Introduce RICS Best Practice on 'Dilapidations'

HONG KONG, Feb. 25 /PRNewswire-Asia/ -- The recent Ma Tau Wai Road 45J building collapse incident has aroused much attention amongst the community. In light of this, the Government has responded swiftly by introducing an emergency building inspection exercise covering about 4,000 buildings of age over 50 years within 2 to 3 months with an aim to prevent the happening of another similar tragedy in the future. Yet, this government inspection scheme only covers common areas of buildings while the Ma Tau Wai Road incident was alleged to be caused by illegal alterations works within the different units of the building including the ground floor shop.

(Logo: http://www.prnasia.com/sa/2009/08/17/200908171721.jpg )

In cognizance of the fact that the Legislative Council has just completed the second-reading of the Bill on Mandatory Building Inspection Scheme (MBIS) but the scheme will only be implemented by the fourth quarter of this year. The Royal Institution of Chartered Surveyors (RICS) staunchly supports this Scheme, which will help to improve building maintenance and management for the betterment of the community.

However, the MBIS only requires buildings over 30 years old to be inspected in every 10 years while owners and occupiers may still be exposed to similar safety risks arising from illegal alterations carried out within the 10-year no-inspection period. On the other hand, buildings of less than 30 years old and not covered by MBIS, if not properly maintained, may also be exposed to the similar safety risk. Hence, RICS would like to recommend property owners and occupiers to adopt the long established and proven RICS practice of carrying out a building inspection or condition survey so as to prepare a "Schedule of Dilapidation" before every sale or lease of any premises in order to well define the maintenance responsibility upfront, as well as preventing any subsequent unauthorised alteration of, or additions to the premises.

RICS recommendations are as follows:

1. For leasing premises, the owner or landlord to employ Chartered Building Surveyors to conduct a thorough building inspection or condition survey with a view of preparing a "Schedule of Dilapidation" (SD) before each new or renewal of tenancy to ensure the structural condition, fire safety requirements, e.g. means of fire escape and fire resisting materials etc., and other building services installation etc. of the premises are all at satisfactory conditions and that there are no illegal alteration or addition work found in the building. The SD could then be attached to the tenancy as part of the tenancy.

2. For sale of property, a SD could also be required as part of the conveyance documents.

3. A SD should include a full list of items to be inspected or surveyed and examined by a Chartered Building Surveyor in accordance with RICS Guidance Notes on "Dilapidations" (the latest edition is the 5th Edition dated June 2008)

4. A SD could also be used as a proper and relevant supporting document for insurance companies to consider when property owners apply for insurance coverage.

5. The SD will also allow property owners and occupiers to be more aware of conditions of their premises and help pave way for future education to the general public on building safety by the Government.

David Tse, RICS International Governing Councillor, said, "RICS always responds proactively to society needs by offering professional advices to Government and all stakeholders in the best public interest for the betterment of the community. We strongly advocate the carrying out of regular building inspections or condition surveys, preferably before each and every sales or lease of property, with the ultimate objective to safeguard human lives from unsafe properties resulted from lack of repairs of, or unauthorised alterations and additions to the properties."

Mr. Tse further added that "The diverse specialisms or Professional Groups (total 17 Professional Groups) of Chartered Surveyors can greatly help property owners and occupiers to understand their options and liabilities with respect to their properties. To name a few - Chartered Facilities Management Surveyors to advise on building management and operations, Chartered Planning and Development Surveyors to advise on redevelopment or refurbishment plans, Chartered Project Management Surveyors to implement refurbishment or redevelopment projects, Chartered Quantity and Construction Surveyors to advise on costs estimates on repairs or redevelopment, Chartered Valuation Surveyors to advise on values and rentals etc."

Christopher Wong, Chairman of Building Surveying Professional Group Committee of RICS(HK), said, "The Schedule of Dilapidations has been a long established RICS best practice in UK since 1927. Over the decades, it has contributed profoundly in maintaining safety of buildings and of occupiers who live or work therein. Though the "Dilapidations" Scheme has not been used in Hong Kong, with suitable adaptation and promotion, we are confident that the scheme will be commonly adopted locally by building owners and occupiers. With the proper implementation of this Scheme, we are of the view that the Government can soon rebuild and strengthen the public confidence in building safety."

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About RICS & RICS Asia

RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 122 countries.

The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.

The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: http://www.ricsasia.org.

    Media enquiry, please contact:

     RICS Asia Public Relations Representative
     Ms May Cheung / Ms Ava Lau
     Tel:    +852-2372-0090
     Fax:    +852-2372-0490
     Mobile: +852-9099-2218 / +852-9829-2913
     Email:  [email protected] / [email protected]

SOURCE Royal Institution of Chartered Surveyors