costs

- Loss of profits
 iii. A tenant who sells or sublets might claim for prepare evidence for the purpose of
any reduction in price/rent achieved due to proceedings.
the breach. - An expert witness can only give evidence
before a tribunal by direction of that tribunal.
Benefits of dilapidation survey to building
- the surveyor should sensibly treat himself as
owner or tenant :
acting as an expert witness from the date of
1. Prevent fraudulent claims, liabilities or accepting any such instruction, even if no
actions. formal direction has been made.
rd
2. Mitigates blames for indirect damages to 3 - the obligation of an expert witness to any
party properties. tribunal is to give objective unbiased
3. Resolves disputes/ argument evidence.
4. Precaution measures
5. For future reference 3. Dispute Resolver

Roles of BS in Dilapidation Survey - Appointed as a dispute resolver by private

agreement between the parties in dispute or
1. Acting as adviser
by other formal appointing bodies such as
- Identify or comment on breaches of
the RICS Dispute Resolution Service.
covenant and appropriate remedies
- surveyor should have regard to the
- prepare schedules of dilapidations or
particular requirements of the role; for
responses
example, mediator, independent expert,
- provide or comment on diminution
arbitrator, neutral evaluator, etc.
valuations
- provide valuation advice CLAIM

- negotiate with other parties with the aim of Claims at the end of term:
achieving a settlement
 Happens where:
- provide advice on strategy
- A lease has ended or is close to ending
- Surveyors should undertake their
- The property has been or anticipated will be
instructions in an objective, honest and
left in a condition below covenanted
professional manner.
condition.
- should have appropriate experience and
expertise to undertake the instruction.
 Depending on circumstances, this is
- Schedules of dilapidations or responses
generally done by reference to:
should not contain allegations of breaches
- The cost of works
that do not exist
- The diminution in the value of the landlord’s
reversion; or Combination of both
2. Expert Witness
- acts as an expert witness once he accepts
a formal instruction from a client to give or
  Whether the assessment of cost of Claims Against Landlord
works reflects the loss depends on a
- A lease can contain a landlord covenant to
number of factors, including:
repair the property and or other parts of the
- The landlord’s intentions for the property
building (ie common parts)
- Whether the landlord has carried out, or
- tenant cannot enforce a landlord’s
intends to carry out the works
covenant/ obligation to repair within the
- Whether the property has potential for
property unless the tenant has given the
redevelopment or refurbishment
landlord notice of the breach (no notice
- The market of property
required for common parts of building)
- What arrangements might be made with the
- Any notice required should be in writing, as
new tenant
long as the contents are sufficient to put the
 The cost of works set out in the original
landlord on notice is required
SoD may only be starting point for need
- The landlord is generally be obliged to make
of adjustment
good any consequential damage to the
 Where the landlord has carried out or
property caused by the repair work, in
intends to carry out all the works that the
addition to carrying out the work he is liable
tenant failed to complete, the original
SoD could represent the landlord’s loss
 Where there has been a breach of the
and no adjustment might be required.
landlord’s repair covenant, the tenant
Claims During The Term may choose to:
- Remain in the property
 The remedies available to a landlord
- Temporarily vacate
pursuing a dilapidations claim during the
- Sell their interest in the property or
term can include:
sublet
- Damages
 A tenant who remains in the property
- Forfeiture
might claim for:
- End to carry out the work, followed by a
- Inconvenience and discomfort,
claim for costs
assessed by reference to the rental
- Specified performance
value of the premise
 The tenant might consider undertaking
- Damage to personal belongings
the work to minimise the dilapidations
- Damage to the property
claim against it or to avoid losing the
- Loss of profits
lease altogether.
 The tenant who vacate might claim
 Most dilapidation claims do not result in
for:
proceedings being issued. Normally the
- Cost of alternative accommodation
matter can be settled between parties off
- Cost of moving
court.
- Redecoration and cleaning costs
- Loss of profits
Pre-Construction Survey edge of building or site based on
Building Engineering Authority (BCA)
- dilapidation survey or structural survey
in Malaysia Step 2: Determine work load/manpower
- Inspection of the existing structural
- When the radius to be covered have
condition of the surrounding buildings
been acknowledge, contractor need to
and structures before the
determine manpower and the load to
commencement of a demolition,
conduct the survey.
construction and development
- The further the radius, the more
Purpose of Pre-Construction Survey manpower needed.

1. To provide an accurate record, pre- Step 3: Verification of existing defects/error

construction and post construction works, of found
the building condition.
- Conduct after all the survey have been
2. The survey report is undertaken as a
surveyed.
precaution measure should the neighboring
- Engage the owner to reconfirm and
construction cause damage to the building
verified the defect to prevent dispute or
3. Will assist the building owners, contractors
negligence.
and developers in the event of a claim for
damage, where the report provides written Step 4: Post-construction survey
documentation on the pre-construction - Re-visit/recheck the previous
condition of the property site/building within the same radius as
4. In a post-construction condition survey, a
determined in step 1.
building inspection and a comparison will be
- To identify any further movement or any
made against the pre-construction survey
new defect occur after contrusction
5. A formal pre-construction survey can save
contractors and developers from thousands
or millions ringgit claim from third parties. To determine radius mention in step 1 follow
this guideline (if soklan mntk exc, tgok part
Steps in Pre-Construction Survey :
excavation then ltk dl step 1):
(JAN,JUNE,DEC 18)
 DEMOLITION WORK
Step 1 : Determine the radius of surveyed area
 For zone of not less
- The radius depends on the type of work than 10m from the edge
given by the client : of building to be
 Demolition Works demolished.
 Piling Works  Demolition for landed
 Excavation works development
- The radius obtain from the minimum
zone of pre-construction survey from the
 For zone of not less  For non-landed development
than 35m from the edge  Non-displacement
of building to be piles and small
demolished. displacement piles
 Demolition for building such as micro bored
up to 5 storey height. pile, jacked-in steel H-
pile
 For zone of survey of not less than 40m
 For zone of not less project site boundary.
than 50m from the
edge of building to be
demolished  For non-landed development
 Demolition for building  Displacement piles
more than 5 storey such as RC piles,
jacked-in steel pipe
piles
 PILING WORKS  For a zone of survey
 For landed development of not less than 60m from project site
 Non-displacement boundary
piles & small
displacement piles
such as micro bored  EXCAVATION
pile.  For landed
 For a zone of not less development
than 10m from project site boundary.  for a zone of not
less than 15m
from project site
 For landed development boundary
 Displacement
piles such as RC
piles
 For a zone of not
less than 20m
from project site boundary.
 (DEC18)

 Development with
basement or
underground space
 In good soil : for a
zone of not less
than 30 m from project site boundary or
3 times the maximum excavation depth
(H),whichever is the larger of the 2
values

 Development with
basement or
underground
space
 In Soft soils
without Fluvial
sand/peat/peaty clay: for a zone of not
less than 60 m from project site
boundary or 6 times the maximum
excavation depth (H), whichever is the
larger of the 2 values

 Development with
basement or
underground space
 In Soft soils with
Fluvial
sand/peat/peaty clay: for a zone of not
less than 90m from project site
boundary or 9 times the maximum
excavation depth (H), whichever is the
larger of the 2 values