What are Security for Expenses used for?

Historically

Previously, it was assumed that Security for Expenses only covered the risk of a building owner halting work—either briefly or permanently—before the notifiable work was finished, thereby leaving the neighbouring building potentially unsafe.

Nowadays

Now, it is generally recognised that security can also be used to cover the risk of damage caused by the works, as well as other related costs that may arise.

While theParty Wall Act does not explicitly state what Security for Expenses should cover, it is generally accepted that it may include:

• Repairs to an adjoining owner’s property if damage is caused by the building owner’s works.
• Expenses required to make the adjoining owner’s property safe if the building owner abandons the project.
• Temporary accommodation costs and any related fees, should these be necessary.
• Professional fees connected with resolving the dispute.
• Alterations or reinstatement of the building owner’s works, especially if the building owner fails to finish them, leaving the adjoining owner’s property at risk.

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