Roadworks damaging trade

[CitySlicker]

Hi,
We have a small retail store which is near a new housing development. Several times over the last 2 weeks the contractors for the developers (Bovis Homes) have put traffic lights outside/near our store to work on the road and as a result our sales are down massively (up to 50% down). We have been told they could be there for another week. We have not been given any notice about this work.
I emailed both Bovis Homes and the Highways Agency. Bovis didn't respond and when I called they said they would pass it on and get someone to contact me. Not happened. Highways Agency told me they have the work logged but there is nothing they can do to help us.
Questions:
1) Do I have any claim for compensation?
2) If so, on what grounds? (loss of business, lack of any notice etc)
3) if so, who from? (Bovis, council etc?)
4) Any suggestions from people who have had similar problems?
Many thanks

 

[solent66]

I researched this a couple of years ago when the council closed the road past by business for resurfacing during my busiest time of year, having adamantly refused to change the date to something less damaging.

The result I came up with is that if it's the council doing the works then it's considered essential maintenance and they are completely absolved of any responsibility no matter how much they screw things up.

However, if it's one of the utilities then you can probably claim compensation for loss of income.

There's plenty of stuff on the internet about this if you want to google. I would strongly advise you contact a solicitor, preferably one who has prior experience in this area.

 

[Twinkle Toes]

As above, if it's utilities (essential or not) you can claim. You have to provide your last three years accounts, or if a sole trader your SA's, to show the loss of profit for the period the works were there. I did this as a sole trader with Wales and West and did indeed get compensated. It's a bit of a flaff, but if your quiet and nothing else to do well worth the few hours it takes to gather the info.

No need for a solicitor, utilities companies have departments that deal with this sort of thing and it's matter of course for them. I had no quiries from them whatsoever, just make sure you provide all the information they require.

 

[MOIC]

What have the shops either side of you decided to do?

 

[Twinkle Toes]

What have the shops either side of you decided to do?

From experience the majority of other shops will be all negative and think it's a waste of time and not bother, because they all know better! Fact is, if it's utilities work and you lose profit then the utility companies are legally obliged to compensate.

 

[MOIC]

The point I was making is that a collective voice may be better than a lone voice.

 

[Twinkle Toes]

..a collective voice may be better than a lone voice

Can't be done. I was chair of the chamber of commerce at the time and we thought the same. Had a solicitor send Wales and West a letter on behalf of forty odd independent retailers. The reply was they can only look at the cases on a individual basis. That was the point most retailers thought it a waste if time and didn't bother. Half a dozen of us did bother with success, we were compensated for the difference in profit for that period against the average for the same period over the past three years. Obviously you can't claim until the works are completed, but you can register you'll be making a claim in the meantime. There is also quite a small time period you have to make the claim once the works have finished.

There is a specific government act that covers all this, I think it's "the gas act 1986" or something like that. The trick is not to think you are taking on a battle, like we did to start with. Simply phone the utility company, they will send you the forms, while the works are still ongoing collate your accounts/SA's for the past three years and when the works are complete submit your claim. I had a couple of phone calls from them to confirm a few details but they were nothing but polite and helpful.

Oh, and remember you are claiming for lost profit not turnover!

Edit
That's gross not net profit.

 

[MOIC]

Nothing beats experience!

 

[Talay]

So what happens if you haven't been in a location for 3 years ?

What if you are only there for 6 months ?

Do you just get shafted ?

 

[MOIC]

Perhaps they just take your 6 months accounts as opposed to averaging your past 3 years accounts to gauge potential loss.

Presumably previous years accounts have been audited, filed and can be verified.

 

[Talay]

Perhaps they just take your 6 months accounts as opposed to averaging your past 3 years accounts to gauge potential loss.

Presumably previous years accounts have been audited, filed and can be verified.

If you have only been in a location for 6 months then you don't have accounts for that location do you ?

 

[MOIC]

No.

But if you have been there longer, then they have something more tangible to calculate profits made and assess your proposal.

It's a case of the more information you can provide will result in (presumably) less argument.

 

[Twinkle Toes]

So what happens if you haven't been in a location for 3 years ?

What if you are only there for 6 months ?

Do you just get shafted ?

I presume they have a process in place for younger businesses, why wouldn't they? What you would do in that situation is, wait for it, phone them!!

This negative speculation is exactly why thirty odd retailers didn't make a claim. More fool them, the roadworks were ongoing for fourteen weeks, that's a substantial loss of profit to miss out just because they presumed (some claimed to know!) that compensation wouldn't be forthcoming.

 

[Newchodge]

The problem with having less than a year's accounts is the difficulty of proving how much loss is due to the disruption and how much is normal seasonal variation.

 

[Twinkle Toes]

The problem with having less than a year's accounts is the difficulty of proving how much loss is due to the disruption and how much is normal seasonal variation.

You might be surprised, they know every sectors average profit margin, they had mine bang on. They almost certainly know seasonal variations as well. This is a multi million pound cost to their business, they are going to be 100% on top of it.

 

[Talay]

You might be surprised, they know every sectors average profit margin, they had mine bang on. They almost certainly know seasonal variations as well. This is a multi million pound cost to their business, they are going to be 100% on top of it.

They will also need to know this for their conduct risk assessment and be able to prove non exclusion and fairness across all affected companies. If not, they don't have a leg to stand on come claim time.

My argument was to flush out opinion and it was quite stark that the old hat of "must have blah blah accounts" was rolled out without any references.

 

[kelvin1950]

So what happens if you haven't been in a location for 3 years ?

What if you are only there for 6 months ?

Do you just get shafted ?

You supply them with as much information as you have available. We had a similar problem some years ago when we had only been trading for 5 weeks and we had to close when our shop was flooded. The insurance company wanted 3 years accounts. They settled for the accounts for the 5 weeks that we'd been open. If you haven't got it then you can't supply it.

 

[roydmoorian]

A decent commercial estate agent would sort this for you and get their fees from the utility company as well.