Are you think of moving premises? Of course, it is exciting to move premises, particularly if the premises are new and there is a brand new colour scheme and interior design to choose. It is all too often the case that tenants can get excited about the prospect of moving somewhere new and sometimes what seem like insignificant side issues become bigger issues as the move takes its course. By taking correct and early advice, tenants can quite easily avoid potential pitfalls and can be steered through the minefield of a move. Early advice from an experienced building surveyor is essential to ensure a smooth move and to stay properly protected against cost risk and business disruption. It is no good waiting for the works to start on site before taking advice. This is a big investment and you need to protect that investment.
There are a number of milestones where you will need a building surveyor to provide you with clear advice.
Exit from Your Existing Premises
It is likely that you will have a liability on your existing premises. The landlord will likely serve you with a Schedule of Dilapidations at the end of your lease. You can get ahead of this by reviewing your financial liabilities well in advance of lease expiry. A good building surveyor can review this and plot an exit strategy for you to mitigate your financial liabilities. You will also need to know these liabilities when planning your move as these are part of the financial jigsaw puzzle of calculating the costs of your new home. You may have various defence options open to you and writing a cheque may not be the best move.
Review of New Premises
This is where it starts to get exciting! You have a number of options lined up and you can imagine yourself in your new home. You can start thinking about furniture and interior décor! But hang on, lets take a step back and look at some of the checks necessary. Nice receptions and pretty floors are all very well, but what about the building you are moving into? Does the air conditioning work properly? What power supply is there? Is the roof in good shape? What factors may hit the service charge (for which you will have to pay a proportion)? How old is the plant and machinery and will it survive the length of term of your lease? Has the equipment in the building been properly maintained and is it working to it’s designed efficiency? Can the building operate properly when it is exceptionally hot or cold outside? Does it have sufficient ventilation / air changes? What is the air quality like? What type of cladding does it have? Is there smoke detection in the voids and are fire breaks in place? The answers to these questions need to be considered before you commit to the building, not after you have moved in and spent a small fortune on fitting out.
Design
As part of good design, you will need to review your space planning and make sure you have made good use of the floor space. You will be paying rent on every sqft of space. The landlord’s letting agents may connect you with a fit out contractor to help you plan the space and visualise your new premises, but there needs to be some due diligence and some form of policing to ensure that the contractor’s proposals are robust and properly priced at the right levels. Is a design and build fit out the right approach, or would it be better to review a number of interior design options and retain control of the design and specification?
Money
You need to consider how you will pay for the project. Many contractors like to be paid in advance when dealing directly with end users. This is no good for you and offers you little protection. A properly drafted contract ensures that only works completed on site are paid for (furniture is a little different due to its bespoke off site manufacture), and the contract is tailored to protect both parties in the event of a dispute of financial failure. The contractor’s proposal needs to be well detailed and not vague. This is essential for proper cost control.
Dealing with the New Lease
Is a schedule of condition necessary to restrict your repairing liabilities? You don’t want to inherit liability for somebody else’s damage. Is there a package of landlord works which are to be undertaken prior to moving in. Somebody needs to review the specification to ensure it is suitable and good enough. Somebody also needs to monitor the landlord’s work to ensure this is undertaken properly. You will also need to deal with the landlord in securing landlord’s consent for any alterations.
The Works
Finally, there is a need for somebody to run the contract and act as contract administrator. The contract has a number of mechanisms for proper cost control, valuations, and the issue of certification for payment and completion. Sometimes this is the only aspect that we building surveyors are asked to help out with and all of the milestones before this have been missed, resulting in un-necessary cost risk, planning risk and increased liabilities which could have been avoided.
Convinced?