BTG reduces £850,000 dilapidations claim for city council

The Challenge

A city council faced a £850,000 terminal dilapidations claim from their landlord following 35 years' occupation of two floors within a four-storey property held on full repairing and insuring terms. The council's liability extended beyond their occupied space to include all external and common areas, with the landlord's Schedule of Dilapidations demanding complete refurbishment of the council's floors plus extensive works to rainscreen cladding, flat roofing, and shared facilities.

Our Approach

BTG’s building and project consultancy team conducted comprehensive property surveys and cost assessments, determining actual required works totalled £250,000, evidenced and supported by Section 18 (1) valuation. Appointed jointly with an independent law firm, we undertook detailed lease review and prepared a RICS-compliant Scott Schedule response fully aligned with the latest Dilapidations Protocol. We shared all information on an open-book basis, holding multiple on-site and off-site meetings with the landlord's advisors. When formal litigation was served, we appointed legal defence counsel and submitted comprehensive Court documentation whilst tabling a robust Part 36 offer matching our initial assessment.

The Outcome

Our defence achieved an out-of-court settlement aligned with our initial £250,000 assessment and Part 36 offer, reducing the council's liability by over £600,000. The settlement delivered substantial public funds savings whilst avoiding protracted court proceedings and their associated costs and reputational risks.