Question 1

Section 20

Accepted Answer

Q: I am on the board of two large blocks which are five weeks into an 18 week contract to have our roofs replaced. We have employed surveyors to help us with this large project. There was a contingency of £20,000 built into the cost, however, now the scaffolding is completed on the first block, new necessary work has been identified. Currently the cost of this work for just one block has been quoted at just over £20K. My question is, (we are likely to find a similar sum needs spending on the second identical block once the scaffolding has been erected) are we obliged to start the S20 process? the Company has enough money in the bank to pay this sum so we will not need to ask the shareholders for another levy. The exact cost of the work likely to be required will be difficult to estimate for probably another month - so I am guessing mid-February. The whole job was scheduled to finish by 30 March. (this will need extending slightly because of the extra work) Is it possible that an S20 can be completed inside this deadline? A: FPRA Hon Consultant Yashmin Mistry replies: “Thank you for your email. We cannot advise fully on the matter as we have not had sight of the section 20 notices that have been served thus far. Perhaps your surveyors will be able to advise but the usual position is that if the scope and nature of the works have changed from those previously consulted on, fresh section 20 notices are required. If that hasn’t changed, then fresh notices may well not be required. Again, you may need to run the issue pass your surveyors. Section 20 done correctly usually takes about three to four months to complete. An alternative, if the additional works are deemed to be “emergency works” may be to consult as far as possible with the residents – send fresh notices, call residents’ meetings, send out circulates explaining the position, discuss amongst the residents and at the same time. Whilst that is happen, perhaps lodge an application to the Tribunal for dispensation against further consultation. It would help the application if it had annexed to it, letter or emails in support of the additional works and confirmation that residents are happy not to go through further consultation. It goes without saying – the more letters of support the better. If the surveyors were able, it may also be worth annexing to the application for dispensation, a note from the surveyor confirming that it would be cheaper all around if the works could be carried out now rather than later once a further consultation has been undertaken, as the costs associated with the dismantling and erection of scaffolding again at a later date would add to the already mounting costs. Question submitted January 2018

Question 2

Section 20

Accepted Answer

Q: I am on the board of two large blocks which are five weeks into an 18 week contract to have our roofs replaced. We have employed surveyors to help us with this large project. There was a contingency of £20,000 built into the cost, however, now the scaffolding is completed on the first block, new necessary work has been identified. Currently the cost of this work for just one block has been quoted at just over £20K. My question is, (we are likely to find a similar sum needs spending on the second identical block once the scaffolding has been erected) are we obliged to start the S20 process? the Company has enough money in the bank to pay this sum so we will not need to ask the shareholders for another levy. The exact cost of the work likely to be required will be difficult to estimate for probably another month - so I am guessing mid-February. The whole job was scheduled to finish by 30 March. (this will need extending slightly because of the extra work) Is it possible that an S20 can be completed inside this deadline? A: FPRA Hon Consultant Yashmin Mistry replies: “Thank you for your email. We cannot advise fully on the matter as we have not had sight of the section 20 notices that have been served thus far. Perhaps your surveyors will be able to advise but the usual position is that if the scope and nature of the works have changed from those previously consulted on, fresh section 20 notices are required. If that hasn’t changed, then fresh notices may well not be required. Again, you may need to run the issue pass your surveyors. Section 20 done correctly usually takes about three to four months to complete. An alternative, if the additional works are deemed to be “emergency works” may be to consult as far as possible with the residents – send fresh notices, call residents’ meetings, send out circulates explaining the position, discuss amongst the residents and at the same time. Whilst that is happen, perhaps lodge an application to the Tribunal for dispensation against further consultation. It would help the application if it had annexed to it, letter or emails in support of the additional works and confirmation that residents are happy not to go through further consultation. It goes without saying – the more letters of support the better. If the surveyors were able, it may also be worth annexing to the application for dispensation, a note from the surveyor confirming that it would be cheaper all around if the works could be carried out now rather than later once a further consultation has been undertaken, as the costs associated with the dismantling and erection of scaffolding again at a later date would add to the already mounting costs. Question submitted January 2018

Section 20

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