Billing Major Works Service Charges

Transcription

1 Billing Majr Wrks Service Charges Carla Blair Capital Wrks Service Charge Cnstructin Manager Lndn Brugh f Suthwark

2 Lndn Brugh f Suthwark v Dirk Andrea Welke Lands Tribunal - LRX/6/2012 Dispute n reasnableness and n failure t prvide final accunt FTT raised issue f cmpliance with the lease regarding billing. Lands Tribunal cnfirmed their view Lease des nt allw us t charge fr majr wrks in the way that we were Our leases and charging regime similar t many ther authrities

3 Suthwark Lease Estimate Befre the cmmencement f each year (except the year in which this lease is granted) the Landlrd shall make a reasnable estimate f the amunt which will be payable by the Tenant by way f Service Charge (as hereinafter defined) in that year and shall ntify the Tenant f that estimate (2) The Tenant shall pay t the Landlrd in advance n accunt f Service Charge the amunt f such estimate by equal payments n 1st April 1st July 1st Octber and 1st January in each year (hereinafter referred t as `the payment days')

4 Suthwark Lease - Actual As sn as practicable after the end f each year the Landlrd shall ascertain the Service Charge payable fr that year and shall ntify the Tenant f the amunt theref Such ntice shall cntain r be accmpanied by a summary f the csts incurred by the Landlrd f the kinds referred t in paragraph 7 f this Schedule and state the balance (if any) due under paragraph 5 f this Schedule

5 Lands Tribunal Decisin Invices served fr majr wrks were nt ntificatins in accrdance with the lease Lease requires ntificatins f estimated and actual expenditure n an annual basis Leasehlder nt liable fr payment until crrect ntificatins served

6 Valid Ntificatin Ntify the amunt payable fr the relevant year Cntain a summary f the csts State the balance due Summary t include an explanatin f the apprtinment f csts Date and relevant financial year

7 Implicatins f an Invalid Ntificatin Charge is recverable n service f a valid ntificatin f the estimate Or service f a valid ntificatin f the final accunt adjustment Must state the revised ttal cst fr the year Time is nt f the essence

8 Revised ntificatins Ntificatins can be revised where there are errrs r missins Can, and shuld, be revised in the curse f a year where additinal csts are identified Desn t need t be in a single dcument Revised ntificatins d nt need t repeat all detail as lng as it infrms f when the detail was given But must included the revised ttal sum fr each year Alternative arrangements can be made with the agreement f the leasehlder

9 LBS Revised Ntificatins Served ntificatins n all majr wrks cntracts utstanding Identifying majr wrks prprtin fr each year Identifying revenue charge fr that year Giving the ttal due fr the year Recverable at final accunt where leasehlder paying accrding t the lease

10 LBS Ntificatins Ntify annually f bth capital and revenue expenditure befre the start f the financial year If capital expenditure unknwn at the time f invicing then revised ntificatins t be sent when sectin 20 carried ut Payments due n next quarter date Ntificatins shw anticipated expenditure per financial year fr majr wrks with equivalent service charge Single majr wrks invice t allw fr payment ptins

11 Billing Leasehlders ffered the ptin f paying in accrdance with the lease r accepting mre generus payment ptins and agreeing t ntificatin utside f the lease Actual ntificatins dealt with n an exceptins basis Actual ntificatins based n csts incurred within each financial year based n payment certificates Single accunt adjustment Sectin 20b ntices served annually in rder t prtect the service charge

12 Summary Suthwark lease requires ntificatin t trigger payment nt invice If the ntificatin is crrect the invice is irrelevant t the lease The vast majrity f leasehlders wuld prefer t be billed utside f the lease if that allws fr mre flexible payment ptins than required by the lease Subletting leasehlders may prefer t pay in accrdance with the lease as they are nt eligible fr all f the alternative payment ptins Welke decisin must be viewed in relatin t the individual lease