Security for Expenses: Protecting Against Unfinished Work
Security for expenses is a right under the Party Wall etc. Act for an adjoining owner to ask the building owner to provide money in advance, held as security, to cover the cost of making good if the work is left unfinished. It is aimed at work that could leave the neighbour with a hole in the wall.
What it is for
Some work leaves the neighbour's property exposed if it stops halfway. Opening up a wall is an example. Security means money is available to make the structure safe if the building owner cannot or will not finish.
When it can be requested
It applies in the situations the Act describes, typically where work to the party wall leaves the adjoining property at risk. The neighbour asks in writing, before the work begins.
How much
The Act does not give a formula. The amount should reflect the realistic cost of making good if things go wrong. Surveyors usually settle it. No sensible figure can be given before someone has assessed the job.
How it is held
The money is normally paid into a separate account, or held by a stakeholder, and released once work is complete and the neighbour's property is safe. The award records the terms.
If it is disputed
If the owners disagree about whether security is needed or how much, the surveyors decide. The decision can go to a third surveyor, and an award can be appealed to the county court within 14 days.
Practical steps
If you are the adjoining owner, raise the point early, in writing, and explain why the work could leave you exposed. If you are the building owner, ask your surveyor whether the request is reasonable and how the sum will be held. A clear answer at the outset avoids disagreement once digging has begun.
Frequently asked questions
Can I request it on any job?
No. It arises in the circumstances the Act sets out. Ask your surveyor whether it fits your case.
Do I get the money back?
Yes, if the work is completed properly, subject to the terms of the award.
Is it the same as insurance?
No. It is cash held to cover unfinished work. Insurance is a separate arrangement, so read policy wording.
Can a builder's guarantee replace it?
Not automatically. Any alternative would need to be agreed by the surveyors and written into the award.
Source: Party Wall etc. Act 1996 on legislation.gov.uk
Related guides
- Schedule of Condition: Why You Need One Before Building
- Damage Caused by Party Wall Works: How to Claim Compensation
- Who Pays for Damage Caused to a Neighbour's Property During Building?
- Temporary Works and Shoring Under the Party Wall Act
Last updated: . This page is general information about the Party Wall etc. Act 1996 (England and Wales). It is not legal advice. Every property and dispute is different, so take advice from a party wall surveyor or a solicitor before you act.