Contractors may require an area reference survey for multiple reasons; it may be required for valuation, management, conveyance, planning, taxation, sale, letting, or acquisition purposes.
At Michael Gallie & Partners, we advise floor area measurement to be carried out at design stage, even before a tower crane starts to appear on-site and more importantly any legally binding contracts are signed with the client.
Why is it so crucial this early in the process to have an area reference report commissioned?
The simple answer is to minimize your risk as early as possible in the process, starting with instructing an independent area measurement report. This ensures that the architect’s design floor areas have been calculated accurately to the relevant measurement code stated in the contract.
What is the risk at design stage for a contractor when nothing has been built on-site yet?
A standard contract signed between a client and contractor for constructing a new building will have written clauses that require the contractor to provide guaranteed floor size area plates. This is vital when handing over the building to the client at project completion. These guaranteed floor size area plates will be based on the architect’s floor areas. They are calculated from their design drawings to the relevant measurement code.
Now picture a scenario whereby the architect’s floor areas are not calculated correctly to the relevant measurement code. The result ends up being the contractor signing a pre-construction contract which agrees to build guaranteed floor areas to a measurement code. This cannot be fulfilled or constructed physically on-site. Nonetheless, this scenario is not uncommon and does happen quite often in the construction industry.
Therefore to avoid any penalty contract clauses and to minimize your risk, always commission a pre-construction area reference measurement report prior to signing any contract. If you need any advice on pre-construction area measurement reports, please contact Sam Lloyd at Michael Gallie & Partners who will be happy to assist you in this matter.
Michael Gallie & Partners are regulated by the RICS and can provide you with the added assurance of having industry leading £10 million Professional Indemnity insurance cover.