Section 20 consultation

We are  required by law (Section 20 of the Landlord & Tenant Act 1985) to carry out formal consultation in two situations:

1. Works: When we are carrying out maintenance, repairs, replacement, or renewal works that will cost more than £250 per property.
2. Agreements: When we are entering into a long-term agreement (contract that lasts for more than one year) with a company to carry out works or services that will cost more than £100 per property per year.

Works can include anything that we are responsible for, from decorating communal areas to renewing communal electrics to replacing the entire roof on a block of flats. Consultation will be triggered if the cost is estimated to be £250 per property or more.

So, if we are replacing communal area flooring and the cost is £3000 and there are 10 properties to pay towards it, this would be £300 per property and consultation would be required. If there were 15 properties to pay towards it, this would be £200 per property and consultation would not be required.

Agreements can be for anything that Paradigm provides a service for to make sure communal areas are maintained and safe, from communal cleaning to lift servicing to pest control. Consultation will be triggered if the cost per property is estimated to be £100 per property per year or more and the contract will last for more than one year.

So, if Paradigm wants to put a contract in place for gardening services which will cost a block of flats £1500 per annum and there are 10 properties to pay towards it, this would be £150 per property and consultation would be required. If the cost was £900 per annum this would be £90 per property and consultation would not be required.

The first letter you will be sent is called a ’notice of intention’. This will tell you about the work we intend to carry out or the agreement we need to enter into. You have 30 days to tell us your views or ask questions (submit observations) and sometimes you’ll be able to nominate your own contractor for the works or services (this is only when it is not advertised publicly).

The second letter you will be sent is called a ‘notice of proposals including a landlord’s estimate’. This letter will tell you the estimated cost to you for the works or services. It will tell you who Paradigm proposes to do the works or give the contract to. It will also tell you about the ‘observations’ that we received during stage one. As with stage one, you will have 30 days to tell us your views or ask questions.

If Paradigm does not choose the lowest quote/tender or if we do not choose a contractor nominated by a customer, then we will send a third letter. This letter is called the ‘award of contract notice’. This letter lets you know who we have agreed to carry out the works or contract with.

Paradigm will sometimes send a third letter, which is not required under the consultation requirements, where we feel it is best practice to let customers know about a particular contract or works.

There are some other instances where further letters are required. For example, when we are carrying out works using a long-term agreement.

The consultation process is designed to keep customers informed about the works and services that Paradigm is doing. It allows for customers to take part, but you don’t have to.

You have the chance to let us know your views or ask questions for 30 days during stage one and stage two. This is called ‘submitting an observation’.

When we receive an observation, we must consider the views or comments and answer any questions that we are asked.

For some contracts or works you can also nominate a tradesperson or company that you would like Paradigm to ask for a quote or tender. This does not apply when the works or contract reach a certain value where the law requires them to be advertised publicly. We will let you know in the stage one letter whether you can nominate a contractor or not.

Where the works or contract need to be advertised publicly, they will be advertised using the Government ‘Find a Tender Service’ that anyone can use.

When the consultation process has finished, we can proceed with the works or award the contract.

You can still talk to us about the works or services, but you cannot suggest different works or contractors.

Where Paradigm has completed major works, you may receive a separate service charge bill or information that money has been taken from a sinking fund to pay for the works.

If you have any questions about the Section 20 Consultation, you can email a member of the Homeownership team on HomeownershipTeam@ParadigmHousing.co.uk.