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Part IIRemedial Action

Payments in lieu and depreciation payments

13Payments in lieu

(1)The Corporation shall not be required to make any payment in lieu in respect of any works executed by any other person in connection with any property unless that person—

(a)has given to the Corporation the required notice with respect to the works; and

(b)has afforded the Corporation reasonable facilities to inspect the property, so far as he was in a position to do so.

(2)The required notice with respect to any works is a notice which—

(a)contains adequate particulars of the works; and

(b)except in such circumstances as may be prescribed, is given at the prescribed interval before the works are begun.

(3)Subject to subsection (5) below, the Corporation may make payments in respect of any proposed expenditure qualifying for a payment in lieu (“advance payments”).

(4)For the purposes of subsection (3) above, proposed expenditure is expenditure qualifying for a payment in lieu if it is expenditure of a description in respect of which a payment in lieu would be required if it had been incurred.

(5)An advance payment—

(a)may only be made if the Corporation are satisfied that it will be applied in meeting the expenditure in question; and

(b)shall be regarded for the purposes of this Act as made in accordance with the provision of section 8 or 9 above which requires the payment in lieu on account of which it is made.

(6)The Corporation shall not unreasonably refuse any request to make an advance payment received from the person or persons by whom the cost of executing the works in question is to be incurred.

(7)Any payment in lieu (including an advance payment) shall be made to the person or persons by whom the cost of executing the works in question is (or is to be) incurred; and, if there are two or more such persons, the payment shall be apportioned between them—

(a)in such manner as may be determined by agreement; or

(b)in default of agreement, in shares corresponding to their respective shares in the cost.

(8)So far as not made by virtue of subsection (3) above before the expenditure in question is incurred, any payment in lieu shall be made as soon as reasonably practicable after the expenditure in respect of which it is required to be made has been incurred.