ABSTRACT
Chapter 1 (Section 1.1) addresses cost at a strategic level and considers ways of defining, measuring and managing occupancy cost as part of a property strategy. There is also significant scope for controlling and reducing cost at a detailed level by adopting a rigorous approach to all cost components, taking an active role in cost management and consistently auditing and challenging costs. Many occupiers fail to protect themselves and minimize cost because of a lack of awareness of the scope for doing so. Landlord’s invoices are left unchallenged, rent reviews are negotiated ineffectively, potential rates savings are overlooked. In many cases occupiers can make a significant impact on cost in the long run by adopting a proactive approach and questioning all costs on an informed basis. The author recently encountered a situation where an occupier was saved £50 000 simply by discovering an error in the calculation of a service charge apportionment.
