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The Dilapidations Protocol is a formal framework published by the Royal Institution of Chartered Surveyors (RICS) that sets out how dilapidations claims should be handled between landlords and tenants of commercial property. It applies to leases in England and Wales and is designed to encourage early engagement, transparency, and proportionate settlement of disputes.
Although the RICS Dilapidations Protocol is not a legal requirement, it is considered best practice by the courts. Failure to follow it can have real consequences — a landlord who ignores the protocol's requirements may find their claim reduced, and a tenant who fails to engage may lose the opportunity to carry out remedial works at a lower cost than the claim demands.
The current version, known as the Pre-Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy, was last updated in 2024. It replaced earlier editions and reflects evolving case law and industry practice.
The dilapidations protocol exists because, without it, the process was adversarial and inefficient. Landlords would serve inflated schedules, tenants would ignore them, and both parties would spend significant sums on legal and surveying fees before reaching a settlement that could have been agreed much earlier.
The protocol addresses this by requiring both sides to take a structured, evidence-based approach. It sets out timescales for serving and responding to schedules, mandates that claims are quantified in a specific format, and provides a framework for negotiation before litigation becomes necessary.
For landlords, following the protocol strengthens your claim and demonstrates to the court that you have acted reasonably. For tenants, understanding the protocol gives you the tools to challenge excessive claims and protect your position.
The process begins with the landlord instructing a chartered surveyor to prepare a schedule of dilapidations. This is a detailed document that inspects the property, identifies breaches of the tenant's lease covenants — including repair, decoration, and reinstatement obligations — and sets out the cost of remedying each breach.
The schedule of dilapidations must be served on the tenant. For terminal dilapidations (served at or after lease expiry), the protocol recommends that the schedule is served within a reasonable time after the lease ends — ideally within 56 days.
A properly prepared schedule is itemised, costed, and cross-referenced to the specific lease clauses the tenant has breached. It forms the basis for the entire claim, so accuracy and proportionality at this stage are critical.
Alongside or shortly after the schedule, the landlord must serve a quantified demand. This sets out the total sum the landlord is claiming and provides a breakdown by category — typically the cost of repairs, redecoration, reinstatement of alterations, and professional fees.
The quantified demand must also address any statutory or legal caps on the claim, most importantly the Section 18 valuation (more on this below). The protocol requires the landlord to set out their intentions for the property — whether they plan to re-let, refurbish, redevelop, or demolish — because this directly affects the validity and quantum of the claim.
The tenant should respond to the schedule within 56 days, ideally by instructing their own chartered surveyor to prepare a response. This response should address each item in the schedule — accepting, rejecting, or proposing an alternative cost for each breach.
The tenant's surveyor will carry out their own inspection and may challenge items on technical, legal, or valuation grounds. Common grounds for challenge include: the landlord has overstated the scope of repairs, included betterment (improvements beyond the lease obligation), or failed to account for the property's age and condition.
Where the parties cannot agree, the disputed items are set out in a Scott Schedule — a formal document that presents each party's position side by side. The Scott Schedule lists each item of disrepair, the landlord's claimed cost, the tenant's response, and any agreed or disputed amounts.
The Scott Schedule is a key document if the matter proceeds to court or alternative dispute resolution. It gives the judge or mediator a clear, structured view of where the parties agree and where they differ.
The protocol strongly encourages without prejudice negotiations between the parties before any proceedings are issued. This typically involves the surveyors meeting (sometimes on site) to discuss the disputed items and attempt to narrow the gap between the two positions.
Most dilapidations claims settle at this stage. The protocol's emphasis on early, structured negotiation means that by this point both parties have a clear understanding of their position and the likely outcome if the matter went to court.
If negotiations fail, the protocol recommends alternative dispute resolution (ADR) — usually mediation — before court proceedings. The courts expect parties to have considered ADR, and an unreasonable refusal to mediate can result in adverse costs orders.
Litigation is the last resort. If the matter reaches court, the Scott Schedule, the schedules of dilapidations, and the evidence of compliance (or non-compliance) with the protocol will be central to the judge's decision.
Section 18 is the single most important legal provision in dilapidations. It caps the landlord's claim at the diminution in value of the reversion — in plain terms, the amount by which the landlord's interest in the property has actually been reduced by the tenant's breaches.
This means the landlord cannot claim more than the actual financial loss, even if the cost of carrying out the repairs would be higher. For example, if a property needs £200,000 of repairs but the market value of the landlord's interest has only been reduced by £120,000, the claim is capped at £120,000.
A Section 18 valuation should be carried out by a qualified surveyor or valuer. Under the protocol, the landlord is expected to address Section 18 in their quantified demand, and failure to do so can significantly weaken their position.
Supersession is a defence available to the tenant where the landlord's intended use of the property renders the repairs unnecessary. If the landlord plans to demolish the building, carry out a major refurbishment, or redevelop the site, the tenant can argue that some or all of the claimed repairs would have been superseded by those works — and therefore no loss has been suffered.
Supersession is closely linked to Section 18. If the landlord's plans for the property mean they would not have carried out the repairs in any event, the tenant should not be required to pay for them. This is why the protocol requires the landlord to disclose their intentions for the property.
The protocol sets out recommended timescales that both parties are expected to follow:
The landlord should serve the schedule of dilapidations within 56 days of lease expiry. The tenant should respond within 56 days of receiving the schedule. Without prejudice negotiations should take place within a reasonable period after the response. ADR should be considered before issuing proceedings.
These are not strict deadlines — the courts will consider the complexity of the claim and whether both parties have acted reasonably. However, unnecessary delay by either side can be held against them.
Landlords frequently overstate claims by including betterment, failing to obtain a Section 18 valuation, or not disclosing their intentions for the property. An inflated schedule undermines credibility and often leads to a lower settlement than a well-evidenced, proportionate claim would have achieved.
Tenants frequently make the mistake of ignoring the schedule or failing to respond within a reasonable time. Non-engagement does not make the claim go away — it simply means the tenant loses the opportunity to challenge items, carry out remedial works, or negotiate from a position of knowledge.
Both parties sometimes instruct surveyors too late in the process. The earlier professional advice is obtained, the stronger your position. For landlords, instructing a surveyor 6-12 months before lease expiry allows for interim schedules and early engagement. For tenants, taking advice early in the lease term — ideally when a schedule of condition is being prepared — provides the strongest possible defence at lease end.
What is the RICS Dilapidations Protocol?
The RICS Dilapidations Protocol is a pre-action protocol that sets out the process commercial landlords and tenants should follow when dealing with dilapidations claims. It provides a structured framework for preparing, serving, and responding to schedules of dilapidations, and encourages proportionate settlement through negotiation before litigation. While not legally binding, courts expect parties to follow it.
How long does the dilapidations process take?
A straightforward dilapidations claim can be resolved in 3-6 months from the service of the schedule to settlement. More complex claims involving multiple breaches, supersession arguments, or Section 18 disputes can take 12-18 months or longer. The protocol's timescales (56 days for service, 56 days for response) provide the framework, but actual timelines depend on the complexity of the claim and the willingness of both parties to engage.
Can I carry out repairs instead of paying a dilapidations claim?
If you are still in occupation (interim dilapidations), yes — carrying out the repairs yourself is often the most cost-effective option. Once the lease has expired (terminal dilapidations), you no longer have access to the property, so the claim is typically settled financially. The protocol encourages tenants to consider remedial works during the lease term as this can significantly reduce or eliminate the end-of-lease claim.
What happens if the landlord plans to demolish or redevelop the property?
If the landlord intends to demolish, substantially refurbish, or redevelop the property, the tenant may have a supersession defence. This argues that the repairs claimed would have been rendered unnecessary by the landlord's planned works, and therefore no loss has been suffered. The protocol requires the landlord to disclose their intentions, and failure to do so can undermine the claim. A Section 18 valuation will also reflect the impact of any planned works on the value of the reversion.
Do I need a surveyor for dilapidations?
Yes. Whether you are a landlord preparing a schedule or a tenant responding to one, instructing a RICS-qualified chartered surveyor is essential. The dilapidations process involves technical assessment of building condition, interpretation of lease covenants, valuation under Section 18, and negotiation under the protocol. Acting without professional advice typically results in a worse outcome for both parties.
If you are facing a dilapidations claim — whether as a landlord preparing a schedule or a tenant responding to one — early professional advice makes a significant difference. Contact Bemerton Consulting to discuss your position. We are RICS Chartered Building Surveyors with extensive experience in dilapidations across Liverpool, Merseyside, and the North West.
Call 0151 559 2760 or contact us here.
Suite 119, The Cotton Exchange Bldg, Old Hall St, Liverpool L3 9LQ
Phone: 0151 559 2760
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