Social landlords don’t know whether contractors are requesting payment for the right amounts, warns Theresa Mohammed in Inside Housing
Put bad practice behind you
Most social landlords that develop homes have always disapproved of the now outdated practice of failing to pay contractors and subcontractors in a timely manner. They have taken a keen interest in the mechanics of the payment provisions under recent legislation.
Among our clients, we have seen social landlords bending over backwards to engage with contractors’ claims and cost overruns, even when this results in busting the budget for a project.
But this has to some extent gone too far and encouraged contractors to fall back on the old-fashioned claims culture of inflated and unsubstantiated claims for payment, which are difficult to assess with any accuracy. Contractors typically send these payment applications in the form of long spreadsheets of figures, relating to subcontractors. Some social landlords have been paying without checking for mistakes or asking for justification for the amounts requested.
Social landlords increasingly tell us about duplicated invoicing, spurious variations where a contractor claims that the scope of work has changed, the withholding of invoices for long periods of time, failure to follow any of the agreed payment processes, and contractors introducing payment terms or rates that were not agreed.
Lack of management
One of the main reasons for these problems is a distinct lack of senior management in repairs and maintenance contracting, which means costs are incurred and then crudely attributed to various categories of cost, such as preliminaries or planned works, which may or may not be legitimate. More
(Theresa Mohammed is a contentious construction senior associate at Trowers & Hamlins)
Artcicle from Inside Housing 27 August 2014 http://www.insidehousing.co.uk/home/blogs/put-bad-practice-behind-you/7005264.article
The ILA are looking for a ‘secretary’ to take minutes and distribute them regularly to all the directors and asks for a volunteer to undertake this essential part of the work, to assist with the smooth running of the organisation. If you are interested please log into http://www.ila.org.uk/faqs/contact-form.
If you wish to join or renew your membership please contact our websitewww.ila.org.ukwhere you can obtain the appropriate membership forms.
Please impress upon any other leaseholders that it is in their interest to attend these meetings regularly…
 Dr Potter has asked me to forward this link…. onto you all to view as a point of information. Whistle-blower Mr Strong v Morrison’s & Mears.
First-tier Tribunal(Property Chamber) presentation on the replacement to the Lands Valuation Tribunal ( LVT ) from ILA meeting on Wednesday 12th June 2013 by Nicholas Kissen from LEASE. ( requires Powerpoint to view).
Guest Speakers: Mr Nicolas Kisson (Chief Litigation Solicitor) and Mr Tom Frith (Solicitor) from ‘LEASE’ organisation, who will be giving a PowerPoint presentation on the NEW form, and procedures of the recently up dated LVT process.
Face Book http://on.fb.me/mWzios
ILA – volunteers wanted
The ILA is looking for a ‘secretary’ to take minutes and distribute them regularly to all the directors and asks for a volunteer to undertake this essential part of the work, to assist the smooth running of the organisation. If your interested please log ontohttp://www.ila.org.uk/faqs/contact-form/
ILA – volunteers wanted
The ILA is looking for a ‘secretary’ to take minutes and distribute them regularly to all the directors and asks for a volunteer to undertake this essential part of the work, to assist the smooth running of the organisation. If your interested please contact us here.
If you wish to join or renew your membership please contact our website where you can obtain the appropriate membership forms here .
Please impress upon any other leaseholders that it is in their interest to attend these meetings regularly…….
New research suggests some social landlords are perceived to be silencing tenants’ groups they disagree with, leaving residents feeling marginalised and disempowered. Martin Hilditch of Inside Housing investigates more
In a landmark case that will undoubtedly be a gamechanger for the property management industry, the Upper Tribunal has decided that managing agents must consider the financial impact of major works on lessees and whether to phase works so they become more affordable. More