• 
• 

Email us to be sent a sample draft of a contract that is called a ‘short term licence’. Such an agreement includes contractually binding obligations designed to protect the owners’ property. The agreement also gives the project organiser the security required to undertake any necessary fund-raising, advertising or planning.

Please note that the Short Term Licence included in this site is a standard agreement and the Creative Space Agency advise all parties to take independent legal advice and where necessary tailor the agreement to your situation.

Potential users should note that most owners or their agents will automatically leave this work to their solicitors and will pass on the costs to the end user.

Implications of short term licences:

Costs: There are a number of costs incurred by the user of a temporary space even where you may be lucky enough to get the space rent-free:

Deposit: All licences will include a deposit to be paid by the user and held by the owner or their agent (the precise amount will be subject to negotiations with the landlord). The terms/situation in which part or all of the deposit will be held back by the landlord should be included in the licence.

In addition, will you require a deposit to cover electrical and other equipment either provided by the owner or their agent or hired out?

Service Charge or Estate's Charge: Landlords will usually charge a Service Charge or Estate's Charge in addition to rent. If not charging rent they will usually expect you to pay a service charge. These charges cover services that are common to the management of the building or site and may include; buildings insurance, public lighting, security provision, rates and water rates etc. It is essential that all users confirm with landlords whether a service or estates charge will be charged and if so, what amount and what it covers.

Legal Costs: Most owners or their agents will pass on their legal costs to the end user. It is important to establish whether the owner or their agent will include such costs in their offer or will adapt the standard licence such as the one included on our website to keep costs low. If you have to pay the owners or their agents legal costs, try to agree on a capped cost with them.

Rent and Expenses: While we would all like to have space provided for free or at a nominal charge, this is most unlikely. Most space providers will want a rent for the temporary use and you will be expected to pay for actual costs such as power and rates.

Rates: Some local authorities welcome interim uses and do not charge rates, others do not take this approach. If charged, the owner will probably pass the cost on to you. The level will be dependent on the borough, rateable value of the building, the use and period of use. If you have to pay rates direct to the local authority, for premises with a low rateable value (under £10,000) you may be able to apply for small business rates relief of up to 50%. If you are a registered charity (with a registered number) you may be able to apply for a rates relief of up to 80% (please note that these figures are discretionary). More information can be found at www.voa.gov.uk/business_rates/index.htm

Insurance: Users will be responsible for public liability and their own contents insurance. The amount will vary according to the size, quality and type of property itself, the proposed use, its scale and period of cover. Owners or their agents should cover buildings insurance and they may simply charge you for a proportion of the insurance, waive it or include it as a part of the rent or service charge. Several insurance brokers specialise in insurance cover for creative and events uses: www.eventsinsurance.co.uk

www.lawrencegroup.co.uk/about.html

Services: Does the property possess or will you require connection to services (water, gas electricity, drainage). If so what are the cost implications of connection and use of the services? Will the owner or their agent charge you for the use of these services?How much power will you need? Is there enough supply and is it safe? If not, do you need to hire in extra supplies by using a generator? Do you need heating and if so how will it be provided? Does it exist, does it work, does it need to be hired in?Will you need to use temporary services like portable toilets? What are the cost implications? Do the drains work?

Rubbish Removal: You will need to clean and clear the site after your use. What are the cost implications? Will you have to make special arrangements to get rid of hazardous materials (e.g. oils, inflammables, paint thinners, etc.)? By leaving mess behind when you leave the site, not only are you likely to lose your deposit but turn the owner or their agent against this type of use in the future.

Exit Costs: The property must be returned to the owner or their agent in the condition in which it was received and in vacant possession. What are the costs of putting back the building into the condition contained in the state of condition in the licence? Will you need to re-paint parts or all of the property to match the original colour?

VAT: Many owners or their agents will have to impose VAT on any charges. If you or your organisation is VAT registered you will be able to recover your VAT through your accounts. If not you will face 17.5% greater costs.

Security: The owner or their agent may have their own security system in place (e.g. Guards, alarms, locking protocol etc.) and if so you will need to work within their constraints. If there is minimal security you will have to consider what you will need for your project e.g. putting personal effects in a locked box, what about tools and materials? How is the space secured at night? Do you have to remove expensive equipment at night?

Negotiating a good deal: Negotiation is an art in itself – every individual deal is unique and so we cannot tell you “this is how to negotiate a good deal”. However - it is essential that you understand the Landlords position:

Letting you use the space is risky from the landlords’ point of view and he/she will also face a number of costs.

Think about and explain how your use of the space will benefit both parties, for example: Could your proposed use provide the Landlord with a good PR opportunity?

Bear both of the above factors in mind when negotiating with the Landlord – do not expect to be offered the space rent free – you will not be taken seriously by the Landlord and some may even be insulted by such an expectation. However many will appreciate that arts uses usually cannot pay full market rent.

Green policy: All users should consider implementing green initiatives. Users will be able to minimise their costs by ensuring that none of their services are wasted e.g. by turning off lights, water and heating whenever they are not being used. Local authority websites contain details of local recycling centres and initiatives which users should utilise. Due to the temporary nature of the spaces and projects users should endeavour to use re-usable materials to minimise costs and environmental impact. For example the Leaside Wood Recycling Project can provide and take wood before and after the project www.lwrp.org.uk.

Schedule of condition: Before taking over the building on a temporary basis (usually shortly before), we recommend that both parties draw up a schedule of condition with an accompanying photographic record of the building's condition. This should be done before the event and included as part of the licence.

When the space is returned to its owners or their agents, the representatives of both the users and the property owners or their agents will review the schedule of conditions and check that the property has been returned to the condition it was originally in.

If damage to the premises occurs during the use, the temporary licence holder will be responsible for returning the premises to its original condition. If this is not done, the costs of such works will be deducted from the deposit. In exceptional circumstances, where major damage has occurred, additional costs may be sought from the temporary licence holder.

Health, Safety, Fire and Hazard Issues: Owners or their agents and licensing authorities will generally expect to see a risk assessment. This assessment examines the range of risks and states the occupier's strategy for avoiding risks and dealing with incidents should they occur.

While this can be considered to be an overly zealous approach, it is a fact of life and should be used as a tool for the user to agree their approach with the owner.

In addition it is mandatory to have a risk assessment for any public entertainments activity. Health and safety for your project needs to be considered as part of a risk assessment. It covers a wide range of issues from personal safety to working at height, or with electricity and where the nearest accident and emergency unit is.

Fire risk should also be included and this covers emergency procedures in case of fire e.g. what to do, where the fire exits are, the evacuation procedure, where you need to assemble in safety and what fire fighting equipment you need. This should be related to the materials you are using and the nature of the building.

Finally, there is the issue of asbestos. There is plenty of information about the dangers of asbestos, but most importantly you should check with the owner of the building (or their agents) whether asbestos is present and in what form. Building owners and agents working on their behalf have a legal requirement to share any information regarding asbestos with you. The process of carrying out a Risk Assessment is described on the Health and Safety Executive website. Click the link below to get A Guide to Risk Assessment and Five Steps to Risk Assessment.

www.hse.gov.uk/pubns/raindex.htm

For a look at a wide range of health and safety issues by topic, click on the link below:

www.hse.gov.uk/pubns/index.htm

Do remember that a key thing to do before you start your endeavours is to agree all of your plans and activities with the owners or their representatives.

Finally, please do keep the CSA in touch with your progress. In particular we would like to ensure that you we get information on:

Your success
Images of you and your project in the space
Outputs
Any lessons learned