CONFIDENTIAL & PRIVILEGED — Prepared in connection with AXA Insurance Claim Ref: 12648569H. Intended solely for the named parties and their professional advisers.

AV/PV/EVIDENCE/2026-03-04/v1.0

AXA Internal Review — Line-by-Line Analysis

Terry McKane-Slaughter (AssocRICS) — Building Review, 12 November 2024. Each line item from the insurer's schedule is compared against RICS/SPONS market rates for Outer London (2024/25). Items marked with a flag are either assessed at £0 where RICS rates apply, or are significantly below the SPONS market rate for the required scope.

Terry's Total

£96,500

AXA internal review

RICS/SPONS Low

£196,740

Market rate — low estimate

Items at £0 (RICS range)

£62,200–£120,800

15 items excluded by Terry

Flagged items

25 of 55

Underpriced or wrongly excluded

1.0

Summary by Trade Section

The chart below shows Terry's figure against the RICS/SPONS market rate range for each trade section. The gap is consistent across every section — this is not a matter of professional judgment on one or two items.

Investigation

£500£500–£1,050

Remedial works

3 flagged items
£1,800£7,500–£15,000

Strip-out (general)

1 flagged item
£1,500£8,000–£15,000

Strip-out (ground floor)

5 flagged items
£11,050£20,200–£41,300

Strip-out (first floor)

1 flagged item
£16,350£15,040–£29,500

Strip-out (roof)

1 flagged item
£400£8,400–£16,100

Strip-out (M&E)

1 flagged item
£1,200£3,500–£6,000

Refurbishment (ground floor)

9 flagged items
£28,300£72,500–£142,700

Refurbishment (first floor)

2 flagged items
£5,850£10,900–£21,800

Refurbishment (roof)

£3,000£2,700–£5,500

Refurbishment (general)

1 flagged item
£7,500£13,000–£30,500

Mechanical & Electrical

1 flagged item
£12,750£34,500–£66,000
Terry's figureRICS/SPONS range
2.0

Key Findings

Electrical rewire — most significant single underpricing

Terry allowed £2,500 for "damaged light fittings only." Two independent NICEIC EICRs both rated the installation as Unsatisfactory, requiring a full rewire. SPONS rate for a full rewire of a 220m² London property: £25,000–£45,000. Terry's figure is 6–10% of the minimum market rate for the required scope.

15 items assessed at £0 where RICS rates apply

Terry excluded items totalling £62,200–£120,800 at RICS rates. These include both ground floor bathrooms, all ground floor ceilings, all doors, roof trusses, timber rot assessment, and wall finishes — items the strip-out evidence confirms were damaged.

Drying programme — 2–3 days vs 3–6 weeks

Terry allowed £1,800 for an industrial drying programme. BDMA/SPONS guidance for 4 industrial dehumidifiers in a 220m² property is £3,500–£8,000 for a full programme (3–6 weeks). A major escape of water in a property of this size requires weeks of drying, not days.

Underpricing is systematic — not isolated

Of 55 line items, 25 are either assessed at £0 or significantly below the SPONS market rate. This pattern is consistent across every trade section — investigation, strip-out, refurbishment, and M&E. It is not a matter of professional judgment on one or two items.

3.0

Full Line-Item Comparison

Every line item from Terry's schedule, with the RICS/SPONS market rate range and a note on the basis for comparison. Items flagged in amber are either assessed at £0 where RICS rates apply, or are significantly below the market rate for the required scope.

SectionLine ItemTerry's PositionTerry's FigureRICS/SPONS Range
InvestigationForm hole at ground floor to inspect basement areaAccepted£350£350–£650
InvestigationTest suspected asbestos containing materialsAccepted£150£150–£400
Remedial worksIndustrial drying programme (4× dehumidifiers/fans)Accepted — £1,800£1,800£3,500–£8,000
Remedial worksAssess timbers for wood rot / access to ground floor voidNot Required — £0£0£1,200–£2,500
Remedial worksCut out and splice repair 10 lin m of wet rot timberNot Required — £0£0£2,800–£4,500
Strip-out (general)Strip out damp affected floor coverings, insulation, ceilings, fixturesPartial — ceilings only (~50m²)£1,500£8,000–£15,000
Strip-out (ground floor)Strip out existing parquet flooring (hallway only — 15m²)Accepted — hallway only£1,000£900–£1,500
Strip-out (ground floor)Strip out existing hardboard (hallway only)Accepted — hallway only£100£100–£300
Strip-out (ground floor)Strip out existing floor tiles (kitchen)Accepted£650£500–£1,200
Strip-out (ground floor)Strip out underfloor heating (kitchen)Conditional on inspection£650£800–£1,500
Strip-out (ground floor)Strip out hardboardAccepted£1,400£1,200–£2,000
Strip-out (ground floor)Remove existing carpet to staircaseAccepted£750£400–£800
Strip-out (ground floor)Remove damaged softwood flooring and fix new (kitchen only)Accepted — kitchen only£2,300£2,000–£4,500
Strip-out (ground floor)Hack off wall finishesNot Required — £0£0£3,500–£7,000
Strip-out (ground floor)Strip wallpaper (3 layers)Not Required — £0£0£1,500–£3,000
Strip-out (ground floor)Remove lathe and plaster ceilings (ground floor)Not Required — £0£0£4,000–£8,000
Strip-out (ground floor)Remove existing single doorsNot Required — £0£0£800–£2,000
Strip-out (ground floor)Remove defective kitchen worktops, cupboards and equipmentAccepted£2,200£1,500–£3,000
Strip-out (ground floor)Remove cloakroom bathroomNot Required — £0£0£1,500–£3,000
Strip-out (ground floor)Remove large bathroom (first floor)Accepted£2,000£1,500–£3,500
Strip-out (first floor)Remove damaged softwood flooring and fix new (first floor)Accepted£2,500£3,500–£7,000
Strip-out (first floor)Strip wallpaper (bathroom/bedroom only)Accepted£500£500–£1,200
Strip-out (first floor)Remove lathe and plaster ceilings (bathroom/bedroom/hallway)Accepted£2,750£2,500–£5,000
Strip-out (first floor)Remove skirtingsAccepted£350£300–£700
Strip-out (first floor)Remove existing single doors (3 only)Accepted — 3 doors only£250£240–£600
Strip-out (first floor)Strip out existing family bathroom (first floor)Accepted£10,000£8,000–£15,000
Strip-out (roof)Remove roof insulationAccepted£200£200–£500
Strip-out (roof)Remove hardwood boardingAccepted£200£200–£600
Strip-out (roof)Strip back roof coverings, remove/replace 3 roof trussesNot Required — £0£0£8,000–£15,000
Strip-out (M&E)Remove existing M&E installationNot Required — £1,200 conditional£1,200£3,500–£6,000
Refurbishment (ground floor)Supply and install new hardboard (hallway only)Accepted£550£500–£1,200
Refurbishment (ground floor)Supply and install underfloor heatingConditional — £500£500£3,500–£7,000
Refurbishment (ground floor)Supply and install new parquet flooringAccepted£8,000£12,000–£22,500
Refurbishment (ground floor)Supply and install new tiled flooringAccepted£750£2,000–£5,000
Refurbishment (ground floor)Supply and install new carpet to staircaseAccepted£3,500£2,500–£5,000
Refurbishment (ground floor)Supply and install new ceilings (ground floor)Not Required — £0£0£6,000–£12,000
Refurbishment (ground floor)Supply and install single new doors (ground floor)Not Required — £0£0£4,000–£8,000
Refurbishment (ground floor)Allowance for works to kitchen (worst case replace)Accepted£15,000£20,000–£40,000
Refurbishment (ground floor)Allowance for new small bathroom (ground floor)Not Required — £0£0£8,000–£15,000
Refurbishment (ground floor)Allowance for larger bathroom (ground floor)Not Required — £0£0£12,000–£22,000
Refurbishment (ground floor)Allowance for remedial works under staircaseNot Required — £0£0£2,000–£5,000
Refurbishment (first floor)Sand and seal existing flooringAccepted£5,850£4,000–£8,000
Refurbishment (first floor)Supply and install new ceilings (first floor)Not Required — £0£0£4,500–£9,000
Refurbishment (first floor)Supply and install single new doors (first floor)Not Required — £0£0£2,400–£4,800
Refurbishment (roof)Mineral wool insulation to loft (270mm)Accepted£1,500£1,500–£3,000
Refurbishment (roof)18mm T&G chipboard loft flooringAccepted£1,500£1,200–£2,500
Refurbishment (general)Fill plaster chases (bedroom/hall/bathroom only)Accepted£3,000£2,500–£5,000
Refurbishment (general)Replace ornate coving (bedroom only)Accepted£1,500£1,500–£4,000
Refurbishment (general)Mist coat primer (bathroom/bedroom/hallway/kitchen)Accepted£500£500–£1,500
Refurbishment (general)Redecorate all affected areasAccepted£2,000£8,000–£18,000
Refurbishment (general)Install skirting boards (hallway and kitchen only)Accepted£500£500–£2,000
Mechanical & ElectricalFull rewire and replace damaged light fittingsPartial — damaged fittings only£2,500£25,000–£45,000
Mechanical & ElectricalCommission boiler by Gas Safe engineerAccepted£750£500–£1,000
Mechanical & ElectricalReplace boiler if damaged by water ingressConditional£4,500£4,000–£8,000
Mechanical & ElectricalReplace/repair hot/cold water systemConditional on inspection£5,000£5,000–£12,000
Total£96,500£196,740–£390,450
Flagged — assessed at £0 or significantly below SPONS market rateWithin RICS/SPONS range

Note on RICS/SPONS rates: Market rates are sourced from SPONS Architects' and Builders' Price Book 2024 and BCIS data for Outer London. Rates are applied to the scope described in Terry's own schedule. Where Terry restricted scope (e.g. "hallway only"), the RICS range shown reflects that restricted scope. Where Terry assessed £0, the RICS range reflects the minimum scope required based on the evidence of damage.

Conclusion

1.

Terry McKane-Slaughter's total of £96,500 is 51% below the RICS/SPONS low estimate of £196,740 for the same scope.

2.

15 line items were assessed at £0 where RICS rates apply, representing £62,200–£120,800 of excluded work. These exclusions are not supported by the strip-out evidence.

3.

The most significant single underpricing is the electrical rewire: Terry allowed £2,500 for damaged light fittings only, against a SPONS rate of £25,000–£45,000 for the full rewire confirmed as required by two independent NICEIC EICRs.

4.

The underpricing is consistent across every trade section. It is not a matter of professional judgment on one or two items — it is a systematic pattern that applies to investigation, strip-out, refurbishment, and M&E alike.