Leaseholder bringing his own builder in to quote?

Leaseholder bringing his own builder in to quote?

16:54 PM, 4th May 2021, About 5 months ago 3

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We are a small group of leaseholders who are also shareholders in the management company that owns the freehold to our flats. I recently took over from the chap who ran the management company as he sold his flat and nobody else wanted to do it.

We now have to do some urgent repairs that will involve an additional contribution from each leaseholder. All but one leaseholder has already accepted a quote, but he would like to bring his own builder in to quote and possibly do the work.

Running a management company is new to me, and we have always got on well so could anyone offer advice on how to deal with this if things get awkward.

Many thanks

John



Comments

by Jontyv

9:44 AM, 5th May 2021, About 5 months ago

My understanding is that if any work is large enough that any leaseholder is required to contribute over £250 then the work should be put out to tender and a notification and consultation process among leaseholders takes place. Each leaseholder may nominate their own preferred contractor in addition to the management company's. At the end of this process a contractor is chosen (not necessarily the cheapest). If all but one leaseholder are happy with your nominated builder I expect you could go ahead, but surely wouldn't hurt to get them to tender and see if the leaseholders still want to go with yours?

by Ron H-W

9:49 AM, 5th May 2021, About 5 months ago

If the cost is such that any lessee will end up contributing a total of more than £250 (whether out of regular service-charge payments or otherwise) for any "work or linked series of works", then s.20 consultation is required, including to invite suggestions for whom to get a quote from.
If this lessee's "own builder" is more expensive, then he'd have to try (probably unsuccessfully!) to persuade everybody that there are good reasons other than simply the "bottom line".
But, if it is cheaper, you'll need to think about how you are going to justify the original (higher) figure - bearing in mind that plural quotes are encouraged (required if s.20 applies) and the need to show that the freeholder or management company is obtaining good value for money.

(I'm puzzled as to how things might "get awkward" - unless loyalty outweighs economic sense!)

BTW, I've been doing this for over 11 years now.

by Crossed_Swords

11:56 AM, 5th May 2021, About 5 months ago

Things will only get awkward if you proceed as you are. It doesn't require unanimity but you do have to follow the S20 procedure - look it up on LEASE.ORG.
The upshot is you have to choose the cheapest or one recommended by a leaseholder (any one), you also should have at least three quotes, one is definitely not enough.
If repairs are urgent, get cracking because it can take a minimum of 60 days to go through the process and there is no shortcut
Why are you not willing to get a quote from his contact? Is he the newbie?


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