Make Good Assessments Lease Expiry Make Good…Does this sound familiar?Does any work need to be done?Who should the work be done by?To what standard does the work need to be done?How much will it cost?What are my contractual obligations under the terms of the lease?
It does to Abbcon Associates and that’s why we can help your business mitigate risk in relation to “Make Good” matters. What is a “Schedule of Make Good”?
Tenancy Make good report note taking.
Schedules of Make Good and Schedules of Dilapidations are one of the same type of building report, however property and legal professionals use either terminology to describe this type of report. The RICS Best Practice Guidance Notes in Relation to Schedules of Make Good define a Schedule of Make Good as follows: “A schedule that documents the state of repair of a premises or part of a premises”.A “Final Schedule
” means a Schedule of Make Good usually served no more than 6 months before the expiry of the lease (but may be served after expiry of the lease) in relation to work to be done to the premises at the expiry or the earlier termination of a lease;An “Interim Schedule
” means a Schedule of Make Good detailing items of disrepair arising from the tenant’s failure to comply with a repair covenant identified by the landlord during the term of the lease and which the landlord requires to be remedied during the term of the lease.The Relevance of “Make Good” in Commercial Property Leasing?
A commercial property lease is a legally binding contract between a building owner and a tenant, which places responsibilities and obligations on all parties to a lease agreement. The relevance of repair, redecoration, reinstatement and make good covenants within a commercial property lease is that, such covenants place legal obligations upon a tenant to comply with the exact requirements of the lease during the lease term. Once the lease has expired, then the tenant is no longer legally permitted to occupy the premises and as a result the legal redress for failure to comply with the repair covenants is financial damages. A Schedule of Make Good is a factual report which quantifies the alleged breach of repair and make good covenants within a lease and are often referred to during mediation or during court proceedings. It is important therefore that “Make Good” reports are carried out by experienced building professionals and are usually carried out by professionals experienced in complex “Make Good” matters.How can Abbcon Associates Assist in “Make Good”?
Abbcon Associates can represent either a building owner or a corporate occupier in relation to a “Make Good” matter as follows:For Building Owners / Commercial Property Asset and Property Managers
For Corporate Occupiers and Facilities Managers
- Review and assessment of lease documentation, schedules of condition and licence for alterations. Site inspection and preparation of Interim and Final Schedules of Make Good;
- Lead consultant for building owner / commercial asset manager during negotiation, practical interpretation of repairing obligations and liaising with building owners legal representatives and negotiation of final settlement;
- Project management of “Make Good” and reinstatement works and liaison with incoming new tenant;
- Review of tenants fit out plans and assessment of licence for alterations; and
- Project monitoring of tenants works to ensure compliance with licence for alterations.
Why use Abbcon Associates?
- Review and assessment of lease documentation, schedules of condition and licence for alterations. Site inspection and preparation of assessment of “Make Good” accrued by the tenant;
- Assessment of the relevance of Interim and Final Schedules of Make Good served on tenant by the building owner;
- Lead consultant for the tenant / facilities manager during negotiation, practical interpretation of repairing obligations and liaising with the tenants legal representatives and negotiation of final settlement; and
- Project management of “Make Good” and reinstatement works on behalf of the tenant and liaison with the building owners representative;
Abbcon Associates are experts in the analysis of the quantum of “Make Good” liability accrued at commercial and industrial buildings for building owners and corporate occupiers and the preparation of specialist “Make Good” reports during leases and also at lease expiry. With our industry experience, we can facilitate and negotiate satisfactory outcomes for ‘Make Good’ disputes. We also work in collaboration with legal professionals in this specialist area. The significance of ‘Make Good’ is that not all leases are the same and therefore we provide customers with additional reassurance that all “Make Good” assignments are carried out by an experienced Abbcon Director. We welcome calls from customers who require an initial free consultation, so that we can determine an initial positioning statement and better understand customer objectives, so that we can provide a bespoke service to meet customer needs.