- July 11, 2016
- 118 views
CS2 held its second #CS2uesday twitter session last week and received great questions from individuals and organisations across the property industry. Below is an overview of the Q&A – all answers should be regarded as a starting point to seeking further advice on an issue.
Questions ranged from what to consider when taking on a new lease, to questions about the wider industry including the future supply of building surveyors.
The next #CS2uesday will take place on Tuesday 2 August. Tweet your questions to #CS2uesday now and look out for a live response in August.
1. What needs to be considered before issuing a break notice on a lease?
Read the lease thoroughly and ensure your notice is valid and clearly identify the conditional terms of the break. Always allow extra time and plan ahead with the anticipation that all aspects will be questioned and challenged.
2. What should the main considerations be when taking a new lease of a commercial property?
As a tenant, be curious at all times. Detail is key so you need to understand the terms fully before signing – what is the extent of the demise, what are the limitations, are there any planning restrictions etc.?
Also, ensure you are aware of the extent of repairs needed on the property and consider attaching a Schedule of Condition to your lease.
Lastly, you need to confirm the financial obligations in the lease and understand the implications if you do default.
3. Is there the resource to maintain the supply of building surveyors in the future industry?
There has been a shortage of quality experienced surveyors in the industry. The industry needs to ensure there are robust training programmes in place and consider alternative approaches to qualifications to ensure the future supply.
4. At @SIOREurope event last week, full repairing leases came up as a key issue. Could they ever be scrapped?
It is a question of risk and responsibility. The terms of FRI can be reduced or amended but as an owner or tenant, a standard of repair will always be required. Therefore, someone must be responsible and the cost will need to be included within a leasehold agreement.
5. Are surveyors equipped with the skills needed to compete in a digital world?
Yes, but change is key and the industry’s ability to reach and embrace new ways of working will determine the success.
6. What are your top tips for delivering a cost plan within budget? Actuals are always above estimates these days!
Accurately forecasting a cost plan can be challenging, and the best way to start is to gather the best possible briefing information and agree the appropriate cost plan format – £/m2 for very high level or elemental measure where detailed design allows.
Use multi sourced cost data, including live costs where available, and clearly state the reference documents and any assumptions or exclusions.
Lastly, the site conditions and constraints need to be taken into account and the adequacy of the design information needs to be assessed, making due allowances for the outstanding risks.
7. Why should you employ a surveying professional to project manage refurb works, can I not do it myself?
Yes you could! But having the right expertise will achieve the objectives and add value to your project. Project management is process driven – it sets the projects objectives; plans the right strategy to achieve the objectives; and identifies and mitigates risks.
8. Why do I need a schedule of condition when I take a lease?
A Schedule of Condition helps minimise your liabilities for repair and decoration and potential reinstatement. It records the condition of the premises at the start of the lease and is used as a reference point to ascertain the condition of the property at the end.
For further information on any of the topics discussed contact Andrew Jenkins.