Since its introduction in Spring 2002 the Dilapidations Protocol has substantially reduced the number of dilapidations disputes going to court.  It has been accepted by the property litigation industry, in particular the Property Litigation Association ('PLA') and the Royal Institution of Chartered Surveyors ('RICS'), as best practice for those operating in this area.

In conjunction with the  RICS review of its Guidance Note on Dilapidations the PLA has carried out a review of the Protocol, in particular the requirement for the surveyor to give an endorsement that the amounts being claimed by the landlord are 'a fair assessment of the landlord's loss'. There has been unease by some surveyors as to the nature of this endorsement in particular with regard to the reference to 'loss'.

The revisions to the Protocol remove this wording from the endorsement. Instead, whilst the Protocol still stresses that the landlord can only claim its 'loss', the endorsement is more specific to the works. In essence, the Protocol now provides that the surveyor preparing the schedule should confirm that the works in the schedule are reasonably required, any costs quoted are reasonable and that full account had been taken of the landlord's intentions for the property at or shortly after the termination of the tenancy.

The aim of this endorsement, which has been agreed by RICS, is to prevent exaggerated claims being made by landlords and so aid sensible negotiations and early settlement of claims. 

The RICS anticipates publishing its updated Guidance Note, which will cross-refer to the Protocol, by the end of May 2008. 

Click here to read the Protocol