Housing Maintenance, Repairs and Improvements - Level 3

Question 1

What are the key principles of RICS Service Charge Resi Management Code 3rd Ed?

Answer 1

Code of Practice - Best Practice

1. Approved by the Secretary of State - effective from 1 June 2016
2. Improve standards, reasonableness and transparency in the management and administration of long leaseholder
3. Ensure the timely issue of all documentation inc. budgets and YE accounts
4. Reduce the risk of disputes

Question 2

What are the key principles of RICS Health and Safety for Resi Property Managements 1st Ed?

Answer 2

Guidance Note - Best practice - Advisory

Assists those who are responsible to ensure the property under their control meets statutory obligations.

Question 3

What are Landlord’s lease obligations?

Answer 3

1. Repair and maintenance
2. Insurance
3. Redecoration
4. YE accounts

Question 4

What does ‘fit for human habitation’ means?

Answer 4

Under the Housing Act 2004
Consider te following;
1. repairs 
2. damp 
3. ventilation 
4. drainage 
5. utilities

Question 5

How did you know the electrician was qualified?

Answer 5

1. Safe Contractor database

2. NICEIC qualified (National Inspection Council for Electrical Installation Contracting)

Question 6

What is an example of unsatisfactory EICR?

Answer 6

1. Lack of insulation
2. Incorrect wiring
3. Out of date fuse board

Question 7

What is a Capex Plan?

Answer 7

A financial forecast for major works at a property over a 5 to 10 year period.

Question 8

Why is it important to accumulate a reserve fund?

Answer 8

1. To ensure funds are held for unforeseeable large expenditure
2. Good estate management as allows leaseholders to manage finances
3. Normally cant demand additional funds

Question 9

What happens if a leaseholder applies to the FTT under Section 19 LTA 1985?

Answer 9

1. Apply to FTT to determine liability to pay and reasonableness of service charge
2. They will review the…..(ask jamie)

Question 10

What is the case of London Borough of Hounslow Vs Waaler 2017?

Answer 10

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Question 11

how do you montior the capex plan at the end of each year?

Answer 11

I update he bottom line of the capex plan at each year end and revise the year’s expenditure following yearsd opening balance.

Question 12

What is the process for carrying out works to the point of instruction?

Answer 12

1. Agree scope of works
2. Carry out a detailed survey
3. Produce a detailed specification
4. Invite competent contractors to return tender
5. Tender analysis

Question 13

Why is it important to carefully plan the specifcation?

Answer 13

If a specification is not clearly detailed then it leaves it open to interpretation by contractors, thus they will not be comparable.

1. Risk that if a specification lacks detail or clarity a project will not be completed to the required standard.
2. The client doesn’t want to spend money on fees so decrease the size of the project and end up spending more in the long run.
3. Don’t appoint an competent Building Surveyor or specialist.

Question 14

What are the benefits of a sufficiently detailed specification?

Answer 14

1. All unique characteristics of a building will be taken into account and therefore a realistic price obtained
2. All tenders will be comparable
3. There will be a provision for contingency planning

Question 15

Why competitively tender a major works project?

Answer 15

1. To achieve value for money
2. Assure most competent and appropriately skilled contractor is appointed
3. Reduces the risk of disputes and programme/budget run overs.
4. Required under section 20 to gather multiple quotes

Question 16

What should you do to ensure an adequate tender list?

Answer 16

1. Use the SafeContractor database
2. Collate 4-6 contractors (will vary depending on size of project)
3. CONSIDER; Scope of works, specialism/knowledge required, location of project, consultation with the client.

Question 17

What evidence should a contractor provide if they are unknown to the client?

Answer 17

1. Credit check information - e.g. Company accounts or the information for an external credit check (Dun and Bradstreet)
2. References from previous projects
3. Evidence of relevant insurance e.g. Public Liability Insurance

Question 18

What should happen if a contractor holds the relevant insurance, but not the appropriate level of cover for the project?

Answer 18

The contractor should provide agreement, in writing, that if they are appointed they will obtain the required level of insurance.

Question 19

What level of Public Liaiblity Insurance should a contractor have?

Answer 19

Depends on the works they carry out. But a minimum of £2million.

Question 20

What should a tender pack include?

Answer 20

1. Specification of work
2. Appropriate plans and maps
3. Health and safety information
4. Tendering instructions e.g. deadlines

Question 21

What is involved in the tender analysis stage?

Answer 21

A competent professional will review the returned tenders and make comparisons.

1. The consultant will have a reasonable idea of the market and use professional judgement.
2. The consultant will look for any obvious errors e.g. calculations.

Question 22

Could you please explain how you produced a planned maintenance programme for estate X? (ISRUV)

Answer 22

Otherwise known as a Capex plan. An professional building surveyor can produce a Capex plan.

1. Consider lease obligations
2. Look at major elements of the buildings that may require work over time e.g. windows
3. Consider building assets and the lifecycle e.g. lifts. Appoint an M&E consultant if necessary
4. Consider health and safety issues e.g. asbestos removal and upgrading water tanks
5. Continually review the costs and plan.

Question 23

Would you please explain how you consulted with the tenants, contractor and housing manager about the quality of the maintenance service and works in estates X, Y and Z?(ISURV)

Answer 23

1. Dwellant - invites leaseholders comments
2. AGM - invites leaseholders comments
3. Section 20 process - invites leaseholders comments
4. When on site inspections I introduce myself and listen to any concerns.

Question 24

Define repair

Answer 24

Rectifying of damage or deterioration in putting back into good condition something that had previously been in good condition.

Question 25

When are the costs of repairs recoverable?

Answer 25

When there was an element of disrepair

Question 26

Can landlord recover the cost of improvements?

Answer 26

No unless the lease expressly refers to improvements. The landlord will generally be unable to recover the cost of improvement under the definition of repair.

Question 27

What is the Mullaney Vs Maybourne Grange Management Co Ltd 1986 case?

Answer 27

A landlord replaced old wooden framed windows with double glazed windows, the cost was not recoverable because the windows were considered an improvement and not a repair.

Question 28

What are inherent defects?

Answer 28

Defects existing but not evident at the commencement of the lease. Result from defective design, workmanship or materials.

Question 29

Are the costs of inherent defects recoverable under the lease?

Answer 29

It depends on the wording of the repairing covenant and whether the remedial works involve the giving back to the ladnlord something differenet from what was demised.

Question 30

Is a tenant liable for the cost of replacement?

Answer 30

A tenant would not generally be liable for the cost of replacement in the absense of any defect or disrepair.

Question 31

Describe repair vs improvement

Answer 31

If something is replacement of something already there, which has become dilapidated or worn out then it falls into the category of repairs not improvements.

Question 32

What does Part 4 of LTA 1987 allow?

Answer 32

Allow variation in certain circumstances if the lease fails to make satisfactory provision;

1. repair and maintenance of a flat or building
2. repair and maintenance of installations or services
3. for the recovery of expenditure incurred
4. computation of the service charge.