How Much Do Dilapidations Cost?
Typical cost ranges per square foot for commercial end of lease works.
Dilapidations costs typically range from £8 to £20 per sq ft for offices, £5 to £15 per sq ft for industrial units, and £10 to £25 per sq ft for retail, depending on the scope in the schedule and the specification required.
What Drives Dilapidations Costs?
Dilapidations costs are driven heavily by the density of the tenant's fit-out and the degree to which that fit-out has damaged the landlord's base-build infrastructure, such as ceiling grids and raised floors.
If you installed extensive cellular partitions, data cabling, and bespoke flooring, the strip out and reinstatement costs will sit at the higher end of the range. Regular maintenance during the lease keeps repair costs down.
How Do Office and Industrial Costs Compare?
Office costs are generally higher per square foot because they involve detailed finishes like carpet tiles, ceilings, and complex M&E. Industrial costs focus heavily on volume, such as roof repairs, cladding treatments, and yard clearance.
However, severe industrial issues, such as deep floor slab damage from heavy machinery or significant cut-edge corrosion, can rapidly inflate the overall bill.
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Why Are Cash Settlements More Expensive?
Cash settlements are more expensive because landlords use premium pricing guides, add contingencies for unforeseen issues, and include their surveyor's project management fees.
Instructing a contractor directly bypasses these mark-ups. It also removes ambiguity regarding VAT on dilapidations, as you simply pay a standard contractor invoice for services rendered.
How Do You Get an Accurate Price?
To get an accurate price, you must have a contractor price the landlord's schedule of dilapidations line by line, calculating the real-world material and labour costs required for compliance.
Do not rely on generic per-square-foot estimates once the schedule is served. The schedule dictates the exact scope, and pricing it accurately is the only way to know your true liability.
Frequently Asked Questions
Are surveyor fees included in dilapidations costs?
If you pay a cash settlement, the landlord will add their surveyor and legal fees to the bill. If you carry out the works yourself, you avoid paying the landlord's project management fees.
How can I estimate my dilapidations liability early?
You can commission a dilapidations liability assessment from a surveyor a year before your lease ends, giving you time to budget or plan to carry out the works.
Do dilapidations costs include VAT?
Contractor invoices for the physical works will include VAT. However, cash settlements between landlords and tenants are generally treated as compensation and fall outside the scope of VAT.
Been served a schedule?
Get a fixed price for the works. We price line by line against your schedule.
If you want to know exactly what your liability costs, send us your schedule. We price dilapidations works line by line to give you a fixed quote. Get a quote today.