Who is responsible of the cost of a Party Wall Agreement?

A common question regarding Party Wall Agreements is: who bears the cost? The straightforward answer is the Building Owner. Within the framework of the Party Wall etc. Act 1996, the term Building Owner refers to the individual or entity undertaking the works. Section 11(1) of the Act explicitly states:

"Except as provided under this section, expenses of work under this Act shall be defrayed by the building owner."

In most circumstances, the Building Owner is solely responsible for covering the costs associated with the Party Wall Agreement. This includes the surveyor's fees, the preparation of the award, and any ancillary costs related to the works. However, there are specific scenarios in which the costs are shared between the Building Owner and the Adjoining Owner.

For instance, if a Party Wall structure is built, repaired, or altered in a way that benefits both parties, the expenses for the works and the Party Wall Agreement may be apportioned accordingly. This is addressed under Section 11(5) of the Act, which provides a mechanism for shared contributions when mutual benefit is derived.

In cases where there is disagreement over how costs should be divided, the appointed Party Wall Surveyors (or the agreed single surveyor, if only one is involved) have the authority to determine the appropriate allocation. Their decision, once included in the Party Wall Award, becomes legally binding on both parties.

To summarize, while the Building Owner typically shoulders the costs, the Party Wall Act ensures fairness by allowing for shared expense arrangements in specific situations, with disputes resolved through surveyors' professional determinations under the Act.