Security for Expenses Party Wall London
Project-specific advice on section 12 security for expenses for basement, underpinning and other complex Party Wall works.
What is security for expenses?
Section 12 allows an Adjoining Owner to serve notice requiring the Building Owner to provide security before beginning work carried out in exercise of rights under the Act.
It is not an automatic payment simply because works are complex, and the Act does not prescribe a standard sum for basement projects.
The amount and form should reflect the actual circumstances, the work and the risk that the security is intended to address.
A proportionate review considers
- Nature and stage of the proposed works.
- Potential consequences if work stops at a vulnerable stage.
- Existing contractual or financial protections.
- Amount genuinely connected to the statutory risk.
- Practical form and release mechanism.
What does section 12 actually provide?
Security is a risk-management mechanism under the Act, not a substitute for compensation, insurance or the Party Wall Award itself.
Security before works
An Adjoining Owner can require security before the Building Owner starts relevant work under rights conferred by the Act.
Amount can be disputed
If the owners cannot agree the security, the dispute can be determined under the section 10 surveyor procedure.
Reciprocal provision
The Act also contains circumstances in which a Building Owner can require security from an Adjoining Owner where the latter requires work at their expense.
Different protections address different risks
Security is intended to guard against a defined financial risk before work begins. Compensation or making good deals with qualifying loss or damage that has actually occurred.
The Party Wall Award can record agreed or determined security arrangements, but the request should be considered on the evidence rather than treated as a routine basement surcharge.
Avoid generic assumptions
- No automatic fixed sum.
- No assumption that every basement justifies security.
- Scope should match the work under the Act.
- Release conditions should be clear.
Our security for expenses review process
The review separates the legitimate statutory risk from broader commercial or neighbour concerns that fall outside section 12.
Review request
The work and reasons for requesting security are considered.
Identify risk
The specific financial risk that section 12 is intended to address is defined.
Assess amount & form
Evidence supporting the proposed value and practical mechanism is reviewed.
Negotiate or determine
The owners may agree terms, or the surveyor procedure can determine a dispute.
Record & release
Where appropriate, the Award records how the security is held and when it is released.
Security for expenses review fees
Security-for-expenses advice is quoted to the matter because the scope depends on the request, project information, evidence and whether surveyor determination is required.
We confirm the scope and fee before instruction.
Why appoint Hourican Associates?
Security requests can become contentious if they are treated as automatic. A reasoned, evidence-based approach helps keep the issue proportionate.
Hourican Associates is a Chartered Building Consultancy specialising in Party Wall surveying across London. The firm is regulated by RICS. Richard Hourican's supplied qualifications and memberships are MFPWS, BSc (Hons), MCIOB, MCABE and AssocRICS. His Pyramus & Thisbe Society membership is company-supplied, pending a current membership record.
We advise Building Owners and Adjoining Owners on section 12 issues for basement and other complex Party Wall projects across London.
Related services & guidance
Security for Expenses FAQs
These answers cover practical points not already explained above.
No. Section 12 gives a right to require security, but the justification, amount and form depend on the actual work and circumstances.
The Act does not prescribe a generic basement percentage or standard amount. The security should be related to the risk being addressed.
No. Security is provided before work as a financial safeguard. Compensation or making good addresses qualifying loss or damage that occurs.
Yes. Where the owners do not agree, the relevant dispute can be determined under section 10.
Yes. The Award can set out the amount, form, holding arrangement and release mechanism where those matters are within the dispute.
Yes. Section 12 includes reciprocal circumstances where the Building Owner can require security when the Adjoining Owner requires work for which they are to bear costs.
Need advice on a security for expenses request?
Send us the Party Wall documents, project details and the proposed security request. We can review whether the scope and amount are proportionate.
Request security for expenses advice
Call 020 8849 8390 if you would prefer to discuss the matter first.