Consultation on major works
Consultation on major works - A brief summarry

This document is an outline summary of the actions required if a landlord proposes to carry out any works that are likely to cost any individual leaseholder a sum greater than £250 in any one accounting year (or £100 if it is an agreement/service that will exceed 12 months). For full details of the process I would suggest reference to Section 20 of the Landlord and Tenant Act 1985 (as amended by the Commonhold and Leasehold reform act 2002).

The consultation process is roughly as follows:-

Write to all leaseholders with a “notice of intention” stating the following:-

-Description of the works or services to be provided, or specify how the description can be inspected
-State the reasons for the proposed works or services
-Invite observations within 30 days and say where they should be sent
-Invite leaseholders to nominate contractors for whom the landlord should seek estimates

Following the 30 day consultation period the landlord seeks estimates from contractors including at least one from a nominated contractor (if any).

A further statement is then required by the landlord setting out the estimated costs of at least two of the estimates and a summary of the observations received and the landlords responses to them. A notice must then be sent to leaseholders inviting observations and stating where they should be sent.

Each proposed estimate should include the following:-

-a statement of the works, goods or services
-the name and address of each party to the proposed agreement (except the landlord) and a statement of any parties
       connection to the landlord.
-An estimate of each leaseholders contribution OR the overall total
-A summary of observations received and the landlords response to them
-Invite observations within 30 days and say where they should be sent

At the end of the second 30 day consultation period the landlord must then

-make a decision taking into account observations made. If challenged, the landlord must be able to produce records
detailing the thought processes behind the decision

-Unless the chosen contractor is one who was nominated by leaseholders or the one who submitted the lowest estimate
then the landlord must submit another notice within 21 days of the decision stating the reasons for proceeding with their
choice.


Common Ground Estate & Property Management Limited

Common Ground Estate & Property Management Limited
Registered Office: Sandford Gate. East Point Business Park, Oxford, OX4 6LB
Company No: 7169211