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If you are undertaking building work and two professionals cannot agree on a crucial matter, you have entered the most complex and often the most expensive phase of a Party Wall dispute.
Under the Party Wall etc. Act 1996, this situation triggers the statutory requirement to bring in a Third Surveyor.
This article explains the specific scenarios that necessitate this escalation, clarifies the Third Surveyor's unique role as the tie-breaker, and, crucially, addresses the significant financial implications of this final step in dispute resolution.
To understand the Third Surveyor, we first recap the standard process. When a neighbour dissents to a Party Wall Notice, two surveyors are usually appointed: one by the Building Owner and one by the Adjoining Owner.
Both surveyors, though appointed by different parties, share a fundamental legal duty: they must act impartially and uphold the interests of the Act's proper execution. Their goal is to negotiate and agree upon the terms of the Party Wall Award, a document that legally governs the works.
The need for a Third Surveyor only arises when the two appointed surveyors cannot agree on any matter under dispute or, more commonly, cannot agree on the final terms of the Party Wall Award.
Common disagreements that can lead to this deadlock include:
Once the deadlock is reached, the Third Surveyor steps in as the legally mandated arbiter.
The Third Surveyor is not chosen by either the Building Owner or the Adjoining Owner. Instead, the two appointed surveyors nominate and appoint a Third Surveyor between them. This professional must be a neutral, and an experienced specialist Party Wall Surveyor.
The Third Surveyor is called upon only to rule on the specific point of disagreement submitted by the two appointed surveyors. They review the evidence, site visits, and surveyor arguments before issuing a binding determination.
This determination on that specific point is final and binding on the two original surveyors, forcing them to incorporate it into the Award and resolve the deadlock.
Bringing in a Third Surveyor is invariably a costly intervention. Their fees are substantial and come in addition to the costs already incurred with the two original surveyors.
The Third Surveyor holds the power to determine who is liable for their fees. This decision is not arbitrary; it is based on fairness and the facts of the dispute.
In most cases, the fee will be allocated to the party whose surveyor's position, instruction, or argument led to the unnecessary disagreement and the subsequent need for external intervention.
Crucial Note: It is a common misconception that the Building Owner always pays. If the Adjoining Owner's surveyor was instructed to take an unreasonably obstructive or non-compliant stance that prevented the Award from being agreed upon, the Adjoining Owner may be held liable for the Third Surveyor's costs.
The best strategy is prevention. If your surveyors are communicating effectively, you will likely never need this expensive intervention.
When appointing a surveyor, prioritise those with a proven track record of collaboration and impartiality. A surveyor who is known for being overly adversarial is more likely to create a deadlock.
Ensure the initial Party Wall Notice and subsequent drawings provided by the Building Owner are detailed and unambiguous. Ambiguity is the birthplace of disagreement.
While costly, the Third Surveyor process is a necessary legal mechanism embedded within the Party Wall etc. Act 1996 to prevent project deadlock and ultimately protect the rights and interests of both parties.
At Party Walls Limited, we stress that our professional, experienced surveyors aim to resolve all matters swiftly and equitably without involving the Third Surveyor, saving you time, stress, and unnecessary expense.
A: Yes, under the Party Wall etc. Act 1996, the appointment of a Third Surveyor is a statutory requirement if the two appointed surveyors cannot reach an agreement on any matter under the Act. It is the legal mechanism for resolving the deadlock and allowing the process to conclude.
A: No. The two appointed surveyors (one for each party) must jointly select and appoint the Third Surveyor. The owners do not have a say in this specific choice, ensuring the Third Surveyor remains completely impartial.
A: The Third Surveyor determines who pays their fees. They will usually apportion the costs to the party whose surveyor's position or instruction led to the unnecessary escalation and requirement of their involvement.
A: Yes, the determination made by the Third Surveyor on the specific point of dispute is final and legally binding on all parties and on the two appointed surveyors. This ruling is what allows the final Party Wall Award to be issued.
A: Yes, an appeal can be lodged with a County Court under Section 10(17) of the Act, but you must do so within 14 days of the determination being served. Appeals are rare, highly technical, and often very expensive.
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