Consultation for qualifying works to a building and qualifying long term agreements highlighting the obligations of public sector landlords.
Introduction to the procedures
The Commonhold and Leasehold Reform Act 2002, section 151
By law, landlords must consult leaseholders before carrying out qualifying work or entering into a long-term agreement for providing services.
Section 151 of the Commonhold and Leasehold Reform Act 2002 (the act) introduced requirements for consulting leaseholders. It replaced the previous consultation procedure in the Landlord and Tenant Act 1985, section 20, but the old title ‘section 20’ is still used.
The Service Charges (Consultation Requirements) (England) Regulations 2003 (‘the 2003 service charge regulations’) became law under section 151 of the Commonhold and Leasehold Reform Act 2002. The 2003 service charge regulations set out the precise procedures landlords must follow. These regulations separate the consultation procedures into four schedules, each covering different contracts.
The consultation requirements are defined under two headings:
- Qualifying work
- Qualifying long-term agreements
Although the main purpose of the consultation process is to gather leaseholders’ views on the landlord’s proposals, it also limits the landlord’s ability to recover their costs if they do not follow the correct procedure. If the landlord fails to carry out the full consultation procedure in the correct way, they cannot collect or recover service charges above the level of the minimum amounts allowed by law (that is, £100 per leaseholder per year for a long-term contract, or £250 per leaseholder for work to the building). If this applies, the landlord will have to cover the loss, which may have implications for the Housing Revenue Account and, possibly, the District Auditor.
Qualifying work
This is work on a building or any other premises and includes improvement work.
When calculating the estimated cost, VAT on work must be included. In a property where not all leaseholders pay the same service charges, landlords must consult all leaseholders if the amount any one leaseholder would have to pay towards qualifying work would be more than £250.
If the landlord does not consult leaseholders, they will not be able to collect service charges of more than £250 per leaseholder.
The landlord is entitled to apply to the First-tier Tribunal (Property Chamber) (in England) or the Leasehold Valuation Tribunal (in Wales) for an order to dispense with some or all of the consultation procedure (see the Dispensation section below).
The consultation rules for qualifying work are set out in Schedule 3 and Schedule 4 of the 2003 service charge regulations.
A case in the High Court in 2012 (Phillips and others v Francis) cast doubt on whether there is a cost threshold below which landlords do not need to consult on qualifying works.
However, in October 2014 the Court of Appeal overturned this decision, so reinstating the “sets approach” ie section 20 consultation should be applied to individual sets of qualifying works without reference to time periods or service charge years.
The Court of Appeal also gave guidance on what factors are to be taken into consideration in identifying a single set of qualifying works. This is a question of fact and degree and all relevant circumstances should be taken into account. The list is not exhaustive but relevant factors are likely to include:
- Where the items of work are to be carried out;
- Whether they are the subject of the same contract;
- Whether they are to be done at more or less the same time or at different times;
- Whether the items of work are different in character from, or have no connection with, each other
- Whether all the works are the subject of one contract and;
- The way in which works are planned and the lessor’s reasons for the way they are implemented are also of relevance.
Qualifying long-term agreements
A qualifying long-term agreement is an agreement the landlord enters into with an independent organisation or contractor for a period of more than 12 months after 31 October 2003. (The act does not apply to agreements entered into before this.) The deciding factor is the minimum length of the commitment.In other words it is an agreement for a term which must exceed twelve months. In a property where not all leaseholders pay the same service charges, landlords must consult all leaseholders if the amount any one leaseholder must pay would be more than £100 in any one year. The figure should be calculated based on the leaseholder’s total contribution resulting from the agreement, including VAT (and any associated management or administrative costs which arise specifically from the proposed agreement).
If the landlord does not consult leaseholders, they will not be able to collect service charges over £100 per leaseholder, per year.
The consultation rules for qualifying long-term agreements are set out in Schedule 1 and Schedule 2 of the 2003 service charge regulations.
Examples of possible qualifying long-term agreements include:
- agreements which affect the building generally (for example, contracts relating to lifts, entry-phone systems, or waste-management or maintenance services);
- cleaning and gardening;
- insurance; and
- utilities (water, gas and electricity services).
Some of these services may only have one possible supplier. However, landlords must still carry out the consultation, or apply to the tribunal for permission to dispense with (not keep to) the consultation requirements. This is known as a ‘dispensation application’ (see the Dispensation section below).
Contracts that are not qualifying long-term agreements include:
- contracts of employment;
- management agreements made by a local housing authority and a tenant management organisation (TMO), or an organisation established under section 2 of the Local Government Act 2000 (or section 1 of the Localism Act 2011, which came into force in 2012), such as an arm’s length management organisation (ALMO);
- an agreement between a holding company and its subsidiary, or between subsidiaries of the same holding company (as defined in the Companies Act 2006);
- an agreement lasting less than five years, which was entered into at a point when there were no tenants at the property (for example, on a new housing development); and
- an agreement lasting longer than 12 months, which was entered into before 31 October 2003.
Note: if the long-term agreement allows work to be carried out at the property (for example, a schedule of rates agreement for general maintenance), and this work will result in a charge to any one tenant of more than £250, the landlord must carry out separate consultation under Schedule 3 of the 2003 service charge regulations. The original consultation on the agreement under Schedule 1 or Schedule 2 does not mean that the landlord does not have to carry out separate consultation for the work.
This requirement for consultation for work applies equally in cases of long-term agreements that were entered before 31 October 2003 when landlords did not have to consult leaseholders on the agreement.
The role of the First-tier Tribunal (Property Chamber) and dispensation
The tribunal have powers to make decisions on matters dealt with under section 20. This includes the power under section 20ZA (I) to give landlords permission to not keep to the consultation requirements in a particular case if they are ‘satisfied that it is reasonable to dispense with the requirements’.
In a case in 2013, the Supreme Court set out its views on how tribunals should deal with applications for dispensation from landlords (Daejan v Benson).
The purpose of the regulations is to make sure that leaseholders are protected from:
- paying for inappropriate work; and
- paying more than would be appropriate.
When considering dispensation applications, the tribunal should focus on whether the leaseholders had to pay either of the above as a result of the landlord failing to keep to the regulations.
If a landlord has failed to keep to the regulations, there may often be a dispute as to whether the leaseholders would suffer if the tribunal granted them permission to not consult and did not set extra conditions that they must meet (an unconditional dispensation). Although the landlord is responsible for keeping to the law throughout the process, leaseholders must show that they would suffer as a result of not being consulted about the work. They must identify what they would have said if they had had the opportunity to say it. Once the leaseholders have shown that they have a credible case, the tribunal should give the landlord the opportunity to prove that leaseholders would not suffer as a result of not being consulted. The tribunal should be sympathetic to the leaseholders’ case.
If the tribunal decide that the leaseholders would have to pay for inappropriate work or would have to pay more than would be appropriate for the work, they should require the landlord to reduce the amount of the service charge to compensate the leaseholders fully for that loss (unless there is a good reason for not asking the landlord to do this).
The tribunal do not have to make an ‘all or nothing’ decision. They can grant a landlord’s application for dispensation as long as the landlord meets certain conditions, including a condition that the landlord must pay the leaseholders’ reasonable costs in connection with the dispensation application.
Who must be consulted?
Landlords must send consultation notices both to individual tenants and to any RTAs. An RTA is a tenants’ association that is recognised by the landlord, or by a rent assessment committee, under section 29 of the Landlord and Tenant Act 1985.
Nomination of contractors from tenants and RTAs
Under consultations that are carried out under Schedule 1 and Schedule 4 (part 2) of the 2003 service charge regulations, landlords must invite leaseholders to nominate possible contractors.
The act does not state that contractors nominated by tenants or RTAs should have no connection to the tenant or RTA concerned, or that the landlord must be made aware of any relationship that exists. However, if the landlord knows of (or becomes aware of) a relationship, they may take this into account when deciding which contractor to use.
Nominated contractors
- If an RTA only nominates one contractor (whether or not any tenant also nominates a contractor), the landlord must try to get an estimate from the nominated contractor.
- If only one individual tenant makes a nomination, and they only nominate one contractor (whether or not an RTA also nominates a contractor), the landlord must try to get an estimate from the nominated contractor.
- If more than one tenant each nominates only one contractor (whether or not an RTA also nominates a contractor), the landlord must try to get an estimate:
- from the contractor who receives the most nominations; or
- if two (or more) contractors receive the same number of nominations, from one of those contractors; or
- if there are a number of nominations from more than one tenant, but no contractor has more than one nomination, from any nominated contractor; or
- if one tenant and an RTA make a number of nominations, the landlord must try to get an estimate from at least one contractor nominated by the tenant and from at least one (different) contractor nominated by the RTA.
Contractors in the public sector
The act does not state the terms which the landlord should use when asking for estimates from contractors who tenants have nominated for work or services. Most landlords will want contractors to meet certain basic criteria (for example, to provide evidence of public liability insurance, a valid tax exemption certificate, confirmation of VAT status, and copies of their health and safety policy).
Local authorities in particular must keep to a number of regulations when choosing contractors. For contracts relating to work on leasehold properties, contractors must be on an approved list of contractors, or qualify to be placed on such a list. Landlords will have to justify their selection procedures to the tribunal, if challenged. If they fail to convince the tribunal in a particular case (for example, if the tribunal consider the selection criteria to be too restrictive or not competitive enough), there is a risk that they could decide the consultation procedure is not valid.
It is wise for landlords to include the criteria that contractors must meet in their requests for tenders from nominated contractors, and make it clear that contractors must meet the criteria before they can be awarded any contract.
Also, it might be a good idea for landlords to include a brief statement on the selection criteria with the notice of intention they send to tenants when inviting them to nominate contractors for the work. This can make clear to the tenants that any contractor they nominate will need to meet the requirements before they can be seriously considered for the contract.
Inviting tenants to nominate contractors is meant to provide more openness and encourage competition to make sure the charges tenants have to pay are fair and reasonable.
Contracts which must be advertised by public notice
The 2003 service charge regulations refer to contracts ‘for which public notice is required’. These are contracts where the value involved will be of a level where certain procurement rules apply. In these cases, landlords must publish contract opportunities on the UK e-notification service called Find a Tender Service.
A public notice is needed for work contracts as well as contracts for supplying goods or services with a value above certain limits. The procurement thresholds announced by the European Commission on 31 October 2019 continue to apply in England and Wales until 1st January 2022. See current EC procurement thresholds.
Although landlords must ask for and consider tenants’ opinions and views, tenants do not have the right to nominate a contractor for these contracts. These contracts are covered by Schedule 2 and Schedule 4 (part 1) of the 2003 service charge regulations.
How many notices should be served?
Landlords may have to serve consultation notices on tenants at the following three stages in the process of awarding a contract.
- Before the tender is offered (the pre-tender stage), landlords must serve a notice of intention.
- During the tender (the tender stage), landlords must serve notice of their proposals (estimates).
- In some cases, when they award the contract (award of contract stage), landlords must serve notice of the award of contract.
How long will the consultation take?
The whole process may take a number of months. This is for the following reasons.
- Tenants have at least 30 days to respond to a notice of intention served at the pre-tender stage.
- If tenants or an RTA nominates a contractor, the contractor may need to be invited to offer a quote (tender) for the work.
- If contractors nominated by tenants or an RTA submit a tender, the landlord will need to check whether the contractor meets the necessary criteria (for example, whether they are on a list of approved contractors and so on).
- Time must be allowed for tenants to give their comments (observations) on the proposed work following the notice of intention.
- Landlords must make a summary of the observations they receive from tenants following the notice of intention (first notice), and must send this summary to tenants with the notice of their proposals or statement of estimates (second notice) or must make the summary available for the tenants to inspect.
- Tenants have a further period of at least 30 days to respond to the notice of the landlord’s proposals served at the tender stage.
Some general rules about the procedures
Inspection of Documents
If the landlord specifies where and when documents can be inspected, these must be reasonable. If tenants cannot take copies at the time they inspect the documents, they can ask the landlord to provide a copy free of charge.
Although certain facilities must be provided free of charge, landlords may be able to recover any administration and management costs of providing these through the service charges.
The duty to ‘have regard’
If a landlord receives written observations during the consultation process they have a duty to have regard to them. The law does not define ‘have regard to’, although in some cases it means that the landlord must provide a response to the observations within 21 days.
In cases involving qualifying work where tenants or an RTA have nominated contractors and the landlord does not use either a nominated contractor or accept the lowest estimate, within 21 days of entering the contract the landlord must give tenants a written statement of their reasons for awarding the contract, or provide facilities where tenants can inspect the statement of reasons. If the landlord fails to follow the correct procedures, and there is an application to the tribunal regarding the consultation procedures, the tribunal may consider the landlord’s failure when making their decision.
New local-authority right-to-buy tenants
If a new right-to-buy lease is granted under the Housing Act 1985 partway through any of the new consultation procedures, the landlord does not have to start again or send any missed notices. The new tenant only has to be included in the next stage of the consultation process that applies 31 days after the new lease started. Although this is not specified in the 2003 service charges regulations, in cases where the ownership of a flat changes hands during the consultation procedure, it is reasonable for the landlord to assume that the new tenant has received copies of the consultation documents from the seller of the flat when the lease was transferred.
Connections between landlords and contractors
Under Schedule 1 and part 2 of Schedule 4, at least one of the estimates provided must be from a contractor who is not in any way connected to the landlord.
For these purposes, a contractor has a connection with the landlord if any of the following applies.
- If the landlord is a company, if the contractor is, or will become, a director or manager of that company or is a close relative of any director or manager of the company.
- If the landlord is a company, and the contractor is a partner in a partnership, if any partner in the contractor’s partnership is, or will become, a director or manager of that company or is a close relative of any director or manager of the company.
- If both the landlord and the contractor are companies, if any director or manager of one company is, or will become, a director or manager of the other company.
- If the contractor is a company, if the landlord is a director or manager of that company or is a close relative of any director or manager of the company.
- If the contractor is a company and the landlord is a partner in a partnership, if any partner in that partnership is a director or manager of the contractor’s company or is a close relative of any director or manager of the company.
A ‘close relative’ for this purpose means a husband, wife or live-in partner, or parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, brother, brother-in-law, sister, sister-in-law, step-parent, stepson or stepdaughter.
Schedule 1 Consultation requirements for a qualifying long-term agreement where public notice is not needed
If landlords do not keep to these procedures, each tenant’s contribution towards the cost of the goods or service provided or work carried out under the contract may be limited to £100 a year.
Tenants and the RTA (if there is one) must be consulted about the choice of contractor.
There are three stages of consultation.
1. Pre-tender stage
Notice of intention – section 20 notice (see appendix 1) – 30-day consultation period
The landlord must send this notice to each tenant who will be asked to contribute towards the costs through their service charges, and the RTA if there is one.
This notice must:
- describe in general terms the work that will be carried out or the services that will be provided, or specify a reasonable place and time when tenants and the RTA can inspect a description of the work or services free of charge;
- state the landlord’s reasons for considering the long-term agreement to be necessary;
- if the contract includes qualifying work, give the landlord’s reasons for considering it necessary to carry out the work;
- tell each tenant and the RTA that they have at least 30 days from the date of the notice in which to make written observations, and explain where to send these to, and by what date (the due date); and
- tell tenants that they have the right to nominate a contractor that they feel should be invited to tender for the work, and that they have at least 30 days to make their nomination.
If facilities to copy the description of the contract are not made available at the times when tenants and the RTA can inspect the description, the landlord must provide a copy free of charge to any tenant who asks for one.
Duty to have regard to observations
The landlord must have regard to any observations they receive by the due date.
Estimates
The landlord will then ask for estimates from the contractors they have chosen. They must also try to ask for estimates from contractors nominated by tenants and the RTA. The criteria which contractors nominated by tenants and the RTA need to meet in order to tender for the work are set out in the previous section relating to contractors nominated by tenants and RTAs.
2. Tender stage
Preparing the landlord’s proposals
- The landlord must prepare at least two proposals (estimates) for the services, goods, work and so on (“the relevant matters”)
- At least one of the proposals must be from a contractor who is not in any way connected to the landlord.
- If tenants or the RTA has nominated contractors, the proposals must also include:
- an estimate from a contractor nominated by a tenant (if the landlord has got one);
- an estimate from a contractor nominated by an RTA (if the landlord has got one).
Notice of the landlord’s proposals – section 20 notice (see appendix 2)
– 30-day consultation period
- The landlord must give notice of the proposals to each tenant and the RTA (if there is one).
- Each proposal must contain the following.
- A statement of the relevant matters.
- A statement of the name and address of each contractor involved in the proposed agreement.
- Details of any connection (apart from the proposed agreement) between the contractors and the landlord.
- The tenant’s estimated contribution, if it is reasonable for the landlord to know this. Otherwise, the proposal must include:
- the cost for the building or the premises, if it is reasonable for the landlord to know this; or
- the current unit cost, and hourly or daily rate of the work or service, if it is reasonable for the landlord to know this.
- If the landlord’s proposal is to appoint an agent to be responsible for managing the property, each proposal must contain a statement of whether the proposed agent:
- is or is not a member of a professional body or trade association and, if so, which one; and
- does or does not subscribe to any code of practice or voluntary accreditation scheme relevant to managing agents.
- Details of whether any amount given in the proposed agreement can be altered.
- How long the proposed agreement is intended to last.
- A summary of any observations the landlord has received by the due date, and their response to these.
- The notice must include a copy of each proposal or specify a reasonable place and time when tenants can inspect them.
- If facilities to copy the proposals are not made available at the times when tenants and the RTA can inspect the proposals, the landlord must provide a copy free of charge to any tenant who asks for one.
- The notice must:
- invite tenants to make written observations on the proposals;
- give the address which tenants must send their observations to;
- state when the period of at least 30 days for consultation ends; and
- tell tenants that they must receive all observations by that date.
Under the schedule, the landlord does not have to make all of the estimates they have received available for tenants to inspect, only those relating to the proposals made to the tenants. However, it is good practice to make all estimates available for inspection, even those that were not one of the proposals put to tenants, and some details of the criteria the landlord used when selecting the proposed contractors.
Duty to have regard to observations
The landlord must have regard to any observations they receive by the due date.
3. Award of contract
Notice of the award of contract – section 20 notice (see appendix 3)
– 21-day response period
Within 21 days of entering into the agreement, the landlord must send a notice of the award of contract to each tenant and the RTA. This notice must:
- state the landlord’s reasons for awarding the contract, or say where and when tenants and the RTA can inspect those reasons; and
- give a summary of the observations the landlord has received on the proposals and their response to the observations, or say where and when tenants and the RTA can inspect the summary and landlord’s response.
If facilities to copy the statement, observations and landlord’s response to the observations are not made available at the times when tenants and the RTA can inspect the documents, the landlord must provide a copy free of charge to any tenant who asks for one.
The landlord does not have to provide a notice of the award of contract if they award the contract to:
- a contractor nominated by a tenant or an RTA; or
- the lowest tender.
Appendix 1 – Example notice of intention to enter into a long-term agreement where public notice is not needed
Example notice of intention to enter into a long-term agreement where public notice is not needed
Please note: Landlords must send a notice of the intention to enter into a long-term agreement to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
- We (insert name of landlord or manager) intend to enter into a long-term agreement for work or services, and must consult you about this work under section 20 of the Landlord and Tenant Act 1985. (See Note 1 below.)
- The goods/services/work (delete whichever does not apply) to be provided under the agreement are as follows. (Insert a general description of the goods, work or services.) Or
- You can inspect a description of the goods/services/work (delete whichever does not apply) to be provided under the agreement at (insert place and time for inspection.) (See Note 2 below.)
- We consider it necessary to enter into the agreement because (Insert a statement of your reasons. If the work or services consist of or include qualifying work, explain why you consider the work necessary.)
- We invite you to make written observations on the proposed agreement. You should send your observations to (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date of receipt of this notice. The consultation period will end on (insert date of not less than 30 days from the date that the notice is given to the recipient). (See Note 3 below.)
- We also invite you to nominate a contractor you believe we should try to get an estimate from for the work or services described in paragraph 2 above. (See Note 4 below.) If you want to nominate a contractor, you must give us their name within 30 days from the date of receiving this notice.
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)
Address:
(Give the address which tenants should use for any future communications relating to the notice of intention to enter into a long-term agreement.)
Date:
Notes
-
- Under section 20 of the Landlord and Tenant Act 1985 (as amended) (‘the 1985 act’), landlords (as defined by section 30 of the 1985 act) must consult tenants whose leases say they must pay service charges to contribute to costs due under a qualifying long-term agreement, if the contribution of any one tenant would be more than £100 in any accounting period. ‘Qualifying long-term agreement’ is defined by section 20ZA of the 1985 act.
- If a notice says where and when tenants can inspect documents relating to the agreement:
- the place and time must be reasonable; and
- a description of the relevant matters must be available for inspection, free of charge, at that place and during that time.
If facilities to copy the documents are not made available at the times when tenants can inspect the description, the landlord must provide a copy of the description free of charge to any tenant who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA. Section 29 of the 1985 act defines RTA.
- If an RTA only nominates one contractor (whether or not any tenant also nominates a contractor), the landlord must try to get an estimate from the nominated contractor.
- If only one individual tenant makes a nomination, and they only nominate one contractor (whether or not an RTA also nominates a contractor), the landlord must try to get an estimate from the nominated contractor.
- If more than one tenant each nominates only one contractor (whether or not an RTA also nominates a contractor), the landlord must try to get an estimate:
- from the contractor who receives the most nominations; or
- if two (or more) contractors receive the same number of nominations (and this is more than the number of nominations received by any other contractor), from one of those contractors; or
- in any other case, from any nominated contractor.
- If any tenant and an RTA nominate a number of contractors, the landlord must try to get an estimate from:
- at least one contractor nominated by a tenant; and
- at least one different contractor nominated by the RTA.
Appendix 2 – Example notice of proposals to enter into a long-term agreement where public notice is not needed
Please note: Landlords must send a notice of the proposals to enter into a long-term agreement to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
- We are giving this notice following the notice of intention to enter into a long-term agreement which we issued on (insert date of notice of intention). The consultation period for the notice of intention ended on (insert relevant date).
- We have now prepared (insert number, at least two) proposals for the goods/services/work (delete whichever does not apply) to be provided under the agreement based on the estimates received, and (we have enclosed a copy of each proposal with this notice) or (you can inspect copies of the proposals at (insert place and time for inspection)). (See Notes 1 and 2 below.)
- We invite you to make written observations on the proposals. You should send your observations to (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date of receipt of this notice. The consultation period will end on (insert date not less than 30 days from the date that the notice is given to the recipient). (See Note 3 below.)
- We did not receive any written observations on the notice of intention which we gave on (insert date of notice of intention) within the consultation period allowed for that notice. (See Note 3 below.) Or
- The written observations we received during the consultation period for the notice of intention can be summarised as follows. (Insert summary of observations.) Our response to the observations is (state response). (See Note 3 below.)
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’).
Address:
(Give the address which tenants should use for any future communications relating to the notice of proposals to enter into the long-term agreement.)
Date:
Notes
-
- The landlord must prepare at least two proposals on the long-term agreement described in the notice of intention. These do not have to relate to the two lowest estimates. At least one of the proposals must be that goods or services are provided, or work is carried out, by a person who is not in any way connected to the landlord. If the landlord has received an estimate from a contractor nominated by tenants, they must prepare a proposal based on that estimate. Each proposal must contain a statement of how long the proposed agreement would be for and the contractor’s name and address must be included in the proposal, as well as any connection between them and the landlord (apart from the proposed agreement). Each proposal should state the tenant’s estimated contribution relevant to their home. If it is not reasonably possible to provide that information, the landlord can provide the overall cost estimated under the agreement or a current unit cost, and hourly or daily rate for the work or service.
- If a notice says where and when tenants can inspect the proposals:
- the place and time must be reasonable; and
- copies of the proposals must be available for inspection, free of charge, at that place and during that time.
If facilities to copy the proposals are not made available at the times when tenants can inspect the proposals, the landlord must provide a copy of the proposals free of charge to any tenant who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA. Section 29 of the 1985 act defines RTA.
- If a landlord has received written observations within the consultation period for a notice of intention to enter into a long-term agreement, they must summarise the observations and respond to them within the proposals.
Appendix 3 – Example notice of reasons for entering into a long-term agreement
Please note: Landlords must send a notice giving their reasons for entering into a long-term agreement to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
- We are giving this notice following the consultation with tenants on a notice of proposals to enter into a long-term agreement which we issued on (insert date of notice of proposals). The consultation period for the notice of proposals ended on (insert relevant date).
- We have now entered into an agreement with (name of chosen contractor) to provide the goods/ services/work (delete whichever does not apply) first described in the notice of intention dated (insert date of notice of intention).
- Our reasons for doing so are (state reasons). (See Note 1 below.) OrYou can inspect a statement of our reasons for entering into the agreement at (specify place and time for inspection). (See Notes 1 and 2 below.)
- We did not receive any written observations on the notice of proposals which we gave on (insert date of notice of proposals) within the consultation period allowed for that notice. (See Note 3 below.)
- Or The written observations we received during the consultation period for the notice of proposals can be summarised as follows. (Insert summary of observations.) Our response to the observations is (state response). (See Note 3 below.)
- OrYou can inspect a summary of the written observations we received during the consultation period, together with our response to them, at (specify place and time for inspection). (See Notes 2 and 3 below.)
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)
Address:
(Give the address which tenants should use for any future communications relating to the long-term agreement.)
Date:
Notes
- Landlords do not need to send out this notice of reasons and summary of their responses to tenants’ observations (see Note 3 below) if the contractor they have chosen:
- was nominated by a tenant or the RTA; or
- is the person who submitted the lowest estimate.
- If the notice says where and when tenants can inspect any written observations received during the consultation period, together with the landlord’s response to them:
- the place and time must be reasonable; and
- copies of the documents must be available for inspection, free of charge, at that place and during that time.
If facilities to copy the documents are not made available at the times when tenants can inspect them, the landlord must provide a copy of the documents free of charge to any tenant who asks for one.
- If a landlord has received written observations within the consultation period for a notice of proposals to enter into a long-term agreement, they must summarise the observations and respond to them within a notice of reasons for making the agreement or tell tenants where and when they can inspect the summary and response.
Schedule 2
Consultation requirements for a qualifying long-term agreement where public notice is needed
Because a public notice is needed, tenants are not consulted about the choice of contractor in this case. There are two stages of consultation.
1. Pre-tender stage
Notice of intention – section 20 notice (see appendix 4) – 30-day consultation period
The landlord must send this notice to each tenant who will be asked to contribute towards the costs through their service charges and the RTA (if there is one).
This notice must:
- describe in general terms the work that will be carried out or the services that will be provided, or specify a place and time when tenants and the RTA can inspect a description of the work or services free of charge;
- state the landlord’s reasons for considering the long-term agreement to be necessary;
- if the contract where the relevant matters consist of or include qualifying work, give the landlord’s reasons for considering it necessary to carry out the work;
- explain that the landlord is giving public notice of the work and so does not have to invite tenants and the RTA to nominate contractors for the work;
- invite tenants and the RTA to provide written observations on the long-term agreement;
- give the address where tenants and the RTA should send their observations; and
- give the date when the consultation period will end (30 days from the date the leaseholder receives the notice) and explain that the landlord must receive any observations by this date.
If facilities to copy the documents are not available at the place specified in the notice, the landlord must provide a copy free to any tenant who asks for one.
Duty to have regard to observations
The landlord must have regard to any observations they receive by the due date.
2. Tender stage
Preparing the landlord’s proposal
The landlord must prepare a proposal for the proposed agreement.
Notice of the landlord’s proposal – section 20 (see appendix 5) – 30-day consultation period)
- The landlord must give notice of the proposal to each tenant and the RTA (if there is one).
- The landlord’s proposal must contain the following.
- A statement of:
- the name and address of every contractor involved in the proposed agreement; and
- any connection between the contractors and the landlord (apart from the proposed agreement).
- The tenant’s estimated contribution, if it is reasonable for the landlord to know this. Otherwise, the proposal must include:
- the estimated cost for the building or the premises, if it is reasonable for the landlord to know this;
- the current unit cost, and hourly or daily rate, if it is reasonable for the landlord to know this; or
- the reasons why the landlord cannot provide the cost information, and the date when they will provide this information. (When this information is available, the landlord must provide it within 21 days of receiving it.)
- If the landlord proposes to appoint an agent to be responsible for any part of the contract, each proposal must contain a statement of whether the proposed agent:
- is or is not a member of a professional body or trade association and, if so, which one; and
- does or does not subscribe to any code of practice or voluntary accreditation scheme relevant to managing agents.
- How long the proposed agreement is intended to last.
- A summary of any observations the landlord has received by the due date, and their response to these.
- A statement of:
- The notice must include a copy of the proposal or specify a reasonable place and time when tenants can inspect it.
- If facilities to copy the proposal are not available at the place specified, the landlord must provide a copy free of charge to any tenant who asks for one.
- The notice must explain that tenants have at least 30 days in which to send the landlord their written observations, and give the address for sending these to.
- The notice must state the date that the landlord must receive any observations by.
Duty to have regard to observations
The landlord must have regard to any observations they receive by the due date.
Landlord’s response to observations
If the landlord receives any observations by the due date, they must send their written response direct to the relevant tenant within 21 days of receiving the observation. (Please note, the landlord must send individual replies to each tenant who sent observations, not a general notice to everyone who received the previous notice.)
Appendix 4 – Example notice of intention to enter into a long-term agreement where public notice is needed
Please note: Landlords must send a notice giving their reasons for entering into a long-term agreement to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
- We (insert name of landlord or manager) intend to enter into a long-term agreement, and must consult you about this work under section 20 of the Landlord and Tenant Act 1985. (See Note 1 below.)
- The goods/services/work (delete whichever does not apply) to be provided under the agreement are as follows. (Insert a general description of the subject matter of the agreement.)
- You can inspect a description of the goods/services/work (delete whichever does not apply) to be provided under the agreement at (insert place and time for inspection.) (See Note 2 below.)
- We consider it necessary to enter into the agreement because (Insert a statement of reasons. If the work or services consist of or include qualifying work, explain why you consider the work necessary.)
- We invite you to make written observations on the proposed agreement. You should send your observations to (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date of this notice. The consultation period will end on (insert date of not less than 30 days from the date that the notice is given to the recipient). (See Note 3 below.)
- We are not inviting you to nominate a contractor for the work because we have to give public notice of the work.
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)
Address:
(Give the address which tenants should use for future communications relating to the notice of intention to enter into a long-term agreement.)
Date:
Notes
- Under section 20 of the Landlord and Tenant Act 1985 (as amended) (‘the 1985 act’) landlords (as defined by section 30 of the 1985 act) must consult tenants whose leases say they must pay service charges to contribute to costs due under a qualifying long-term agreement, if the contribution of any one tenant would be more than £100 in any accounting period. ‘Qualifying long-term agreement’ is defined by section 20ZA of the 1985 act.
- If a notice says where and when tenants can inspect documents relating to the agreement:
- the place and time must be reasonable; and
- a description of the relevant matters must be available for inspection, free of charge, at that place and during that time.
If facilities to copy the documents are not made available at the times when tenants can inspect the description, the landlord must provide a copy of the description free of charge to any tenant who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA. Section 29 of the 1985 act defines RTA.
- Tenants do not have the right to nominate contractors if the landlord has to give a public notice of the long-term agreement.
Appendix 5 – Example notice of proposals to enter into a long-term agreement where public notice is needed
Please note: Landlords must send a notice giving their reasons for entering into the long-term agreement to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
-
- We are giving this notice following the notice of intention to enter into a long-term agreement which we issued on (insert date of notice of intention). The consultation period for the notice of intention ended on (insert relevant date).
- We have now prepared a proposal for the goods/services/work (delete whichever does not apply) to be provided under the agreement based on the estimates received, and (we have enclosed a copy of the proposal with this notice) or (you can inspect a copy of the proposal at (insert place and time for inspection)). (See Notes 1 and 2 below.)
- We intend to enter into an agreement with: (name of contractor).
- We invite you to make written observations on the proposals by sending them to: (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date you receive this notice. The consultation period will end on: (insert date at least 30 days from the date the leaseholder receives the notice). (See Note 3 below.)
- Within the consultation period, we did not receive any written observations on the notice of proposals which we gave on: (insert date of notice of proposals). (See Note 3 below.)
Or
- The written observations we received on the proposals during the consultation period can be summarised as follows: (insert summary of observations). Our response to the observations is: (state response). (See Note 3 below.)
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)
Address:
(Give the address which tenants should use for future communications relating to the long-term agreement.)
Date:
Notes
- The landlord must present one proposal on the long-term agreement described in a notice of intention. This does not have to relate to the lowest estimate. The landlord must state any connection they have with the contractor. The proposal must contain a statement of how long the proposed agreement would be for. The proposal should state the tenant’s estimated contribution relevant to their home. If it is not reasonably possible to provide that information, the landlord can provide the overall cost estimated under the agreement or a current unit cost, and hourly or daily rate. If it is not reasonably possible for the landlord to provide any estimate of the cost, the proposal should contain a statement of why the landlord cannot provide the information and the date by which they expect the information to be available. The landlord must then send a notice to everyone who received the notice of proposals, setting out the estimated costs. They must do this within 21 days of receiving the necessary information.
- If a notice says where and when tenants can inspect the proposal:
- the place and time must be reasonable; and
- copies of the proposal must be available for inspection, free of charge, at that place and during that time. If facilities to copy the proposal are not made available at the times when tenants can inspect the proposal, the landlord must provide a copy of the proposal free of charge to any tenant who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA. They must send their written response to the relevant tenant within 21 days of receiving the observations.
Schedule 3
Consultation requirements for qualifying work under a qualifying long-term agreement
Tenants are not invited to nominate a contractor. There is one stage of consultation.
If qualifying work will be carried out under a qualifying long-term agreement, competitive tendering is not necessary because the agreement for the contractor to carry out the work is already in place.
- Pre-tender consultation stageNotice of intention – section 20 notice (see appendix 6) – 30-day consultation period The landlord must send this notice to each tenant and the RTA (if there is one).This notice must:
- describe, in general terms, the work that will be carried out, or specify a reasonable place and time when tenants and the RTA can inspect a description of the work;
- state the landlord’s reasons for considering it necessary to carry out the proposed work;
- contain a statement of the estimated total cost to the landlord of the proposed work;
- invite tenants and the RTA to provide written observations on the proposed work or the estimated cost;
- give the address where tenants and the RTA should send their observations; and
- give the date when the consultation period will end (being at least 30 days from the date the leaseholder receives the notice) and explain that the landlord must receive any observations by this date.
If facilities to copy the documents are not available at the place specified in the notice, the landlord must provide a copy free of charge to any tenant who asks for one.
Duty to have regard to observations
The landlord must have regard to any observations they receive by the due date.
Landlord’s response to observations
If the landlord receives any observations by the due date, they must send their written response direct to the relevant tenant within 21 days of receiving the observation. (Please note, the landlord must send individual replies, not a general notice to everyone who received the previous notice.)
Appendix 6 – Example notice of intention to carry out work under a long-term agreement
Please note: Landlords must send a notice of the intention to carry out work under a long-term agreement to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
- We (insert name of landlord or manager) intend to carry out work under an existing long-term agreement which we previously consulted tenants on [or an agreement we entered into before 31 October 2003] with (insert name of contractor). We must consult you about this work under section 20 of the Landlord and Tenant Act 1985. (See Note 1 below.)
- The work to be carried out under the agreement is as follows. (Insert a description of the proposed work.)
Or
You can inspect a description of the work to be carried out under the agreement at (insert place and time for inspection). (See Note 2 below.) - We consider it necessary to carry out the work because (insert a statement of your reasons).
- We estimate the total cost of the proposed work is likely to be (insert estimated figure).
- We invite you to make written observations on the proposed work or the estimated cost by sending them to (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date of this notice. The consultation period will end on (insert date of not less than 30 days from the date the notice is given to the recipient). (See Note 3 below.)
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)
Address:
(Give the address which tenants should use for future communications relating to the proposed work.)
Date:
Notes
-
- Under section 20 of the Landlord and Tenant Act 1985 (as amended) (‘the 1985 act’), landlords (as defined by section 30 of the 1985 act) must consult tenants whose leases say they must pay service charges to contribute to the costs of qualifying work, if the contribution of any one tenant would be more than £250. ‘Qualifying work’ is defined by section 20ZA of the 1985 act.
- If a notice says where and when tenants can inspect documents relating to the work:
- the place and time must be reasonable; and
- a description of the proposed work must be available for inspection, free of charge, at that place and during that time.
If facilities to copy the documents are not made available at the times when tenants can inspect the description, the landlord must provide a copy of the description free of charge to any tenant who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA (as defined by section 29 of the 1985 act). The landlord must send a written response to the person who made written observations within the consultation period, within 21 days of receiving them.
Schedule 4 (part 1)
Consultation requirements for qualifying work where public notice is needed
Tenants are not invited to nominate a contractor. There are two stages of consultation.
1. Pre-tender consultation
Notice of intention – section 20 notice (see appendix 7) – 30-day consultation period
The landlord must send this notice to each tenant and the RTA (if there is one).
This notice must:
- describe, in general terms, the work the landlord is proposing to carry out, or specify a reasonable place and time when tenants and the RTA can inspect a description of the work;
- give the landlord’s reasons for carrying out the proposed work;
- explain that the landlord is not inviting tenants to nominate alternative contractors because they have to give public notice;
- invite tenants and the RTA to make written observations on the proposed work;
- give the address to where tenants and the RTA should send their observations; and
- give the date when the consultation period will end (being at least 30 days from the date the leaseholder receives the notice) and explain that the landlord must receive any observations by this date.
If facilities to copy the documents are not available at the place specified in the notice, the landlord must provide a copy free of charge to any tenant who asks for one.
Duty to have regard to observations The landlord must have regard to any observations they receive by the due date.
2. Tender-stage consultation
Preparing the landlord’s contract statement
The landlord must prepare a statement of the proposed contract under which the proposed work will be carried out.
Notice of the proposed contract – section 20 notice (see appendix 8) – 30-day consultation period
- The landlord must give notice of the proposed contract to each tenant and the RTA (if there is one).
- The contract statement prepared by the landlord must contain the following.
- A statement of:
- the name and address of the proposed contractor; and
- any connection between the landlord and the proposed contractor (apart from the proposed agreement).
- The tenant’s estimated contribution, if it is reasonable for the landlord to know this. Otherwise, the statement must include:
- the estimated cost for the building or the premises, if it is reasonable for the landlord to know this;
- the current unit cost, and hourly or daily rate, if it is reasonable for the landlord to know this; or
- the reasons why the landlord cannot provide the cost information, and the date when they will provide this information. (When this information is available, the landlord must provide it within 21 days of receiving it.)
- A summary of any observations the landlord has received on the notice of intention by the due date, and their responses to these.
- A statement of:
- The notice must include the contract statement or specify a reasonable place and time when tenants can inspect it.
- If facilities to copy the contract statement are not available at the place specified, the landlord must provide a copy free of charge to any tenant who asks for one.
- The notice must explain that tenants have at least 30 days in which to send the landlord their written observations, and give the address for sending these to.
- The notice must state the date that the landlord must receive any observations by.
Duty to have regard to observations
The landlord must have regard to any observations they receive by the due date.
Landlord’s response to observations
If the landlord receives any observations by the due date, they must send their written response direct to the relevant tenant within 21 days of receiving the observation. (Please note, the landlord must send individual replies to each tenant who sent observations, not a general notice to everyone who received the previous notice.)
Appendix 7 – Example notice of intention to carry out work where public notice is needed
Please note: Landlords must send a notice of intention to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
- We (insert name of landlord or manager) intend to enter into an agreement to carry out work, and must consult you about this work under section 20 of the Landlord and Tenant Act 1985. (See Note 1 below.)
- The work to be carried out is as follows. (Insert a general description of the work.)
Or
You can inspect a description of the work to be carried out under the agreement at (insert place and time for inspection). (See Note 2 below.) - We consider it necessary to carry out the work because (insert a statement of your reasons).
- We invite you to make written observations on the proposed work by sending them to (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date of this notice. The consultation period will end on (insert date of not less than 30 days from the date of the notice is given to the recipient). (See Note 3 below.)
- We are not inviting you to nominate a contractor for the work because we have to give public notice of the work.
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)
Address:
(Give the address which tenants should use for future communications relating to the notice of intention.)
Date:
Notes
- Under section 20 of the Landlord and Tenant Act 1985 (as amended) (‘the 1985 act’) landlords (as defined by section 30 of the 1985 act) must consult tenants whose leases say they must pay service charges to contribute to the costs of qualifying work, if the contribution of any one tenant would be more than £250. ‘Qualifying work’ is defined by section 20ZA of the 1985 act.
- If a notice says where and when tenants can inspect documents relating to the agreement:
- the place and time must be reasonable; and
- a description of the proposed work must be available for inspection, free of charge, at that place and during that time.
If facilities to copy the documents are not made available at the times when tenants can inspect the description, the landlord must provide a copy of the description free of charge to any tenant who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA. Section 29 of the 1985 act defines RTA.
Appendix 8 – Example contract statement for proposed work where public notice is needed
Please note: Landlords must send a contract statement to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
- We are giving this notice following the notice of intention to carry out work, which we issued on (insert date of notice of intention). The consultation period for the notice of intention ended on (insert relevant date).
- We have now prepared a proposal for the work based on the estimates received, and (we have enclosed a copy of the proposal with this notice) or (you can inspect a copy of the proposal at (insert place and time for inspection)). The name and address of the proposed contractor are (insert details).
- (Statement of estimated costs – see Note 2 below.)
- We invite you to make written observations on the proposals by sending them to (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date you receive this notice. The consultation period will end on (insert date at least 30 days from the date the leaseholder receives the notice). (See Note 3 below.)
- The written observations we received on the proposals during the consultation period can be summarised as follows (insert summary of observations). Our response to the observations is (state response).
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)
Address:
(Give the address which tenants should use for future communications relating to the contract statement.)
Date:
Notes
- The landlord must present one proposal on the work described in the notice of intention. This does not have to relate to the lowest estimate. The landlord must state any connection they have with the proposed contractor.
- The proposal should state the tenant’s estimated contribution relevant to their home. If it is not reasonably possible to provide that information, the landlord can provide an estimate of the total cost of the work under the proposed agreement or a current unit cost, hourly or daily rate.
If it is not reasonably possible for the landlord to provide any estimate of the cost, the notice should provide a statement of why the landlord cannot provide the information and the date by which they expect the information to be available. The landlord must then send a notice to everyone who received the contract statement, setting out the estimated costs. They must do this within 21 days of receiving the necessary information. - If a notice says where and when tenants can inspect a copy of the proposal:
- the place and time must be reasonable; and
- copies of the proposal must be available for inspection, free of charge, at that place and during that time. If facilities to copy the proposal are not made available at the times when tenants can inspect the proposal, the landlord must provide a copy of the proposal free of charge to any tenant who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA. They must send their written response to the relevant tenant within 21 days of receiving the observations.
Schedule 4 (part 2)
Consultation requirements for qualifying work where public notice is not needed
Tenants and the RTA (if there is one) must be invited to nominate a contractor. There are three stages of consultation.
1. Pre-tender stage
Notice of intention – section 20 notice (see appendix 9) – 30-day consultation period
The landlord must send this notice to each tenant and the RTA (if there is one).
This notice must:
- describe, in general terms, the work the landlord is proposing to carry out, or specify a reasonable place and time when tenants and the RTA can inspect a description of the work;
- give the landlord’s reasons for carrying out the proposed work;
- invite tenants and the RTA to make written observations on the proposed work;
- give the address where tenants and the RTA should send their observations;
- give the date when the consultation period will end (being at least 30 days from the date the leaseholder receives the notice) and explain that the landlord must receive any observations by this date; and
- tell tenants and the RTA (if there is one) that they have the right to nominate a contractor for the work.
If facilities to provide copies of a description of the work are not available at the place specified, the landlord must provide a copy free of charge to any tenant who asks for one.
Duty to have regard to observations
The landlord must have regard to any observations they receive by the due date.
Estimates
The landlord will then ask for estimates from the contractors they have chosen. They must also try to ask for estimates from contractors nominated by tenants and the RTA.
The criteria which contractors nominated by tenants and the RTA need to meet in order to tender for the work are set out in the previous section relating to contractors nominated by tenants and RTAs.
2. Tender-stage consultation
Preparing the landlord’s estimates
- The landlord must get at least two estimates for carrying out the proposed work.
- At least one of the estimates must be from a contractor who is not in any way connected to the landlord.
- The landlord must make all of the estimates available for tenants and the RTA to inspect.
Notice of the estimates – section 20 notice (see appendix 10)
– 30-day consultation period
- The landlord must send this notice, free of charge, to each tenant and the RTA (if there is one).
- The notice must include a statement (the ‘paragraph b statement’) containing the following.
- For at least two of the estimates, the amount shown in the estimate as the estimated cost of the proposed work (this does not have to be a copy of the estimate, simply a statement of the amount), and:
- at least one of these estimates must be from a contractor who is not in any way connected to the landlord; and
- if the landlord has received an estimate from a nominated contractor, one of these estimates must be from a nominated contractor.
- If tenants have made observations by the due date, the landlord must provide a summary of them and their responses to them.
- The notice must:
- specify a reasonable place and time when tenants and the RTA can inspect all the estimates (landlords must make all of the estimates they have received available for inspection, not just the estimates they have based their landlord’s statement on);
- invite tenants and the RTA to make written observations on the estimates;
- give the address where tenants and the RTA should send their observations; and
- give the date when the landlord must receive the observations by.
- If facilities to copy the estimates are not available at the place specified, the landlord must provide a copy free of charge to any tenant who asks for one.
Duty to have regard to observations
The landlord must have regard to any observations they receive by the due date.
3. Award of contract
Notice of the award of contract – section 20 notice (see appendix 11) – 21-day response periodWithin 21 days, the landlord must send a notice to each tenant and the RTA, which:
- explains the landlord’s reasons for awarding the contract, or says where and when tenants can inspect those reasons; and
- gives a summary of any tenants’ observations the landlord has received on the estimates and their responses to these.
The landlord does not have to send this notice if they have awarded the contract to:
- a contractor who was nominated by a tenant or the RTA; or
- the lowest tender.
Appendix 9 – Example notice of intention to carry out work
Please note: Landlords must send a notice of intention to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and: (name of RTA)
-
- We (insert name of landlord or manager) intend to enter into an agreement to carry out work, and must consult you about this work under section 20 of the Landlord and Tenant Act 1985. (See Note 1 below.)
- The work to be carried out is as follows. (Insert a general description of the work.)
Or
- You can inspect a description of the work to be carried out at (insert place and time for inspection). (See Note 2 below.)
- We consider it necessary to carry out the work because (insert a statement of your reasons.)
- We invite you to make written observations on the proposed work by sending them to (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date of this notice. The consultation period will end on (insert date of not less than 30 days from the date the notice is given to the recipient). (See Note 3 below.)
- We also invite you to nominate a contractor you believe we should try to get an estimate from for the work described in paragraph 2 above. (See Note 4 below.) If you want to nominate a contractor, you must give us their name within 30 days from the date of receiving this notice.
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)Address:
(Give the address which tenants should use for any future communications relating to the notice of intention to carry out work.)Date:
Notes
-
- Under section 20 of the Landlord and Tenant Act 1985 (as amended) (‘the 1985 act’) landlords (as defined by section 30 of the 1985 act) must consult tenants whose leases say they must pay service charges to contribute to the costs of qualifying work, if the contribution of any one tenant would be more than £250. ‘Qualifying work’ is defined by section 20ZA of the 1985 act.
- If a notice says where and when tenants can inspect documents relating to the work:
- the place and time must be reasonable; and
- a description of the proposed work must be available for inspection, free of charge, at that place and during that time.
If facilities to copy the documents are not available at the times when tenants can inspect the description, the landlord must provide a copy of the description free of charge to any tenant who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA. Section 29 of the 1985 act defines RTA.
- If an RTA only nominates one contractor (whether or not any tenant also nominates a contractor), the landlord must try to get an estimate from the nominated contractor.
- If only one individual tenant makes a nomination, and they only nominate one contractor (whether or not an RTA also nominates a contractor), the landlord must try to get an estimate from the nominated contractor.
- If more than one tenant each nominates only one contractor (whether or not an RTA also nominates a contractor), the landlord must try to get an estimate:
- from the person who receives the most nominations; or
- if two (or more) contractors receive the same number of nominations (and this is more than the number of nominations received by any other person), from one of those contractors; or
- in any other case, from any nominated contractor.
- If any tenant and an RTA nominate a number of contractors, the landlord must try to get an estimate from:
- at least one contractor nominated by a tenant; and
- at least one different contractor nominated by the RTA.
Appendix 10 – Example statement of estimates for proposed work
Please note: Landlords must send a statement to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
-
- We are giving this notice following the notice of intention to carry out work, which we issued on (insert date of notice of intention). The consultation period for the notice of intention ended on (insert relevant date).
- We have now received estimates for the work to be carried out. We have selected (insert number, at least two) estimates which we will use to choose a contractor. (See Note 1 below.) The amounts stated in the estimates for the proposed work are (insert details).
- You can inspect all of the estimates we received at (insert place and time for inspection). (See Note 2 below.)
- We invite you to make written observations on any of the estimates. You should send your observations to (address of landlord or manager). We must receive your observations within the consultation period of 30 days from the date of this notice. The consultation period will end on (insert date of not less than 30 days from the date the notice is given to the recipient). (See Note 3 below.)
- We did not receive any written observations on the notice of intention which we gave on (insert date of notice of proposals) within the consultation period for that notice. (See Note 4 below.)
Or
- The written observations we received during the consultation period for the notice of intention can be summarised as follows. (Insert summary of observations.) Our response to the observations is (state response). (See Note 4 below.)
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)Address:
(Give the address which tenants should use for future communications relating to the statement of estimates.)Date:
Notes
-
- The landlord must select at least two estimates for the proposed work described in the notice of intention. At least one of the estimates must be from a person who is not in any way connected to the landlord. If the landlord has received an estimate from a contractor who was nominated by a tenant or the RTA, that estimate must be included in the statement of estimates.
- If a notice says where and when tenants can inspect the estimates:
- the place and time must be reasonable; and
- copies of the estimates must be available for inspection, free of charge, at that place and during that time.
If facilities to copy the estimates are not made available at the times when tenants can inspect the estimates, the landlord must provide a copy of the estimates free of charge to anyone who asks for one.
- The landlord has a duty to have regard to written observations made within the consultation period by any tenant or RTA. Section 29 of the 1985 act defines RTA.
- If a landlord has received written observations within a consultation period for a notice of intention to carry out work, they must summarise the observations and respond to them in this statement of estimates.
Appendix 11 – Example notice of reason for awarding a contract to carry out work
Please note: Landlords must send a notice of reason to each tenant and the RTA (if there is one).
To: (name and correspondence address of tenant)
and (name of RTA)
-
- We are giving this notice following the statement of estimates which we issued on (insert date of notice of proposals). The consultation period for the notice of proposals ended on (insert relevant date).
- We have now entered into a contract with (name of chosen contractor) to carry out the work first described in the notice of intention dated (insert date of notice of intention).
- Our reasons for doing so are (state reasons). (See Note 1 below.)
Or
-
- You can inspect a statement of our reasons for entering into the contract at (specify place and time for inspection). (See Notes 1 and 2 below.)
- We did not receive any written observations on the statement of estimates which we gave on (insert date of statement of estimates) within the consultation period. (See Note 3 below.)
Or
The written observations we received on the estimates during the consultation period can be summarised as follows. (Insert summary of observations.) Our response to the observations is (state response). (See Note 3 below.)
Signed:
(Signature of the person giving the notice. If an agent signs, also add: ‘duly authorised agent of (name of landlord or manager)’.)Address:
(Give the address which tenants should use for future communications relating to the notice of reason.)Date:
Notes
-
- Landlords do not have to send out this notice if the contractor they have chosen:
- was nominated by a tenant or the RTA; or
- is the person who submitted the lowest estimate.
- If the notice says where and when tenants can inspect the statement of reasons:
- the place and time must be reasonable; and
- copies of the documents must be available for inspection, free of charge, at that place and during that time.
- Landlords do not have to send out this notice if the contractor they have chosen:
If facilities to copy the statement are not made available at the times when tenants can inspect it, the landlord must provide a copy of the statement free of charge to any tenant who asks for one.
-
- If a landlord has received written observations within the consultation period for the statement of estimates for the proposed work, they must summarise the observations and respond to them within the notice of reasons for awarding the contract.
- For at least two of the estimates, the amount shown in the estimate as the estimated cost of the proposed work (this does not have to be a copy of the estimate, simply a statement of the amount), and:
