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Pharmacy Dispensing Robots - what to consider when your pharmacy tenant wants to install one

on Tuesday, 28 January 2025.

We have seen an increase in the number of enquiries from GP landlords relating to the installation of Pharmacy Dispensing Robots by their pharmacy tenants. Below we outline the key things to consider before providing your consent.

Pharmacy Dispensing Robots are on the increase, and whilst the promise of a more efficient and accurate dispensing service resulting in more time for pharmacists to work collaboratively with GP Landlord's is enticing; there are certain steps you should follow before agreeing that a pharmacy tenant can install a Pharmacy Dispensing Robot in your surgery premises.

Pharmacy lease

The relationship between a pharmacy tenant and the GPs as landlord is governed by the terms of the Pharmacy Lease and both parties should ensure they have read, understand and comply with their obligations under the Pharmacy Lease before proceeding with the installation of a Pharmacy Dispensing Robot.

Consent

The installation of a Pharmacy Dispensing Robot may require the Tenant to physically alter the property for example, adding structural supports, upgrades to electrical units, cutting holes in the floor for dispensing chutes to be installed or the removal (and replacement) of windows for access during the installation.

Under the alterations clause in the Pharmacy Lease, it is likely that the Tenant will need to obtain the Landlord's consent to the installation of the Pharmacy Dispensing Robot and that the Landlord's consent is not to be unreasonably withheld or delayed. (Note: the specific requirements of the actual Lease should be checked).

The Tenant should provide plans and specifications for the works and the Landlord should seek the advice of an independent surveyor to review and approve the proposals.

Landlord's should be careful not to inadvertently grant consent to the works before they have been properly considered and documented and so any correspondence with the Tenant in respect of the works should be marked 'subject to licence' and a solicitor should be instructed to advise and draw up a Licence to Alter as soon as possible following notification of the planned works.

Why is a Licence to Alter important?

Whilst the Landlord may be happy for the Pharmacy Dispensing Robot to be installed, if the obligations on the Tenant are not clearly considered and documented and there is an issue with the installation which causes damage to the property or the wider building, it may be difficult to hold the Tenant 100% liable for the damage, and the Landlord may find their own insurance is invalidated as they have failed to properly inform their insurance provider of the proposed works.

It is therefore sensible to require a Licence to Alter for such alterations to record the works and clarify the obligations of the Tenant in respect of the carrying out and ultimate removal of the works when they vacate the property.

The Tenant will be responsible for the Landlord's surveyor and legal costs in respect of the approval of the works and completion of the Licence to Alter.

If the Landlord (or the Tenant's) bank have a legal charge over the Property, we recommend they are notified of the proposed works and that the Bank's requirements (if any) are complied with.

Insurance and liability

The Landlord's insurers should be notified of the works and any requirements passed on to the Tenant under the Licence to Alter.

The Tenant should provide evidence to the Landlord that satisfactory insurance is in place for the contractor (for any preparatory work) and Pharmacy Dispensing Robot company doing the installation. If the Tenant wants the Landlord to include the Pharmacy Dispensing Robot within the Building insurance post installation, they should formally notify the Landlord of the value they require it to be insured for and the Tenant will usually be responsible for any additional premium payable as a result.

Planning Permission and Building regulation approval

If structural alterations are taking place, depending on the nature of the property and the works being carried out, planning permission and building regulations approval may be required which will be the Tenant's responsibility under the Licence to Alter to procure.

Surveyor support

We would recommend GP Landlords obtain specialist support from a surveyor to approve the plans and specifications and oversee the Pharmacy Dispensing Robot works including building regulation sign off.


If you have received a request to install a Pharmacy Dispensing Robot from a tenant, or are thinking of installing one yourself, we would be happy to assist. Please contact Rebecca Beardsley in our Healthcare team on 0117 314 5325, or complete the form below.

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