Preparing and serving a dilapidations schedule

Schedules are prepared as a record of breaches of covenant. A schedule could be required in each of the following situations:

• claims at the end of the term;
• claims during the term;
• forfeiture situations;
• entry to repair situations;
• break clause situations; and
• claims by tenants against landlords.

While the format will vary depending on the precise situation (see the discussion in Remedies and break clauses), schedules should contain details of the contract (and any other documentation relied upon), the lease or covenant alleged to be breached, the nature of the alleged breach and, where relevant, the remedy required and the associated cost.

A landlord (and surveyor) who takes sufficient care to put together a well-considered claim, with the appropriate explanation and supporting information, is likely to receive a quicker, more useful response from the tenant who then will have all the information needed to respond to the claim.

Important considerations include:

• layout and format of a schedule of dilapidations;
• subdivision of the schedule;
• costing the schedule;
• professional fees;
• VAT;
• consequential losses;
• consideration of the landlord’s actual loss;
• surveyor’s endorsement (in terminal claims);
  
• service of the schedule; and
• quantified demand.