For what kind of expenses can security be demanded?

The Act is not very helpful here and there are differences of opinion among party wall surveyors as to what kinds of expenses it is intended to cover. There have been few cases brought to court on this point but lawyers practicing in this field seem to agree that security can be required for any expenses that an adjoining owner may incur because of the building owner’s work.

The most common are:

• Expenses in making the adjoining owner’s premises safe and secure should the building owner abandon the works;
• Expenses in repairing damage caused by the building owner’s works;
• The expense of the adjoining owner’s surveyor’s additional fees in the event of damage being caused or other contingencies.

The basic principle is that there should be sufficient funds available to cover any costs that might arise if the building owner was to abandon the works part way through or fail to meet its obligations under the Act, whether this is to compensate for damage caused, unnecessary inconvenience, actual losses or to meet the costs of making an award under the Act.

It will usually be the appointed surveyors who specify the risks against which security is held.