We have a duty to consult leaseholders on our proposed works prior to entering into an agreement with a contractor. This legal obligation is set out in the Landlord and Tenant Act 1985 and has now been revised in Section 151 of the Commonhold and Leasehold Reform Act 2002 that became effective on 31st October 2003. The reference to Section 20 in the Landlord and Tenant Act 1985 is retained.
These are works carried out to the building or the estate. We must consult with you if the works will cost more than £250 per leaseholder. If consultation is not undertaken the maximum that can be recovered from each leaseholder is £250.
Qualifying Long-Term Agreements
These are services with an independent organisation or contractor that are for a period of 12 months or more. We must consult with you if the cost of services exceeds £100 per leaseholder in any one year. If consultation is not undertaken the maximum that can be recovered is £100 per leaseholder in any one year.
The First-Tier Tribunal has the power to determine all Section 20 matters. It has the power to allow a landlord to dispense with consultation requirements if it is satisfied that a landlord was reasonable to do so. For example, the tribunal may grant a relaxation of the rules in the case of emergency works or for health and safety reasons. If this were to be the case we would apply to the tribunal for retrospective dispensation as soon as practicable.
What are the three Consultation Notices?
Stage 1: Notice of Intent - this tells you that it is EastendHomes intention to tender for major works, to take out a new contract affecting Leaseholders' or renewing an existing contract.
Stage 2: Notice of Proposals - this sets out the major works to be carried out and your contribution towards the cost of the works.
Stage 3: Award of Contract - this tells you which contractor we have selected to do the works.
Stage 1: Notice of intent
The notice will:
Give you a description of the proposed works or services.
Give you the reasons we are making the proposals.
Tell you a time and place where you can inspect the proposals.
Give you the opportunity to make written observations within 30 days of receipt of the notice.
Give you the right to nominate a contractor (this only applies to certain works).
At this stage we will not have a detailed specification of the works and will not have asked contractors to tender for the works. We will provide you with estimated costs at Stage 2.
You have the right to make written observations on our proposed works and we must receive these within 30 days of serving you the notice. We will provide you with a written response as soon as practicable and tell you what action we will take if the contract specification is to be amended.
You have the right to nominate a contractor for certain works. If you wish to nominate a contractor you should provide their name and address within the 30 days observation period.
You do not have the right to nominate a contractor if the work is being carried out under an OJEU notice.This means that EastendHomes must meet the European Union procurement rules and the proposed contract has been advertised by public notice in the Official Journey of the European Union (OJEU). The majority of the initial works being carried out by EastendHomes will be subject to European procurement rules and you will not have the right to nominate a contractor.
Stage 2: Notice of Proposals
This notice will be sent to you after EastendHomes has obtained competitive tenders but before it has agreed to appoint a contractor. The notice will:
Give you either a summary of at least two of the tenders or in the case of a contractor appointed under European procurement rules a summary of the reasons for proposing a contractor.
Give a summary of any observations received at Stage 1(Notice of Intent).
Inform you of a time and place where you can inspect all the estimates and obtain copies of them.
Give you the opportunity to make further observations within 30 days of the notice date.
Once again you have the option to make further observations and we shall respond in writing to you, stating our response and any action we agree to take to further amend the works specification if the observations are considered reasonable.
Stage 3: Award of Contract
At the end of the second observation period and once we have made any necessary amendments to the work specification,we will formally appoint the selected contractor and enter into a contract with them. At this stage we will provide you with a notice setting out the following:
The name of the contractor who has been awarded the contract.
The date we expect that they will start the work.
If we have not chosen the lowest tender we shall tell you why we have made that decision (we are not obliged to do this if the contractor has been appointed in line with European Union procurement rules).
A summary of any observations received at Stage 2.
New “Right to Buy” leaseholders and changes of ownership
Where a new Right to Buy lease is granted part of the way through the consultation procedure, EastendHomes is not required by law to start again or send any previously issued notices. We will bring the new leaseholder into the next stage of the consultation process. If the ownership of a flat changes during the consultation process, it is assumed that the new leaseholder has received copies of documentation from the previous owner.