What Is a Schedule of Dilapidations? A Tenant'sComplete Guide

If you are approaching the end of a commercial lease, or you have just received a formal document from your landlord listing defects and required works, you are dealing with dilapidations. This guide explains exactly what a schedule of dilapidations is, how it is produced, what it typically requires, and, most importantly, what to do about it.

A schedule of dilapidations is a formal legal document prepared by the landlord's chartered surveyor at or near the end of a commercial lease. It sets out every defect, repair, and reinstatement item the landlord believes the tenant is obliged to address under the terms of the lease, typically under 'repair', 'decoration', and 'reinstatement' covenants.

Each item on the schedule is cross-referenced to a specific clause in the lease, along with the specific remedy required and an estimated cost. The total of those estimated costs forms the landlord's claim against the tenant.

There are two common types: an interim schedule (issued during the tenancy, usually to prompt action before lease end) and a terminal schedule (the main document issued at or after lease expiry). Most tenants encounter the terminal schedule, often called a 'Scott Schedule' when it is in a structured table format for dispute or court proceedings.

A dilapidations survey is the physical inspection of the property carried out by the landlord's surveyor, usually a RICS-qualified building surveyor, that produces the schedule. The surveyor walks the entire unit, comparing the current condition against the lease requirements and any photographic or written record of condition at lease start (the schedule of condition, if one exists).

The survey can happen while you are still in occupation (typically in the final 6 to 12 months of the lease) or after you have vacated. If you have a schedule of condition attached to your lease, a photographic record of the state of the property when you took it on, the surveyor must take this into account. Items that were already in poor condition at the start cannot be claimed against you.

Tenants are entitled to commission their own surveyor to respond to the schedule, a 'counter-schedule' or 'dilapidations response', which challenges each item claimed. This negotiation between surveyors is normal and often reduces the final settlement significantly.

A dilapidations report (used interchangeably with 'schedule of dilapidations') typically follows a structured format listing individual items, their location, the relevant lease clause, the required remedy, and an estimated cost. Common categories include:

The document will usually conclude with a Schedule of Condition comparison (if applicable), a Quantified Demand listing the total cost of the claim, and sometimes a Diminution Cap, a figure representing the maximum reduction in the property's value attributable to the disrepair, which caps the landlord's claim under section 18(1) of the Landlord and Tenant Act 1927.

In most commercial dilapidations cases across offices, retail units, and light industrial or warehouse premises, the bulk of the required works falls into four categories.

More complex schedules, typically on larger units or where significant fit-out has taken place, may also include partition removal, suspended ceiling reinstatement, lighting replacement, HVAC work, or external/roof repairs.

This is the most important financial decision in the dilapidations process. The answer, in the vast majority of cases, is: carry out the works yourself.

The landlord's schedule includes contractor estimates compiled by the surveyor, often based on commercial schedule-of-rates pricing. These figures typically run 20 to 40% above what you would pay a direct contractor, because the landlord's surveyor is estimating on the landlord's behalf, not trying to find you the best price.

If you instruct a contractor directly to carry out the works before vacating, you pay only the actual cost of the works. The landlord receives the unit back in the required condition and has no basis for a cash claim. If you pay a settlement instead, you are paying the surveyor's estimate, which includes overhead, margin, and often additional professional fees. For a typical office or retail unit, the difference between doing the works and settling can be £5,000-£20,000 or more.

The timeline depends on the size of the unit and the scope of works required.

• Small office or retail unit (up to 1,500 sq ft, light scope): 5 to 8 working days
• Medium unit (1,500 to 5,000 sq ft, standard redecoration and make good): 2 to 3 weeks
• Large unit or light industrial (5,000 to 20,000 sq ft): 3 to 6 weeks
• Complex fit-out removal or poor condition throughout: allow 6 to 10 weeks

A reputable dilapidations contractor will give you a fixed programme of works at quotation stage, start date, completion date, and a schedule tied to the individual items in the landlord's document. If they can't, find someone who can.

Not all building contractors are set up to carry out dilapidations work properly. The key differences between a general maintenance contractor and one experienced in dilapidations are:

Dilapidations work is time-critical. The lease has an end date, and any works that run over can expose you to additional holding costs or a landlord claim for damages during the overrun period. Choose a contractor who gives you a fixed programme and sticks to it.

For more detail on how we handle commercial dilapidations works, including the process from receiving your schedule to handing back the keys, visit our dedicated page at /commercial-dilapidations.