Major Works: Navigating the Section 20 Framework

In the realm of block management, the term "Major Works" is often met with trepidation. However, from a professional standpoint, these projects—governed by Section 20 of the Landlord and Tenant Act 1985—are a critical mechanism for preserving the structural integrity and capital value of your asset.

At Gena, we approach these projects with a focus on legal precision and cost-efficiency. Here is a professional overview of the statutory process, our administrative role, and the necessity of technical oversight.

The Statutory Framework: Understanding the Timeline

Section 20 is a mandatory consultation process required when any leaseholder's contribution to a project exceeds £250. This process is defined by rigid "observation periods"—statutory time gaps that ensure all parties have sufficient opportunity to review and respond.

• Stage 1: The Notice of Intention Once the scope of work is identified, we serve a formal notice detailing the proposed works.

  • The 30-Day Gap: Legislation mandates a minimum 30-day observation period. During this window, leaseholders have the right to provide written comments and, in most cases, nominate a contractor of their choice.

• Stage 2: The Statement of Estimates After considering any nominations, we obtain a minimum of two competitive tenders and present them via a formal statement.

  • The 30-Day Gap: A second 30-day observation period begins. This is the period for leaseholders to inspect the estimates and submit formal observations regarding the costs and the proposed contractors.

• Stage 3: Notice of Reasons If the chosen contractor is neither the cheapest nor a leaseholder-nominated firm, we must issue a final notice explaining the rationale behind the selection.

From a procedural standpoint, these mandatory gaps mean that even the most efficiently managed project will require a minimum of 60 to 90 days for the consultation phase alone before works can commence on-site.

The Gena Approach: Administrative Integrity

It is industry standard for managing agents to levy a "Major Works Fee"—typically a percentage (10–15%) of the total contract value—to oversee this process.

At Gena, we do not charge for major works. We view the navigation of the Section 20 process as an integral part of our management mandate. However, it is vital to distinguish between Statutory Administration and Project Management:

1. Our Role (Administration): We manage the legal notices, ensure compliance with the Landlord and Tenant Act, and facilitate the communication between the Freeholder/RMC and the leaseholders.

2. What We Do Not Provide: Because we do not charge a project-specific fee, we do not provide Contract Administration or Project Management. We do not oversee the technical execution, quality control, or health and safety compliance on-site.

   
   

The Case for Professional Surveying

For larger, complex projects, the risk of technical failure or budgetary "creep" is significant. As such, we strongly recommend the appointment of a Chartered Building Surveyor to act as the Project Manager.

While we ensure the legal paperwork is airtight, a surveyor manages the "bricks and mortar" through:

• Technical Specifications: Drafting precise schedules of work to ensure contractors quote on a "like-for-like" basis.

• Contract Administration: Acting as an independent third party to manage the builder, monitor progress, and enforce quality standards.

• Financial Valuation: Ensuring that funds are only released to the contractor once the works have been professionally "snagged" and certified.

By removing the managing agent's percentage fee from the equation, Gena allows those funds to be redirected toward professional surveying. This ensures the project is governed by legal expertise on the administrative side and technical expertise on the construction side.

Maintaining a building is a matter of diligence and due process. By understanding the statutory timelines and the distinct roles of your management team and technical consultants, you can ensure that major works are a success rather than a source of stress.