The Dilapidations Protocol: Steps and Timescales Explained

The Dilapidations Protocol is the court Pre-Action Protocol for claims for damages about the physical state of commercial property at the end of a tenancy in England and Wales; it expects the landlord to send a schedule and quantified demand, normally within 56 days after the lease ends, and the tenant to respond, normally within 56 days of receiving it, with the RICS issuing separate guidance for the surveyors involved.

Office Refurbishment London prices the strip-out, reinstatement and redecoration items in dilapidations schedules and carries out the works, which can help both sides test what the work would cost.

What is the Dilapidations Protocol?

Pre-Action Protocols are part of the civil justice system in England and Wales. They set out the steps parties should take before issuing court proceedings, so that each side understands the other's case and disputes can be settled without litigation. The Dilapidations Protocol applies to terminal dilapidations claims, meaning claims made at or after the end of a lease. It does not apply to interim claims during the lease, although parties often follow similar principles. If a party fails to follow the Protocol without good reason, the court may take that into account, including when deciding who pays legal costs.

What does the landlord have to send?

Under the Protocol, the landlord's claim is expected to include:

• A schedule of dilapidations setting out the alleged breaches, the clauses, the works required to remedy each one and, usually, the landlord's costing.
• A quantified demand, the amount the landlord seeks, including other losses such as loss of rent, where claimed.
• An endorsement by the landlord's surveyor, confirming in effect that the works listed are reasonably required to remedy the breaches, that the costs are reasonable and that the landlord's intentions for the property have been taken into account.
• Information about the landlord's intentions for the property, which may affect whether the claim is limited by law.

Our guide to the schedule of dilapidations shows a typical format.

How should the tenant respond?

The tenant's response is normally due within 56 days of receiving the quantified demand. It is usually prepared by the tenant's building surveyor in a Scott Schedule format, responding to each item with:

• whether the tenant accepts the breach;
• whether the proposed remedy is reasonable;
• the tenant's view of the cost;
• reasons and supporting evidence.

The tenant's surveyor is also expected to endorse the response. If the tenant intends to rely on a valuation argument, such as the cap on damages under Section 18 of the Landlord and Tenant Act 1927, the tenant should say so and provide supporting evidence within a reasonable time.

What is a Section 18 diminution valuation?

Section 18(1) of the Landlord and Tenant Act 1927 generally limits damages for breach of a repairing covenant to the amount by which the disrepair reduces the value of the landlord's interest in the property. A diminution valuation, prepared by a valuation surveyor, compares the value of the property in its actual condition with its value had the covenants been complied with. The second part of Section 18(1) means no damages are recoverable for failure to put or keep premises in repair if the landlord is going to demolish them or make structural alterations that would make the repairs valueless. These rules can reduce a claim significantly, which is why the landlord's intentions matter.

What is the RICS role in dilapidations?

The RICS publishes professional guidance for chartered surveyors working on dilapidations, setting out how they should prepare and respond to schedules, cost items and act with objectivity. It sits alongside the court Protocol rather than replacing it. When people refer to the "RICS dilapidations protocol", they usually mean this professional guidance or the court Protocol, or both. Appointing a surveyor familiar with both helps the claim proceed smoothly.

What should the tenant's surveyor look for?

A good response tests every item against the lease, the licences and the evidence. Common points include items that are not breaches because of a schedule of condition, remedies that go further than the lease requires, such as full replacement where repair would do, items that duplicate each other, inflated rates, and claims for loss of rent that are longer than the works would take. The surveyor also checks whether the landlord's plans for the property, such as a major refurbishment, mean some works would be undone anyway, which can reduce the value of the claim.

If this is relevant to you, see also dilapidations claims and section 18, dilapidations provision and dilapidations survey.

What are the main timescales?

These are the normal expectations. Parties can agree other timings, and complex claims often take longer.

What happens if the parties cannot agree?

Most dilapidations claims settle through negotiation between surveyors. If they do not, the Protocol expects the parties to consider alternative dispute resolution, such as mediation or expert determination, before going to court. Court proceedings are a last resort, and costs can be significant on both sides.

How should tenants prepare for a terminal claim?

1. Start early. Review your lease, licences and any schedule of condition 18 to 24 months before the lease ends.
2. Check reinstatement notices. Some reinstatement obligations apply only if the landlord serves notice by a set date.
3. Estimate liability. Ask a surveyor to assess likely claims.
4. Price the works. A fit-out company can price strip-out, reinstatement and redecoration so you know the works cost.
5. Decide whether to do works. Doing agreed works before you leave can reduce the claim.
6. Keep records. Photographs, invoices and certificates for works done during the lease.

Our guide to what dilapidations are explains the basics, and our guide to office dilapidations in London covers London-specific points.

Does VAT apply to a dilapidations settlement?

A dilapidations settlement is generally treated as compensation and is outside the scope of VAT, while works carried out are standard-rated. Our guide to VAT on office refurbishment and dilapidations explains this.

Get a works-based price

Send us the schedule, lease extracts and drawings, and we will survey the premises and price the works. Request a quote and we will be in touch.

Frequently asked questions

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