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Why commission-based fees for party wall surveyors are bad for you

Party wall surveyors should be independent, impartial and focused on resolving the dispute created by the notifiable works. Fee arrangements that reward escalation or referral…

Overview

Party wall surveyors should be independent, impartial and focused on resolving the dispute created by the notifiable works. Fee arrangements that reward escalation or referral can undermine that purpose.

Commission-based or referral-linked fees should therefore be treated with caution.

The surveyor's role

Once appointed under the Act, a party wall surveyor performs a statutory role. They are not supposed to act as a sales agent, claims manager or advocate.

Their task is to resolve disputes fairly, make appropriate awards and keep costs proportionate.

Why commission creates concern

A commission arrangement can create the wrong incentives. If a surveyor earns more because more services are sold, more professionals are introduced or a matter is prolonged, the owner's interests may not be properly aligned with the surveyor's income.

That can lead to: - unnecessary appointments; - unnecessary engineer involvement; - inflated correspondence; - pressure to treat simple matters as complex; - poor transparency about who is being paid and why.

The problem for building owners

The building owner is often expected to pay reasonable party wall costs. If fees are inflated by a commission-based process, the building owner may face a higher bill without receiving better protection.

That is not what the Act is for.

The problem for adjoining owners

Adjoining owners may be told that appointing a surveyor is free because the building owner pays. That is too simplistic.

Only reasonable fees should be recoverable. If an adjoining owner appoints a surveyor whose fee arrangement is excessive or inappropriate, arguments about fees may follow.

What to look for instead

Choose a surveyor who offers: - clear fees; - no hidden referral arrangements; - a defined scope of work; - written confirmation of how they charge; - a practical approach to avoiding unnecessary work.

Takeaway

Party wall work should not be driven by commission. Owners should choose transparent, proportionate and independent surveyors whose incentives are aligned with resolution, not fee growth.

Disclaimer. This article is for general information only and is not legal or professional advice. It is not tailored to any specific property, project or dispute, and the law and its application can change. Always seek advice from a suitably qualified professional before taking action. Coburns Party Wall accepts no liability for action taken in reliance on this article.

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