Q: Section 20 Admin Fee

Section 20 Admin Fee Q: We are in the process of preparing for major works due to happen this summer. We agreed percentages payable to the surveyor at the start of the process. The costed tenders have come and, out of the blue, the managing agents advise they can add "S20 administration fee of 2.5% of the total cost of the Works, relating to the new regulations for consultation." Is it correct that they can charge this extra 2.5%? is it correct that it is a 'new' cost, so that they will not have known to make us aware of it at any time in the last 18 months? FPRA Committee Member Colin Cohen replies: If you own the freehold and therefore appointed the managing agent, you need to look at the agreement and on what terms and fees the agents were appointed to see if there is a provision for additional fees for work with regard to major works. I am not aware of any regulation to do so but that’s not to say it is not unreasonable. I must admit because of the constraint of what agents charge for management today with the additional requirements now the role requires, many agents do charge extra for administering major work as it considered above their usual role and basic fees. [Submitted May 2019]

Q: Section 20 Admin Fee

Section 20 Admin Fee Q: We are in the process of preparing for major works due to happen this summer. We agreed percentages payable to the surveyor at the start of the process. The costed tenders have come and, out of the blue, the managing agents advise they can add "S20 administration fee of 2.5% of the total cost of the Works, relating to the new regulations for consultation." Is it correct that they can charge this extra 2.5%? is it correct that it is a 'new' cost, so that they will not have known to make us aware of it at any time in the last 18 months? FPRA Committee Member Colin Cohen replies: If you own the freehold and therefore appointed the managing agent, you need to look at the agreement and on what terms and fees the agents were appointed to see if there is a provision for additional fees for work with regard to major works. I am not aware of any regulation to do so but that’s not to say it is not unreasonable. I must admit because of the constraint of what agents charge for management today with the additional requirements now the role requires, many agents do charge extra for administering major work as it considered above their usual role and basic fees. [Submitted May 2019]

Question 1

Section 20 Admin Fee

Accepted Answer

Section 20 Admin Fee Q: We are in the process of preparing for major works due to happen this summer. We agreed percentages payable to the surveyor at the start of the process. The costed tenders have come and, out of the blue, the managing agents advise they can add "S20 administration fee of 2.5% of the total cost of the Works, relating to the new regulations for consultation." Is it correct that they can charge this extra 2.5%? is it correct that it is a 'new' cost, so that they will not have known to make us aware of it at any time in the last 18 months? FPRA Committee Member Colin Cohen replies: If you own the freehold and therefore appointed the managing agent, you need to look at the agreement and on what terms and fees the agents were appointed to see if there is a provision for additional fees for work with regard to major works. I am not aware of any regulation to do so but that’s not to say it is not unreasonable. I must admit because of the constraint of what agents charge for management today with the additional requirements now the role requires, many agents do charge extra for administering major work as it considered above their usual role and basic fees. [Submitted May 2019]

Question 2

Section 20 Admin Fee

Accepted Answer

Section 20 Admin Fee Q: We are in the process of preparing for major works due to happen this summer. We agreed percentages payable to the surveyor at the start of the process. The costed tenders have come and, out of the blue, the managing agents advise they can add "S20 administration fee of 2.5% of the total cost of the Works, relating to the new regulations for consultation." Is it correct that they can charge this extra 2.5%? is it correct that it is a 'new' cost, so that they will not have known to make us aware of it at any time in the last 18 months? FPRA Committee Member Colin Cohen replies: If you own the freehold and therefore appointed the managing agent, you need to look at the agreement and on what terms and fees the agents were appointed to see if there is a provision for additional fees for work with regard to major works. I am not aware of any regulation to do so but that’s not to say it is not unreasonable. I must admit because of the constraint of what agents charge for management today with the additional requirements now the role requires, many agents do charge extra for administering major work as it considered above their usual role and basic fees. [Submitted May 2019]

Section 20 Admin Fee

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