When starting a construction or renovation project that involves a shared wall with a neighbouring property disputes and legal complications can quickly arise. Without the right safeguards in place, property owners may find themselves entangled in costly disagreements over damages and responsibility.

This is where party wall security for expenses comes in—a critical financial protection tool that ensures fairness, reduces risk, and helps to keep your project on track.

What is Party Wall Security for Expenses?

Party wall security for expenses is a legal safeguard that ensures funds are properly allocated to cover any potential damages or costs arising from construction work affecting a shared wall or boundary. It provides a clear financial framework, helping property owners avoid disputes while ensuring that costs are fairly distributed.

Think of it as a safety net – one that protects both parties by guaranteeing that necessary funds are set aside before construction even begins.

Why Is Party Wall Security Important in Construction?

✔Prevents Financial Disputes – clearly defining responsibilities in advance minimizes confusion and costly legal battles.

✔ Ensures Compliance & Protection – adhering to party wall security requirements protects property owners from unexpected liabilities.

✔ Provides for availability of funds for Damages – by securing money upfront, property owners are assured that the cost of any unforeseen repairs or expenses will be covered.

Without this added layer of protection, construction-related damages could lead to disputes, legal battles and significant financial strain—all of which can delay or even derail a project.

How Escrow secures Party Wall payments

Before construction begins, all involved property owners must agree on the party wall security amount—a figure determined by appointed surveyors after assessing risks.

One of the most secure and efficient ways to handle these funds is through an escrow service. Here’s how it works:

1️ Funds are deposited into Escrow – the property owner carrying out the work places the agreed security amount into an escrow account with a trusted provider like Riverside Escrow.

2️ Escrow Agreement governs the process – this agreement, working alongside the Party Wall Award, sets the conditions for fund release.

3️ Surveyor approves fund disbursement – once construction is complete, the surveyors assess whether damages have occurred. If necessary, funds are fairly distributed to cover repairs.

This neutral and structured approach ensures that all financial obligations are met, reducing risk and fostering trust between neighbours. 

Secure Your Construction Project with Party Wall Protection

If your construction project involves a shared wall or boundary, don’t leave financial assurance to chance. Using an escrow service for party wall security helps to ensure a fair, transparent, and hassle-free process—helping both parties move forward with confidence.

Contact us to speak to our experts about how escrow can protect your next build.

Protect your investment. Avoid disputes. Ensure a smooth construction journey.