PARTIES
(1) East Surveyors Ltd t/a East
Commercial Chartered Surveyors, 21 Hall Quay, Great Yarmouth, Norfolk NR30 1HN.
Incorporated and registered in England with company number 08211389 whose
registered office is East Coast
House Galahad Road, Beacon Park, Gorleston On Sea, Norfolk, England, NR31 7RU
(2) The Client / Panel named in the Letter of Appointment (Client)
1 INTERPRETATION
The following definitions and rules of interpretation
apply in the Appointment:
Additional Services: any additional
services which East Commercial Chartered Surveyors agrees to provide in
accordance with Clause 5.
Fee: the fees for the Services
and any Additional Services (if any) as set out in the Letter of Appointment or
Panel Service Agreement.
Force Majeure Event: means any
circumstance not within a party’s reasonable control including without
limitation; acts of God, flood, drought, earthquake or other natural disaster;
epidemic or pandemic; terrorist attack, civil war, civil commotion or riots,
war, armed conflict, imposition of sanctions, embargo, or breaking off of
diplomatic relations; nuclear; chemical or biological contamination or sonic
boom, any law or action taken by a government or public authority, including
without limitation imposing an export or import restriction, quota or
prohibition, or failing to grant a necessary license or consent; collapse of
buildings, fire, explosion or accident; any labor or trade dispute, strikes,
industrial action or lockouts and any interruption or failure of utility
service.
Insolvent: a party is
insolvent if a party making a voluntary arrangement with its creditors,
entering administration or going into liquidation; or a security holder taking
possession, or a receiver or an administrative receiver being appointed over
all or any part of the property or the assets of the party; or any other
similar or analogous event in another jurisdiction.
Letter of Appointment: the letter by East
Commercial Chartered Surveyors which sets out the details of the Client and the
Services and the Fee together with other details relating to the Service which
may be appropriate to this Appointment.
Material: all designs,
drawings, models, plans, specifications, design details, photographs,
brochures, reports, notes of meetings, CAD materials, calculations, data,
databases, schedules, programmes, bills of quantities, budgets, and any other
materials provided in connection with the Services and all updates, amendments,
additions and revisions to them and any works, designs, or inventions
incorporated or referred to in them for any purpose relating to the Services.
Services: The Services set
out in the Letter of Appointment and the Additional Services (if any).
VAT: Value Added Tax imposed by
the Value Added Tax Act 1994, or any similar tax in addition to or replacing it
from time to time.
2 APPOINTMENT
2.1 The Client appoints East Commercial Chartered Surveyors to
carry out the Services, subject to the terms of this Appointment.
2.2 This Appointment takes effect from the date when East
Commercial Chartered Surveyors begins performing the Services, regardless of
the date of this Appointment.
2.3 This Appointment consists of these East Commercial
Chartered Surveyors Terms and the Letter of Appointment.
2.4 East Commercial Chartered Surveyors shall deem the Client
to have accepted the terms of this Appointment (including the details set out
in the Letter of Appointment) within 30 days of their issue unless the Client
has notified East Commercial Chartered Surveyors otherwise in writing).
3 CONSULTANT’S OBLIGATIONS
3.1 East Commercial Chartered Surveyors warrants and
undertakes that it shall comply with the terms of this Appointment.
3.2 East Commercial Chartered Surveyors warrants and undertakes
that it shall act with reasonable skill and care;
3.2.1 when performing the Services;
3.2.2 to comply with any Act of Parliament, any
instrument, rule or order made under any Act of Parliament; and any regulation
or bye-law of any Local Authority, statutory undertaker or public or private
utility or undertaking that has any jurisdiction over the Services or with
those systems or property the Services is or will be connected.
4 REMUNERATION
4.1 The Client shall pay the Fee, together with any
reasonable expenses and disbursements, which shall be East Commercial Chartered
Surveyors’ entire remuneration under this Appointment.
4.2 The Client shall pay East Commercial Chartered Surveyors
and VAT properly chargeable on the Services. Any amount expressed as payable to
East Commercial Chartered Surveyors under this Appointment is exclusive of VAT
unless stated otherwise.
4.3 The Fee shall be calculated and paid in accordance with the
basis set out in the Letter of Appointment.
4.4 East Commercial Chartered Surveyors shall submit to the Client an invoice for each
instalment of the Fee, together with any supporting documents that are
reasonably necessary to check the invoice. The invoice and supporting documents
(if any) shall specify the sum that East Commercial Chartered Surveyors
considers will become due on the relevant instalment date.
4.5 Payment shall be made within 14 days of the date of the
invoice.
4.6 East Commercial Chartered Surveyors reserves the right to
charge interest and debt recovery costs in respect of any amounts not paid in
accordance with Clause 4.5. Interest will be calculated in accordance with the
“Late Payment of Commercial Debts (Interest) Act 1998”.
5 ADDITIONAL SERVICES
5.1 Each party shall notify the other as soon as reasonably
practicable if it becomes apparent that Additional Services are likely to be
required, and such notice will identify the required services.
5.2 Additional Services may arise as a result of the following:
5.2.1 A change in the scope, size, complexity
or duration of the Services;
5.2.2 any other changes to the Services as set
out in the Letter of Appointment;
5.2.3 any material delay or disruption to the
Services; or
5.2.4 any other cause outside East Commercial
Chartered Surveyors reasonable control and which it could not reasonably have
foreseen at the date of this Appointment.
5.3 If the Client provides a notice under Clause 5 then as soon
as reasonably practicable after receiving the notice, East Commercial Chartered
Surveyors shall provide the Client with a written estimate of the change to the
Fee in respect of the Additional Services. If East Commercial Chartered
Surveyors provides a notice under Clause 5.1, East Commercial Chartered
Surveyors shall provide the Client with a written estimate of the change to the
Fee in respect of the Additional Services at the same time it provides the
notice.
5.4 The Fee for the Additional Services shall be calculated by
agreement between the parties.
5.5 At the Client’s discretion, acting reasonably, it may
instruct East Commercial Chartered Surveyors to carry out the Additional
Services. For the avoidance of doubt, East Commercial Chartered Surveyors shall
only perform Additional Services on receipt of a written instruction to do so
by the Client.
5.6 Any Fee payable by the Client in respect of Additional
Services shall be included in the next invoice following performance of
Additional Services.
6 LIMITATION OF LIABILITY – PLEASE
READ THIS SECTION CAREFULLY
6.1 Without affecting any other limitation in the Appointment, East
Commercial Chartered Surveyors liability under or in connection with this
Appointment shall be limited to £1,000,000 in total for all claims arising.
This limit shall apply however that liability arises including a liability
arising by breach of contract, arising by
tort (including tort of negligence) or arising by breach of statutory duty.
Nothing in this Appointment shall exclude or limit East Commercial Chartered
Surveyors’ liability for:
6.1.1 Death or personal injury caused by East Commercial Chartered
Surveyors negligence; or
6.2.1 fraud or fraudulent misrepresentation.
6.2 None of East Commercial Chartered Surveyors’ employees,
Directors, or Consultants individually has a contract with the Client or owes
the Client a duty of care of personal responsibility. The Client agrees that it
will not bring any claim against any such individuals personally in connection
with the Services.
6.3 If the Client suffers loss as a result of East Commercial
Chartered Surveyors breach of contract or negligence, East Commercial Chartered
Surveyors liability shall be limited to a just and equitable proportion of the
Client’s loss having regard to the extent of responsibility of any other party.
East Commercial Chartered Surveyors liability shall not increase by reason of a
shortfall in recovery from any other party, whether that shortfall arises from
an Appointment between the Client and them, difficulty in enforcement, or any
other cause.
6.4 East Commercial Chartered Surveyors shall have no liability
to the Client under this Appointment in respect of loss of profits, loss of
revenue or business, loss of goodwill or reputation or any other indirect or
consequential losses.
6.5 The Services and any Material produced in connection with
the Services are provided for the Client’s benefit alone and solely for the
purposes of the instruction to which it relates. The Services or any Material
may not, without East Commercial Chartered Surveyors written consent, be used
or relied upon by any third party, even if that party pays all or part of East
Commercial Chartered Surveyors Fees, or is permitted to see a copy of the
Materials East Commercial Chartered Surveyors create. If East Commercial
Chartered Surveyors provides written consent for a third party to rely on the
Services or the Materials, it may be subject to a further fee, and any such
third party will be deemed to have accepted the terms and conditions set out in
this Appointment.
6.6 East Commercial Chartered Surveyors shall not be liable for
any loss or damage suffered or incurred by the Client arising from East
Commercial Chartered Surveyors delay in performing or failure to perform the
Services and/or any of its obligations under this Appointment where such delay
or failure results from a Force Majeure Event.
7. SUSPENSION
7.1 The Client may, at any time, suspend performance of all or
part of the Services by giving written notice to East Commercial Chartered
Surveyors, Subject to Clause 8.1, East Commercial Chartered Surveyors shall
resume performance of the Services as soon as reasonably practicable after
receiving a written notice to do so from the Client.
7.2 East Commercial Chartered Surveyors may suspend the
performance of any or all of its Services and other obligations under this
Appointment by giving not less than seven days’ notice to the Client of its
intention to do so in the event that the Client fails to pay an invoice in
accordance with the relevant payment provisions set out in Clause 4.
7.3 In the event of a suspension in accordance with this
Appointment, the Client, shall pay East Commercial Chartered Surveyors an
amount in respect of any costs and expenses reasonably incurred by East
Commercial Chartered Surveyors as a result of such suspension.
8 TERMINATION
8.1 East Commercial Chartered Surveyors may immediately
terminate its engagement under this Appointment by giving written notice to the
Client if:
8.1.1 A suspension of the Services in
accordance with Clause 7.1 continues for a continuous period of six months; and
8.1.2 the Client does not instruct East
Commercial Chartered Surveyors to resume the Services within 30 days of
receiving a written notice from East Commercial Chartered Surveyors requiring
it to do so.
8.2 Either party may immediately terminate this Appointment by
giving written notice to the other party if:
8.2.1 The other party is in material breach of
its obligations under this Appointment and fails to remedy that breach within
14 days of receiving written notice requiring it to do so; or
8.2.2 the other party becomes insolvent; or
8.2.3 a Force Majeure Event continues for a
period of more than 30 days.
8.3 Either party may terminate this Appointment at any time for
any reason by giving no less than 30 days written notice to the other party.
9 CONSEQUENCES OF TERMINATION
9.1 On termination the Client shall pay East Commercial
Chartered Surveyors:
9.1.1 Any amount properly due for payment under
this Appointment at the date of termination; and
9.1.2 a fair and reasonable proportion of the
next instalment of the Fee, together with any expenses and disbursements,
commensurate with the Services property performed at the date of termination;
and
9.1.3 any expenses, disbursements or costs
necessarily incurred by East Commercial Chartered Surveyors as a direct result
of termination (unless the termination arises as a result of East Commercial
Chartered Surveyors’ default).
9.2 Termination of East Commercial Chartered Surveyors’
engagement under this Appointment shall not affect any rights, remedies,
obligations or liabilities of the parties that have accrued up to the date of
termination, including the right to claim damages in respect of any breach of
this Appointment which existed at or before the date of termination.
10 COPYRIGHT AND
INTELLECTUAL PROPERTY
10.1 East Commercial Chartered Surveyors owns all intellectual
property rights (including copyright) relating to the Material it produces.
10.2 On payment of the Fee, East Commercial Chartered Surveyors
grants to the Client an irrevocable, non-exclusive, non-terminable,
royalty-free license to copy and make full use of any Material prepared by, or
on behalf of, East Commercial Chartered Surveyors for any purpose relating to
the project or the property to which the Services relate.
10.3 East Commercial Chartered Surveyors shall not be liable for
use of the Material for any purpose other than that for which it was prepared
and/or provided.
10.4 The Client may, at any time (whether before or after
completion of the Services, or after termination of East Commercial Chartered
Surveyors’ engagement under this Appointment), request a copy or copies of
(some or all of) the Material from East Commercial Chartered Surveyors. On the
Client’s payment of East Commercial Chartered Surveyors’ reasonable charges for
providing the copy (or copies). East Commercial Chartered Surveyors shall
provide the copy (or copies) to the Client.
11 CONFIDENTIALITY
11.1 Each party undertakes that it shall not at any time disclose
to any person any confidential information concerning the business, affairs,
customers, clients or suppliers of the other party or of any member of the
group of companies to which the other party belongs, except as permitted by
Clause 11.2.
11.2 Each party may disclose the other party’s confidential
information;
11.2.1 to its employees, officers,
representatives, contractors, sub-contractors or advisers who need to know such
information for the purposes of exercising the party’s rights or carrying out
the party’s obligations under or in connection with this Appointment. Each
party shall ensure that its employees, officers, representative, contractors,
sub-contractors or advisers to whom it discloses the other party’s confidential
information comply with this Clause 11 and
11.2.2 as may be required by law, to a court of
competent jurisdiction or any governmental or regulatory authority.
11.3 No party shall use any other party’s confidential information
for any purpose other than to exercise its rights and perform its obligations
under or in connection with this Appointment.
12.
ANTI-MONEY LAUNDERING
12.1 East Commercial Chartered Surveyors operate an anti-money
laundering policy in compliance with the Money Laundering Regulations 2007, The
Proceeds of Crime Act 2002, The Terrorism Act 2000 and subordinate legislation.
East Commercial Chartered Surveyors may require the Client to provide
information (including proof of identify or income) from time to time to enable
East Commercial Chartered Surveyors to verify the Client’s identity. For the
avoidance of doubt this may require us to request and retain information
relating to the Directors and the “beneficial owners” of the Client, as is
required under the legislation.
12.2 Any failure to provide such information within seven days of
such a request shall give East Commercial Chartered Surveyors the right to
terminate this appointment in accordance with Clause 8.2.1 of this Appointment.
13 BRIBERY ACT
13.1 In order to Comply with the Bribery Act 2010 either party
must inform the other if it becomes aware of any person (employee, agent,
intermediary, contractor, private individual, commercial organisation or public
official) connected (in any way) with this Appointment who has committed an
offence under the Bribery Act 2010 (or any equivalent legislation).
13.2 East Commercial Chartered Surveyors reserves the right to
terminate this Appointment in accordance with Clause 8.2.1 should it reasonably
believe that a breach or likely breach of the Bribery Act 2010 (or any
equivalent legislation) has occurred.
14 DATA PROTECTION
14.1 As a result of East Commercial Chartered Surveyors’
relationship with the Client, East Commercial Chartered Surveyors may collect
or retain personal data about the Client. If the Client is a Company, this may
include information about the Client’s employees, officers, or shareholders. If
the Client is a person, this may include information about the Client’s family
members. East Commercial Chartered Surveyors will only use such data for the
purposes of providing the Services, or for related purposes such as updating
Client records, money laundering compliance and other legal and regulatory
compliance, and we may need to disclose this information to appropriate persons
in relation to such matters. In providing any personal data to East Commercial
Chartered Surveyors, the Client confirms that it has informed the individuals
concerned and obtained any necessary consent to the transfer to East Commercial
Chartered Surveyors and for East Commercial Chartered Surveyors’ use of data
for these purposes.
14.2 East Commercial Chartered Surveyors may send the Client
business and marketing communications which may be of interest to the Client,
if the Client does not wish to receive mail from East Commercial Chartered
Surveyors relating to our services, the Client shall notify East Commercial
Chartered Surveyors in writing.
15 PROFESSIONAL INDEMNITY INSURANCE
15.1 East Commercial Chartered Surveyors shall maintain
professional indemnity insurance to cover its liabilities arising out of this
Appointment and ending six years after the date of completion of the Services
provided that such insurance is available at commercially reasonable rates and
terms with reputable insurers lawfully carrying an insurance business in the
UK.
15.2 Whenever the Client reasonably requests, East Commercial
Chartered Surveyors shall send the Client a broker letter/certificate to
evidence that East Commercial Chartered Surveyors’ professional indemnity
insurance is in force.
16 COMPLAINTS
In the event that the Client has a complaint the
Client shall be entitled to have access to the complaints handling procedure
maintained by East Commercial Chartered Surveyors which contains a dispute
resolution process as required by the Royal Institution of Chartered Surveyor
(RICS) rules of conduct (details of which are available from East Commercial
Chartered Surveyors on request).
17 UNOCCUPIED PREMISES OR PROPERTIES
East Commercial Chartered Surveyors accepts no
liability or responsibility for the security, maintenance or repair of, or for
any damage to any premises or properties to which the Services relate. The
Client shall take all necessary action to protect such premises or property and
to ensure that they have adequate insurance cover in place.
18 JOINT
AND SEVERAL LIABILITY
It at any time the Client shall consist of more than
one person, the obligations on the Client under this Appointment shall be
enforceable against each of them on a joint and several basis.
19 ASSIGNMENT AND SUBCONTRATING
Neither party shall assign or subcontract its rights
or obligations under this Appointment without the prior written consent of the
other party such consent not to be unreasonably withheld or delayed.
19.1 If the Client wishes to instruct East Commercial Chartered
Surveyors to use a specific contractor or consultant, East Commercial Chartered
Surveyors shall instruct such sub-contractor on the Client’s behalf. The Client
retains all responsibility for any such contractors or consultants and will
undertake all due diligence and investigation in relation to their competences
and resources. East Commercial Chartered Surveyors accept no responsibility or
liability for the acts of any sub-contractors, consultants or contractors
appointed at the Client’s request.
20 NOTICE
A notice given to a party under or in connection with
the Appointment shall be in writing and delivered by hand or recorded delivery
post to the address recorded in the Letter of Appointment or such other address
as the party may specify from time to time by written notice to the other.
21 LIABILITY PERIOD
Neither party shall commence any legal action against
the other under this Appointment after six years from the date of completion of
the Services.
22 THIRD PARTY RIGHTS
Except in relation to Clause 6.2, a person who is not
a party to this Appointment shall not have any rights under the Contracts
(Rights of Third Parties) Act 1999 to enforce any term of this Appointment.
23 ENTIRE APPOINTMENT
23.1 This Appointment constitutes the entire agreement between the
parties and supersedes and extinguishes all previous discussions,
correspondence, negotiations, drafts, agreements, promises, assurances,
warranties, representations and understandings between them, whether written or
oral, relating to its subject matter.
23.2 Each party agrees that in entering into this Appointment it
does not rely on, and shall have no remedies in respect of, any statement,
representation, assurance or warranty (whether made innocently or negligently)
that is not set out in the Appointment.
23.3 Each party agrees that it shall have no claim for innocent or
negligent misrepresentation or negligent misstatement based on any statement in
this Appointment.
23.4 No variation to this Appointment will be binding unless
agreed in writing by both parties.
23.5 Nothing in the Clause shall limit or exclude any liability
for fraud.
24 SEVERANCE
If any provision or part-provision of this
Appointment is or becomes invalid, illegal or unenforceable, it shall be deemed
modified to the minimum extent necessary to make it valid, legal and
enforceable. If such modification is not possible, the relevant provision or
part-provision shall be deemed deleted. Any modification to or deletion of a
provision or part-provision under this Clause shall not affect the validity and
enforceability of the rest of this Appointment.
25 GOVERNING LAW AND JURISDICTION
25.1 This Appointment and any dispute or claim (including
non-contractual disputes or claims) arising out of or in connection with it or
its subject matter or formation shall be governed by and construed in
accordance with the law of England and Wales and each party irrevocably agrees
that the courts of England and Wales shall have exclusive jurisdiction to
settle any dispute or claim arising out of or in connection with the
Appointment.
DEFINITIONS
AND RESERVATIONS FOR VALUATIONS
Information
All information
supplied by the Client, the Client’s staff and professional advisers, Local
Authorities, other statutory bodies, investigation agencies and other stated
sources is accepted as being correct unless otherwise specified.
Tenure
Title Deeds and
Leases are not inspected (unless specifically stated) and, unless we are
informed to the contrary. It is assumed that a property is free of any onerous
covenants, easements, other restrictions or liabilities including mortgages,
grants and capital allowances which may affect the value.
No responsibility
or liability will be accepted for the true interpretation of the legal position
of the Client or other parties.
Tenants
Tenants’ status
is investigated only where we are so instructed and so specified in the
valuation.
Plans
Any plans suppled
are for identification purposes only unless otherwise stated. The Valuation
assumes site boundaries are as indicated to us. The reproduction of Ordnance
Survey sheets has been sanctioned by the Controller of Her Majesty’s Stationery
Office, Crown Copyright reserved.
Site Areas
Site Areas are
normally computed from plans or the Ordnance Survey and not from a physical
site survey. They are approximate unless otherwise indicated.
Floor Areas and Dimensions
Floor areas and
dimensions are taken from inspection unless otherwise specified but are
nevertheless approximate. Where provided by us, areas quoted are calculated in
accordance with the RICS Professional Statement – RICS Property Measurement 1st
edition, May 2015 on the basis agreed with the Client, i.e. adopting either (1)
The Code of Measuring Practice, 6th edition published by the Royal Institution
of Chartered Surveyors, or (2) The International Property Measurement Standards
(IPMS): Office Buildings.
The following
bases are those most frequently used under the Code of Measuring Practice, 6th
edition:
Net Internal Area
– Measured to the internal faces of external walls, excluding toilets,
permanent corridors, internal walls and partitions, stairwells, plant rooms
etc.
Gross External
Area – Measured to the external faces of external walls, including toilets,
permanent corridors, internal walls and partitions, stairwells, plant rooms
etc.
The following
bases are those used under The International Property Measurement Standards
(IPMS) Office Buildings:
IPMS1 – The sum
of the areas of each floor level of a building measured to the outer perimeter
of external construction features and reported on a floor by floor basis.
IPMS2 – Office –
The sum of the areas of each floor level of an office building measured to the
internal dominant face and reported on a component by component basis for each
floor of a building.
IPMS3 – Office-
The floor area available on an exclusive basis to an occupier but excluding
standard facilities and calculated on an occupier-by-occupier or floor-by-floor
basis for each building.
Ground Conditions
Soil stability,
mining and geological reports are not undertaken by us or normally inspected.
Unless we are instructed to the contrary, we assume that the ground and any
adjoining or nearby areas are not contaminated, that there are no dangerous
materials in the vicinity and that it is capable of development without the
need for abnormal costs on foundations and services.
Condition of Buildings, Plant etc.
Our inspection of
a property does not constitute a structural survey. When preparing our valuation
we have regard to apparent defects and wants of repair and take into account
the age of the property. We do not however carry out the detailed search for
defects which is undertaken as part of the structural survey neither do we
necessarily set out the various defects when making the Report. We do not
inspect woodwork or other parts of the structure which are covered, unexposed
or inaccessible. We do not arrange for any investigation to be carried out to
determine whether or not high alumina cement concrete or calcium chloride
additive or any other deleterious materials or permanent woodwool shuttering or
composite paneling has been used in the construction.
Unless so
instructed we do not arrange for any investigations to be carried out to
determine whether or not any deleterious or hazardous material or techniques
have been used in the construction of the property or has since been
incorporated and the services are not tested.
We are therefore
unable to report that the property is free from defect in these respects.
For Valuation
purposes we assume unless otherwise stated that the property (including
associated plant and machinery, fixtures and fittings) is in serviceable order
and will remain so for the foreseeable future. It will be assumed that the
building(s) is/are in good repair, except for defects specifically noted.
Asbestos Regulations
The Control of
Asbestos Regulations 2012 came into force on 6 April 2012, updating previous
asbestos regulations to take account of the European Commission’s view that the
UK had not fully implemented the EU Directive on exposure to asbestos
(Directive 2009/148/EC). Your legal advisers should enquire as to compliance
with these regulations and property owners will need to be able to provide
confirmation as to the existence and condition of asbestos.
Fire Safety
The Regulatory
Reform (Fire Safety) Order 2005 (The Order) replaces previous fire safety
legislation including both the Fire Precautions Act 1971 and the Fire
Precautions (workplace) Regulation 1997. Consequently any fire certificate
issued under the Fire Precautions Act 1971 will cease to have any effect. The
Order came into force completely on the 1st April 2006.
The Order applies
to the majority of premises and workplaces in England and Wales although does
not include people’s private homes. It covers general fire precautions and
other fire safety duties, which are needed to protect ‘relevant persons’ in
case of fire in and around most ‘premises’.
Under the Order,
anyone who has control in a premises or anyone who has a degree of control over
certain areas may be classified as a ‘responsible person’. It is thus the duty
of such an individual to comply with the requirements of the Order and make certain
that all measures are taken to ensure the safety of all the people he or she is
directly or indirectly responsible for.
The responsible
person must then carry out a Fire Risk Assessment. In short this is a
five-point process whereby fire hazards must be identified, relevant persons at
risk recognised, potential risks reduced, staff training implemented and the
whole assessment regularly reviewed. The assessment must pay particular
attention to those at special risk such as disabled people, those who have
special needs and young persons. Furthermore the responsible person must
provide and maintain clear Means of Escape, Signs, Notices, Emergency Lighting,
Fire Detection & Alarm and Extinguishers.
This approach is
different from previous legislation, as it is now necessary to consider
everyone who might be on your premises, whether they ae employees, visitors or
members of the public.
The Risk
Assessment must be regularly reviewed and if necessary amended. Finally if the
responsible person employs five or more people, the premises are licensed or
the Inspector requires it then the Risk Assessment must be formally recorded.
The Smoke and
Carbon Monoxide Alarm (England Regulations 2015 effective 1 October 2015
require that landlords of residential property must provide (1) a smoke alarm
on each story of the premises on which there is a room used wholly or partly as
living accommodation and (2) a carbon monoxide alarm in any room of the
premises which is used wholly or partly as living accommodation and contains a
solid fuel burning combustion appliance. The landlord has a responsibility to
ensure that the detectors are checked and in proper working order.
It is assumed
that the property is compliant in regard to the above regulations.
Accessibility
From 1 October 2010,
the Quality Act 2010 replaced previous anti-discrimination laws, including the
Disability Discrimination Act, with a single Act to make the law simple and to
remove inconsistencies. The Equality Act protects the important rights of
disabled people to access everyday facilities and services and to ensure that
disabled workers are not disadvantaged.
Our Report will
contain observations of a general nature on the extent to which we consider
that the building would be regarded by the market as complying with the
accessibility requirements of the Equality Act. We have not however carried out
an in-depth study which would be required to reach a formal view.
Energy Performance Certificates
From 2008 Energy
Performance Certificates (EPCs) are required for the sale, rental or
construction of commercial buildings. The requirement was phased in over six
months between 6 April and 1 October 2008. Commercial properties with a useful
floor area of more than 10,000 m2 were affected from 6 April 2008, those
exceeding 2,500 m2 had to comply from 1 July 2008 and the remaining properties
had to comply from 1 October 2008. An EPC must be provided on the sale, rental
or construction (or in some cases modification) subject to transitional
arrangements. Non-compliance may lead to sanction under civil legislation,
involving a financial penalty.
Unless stated to
the contrary, our Valuation assumes that the property has an Energy Performance
Certificate (if required under the Energy Performance of Buildings (Certificate
and Inspections) (England and Wales) Regulations 2007) and that the Certificate
will be maintained as required.
Services
It is assumed
that the services and any associated controls or software, are in working order
and free from defect.
Composite Panels and Insurance
We will not test
any panels within the property to see whether there are any polystyrene
insulated composite panels. The presence of such panels may result in the
property being uninsurable, which would have an adverse impact on value.
Defective Premises Act 1972
Obligations or
liabilities or any rights thereunder, whether prospective or accrued, are not
reflected in Valuations unless actually specified.
Environmental Issues
Our Valuation
Report does not constitute an Environmental Audit or survey and nothing
contained in it should be treated as a statement that there are no
contamination or pollution problems relating to the property or confirmation
that the property, or any process carried out therein, complies with existing
or proposed legislation on environmental matters. If we have been provided with
third party reports, we have accepted their contents as being correct.
Enquiries
Enquiries of
Local Authorities and statutory undertakers are made verbally/ internet search
in respect of contingent liabilities such as road widening, road changes,
redevelopment proposals and the possible effect of any town planning
restrictions, and on occasion in respect of rating assessments. Local searches
are not undertaken. No responsibility is accepted for any inaccurate
information provided.
Generally it is
assumed that buildings are constructed and used in accordance with valid Town
Planning Consents, Permits, Licenses and Building Regulation Approval, with
direct access from a publicly maintained highway, that Town Planning Consents
do not contain restrictions which may adversely affect the use of a property
and that there are no outstanding statutory or other notices in connection with
a property or its present or intended use.
It is further
assumed unless otherwise stated that all necessary licenses, permits etc.
either run with the property or are transferable to a new occupier as
appropriate.
Flooding Risk
The Valuer will
make enquiries concerning flooding risk where it is perceived to be of
relevance as published by the Environmental Agency. However, we are not
qualified to definitively assess the risk of flooding and our Valuation will
assume no difficulties in this regard. Further, East Commercial Chartered
Surveyors shall not undertake any additional enquiries to confirm this
information.
Plant, Machinery, Fixtures and Fitting
Unless otherwise
specified, all items normally associated with the Valuation of land and
buildings are included in our Valuations and reinstatement cost assessments,
including:-
Fixed space
heating, domestic hot water systems, lighting and mains services supplying
these, sprinkler systems and associated equipment, water, electricity, gas and
steam circuits not serving industrial or commercial processes, sub-station
buildings, lifts and permanent structures including crane rails where forming
an integral part of the building structure, fixed demountable partitions,
suspended ceilings, carpets, drains, sewers and sewerage plants not primarily
concerned with treating trade effluent, air conditioning except where part of a
computer installation or primarily serving plant and machinery.
Unless otherwise
specified, the following items are excluded:-
All items of
process plant and machinery, tooling and other equipment not primarily serving
the building ,cranes, hoists, conveyors, elevators, structures which are
ancillary to, or form part of an item of process plant and machinery, sewerage
plants primarily concerned with treating trade effluent, air conditioning where
part of a computer installation or primarily serving plant and machinery, and
water, electricity, gas, steam and compressed air supplies and circuits serving
industrial and commercial processes.
Unless otherwise
specified, no allowance is made for the cost of repairing any damage caused by
the removal from the premises of items of plant, machinery, fixtures and
fittings.
In the case of
filling stations, hotels and other properties normally sold and valued as
operational entities, all items of equipment normally associated with such a
property are assumed to be owned and are included within the Valuation unless
otherwise specified.
Taxation and Grants
Value Added Tax,
taxation, grants and allowances are not included in capital and rental values
as, unless otherwise specified in the Report, these are always stated on a
basis exclusive of any VAT liability even though VAT will in certain cases be
payable.
It is assumed for
the purposes of Valuation that any potential purchaser is able to reclaim VAT,
unless otherwise stated. In particular it should be noted that where a
Valuation has been made on a Depreciated Replacement basis the Replacement Cost
adopted is net of VAT unless otherwise stated.
Unless otherwise
specified East Commercial Chartered Surveyors will not take into account of any
existing or potential liabilities arising for capital gains or other taxation
or tax reliefs as a result of grants or capital allowances, available to a
purchaser of the property.
Market Value (MV)
The estimated
amount for which an asset or liability should exchange on the Valuation date
between a willing buyer and a willing seller in an arm’s length transaction
after proper marketing and where the parties had each acted knowledgeably,
prudently and without compulsion.
Market Value
provides the same basis as the OMV basis of value supported by the first four
editions of the Red Book, but no longer used as a defined term.
Fair Value
The estimated
price for the transfer of an asset or liability between identified
knowledgeable and willing parties that reflects the respective interest of
those parties (IVS 2013).
The price that
would be received to sell an asset, or paid to transfer a liability, in an
orderly transaction between market participants at the measurement date (IFRS
13).
Depreciation Replacement Cost
The current cost
of replacing an asset with its modern equivalent asset less deductions for
physical deterioration and all relevant forms of obsolescence and optimisation.
Not that this basis of Valuation may not reflect the price achievable for the
property on the open market.
Operational Entities
The RICS advises
that the most appropriate basis of Valuation of properties normally sold as
operational entities is Market Value as defined above. Such properties include
public houses, hotels and other leisure uses, together with nursing homes,
residential care homes, private hospital and petrol filling stations.
Our Valuations
reflect the following:-
a) The market’s
perception of trading potential with an assumed ability on the part of the
purchaser to renew existing licenses, consents, registrations and permits;
b) That the
property is offered with vacant possession throughout, although in the case of
nursing and residential care homes, subject to the contractual rights of the
patients/residents occupying the home from time to time;
c) That trade
fixtures, fittings, furniture, furnishings and equipment are included.
Our Valuations
also specifically assume, unless otherwise specified that the business will
continue to operate at a level no significantly worse that than indicated to
us.
Existing Use Value
The estimated
amount for which an asset or liability should exchange on the Valuation date
between a willing buyer and a willing seller in an arm’s length transaction,
after proper marketing and where the parties had acted knowledgeably, prudently
and without compulsion, assuming that the buyer is granted vacant possession of
all parts of the property required by the business and disregarding potential
alternative uses and any other characteristics of the asset that would cause
its Market Value to differ from that needed to replace the remaining service
potential at least cost.
Market Rent
The estimated
amount for which an interest in real property should be leased on the Valuation
date between a willing lessor and a willing lessee on appropriate lease terms
in an arm’s length transaction after proper marketing and where the parties had
each acted knowledgeably, prudently and without compulsion.
Insurance
Insurance is
usually arranged by Clients (or their brokers) based on reinstatement cost
assessments or occasionally on an indemnity basis and other methods of
valuation are not appropriate.
Reinstatement Cost Assessment
A Reinstatement
Cost Assessment is our opinion of the likely cost of reinstating all the
buildings, normally for insurance purposes, on the basis that:-
a) The
accommodation provided will be similar in construction, design and area to the
existing buildings;
b) the works will
be in compliance with conditions imposed by local Authorities in connection
with the construction of the building;
c) unless
reported separately, allowances are made to cover the cost of necessary
demolition and site clearance prior to rebuilding, external works such as hard
standings, private roadways and fences and professional fees which would
normally be incurred.
Unless otherwise
stated, the reinstatement cost does not include any allowance for:-
a) Any loss of
rent incurred during rebuilding;
b) planning
restrictions which a Planning Authority might impose;
c) special
foundations required for plant and machinery or due to adverse ground
conditions;
d) any plant,
machinery, equipment, tanks, loose tools, office furniture and equipment (refer
to the heading “Plant, Machinery, Fixtures and Fittings” for details of items
normally included);
e) any effect of
inflation on building costs occurring after the Valuation date;
f) VAT (except on
professional fees) which will normally be payable in addition.
Note – A
reinstatement cost assessment is not a Valuation. The Valuer’s assessment of
the reinstatement cost assessment should be regarded as an informal estimate
and should not be used solely to arrange insurance cover with.
Apportionment of Values
Apportionments
provided between buildings, land and plant and machinery are normally for
depreciation purposes only, in normal circumstances apportionments are not
Valuations and they should not be used for any other purpose unless specified
in our Report.
Future Useful Economic Life
Future useful
economic life of buildings is normally assessed in bands of years, most
frequently subject to a maximum of fifty years. This applies to Freehold
properties and to Leasehold properties where the future life is less than the
unexpired term of the lease. An average figure is usually provided for groups
of buildings forming a single asset. The figures are appropriate for
depreciation purposes only.
Compliance with Valuation Standards
Where applicable
our Valuations are in accordance with the RICS Valuation – Global Standards 2022,
published by the Royal Institution of Chartered Surveyors (“RICS”), the
Insurance Companies (Valuation of Assets) Regulations 1981, the Financial
Conduct Authority (FCA) “Listing Rules” (“Source Book”) and “City code on
Takeovers and Mergers” (“Blue Book”) as amended and revised from time to time.
A copy is available for inspection.
RICS Investigations
The Valuation may
be investigated by the RICS for the purposes of the administration of the
institution’s conduct and disciplinary regulations. Guidance on the operation
of the RICS monitoring scheme including matters relating to confidentiality is
available from www.rics.org.
Total Valuation
Where provided
this is the aggregate of the value of each individual property. It is envisaged
that properties would be marketed singly or in groups over an appropriate
period of time. If all properties were to be sold as a single lot, the
realisation would not necessarily be the same as the total of the valuations.
This assumption is not applicable to Valuations made for taxation purposes.
Legal Issues
Any
interpretation of leases and other legal documents and legal assumptions is
given in our capacity as Property Consultants (including Chartered Surveyors
and Chartered
Town Planners)
and must be verified by a suitably qualified lawyer if it is to be relied upon.
No responsibility or liability is accepted for the true interpretation of the
legal position of the Client or other parties.
Date, Market Conditions and Validity of Valuation
Valuations may be
relied upon for the stated purpose as at the date specified. In normal
conditions the value may no change materially in the short term. However the
property market is constantly changing and is susceptible to many external
facets which can affect business confidence. If any reliance is to be placed on
the Valuation following any changes which could affect business confidence,
then further consultation is strongly recommended. In any event, the Valuation
should not be considered valid after a period of three months.
Valuations and Reports
Valuations and
Reports are only for the use of the party to whom they are addressed. They may
be disclosed only to other professional advisors assisting in respect of that
purpose. No responsibility is accepted to any third party for the whole or any
part of the contents.
Reports should be
considered in their entirety and should only be used within the context of the
instructions under which they are prepared.
Neither the whole
nor any part of a Valuation, Report or other document or any reference thereto
may be included in any published article, document, circular or statement or
published in any way without prior written approval of East Commercial
Chartered Surveyors of the form and context in which it may appear.
Warranties
The Client
warrants and represents that, to the best of its knowledge, information and
belief, the information supplied by and on its behalf to East Commercial
Chartered Surveyors is true and accurate and that it will advise and instruct
its third-party advisers to advise East Commercial Chartered Surveyors in the
event that it and/they receive notice that any such information is either
misleading or inaccurate.
Updated: March 2020