Large scale maintenance and major projects
At James Gibb, we are often required to ‘advance invoice’ for large scale maintenance and major projects. Major projects, also known as proposed works, are defined as significant works, the costs for which exceed our normal limit of delegated authority.’
Such projects include:
- Anything out with the core services identified.
- Communal painting scheme.
- Full gutter replacement.
- New carpeting in communal areas.
- Garden re-design.
Major projects can result from:
- Requirement of your Deed of Conditions. For example, some deeds stipulate the period in which communal painting is due.
- Professional inspection, such as a Roof Condition Report.
- Recommendation by the Development Manager.
- 24 hours emergency repair.
- Request from the Homeowners’ Association or decision of homeowners, in accordance with the Deed of Conditions and/or relevant legislation.
In some cases, due to the complexity of a particular project, we will stipulate, or homeowners may request, an independent Project Manager and/or other professional services be engaged. All costs incurred by such engagements will be charged back to the homeowners. In addition, we may apply a project administration fee for our services. Any such fee will be notified to homeowners in advance.
Where professional services have been agreed, together with James Gibb, a project specification will be prepared and we will seek up to three contractor quotations. Homeowners or the representative committee will then decide whether or not they wish to proceed. Without the appropriate majority approval and/or the percentage if stated in the Deed of Conditions, or if undefined a simple majority, major projects cannot proceed unless significant and immediate health and safety issues prevail.
Once a project has been approved by the homeowners or as a requirement of the Deed of Conditions, and a contractor quotation has been selected, sufficient funding must be in place prior to the commencement of the project. This ensures the ability to settle the contractor invoice. The costs involved in major works are such that the financial resources within the development fund would normally be insufficient to cover the costs under our normal invoice process. There are two ways the funds can be generated.
Ingathering of funds
Ingathering of funds may be required, whereby James Gibb will calculate the individual project cost per homeowner and issue a Proposed Works Invoice to each homeowner. Only when sufficient funds have been ingathered will the contractor be given permission to commence works.
James Gibb will determine what percentage of funds will be required to start the process. This will depend on the overall cost of the works, the financial health of the development and problems with income recovery. It is possible that agreed works may not go ahead if insufficient funds are ingathered. In such cases, funds received will be returned to the homeowners. In some cases, we may be able to commence works and pursue any outstanding funds through our debt recovery process.
Sinking fund in place
Alternatively, ingathering of funds may not be required where there is an appropriate sinking fund in place. Should there be sufficient funds available to cover the cost of the project, a combination of sinking and ingathered funds may be preferred or required.
Should there be a decision of homeowners, in accordance with the Deed of Conditions and/or relevant legislation that they wish the sinking fund to be used for a particular project, individual invoices will not normally be generated.
Benefits of regular maintenance
It is important that your development is maintained to an acceptable level. Not only does this improve the daily visual benefits of a well maintained, and clean environment, it also helps maintain and/or improve the value of your property. For these reasons, ongoing maintenance improvements are essential.
Grants and subsidies may be available
In some geographic areas, grants and subsidies may be available from local councils and heritage trusts. In such cases, James Gibb and other professional services may liaise with the relevant organisations to ensure the homeowners benefit from whatever assistance may be available. In addition, we may apply a project administration fee for our services. Any such fee will be notified to homeowners in advance.
Planned Preventative Maintenance
Should the James Gibb agreement include a programme of planned preventative or cyclical maintenance, arrangements for this including timescales, scope of works etc., will be drawn up between James Gibb and the Homeowners’ Association or Committee. It is good practice for periodic property visits to be undertaken by suitably qualified contractors. Also, a planned programme of cyclical maintenance can be drawn up to ensure that the property is maintained appropriately. When this service is agreed with homeowners, James Gibb will ensure that contractors with appropriate expertise are involved in the programme of works.
If requested by homeowners, we can also arrange to have suitable professionals carry out a building audit. which may include a fire safety audit for internal or external fabric.
If you would like further information on this topic, please do not hesitate to contact your Development Manager to learn more about the process.
James Gibb doing it the right way