The Henry Stewart 2005 Briefing on

Building Appraisal

Chair:

Malcolm Hollis
Professor of Building Pathology
University of Reading
Principal
Malcolm Hollis
Chartered Surveyors

Speakers:

Robert Blackburn
Managing Director
Redhill Analysts

Edward Coulson
Partner
Robin Simon LLP

Stephen Hesketh
Senior Operations Engineer
NICEIC (National Inspection Council for Electrical Installation Contracting)

James Hewetson
Valuations
Matthews and Goodman

Christopher Legrand
Director
Property Industry Research Ltd.

Trevor Rushton
Partner
Building Engineering and Technology Department
Watts and Partners

INSPECTION

CONSTRUCTION – IDENTIFYING HOW THE BUILDING GOES TOGETHER AND WEAKNESS IN COMMON CONSTRUCTION FORMS
The paper will deal with the obligation in an inspection to understand the form of construction used. Claims against surveyors who have failed to understand how old buildings are constructed will be discussed. Worked examples of buildings with conventional/unusual construction will be considered as will the levels of accuracy required for durable construction in roof trusses. Delegates will be reminded of the need to verify, understand and be familiar with all forms of construction for buildings being examined, and express reservations where the construction is in doubt.
Malcolm Hollis

ASBESTOS – THE RISK AND ITS RECOGNITION; REMEDY, IMPLICATIONS AND THE COST OF REMOVAL
The paper will deal with the recognition of asbestos, common areas within buildings where asbestos may be found, particular buildings where asbestos is likely to be present, the RICS Guidance on surveying asbestos, ASBESTOS report content, survey levels and the differences between each level (1-3). Implications of removal or encapsulation and indications of costs for the removal of asbestos. The paper will also address legal obligations and liabilities.
Robert Blackburn, Managing Director, Redhill Analysts

SERVICES - THE INSPECTION OF AND REPORTING ON THE ELECTRICAL INSTALLATION
The paper deals with: the changes in the electrical regulations, what are the expectations of householders, limitation of works now able to be undertaken, the methodology of an electrical test, the process of reporting, common defects in electrical installations, guidance on common faults within an installation and things which the surveyor should look out for.
Steve Hesketh, Senior Operations Engineer, NICEIC (National Inspection Council for Electrical Installation Contracting)

HOME CONDITION REPORT
• The Housing Act - what it means for the industry
• The Home Inspection - what it is, who can make them, the type of report required, duties of care
• The Home Condition Report - the detail required and how it will be delivered
• The National Occupational Standards for Home Inspectors
• Assessing competence
• What insurance is needed
• What are the liabilities on a Home Inspector
• Delivering reports - new IT, new quality standards, new opportunities
Christopher Legrand, Director, Property Industry Research Ltd.

DEFECTS UPDATE – WHERE ARE THEY HAPPENING?
• The fabric
- steel frame corrosion: the problem and remediation
- electro chemical repair of concrete
- migrating corrosion inhibitors
- composite cladding - fire risk assessment - what to consider
- Mosaic tesserae - diagnosis and repair
- cladding - a round up of problem areas - things to consider: nickel sulphide inclusions
• The structure
- mechanisms of movement - shrinkage and expansion: precast cladding - provision for fixing and restraint. Lift slab construction. Vibration of composite floors in modern office buildings. Alkali silica reaction - the use of highly alkaline cement, HAC - CAC, the durability debate.
• Diagnosis
- Ultrasonics, thermography, impulse radar and magnetic mass probes.
Trevor Rushton, Partner, Building Engineering and Technology Department, Watts and Partners

INTERPRETATION

PREDICTING FAILURE – RESPONSIBILITY FOR WHAT CANNOT BE SEEN
This paper will examine the responsibility of the surveyor to predict failures where a defect is not visible. The defects considered will be concealed. The trail of circumstances may result in the surveyor having the duty to warn or recommend further action. The range of expectations will be considered, so that a delegate is informed as to risk, guided as to diagnosis, advised as to reporting techniques or alternatives and cajoled on the need to recommend further action before a commitment to purchase.
Malcolm Hollis

DUE DILIGENCE - HOW MUCH DOES THE CONDITION AFFECT AN INVESTOR/PURCHASER?
The paper will explore the influences on building purchase. The investor/ purchaser has to consider short and long term income, capital growth, return on investment, tax implications of capital expenditure, market expectations and who financially is the best person to pay for the works. Due diligence reports on the property: what they include, reasons for their preparation, the overview of the acquisition.
James Hewetson

VALUATION OF LOSS
The paper will cover Property Valuation and the relevance of repair cost to the value. Valuation of diminution in value, including section 18.1 valuations for dilapidations claims.
James Hewetson, Valuations, Matthews and Goodman

RECENT LEGAL DEVELOPMENTS
The speaker will deal with recent legal developments relating to the profession’s legal liability and professional indemnity insurance arrangements (including the implications of Merritt –v– Babb), as well as the important areas of causation and damages (and in particular the developing significance of SAAMCO and other cases such as Hoadley –v– Edwards and Farley –v– Skinner).
Edward Coulson, Partner, Robin Simon LLP