Leaseholders

Long Term Agreements

Frequently Asked Questions about Notices of Intention to Enter into a Long Term Agreement

1. Why are you writing to me?

We are planning ahead. We want to enter into long-term agreements with contractors for works which may become necessary in the future.

The law states that we must consult with you, our leaseholders and any Recognised Tenants’ Association (RTA), if the amount payable by any one of you is likely to exceed £100 in any one year. Although none of the work has yet been specifically identified it is very likely that the cost of future work to some of you will be above this amount.

This means that before approaching a contractor for a tender, we must send you a ‘notice of our intention’ to enter into a long-term agreement.

This is the first stage of a formal consultation process (A ‘notice of intention to enter into a qualifying long-term agreement where a public notice is required’) and we are inviting you to let us have your written observations on the proposed agreement.

2. Why does Waltham Forest Housing want to enter into long-term agreements?

Contracts of this kind will set the price in advance for each kind of job we may ask a contractor to carry out.

Long-term agreements can help reduce prices because they allow contractors to plan their workload over a longer period. The new contracts can also be written to make sure everyone works closely together. This can result in other savings (on the cost of materials, for example) as the contract progresses.

By having contracts in place we won’t have to tender to obtain prices for each individual job or re-tender a number of individual contracts each year. We also anticipate that entering into a long term agreement will be the best way of obtaining value for money.

Contracts will include performance targets and will include a termination provision which can be exercised in the event of ongoing poor performance.

3. Will all the work mentioned in the notices be carried out to my block?

Only works considered necessary and relevant to your block will be carried out. The contracts we want to enter into are in preparation for work that may become necessary later.

4. Can I nominate a contractor to do the work?

Not on this occasion. As the contract is for services and has an estimated value in excess of £150k per annum across the borough the proposed agreement has to be advertised publicly within the European Community. All contractors will therefore be able to see the Public Notice in the Official Journal of the European Union.

5. Will this cost me money?

This notice is a ‘notice of intention to enter into a qualifying long-term agreement.’ It is not a demand or request for money. We will only charge you for work that is actually carried out after we have awarded the contracts to successful tenderers. If we need to carry out any single item of maintenance work to your flat block under any of the proposed long-term agreements which will cost you more than £250, we will write to you first with a further consultation notice.

6. What happens next?

Sending you the notice and asking for your observations is the first stage of the consultation.

We will then consider your response. As agents for your landlord, Waltham Forest Housing must ‘have regard to’ any observations you send us in writing within the consultation period.

Once Ascham Homes has received tenders from contractors, the consultation then moves on to the second stage. We will then:

  • provide you with further details of the proposals; (This is called a ”notice of the proposals to enter into a long-term agreement, where public notice is required.”)
  • provide you with a summary of the written observations that we received within the specified time limit during stage one; and
  • invite you to make further written observations within another 30 day period.

We may send all this to you in a pack or we may invite you to come in and view the information at one of our offices.

7. Where can I find out more about my rights as a leaseholder?

This notice is being served under the provisions of the Commonhold & Leasehold Reform Act 2002. Further information may be obtained by contacting LEASE, (Leasehold Advisory Service) at 31 Worship Street, London, EC2A 2DX, Telephone: 020 7374 5380 , or you could seek advice from your solicitor.

Glossary of Terms

The following legal terms may have been used in the documents you have been sent, here is an explanation of what they mean

Qualifying works

Qualifying works are repairs, maintenance or improvement works to a building or other premises that are covered by the statutory requirements.

Qualifying Long-Term Agreement (QLTA)

A QLTA is an agreement with a contractor to provide goods or services which runs for more than 12 months. Under the law, we must consult with you, as leaseholders and send you a ‘notice of intention’, if the amount payable by any one of you for work done under the contract will exceed £100 in any one year. A QLTA can be for carrying out major works or supplying repair and maintenance services, or for things such as buildings insurance cover.

Public Notice

A Public Notice is a notice published in the Official Journal of the European Union. We are required to do this when the value of a QLTA reaches a financial threshold. When this threshold is reached we have to comply with the European Union rules for advertising and letting contracts.

Recognised Tenants’ Association (RTA)

An RTA is an association of residents formed under the provisions of S29 of the Landlord and

Tenant Act 1985, and ‘recognised’ by the landlord for the purpose of consultation. It is not necessarily the same as any Tenants and Residents’ Association which may exist on your estate.

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