My eye-catching headline may, I suspect, cause you to roll your eyes, especially if you’re a property manager who has been involved with several major works projects over the years.
So first things first: Every project is different. Opening your recipe book, turning to the ‘external repairs and redecorations’ page and following the instructions line by line, won’t give you the results you were looking for. As every good property manager knows, you are managing people as much as bricks and mortar, therefore you need to be mindful of the fact that you’re turning leaseholders’ homes into a building site.
When a project goes particularly well however, it’s worth reflecting and making notes of the detail, which can be enormously helpful when speaking to apprehensive clients who are preparing to embark on their own works.
While it is fresh in my memory, here are my notes from a real life example of a successful project, elements of which can be translated into any project.
A long time coming, a £5m exterior refurbishment project to 6x blocks of flats in London SW8, was to date the largest undertaking of its kind for Earl Kendrick Project & Building Consultancy since our inception 12 years ago. Starting in lockdown 2020 and reaching practical completion in spring 2023, it’s a success story for the freeholder (a professional and I might add, diligent landlord), the leaseholders, EK and the contractor.
This project stood out structurally – external redecs, renewed pitch roofs, fire compartmentation works – crucial works to ensure the safety of all residents. And visually – a dramatic change to the façades’ appearance, replacing the windows and balcony doors from old PVC to powder coated grey aluminium framed thermal efficient double-glazed windows and doors.
Why it’s such a success story is in no small part down to our doggedness to get the project to site after years of prevarication. You will no doubt have seen clients push works back a year or two, even if the works are definitely needed and the lease dictates their frequency. As the managing agent, you encourage the works to proceed in a timely fashion but when the push-back happens, you need to cover your backs!
In this case in south west London (located just south of the Thames and between fascinating Nine Elms and Vauxhall), we worked closely with the freeholder and various resident groups to explain the practicalities and financials of putting off the works further. In other words, we earned the key stakeholders’ buy-in, then began the challenge of getting hundreds of leaseholders on board.
We organised an open day, with everyone welcome (including tenants), gazebos, bbq, drinks, and building materials, sample window sections on display so that residents could meet their neighbours, discuss the proposals and actually touch/feel the materials that would transform their homes and neighbourhood. The engagement was brilliant and it took us all by surprise!
Fortunately and crucially when you’re spending over £5m of the leaseholders’ money, the cap ex that EK (and others) had worked on with the freeholder over many years meant the funding was in place. No small feat, but clearly preferable to asking each leaseholder for a few thousand pounds. The key here, quite evidently, is to put plans in place to raise the necessary funds years ahead of time, assuming the lease allows the collection of a reserve fund.
The ‘section 20’ process went without a hitch, in no small part due to the extra written communications that went alongside the statutory, prescriptive requirements of the legislation. Yes, you must follow the s20 process to the letter, but that does not prevent you from over-communicating with the service charge payers about the landlord’s intentions, anticipated timescales and inevitable disruptions.
This encouraging start continued throughout the various works phases, where there was less of “them vs us” and more of “us”. Of course, such works are to everyone’s benefit, although leaseholders don’t always see it that way!
It’s difficult at the best of times to please leaseholders who are enduring darkened rooms, risqué scaffold language (kept to a minimum!) and noise nuisance for months on end. With the freeholder’s support, we set up a superb site office. We required the contractor to have a designated person to deal with resident queries and regular site meetings ensured the queries were actioned. This hands-on approach also meant spurious claims by residents of dampness or cracking (unrelated to the works) could be dealt with fast and decisively. Almost literally treading on eggshells, the works to lofts above top floor flats in extremely confined spaces were enormously challenging. Huge credit to the Houdini-like contractors whose good humour and dedication has won them plaudits and a place on future tender lists.
Turning the clock back, the works commenced during covid lockdown no. 1 which meant a laborious first few months, particularly due material shortages. In the years that followed right up to 2023, the contractor (with our and the freeholder’s permission) had to buy and store off-site thousands of roof tiles, purchasing them whenever they became available! With insufficient storage on site, calculated risks were taken to store elsewhere.
And this is a great example of why a recipe can’t be followed line by line. Materials shortages still occur and the impact on the supply chain can lead to severe delays on site and grumpy leaseholders enduring extra weeks of scaffolding. Regular meetings starting before works are on site are essential to ensure client, contract administrator (us) and contractor are aligned and communicating honestly and transparently.
We’re all delighted with the finished product and hats off to the contractor who embraced the project brief (embraced the leaseholders too!) and worked collaboratively throughout.
And this was achieved without a managing agent, another reason why this project stands out, as the presence of a great block management company usually makes the works more likely to succeed.
This project also stood out in an old-fashioned way. Whereas most surveyors (and clients) force leaseholders down the route of reporting concerns/defects online, the daily on-site presence meant physical issues (e.g. paint splatter, broken glass, stuck window) could be seen almost right away, in person, and action taken. Demographically (elderly leaseholders), this was vital, as not all octogenarians have computers and the eyesight needed to tap out emails or portal requests.
Technology does have its place and most residential buildings and larger schemes are home to time-poor young professionals keener to pass on their thoughts and feedback via an online form rather than face to face. Ok, I generalise, but do provide options for two-way communications and cater for the demographics on site.
In summary, here is a major works checklist that will stand you in good stead:
- START NOW: The earlier you start planning, the better.
- CHECK THE LEASE AND PLANNED MAINTENANCE PROGRAMME/CAP EX PLAN: If you don’t already know what the lease says about the frequency of external repairs and redecorations for instance, check the lease and check when major works were last carried out. Let your client know. If you have a capital expenditure plan in place, this should give you your answer. If the cap ex needs updating, speak to your surveyor to get it updated. Where there is no cap ex, speak to us.
- SELECT A GREAT BUILDING SURVEYOR: Earmark the right surveyor for the job and introduce them to your client. The building surveyor might be engaged through you but they are appointed on behalf of your client so get your client involved. The most successful projects in our experience are ones where the managing agent, client (RMC/RTM/freeholder) and surveyor are working together from day one, talking through the cap ex, funding, phasing of works and much more. Set up a conference call between the surveyor, your client and you – host the call and let the surveyor and client talk. A lot can be achieved on a 45-minute Zoom or more face to face.
- FUNDING: Look at the reserves, if indeed the block has sinking funds. A well-funded reserve account means far faster progression to starting on site. Where a call for cash is needed, the earlier you request it the better (always ensuring you request service charge/reserve monies in accordance with the lease. The serving of s20 notices does not automatically give you the right to demand the money required. Read the lease!)
- DECIDE WHAT WORKS ARE TO BE DONE: Our scoping documents are very popular. Before ploughing on with a specification that may yield extensive works that your client is unable to afford, our scoping document gives you and your client an overview of the state of the building, some options to consider such as phasing, and budget costings too. Get this bit right and the works – when they start – will proceed all the smoother.
- SECTION 20: Now that you know the extent of the works and the likely funding requirements, it’s time to serve the consultation notices. But don’t forget that whilst the statutory notices are vital to get right, it’s also very important to do the extra communicating with your leaseholders as we did in SW8. The more you communicate about the forthcoming works, the fewer problems you are likely to have with their financial contributions and their general buy-in. Explain why the works are needed, the benefits to them and how you as the appointed surveyor will spend their money wisely and minimise the disruption to all residents.
- ON SITE PRESENCE: Nothing is more annoying to a leaseholder than a full scaffold erected and a lack of bodies on site. If there will be days when the site presence will be sparse, communicate that fact. And if the project is substantial like the one in SW8, then invest in a full-time liaison manager, on site, that the contractor provides.
As a property manager, you have a key role to play in the year leading up to a major works project. Page 1 of the recipe book for a perfect major works project is all about YOU!
To start planning your 2024 major works projects wherever they are in the country, do not hesitate to contact me and we can plan together.
Author: Glen Hardingham BSc(Hons) MRICS APAEWE, Associate Director, Earl Kendrick London.
