Set Square started working with Capita approximately 18 months before lease break date in order to plan the exit from the premises, ensure negotiations with the Landlord had taken place where possible and necessary, to manage the shut down of services and operations and the safe disposal of equipment, and to make sure the break conditions were fulfilled.
Having established that the contractual cost of compliance with lease covenants to repair, reinstate and redecorate was in the region of £1.1 million, Set Square developed a strategy to reduce the actual cost through a series of negotiations with the Landlord, backed up with the ability to undertake any residual works. We were successful in obtaining Landlord’s agreement to yield up significant parts of the Tenant’s alterations (enhanced air conditioning systems, electrical supply and back up generator, commercial kitchen and dining area, IT Comms Rooms and perimeter security provisions) for a payment to the Landlord of £150k in lieu of reinstatement. This agreement reduced the cost of dilapidations works by approximately £600k.
The remaining works were implemented using Set Square’s contractors following a tender exercise to obtain best value. Opportunities were taken to reduce the cost of works where possible by in-situ repair rather than replacement using specialised techniques incorporating fine finishing to achieve perfect match of colour and texture.
- Seamless integration into the client’s project team for the duration of the project to improve information sharing and consistency of approach
- Strategic planning of the dilapidations claim ensured we were able to create and maximise a strong negotiating position
- Development of specialist repair techniques reduced the cost of works
- Opportunities to support charitable organisations were identified, including the reuse of furniture and equipment
- Cost effective systems for recycling waste on site were devised in order to reduce the impact of the project on the environment.