PPM is defined as

“The maintenance that is performed purposely and regularly to keep the structure and fabric, facilities, plant and equipment of a building in satisfactory operating condition by providing for systematic inspection, detection and correction of failures, either before they occur, where actually present or before they develop into major defects”

RICS Draft Guidance Note: Planned preventative maintenance of commercial and residential property, 1st edition.

The RICS recognising the importance of PPM, have asked us as members for our consultation on the 1st Edition of their guidance note on this matter.  PPM can play a significant role in management of a schemes service charge and thus is its tenants, as such we have following recommendations.

That the executive summary of a PPM report should include:

  • The stated terms of reference regarding its scope of report and whether it excludes areas where an occupier has responsibility for repairs.
  • An explicit statement as to what legal documents have been reviewed in undertaking the PPM
  • A statement that the report has been drafted in accordance with the principles stated in the RICS Professional statement, Service charges in commercial property.
  • The period the PPM will last for and at what date it should be revised.

That the full PPM condition report should include:

  • If it has been stated that report covers areas where an occupier has responsibility for repairs, then these should be clearly separated from costs associated with the common parts.
  • The PPM should include a note confirming that any item noted as being required in a certain period is a recommendation only. It should also be stated that the PPM does not mean an item is needed when proposed or at the quantum assessed and that before transferring PPM item into a service charge budget the member should provide a specific recommendation.
  • Members should be reminded that including improvements in a service charge PPM report may contravene RICS Professional statement, Service charges in commercial property.

Andrew Morley Head of Real Estate at Bellrock commenting on this matter has stated
“broadly a PPM may not establish a technical case for cost recovery reflecting lease terms. Landlords and agents should act with caution before importing PPM content into budgets without a full technical assessment relative to lease terms at the time of budget preparation. Proportionate fees should follow, transparently. Scope, terms of reference etc are important and must be stated.”

Ben Allen Associate Director Occupier Services

Ben Allen BSc (Hons) MRICS, as an Associate Director in Bellrock’s Occupier Services Team, which challenges service charges on behalf of tenants.

Ben is a property professional who brings to the table 14 years of commercial experience, specialising in property management, with a focus on Retail Parks and Shopping Centres. Ben holds a BSc (Hons) degree in Real Estate Management and is a member of the Royal Institution of Chartered Surveyors.