Section 20 guidance

Intention to charge for major works.

We will consult with all leaseholders in the building if:

  • proposed major works will cost a leaseholder more than £250 per home
  • new service contracts (lasting more than 12 months) will cost a leaseholder more than £100 per year

Consulting on major works needing estimates

Stage 1 - notice of intention

If we need to choose a contractor by asking different firms to return estimates of their costs, leaseholders must first be sent a notice of intention.

The notice will describe the proposed works and why they are needed. 30 days will be given for written comments such as suggesting an alternative contractor.

We will review any comments and get estimates from 1 or 2 contractors suggested by leaseholders.

Stage 2 - notice of estimates

A second written notice called a Section 20 notice will then be sent setting out the estimated costs from at least 2 of the estimates obtained. The notice will include a summary of comments received and our responses to them.

All estimates will be available for inspection.

Leaseholders will be invited to send in their written observations on the estimates within 30 days. We are required to carefully consider all written comments and provide a response.

Stage 3 - notice of reasons

We will then award the contract. Within 21 days we will write to leaseholders again with details of who will be doing the work and why they have been selected. We also respond to any comments that have been received.

We will not write again if the chosen contractor has been suggested by a leaseholder or has sent in the lowest estimate.

Consulting on long term agreements

Stage 1 – notice of intention

If we need to enter into a long term agreement (more than 12 months) with a contractor to provide works or services and the cost is more than £100 per year to a leaseholder, a notice of intention will be sent.

The notice will describe the works or services to be provided or say where a description of them may be looked at. It will also give reasons why the agreement is needed. 30 days will be given to leaseholders for their written comments such as suggesting an alternative contractor.

We will review any comments and get estimates from 1 or 2 contractors suggested by leaseholders.

Stage 2 – notice of proposals

We will then write to each leaseholder with details of the proposals to take place. Each leaseholder will be asked to give their written comments within 30 days. We are required to carefully consider all written comments.

Stage 3 – notice of the award of contract

We will then award the contract. Within 21 days we will write to leaseholders again with details of who will be doing the work and why they have been selected. We also respond to any comments that have been received.

We will not write again if the chosen contractor has been suggested by a leaseholder or has sent in the lowest estimate.

Consultations on works under long term agreements

If we need to carry out works under an existing long term agreement we have entered into with a contractor you must be consulted in a different way. Competitive tendering is not necessary because the agreement for the contractor to carry out the work is already in place.

A long term agreement is a contract lasting more than 12 months where a contractor has signed up to carry out for instance all the council repairs and maintenance work.

Notice of intention

If the cost of the work is to be more than £250 to any leaseholder in our building, all leaseholders must be sent a notice of intention.

The notice will describe the works or says where a description of them may be looked at. It will detail why the works are needed and give an estimate of the total costs.

30 days will be given to each leaseholder for their written comments. We are required to carefully consider all written comments.

Response to observations

If we receive any observations by the due date, we must send a written response direct to the relevant person within 21 days.

Selecting contractors

Local authorities are subject to a number of rules when selecting contractors. Contractors must be on an approved list of contractors or qualify for a place on such a list.

Further information

The section 20 process is governed by the terms of the lease, the law and regulations under the Landlord and Tenant Act 1985. This guidance is to help you understand the rights and responsibilities of both the leaseholder and us as your leasehold manager.

If you are in any doubt about your rights or duties you should seek independent advice. You can find free advice and independent information through The Leasehold Advisory Service.

In the first instance you may wish to contact our leasehold team by emailing leasehold@arun.gov.uk or by phoning 01903 737979.