Richard Hourican |
Security for expenses is one of the most technical and misunderstood parts of the Party Wall etc. Act 1996. Some adjoining owners assume it is automatic whenever they feel nervous. Some building owners assume it is never justified and only used to obstruct projects. Both views miss the point. Security for expenses is a statutory safeguard that may be requested in the right circumstances to protect an adjoining owner from being left in difficulty if works stop at an awkward stage or if there is a real practical risk around completion or reinstatement. This article explains what it is, when it may be appropriate and how it is usually handled in practice.
What does security for expenses actually mean?
Security for expenses is not a penalty and it is not the same as surveyor fees. In broad terms, it is a form of financial protection that may be required before the building owner begins work under the rights conferred by the Act. The idea is to guard against the risk that the adjoining owner is left exposed if the works stop mid-way or if reinstatement or protective work becomes necessary and the building owner cannot or does not deal with it.
It is usually discussed in the surveyor process, often in more complex or higher-risk matters such as significant excavation, basement work or intrusive structural projects. It is not routine on every small domestic job. Where it is raised, the key question is whether the facts justify it, not whether one side simply prefers it. Our basement service, excavation service and Award service are often relevant where this issue arises.
Circumstances that may increase the chance of security being discussed
- Deep excavation or basement work where an unfinished stage could materially affect the adjoining property.
- Projects with unusually high temporary works risk or complex structural sequencing.
- Concerns about the funding, delivery or continuity of the proposed works.
- Cases where the consequences of stopping mid-project would be especially serious for the adjoining owner.
- Situations where the surveyors consider protective financial security proportionate to the risk.
- Projects where the statutory rights being exercised are broader than a modest routine domestic scheme.
When is security for expenses most often relevant?
In day-to-day London Party Wall practice, security for expenses tends to appear most often on deeper or more complex projects rather than small routine works. Basement schemes are the classic example because excavation, underpinning and temporary support can create a stage at which the adjoining owner may reasonably worry about what happens if the works stall. Some structural alteration projects can also raise the issue, particularly where the project phasing is demanding.
The question is always one of proportionality. A minor chimney breast removal or simple opening in a party wall may not justify the same approach as a major dig beneath an existing terrace. That is why surveyor judgment matters.
What security is not
| Not the same as… | Why the distinction matters |
|---|---|
| Surveyor fees | Security for expenses is about project risk, not simply paying the professionals dealing with the dispute. |
| Compensation for proven damage | Compensation is generally dealt with if damage actually occurs; security is a protective measure before that stage. |
| A general neighbour “comfort payment” | The issue is statutory protection, not buying goodwill or convenience. |
| An automatic right in every case | It depends on the circumstances and proportionality of the request. |
How should owners approach the issue?
Building owners should not panic if the subject is raised. Sometimes it reflects a legitimate concern about the nature of the works rather than hostility. Equally, adjoining owners should avoid using security for expenses as a blunt negotiating tool in matters where the risk does not realistically justify it. The strongest position on either side usually comes from good evidence, clear drawings, competent professional teams and a proportionate Award process.
If your London project may raise this issue, early advice can prevent it becoming a last-minute dispute point. Hourican Associates can review the scope, the risk profile and the likely statutory route before positions harden unnecessarily.
Frequently Asked Questions
Richard Hourican, Company Director
BSc (Hons). HND Build. MCIOB. C.Build E MCABE. ARICS. MFPWS. MPTS
As a specialist Party Wall surveyor, Richard Hourican will protect your interests during building works.
Are you planning a building project – perhaps an extension, loft conversion or basement – that is on or adjacent to your property’s boundary line? Or has a ‘Party Wall’ notice dropped on the doormat informing you of a neighbour’s impending works?
It’s essential to understand all the implications of building plans. If you don’t, it could cost thousands. Our job is to ensure everything is done correctly – and that it doesn’t!
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