WRITTEN STATEMENT OF SERVICES AND SERVICE LEVEL UNDERTAKING TO THE OWNERS OF THE ELEMENT

March 2018 The Element Factors Limited SC495190 Property Factors Registration Number: PF000590 2 Western Harbour Midway Edinburgh EH6 6PN Website: www.theelementfactors.co.uk WRITTEN STATEMENT OF SERVICES AND SERVICE LEVEL UNDERTAKING TO THE OWNERS OF THE ELEMENT TABLE OF CONTENTS CONTENTS PAGE NUMBER 1. INTRODUCTION 2 2. PERIOD 2 3. OWNERS OBJECTIVE 2 4. AUTHORITY TO ACT 3 5. CORE SERVICES TO BE PROVIDED OR ARRANGED BY US AS FACTORS 3 6. MAINTENANCE AND RESPONSE ARRANGEMENTS 4 7. FINANCIAL AND CHARGING ARRANGEMENTS 5 8. INSURANCE 7 9. COMMUNICATION ARRANGEMENTS 7 10. TENOA (OWNERS ASSOCIATION) 7 11. ENFORCEMENT OF DEVELOPMENT RULES IN THE DEED OF CONDITIONS 7 12. ATTACHMENTS A: SERVICE LEVEL UNDERTAKING & PERFORMANCE INDICATORS SCHEDULE 8 B: SERVICE LEVEL AGREEMENT, SIGNATURES BY TEF AND TENOA 9

1. INTRODUTION This document sets out the terms and delivery standards of the arrangement and undertaking between The Element Factors and each owner in the managed developments. We undertake to each owner of the properties to observe the Property Factors (Scotland) Act 2011, and the Code of Conduct for Property Factors and to provide services as Factor in respect of the Development in terms of the applicable Deed of Conditions. We shall provide this document to all owners in our management developments and to any new owner within 4 weeks of being informed of any change in ownership and on being requested by any owner to do so. This document will also be available on our website. No Conflict of interest Statement The Directors of Ocean Serviced Apartments Limited are also Directors of The Element Factors Limited. Ocean Serviced Apartments operates Serviced Apartments in block 4 Western Harbour Midway and 1 Western Harbour View. Ocean Serviced Apartments does not own the properties. Ocean Serviced Apartments pays ALL factor fees for the Apartments it leases. There is no conflict of interest. 2. PERIOD: Our appointment as factor commenced on 15 th July 2015 and shall continue until terminated by either ourselves or by the owners in terms of the Deed of Conditions. Either we or the owner s association may terminate this contract by giving a minimum of 3 months notice prior to the anniversary date; 15 th of April. Any notice of termination given by either us or the owners association will take effect on a transfer date at which our appointment will come to an end. The transfer date must be fixed so as to allow an orderly transfer of the appointment of factor to a new factor without causing arrears of service charge or owners floats to be written off. 3. OWNERS OBJECTIVES: We agree with the objectives of the owners: 3.1 Improvement in the condition of the building to contribute to increasing the value of each flat. 3.2 Obtaining good value for the service charge. 3.3 Working towards a spirit of mutual support amongst residents to help to make it a better place to live. 3.4 Taking into account the interests of non-resident landlords and their tenants. 3.5 Prompt collection of service charges. 3.6 Prompt and adequate maintenance and repair. 3.7 Keeping the premises clean and tidy. 3.8 Adequate monitoring of contractors. 3.9 Provision of all necessary information to owners, and tenants where appropriate. 3.10 Provision of transparent and understandable accounts and reserving funds for major items of expenditure. 3.11 Providing a means for resolving the enforcement of the conditions of ownership in the title deeds. The Element Factors, Service Level Agreement 2

4. AUTHORITY TO ACT. 4.1 Our authority to act, with prior consent from the TENOA committee, includes the management of: Routine maintenance contractors On-going repair works Emergency repairs Utilities and utility bills Project work Block Insurance (where applicable) 4.2 For non-emergency repairs, the ultimate decision to authorise any work up to the value of 5000 (excluding vat) per property will be made by the factor. Any works that are likely to exceed this cost will require the approval of the TENOA. 4.3 If an emergency repair is required, TENOA committee will authorise repairs, whatever the value, and advise the Homeowners Association of the costs, when known. 4.4 The decision to treat a repair as an emergency will be made by TENOA committee based on the hazards present. 4.5 The Element Factors will only use approved and authorised contractors for any repair work and will always endeavour to obtain the best possible value for its customers. Multiple quotations will be arranged, where appropriate. 5. CORE SERVICES TO BE PROVIDED OR ARRANGED BY US AS FACTORS: 5.1 PERFORMANCE SCHEDULES AND RESPONSE TIMES: As set out in the attached Schedule. 5.2 COMMUNAL SERVICES The Element Factors will provide an extensive range of services for the communal areas in The Element. The services provided cover the maintenance, management and repair of the following communal areas: Gardens, lawns, planting, trees, flowerbeds, borders and ornamental features. Parking areas, common garages, cycle racks and stores, bin stores Boundary walls, fences and hedges. Lifts. Gutters, downpipes, drains and sewers. Mains water supplies. Roofs and tiles. Common area balconies and common area windows, doors, soffits and fascias. External fabric of the buildings. Common internal areas including entrance halls, corridors and stairs. Common lighting (internal and external) Security systems such as entry phones and videos, electric garage doors, entry barriers, bollards, fire alarms, firefighting equipment, smoke detectors, stairwell vents and emergency lighting. Common TV aerials and telecoms networks. Asbestos management. 5.3 HOMEOWNERS SERVICES NOT INCLUDED Private areas are those that belong to the homeowners individual properties and are not included in our services. These include: All areas inside the home. Entry phone systems inside the home Private balconies Main doors Private windows and surrounds, mastic etc. Overflows Private vents and flues Private water / gas pipes etc. from the point of exit from communal supplies. The Element Factors, Service Level Agreement 3

Private exterior land, refer to individual property title deeds. It is the homeowners responsibility to ensure these areas are maintained in good order, particularly those which are visually accessible to the development? 6. MAINTENANCE AND RESPONSE ARRANGEMENTS 6.1 ROUTINE MAINTENANCE Gardening services will be provided on a fortnightly basis between the months of April and October. Winter clean ups will be provided monthly between the months of November and March. Snow clearance and grit spread will be provided during winter months when needed. Cleaning services will be provided on a daily & weekly basis throughout the year (refer to weekly schedule) General maintenance will be provided on daily basis between Monday and Friday each week. Statutory inspections of lifts, emergency lighting, firefighting equipment etc will be arranged by The Element Factors, with consent from TENOA committee in accordance with the individual requirements. 6.2 ROUTINE REPAIRS INTERNAL Requests for routine repairs can be made via contact us form on our website. External contractors will be used and we will be bound by their timescales. 6.3 EMERGENCY REPAIRS For emergency repairs, please refer to our website. We have a dedicated Emergency repairs page on our site. Please note that, if an emergency repair is required within a private area of the home, the invoice must be settled directly by the homeowner. Communal emergency repairs will be charged at the normal apportionments to all relevant homeowners. 6.4 RESPONSE TIMES 6.4.1 ROUTINE REPAIRS: An acknowledgement of a request for a routine repair will be made within 2 working days of the request. The Element Factors will arrange for the works to be instructed within seven days of the request. If, for any reason, instruction cannot be made within this time period, the homeowner or TENOA committee will be notified. If the repair cost is considered to be in excess of 250, The Element Factors will provide quotations, for the repair, to TENOA committee, for their consideration, within fourteen working days of the request. 6.4.2 EMERGENCY REPAIRS: The Element Factors Ltd will endeavour to ensure emergency repairs are performed within twenty-four hours of notification, sooner if the situation demands a quicker response and if contractors are available. In some cases, it may only be possible to make safe a hazardous situation within this time scale depending on the nature of the emergency. 6.4.3 ALTERATIONS / ENHANCEMENTS: Any alterations or enhancements to a development or block should have the approval of the TENOA committee after a request is made to The Element Factors Ltd. This would include, but not be limited to: Tree removal Lighting sensors No parking signs etc. Once approved and requested, the response times for normal repairs will apply. 6.4.4 MAJOR PROJECTS, PAINTING SCHEMES ETC. These will be planned between The Element Factors Ltd and the homeowners, normally at an AGM, in line with the requirements of the Deed of Conditions or constitution. 6.5 PROPERTY INSPECTIONS The Element Factors, Service Level Agreement 4

Routine property inspections will be made by the Element Factors on a weekly basis. Due to the onsite office, the property manager will be able to react immediately to any issues and monitor on-going problems, repairs, major projects etc. If the TENOA committee requires a formal thorough inspection of the development, for the purposes of preventative maintenance etc, this will be performed by the property manager on an annual basis. Other professional services may be required at such inspections, for example structural surveyors or roofing experts. The costs for such external services in excess of 5000 would be provided and agreed with the TENOA committee, prior to any visit. 6.6 EMERGENCIES: Emergency call outs for fire alarm related issues are handled by G4S. The service level agreement can be viewed at the office of The Element Factors Ltd. If the emergency requires a member of The Element Factors Team to be present onsite with any contractor, the fees for the out off hours emergency will be mirrored to that of the contractor. *The emergency mobile number for a member of the Element Factors Team is 07377 944958* 7. FINANCIAL AND CHARGING ARRANGEMENTS 7.1 MANAGEMENT FEES The fee is determined by the scope of services provided and the size of the development and may change if the scope is altered. The fee may be reviewed on an annual basis with the agreement of the committee of the Association, TENOA. Please refer to the Fee Note. 7.2 APPORTIONMENT OF COSTS In addition to the management fees, all costs incurred in the on-going common works and services provided by The Element Factors Ltd in the maintenance of the development will be shared between homeowners. These include: Routine maintenance (e.g. gardening and cleaning) On-going repairs and maintenance costs. Utility Bills Block Insurance and Lift Insurance / Inspections Project work The split (or apportionment) of costs is normally determined by the Deed of Conditions. If there is no provision in the Deed of Conditions for some costs, the apportionments will be agreed between The Element Factors LTD and the TENOA committee. 7.3 COMMON CHARGES (FACTORS FEES, GREEN FUND) These are charges for proper and reasonable expenses incurred from time to time in respect of the cleaning, repair, maintenance and renewal of the Flat Common Parts to ensure that each are upheld and maintained in a neat and tidy condition and in good order and repair. Payment of the common charges is monthly. All sums not paid shall be subjected to the debt recovery procedure, please refer to our website for the Debt Recovery Procedure. Also refer to the Deed of Conditions 7.4 REPAIRS & CAPITAL FUNDS (RED FUND) In order to financially plan for major projects, please refer to current critical risk survey. Repair & Capital fund contributions are agreed with the TENOA committee and are charged to the homeowner as required. The Element Factors, Service Level Agreement 5

An annual statement of the funds held in the development s Repairs & Capital fund account will be exhibited at the Annual General Meeting. If a homeowner sells the property, the amount paid into the Repairs & Capital Fund is not returned. It should, however, be detailed as an asset in the sale of the property. Where no Repairs & Capital Fund exists or a major project requires significant funds, beyond the level available in existing development accounts, payments for such projects must be made, in advance of commencement of works, to The Element Factors Ltd. No works will be authorised until all funds are received in order to pay the contractor within fourteen days of receipt of invoices. 7.5 PAYMENT OF SERVICE CHARGE: Prompt payment of service charges is essential if we are to be able to act as effective Factors. We encourage owners to pay the service charge within one month of the payment being demanded. Those who decide to pay quarterly invoices must do so within 21 days from date of invoice. If payment is late we will add the interest and other charges set out in the Deed of Conditions. We will also charge 25 per letter which we need to write to the owner or others as a result of the late payment. Withholding of service charge is not accepted without our written agreement. 7.6 CLIENT BANK ACCOUNT The Element Factors has a specific Client Bank Account into which all floats and homeowners payments are made and from which all contractors invoices etc are paid. 7.7 DEBT RECOVERY A debt recovery process and related procedure are stringently applied to ensure that all means possible are employed to recover debt from late and defaulting payers. After the expiry of the 21-day period allowed for payment, we will write one letter (final reminder) to the owner requiring payment to be made. In the absence of satisfactory resolution, we will pass the recovery process to our lawyer who may register a Notice of Potential Liability for Costs against the owner s title to the property concerned. All legal fees will be recoverable from the owner. If an owner is in difficulty with making payment we ask the owner to discuss payment options with us. Independent advice can be obtained from Debt Advice Scotland: www.dacscotland.co.uk. If all available means to recover the debt have been exhausted without success, the outstanding amount will be distributed, as a cost, between the remaining homeowners in the development. This is in line with the Deed of Conditions. We will issue a debtor s list to owners from time to time. Owners have a direct financial interest in failure to pay service charges and the damaging effect it has on the development. All sums not paid shall be subjected to the debt recovery procedure, please refer to our website for the Debt Recovery Procedure. Also refer to the Deed of Conditions 7.8 CONTRACTORS INVOICES AND PAYMENTS The Element Factors LTD settles all contractors invoices within fourteen days of receipt (assuming there are no disputes). The Element Factors, Service Level Agreement 6

8. INSURANCE 8.1 BUILDING INSURANCE: The cost of building insurance is included in the common charges (factors fees). The Element Factors Ltd earn no commission on these fees. TENOA committee will help The Element Factors Ltd to secure the most comprehensive and cost-effective insurance to meet the development s needs. Contents insurance is the responsibility of each owner. 8.2 LIFT INSURANCE INSPECTION. The lift inspections are currently done twice a year. These inspections are instructed by our current insurer and are totally independent of our lift contract. If works are required that are over and above our annual contract (in place with Orona) these are covered by our full repairs and maintenance contract we have with them on behalf of the development. 8.3 INSURANCE CLAIM PROCEDURE Please refer to our website for the Insurance Claim Procedure. 9. COMMUNICATION ARRANGEMENTS 9.1 GENERAL COMMUNICATIONS. Good communications between the factor and homeowner are the key to a successful relationship. For general enquiries, email is the best form of communication. Should email not be suitable or available, homeowners can communicate by phone. For general requests, The Element Factors Ltd staff will acknowledge receipt of a communication within two working days of receipt. 9.2 COMPLAINTS The Element Factors operates a formal complaint handling procedure a copy of which can be found on our website. Complaints about our service should be made to us in writing and we will be acknowledged within 48 hours and answered within 1-7 days. If we cannot resolve a complaint it will be reported to the Association committee. If the complaint is not resolved within a further 28 days, owners may refer it to the Homeowners Housing Panel. 9.3 QUESTIONS AND DISPUTES ABOUT SERVICE CHARGES: Please contact us to resolve an issue. In the interest of funding the management of the Development for all owners, no dispute allows an owner to withhold payment of service charges without our agreement. If the dispute cannot be resolved with us, the complaints procedure is available. 10. TENOA ASSOCIATION: To allow us to operate effectively as Factors we shall collaborate with the Association upon which we rely to assist us in performing our duties in a way which the owners require. 11. ENFORCEMENT OF DEVELOPMENT RULES IN THE DEED OF CONDITIONS: In consultation with the Association Committee, we shall manage the observance and enforcement of the title conditions in the Deed of Conditions and any additional regulations which may apply. Issues should if possible be resolved between the parties directly concerned. Failing that we should be informed and will seek a resolution. If we are unable to find a solution we will refer the matter to the Association committee which will then have the opportunity to intervene and if necessary arrange enforcement action in terms of the Deed of Conditions. Anti-social behaviour should be reported directly to the Edinburgh City Council. Criminal activity should be reported directly to the police. In both cases we should be kept informed. The Element Factors, Service Level Agreement 7

12. ATTACHMENTS A. SERVICE LEVEL UNDERTAKING & PERFORMANCE INDICATORS SCHEDULE Service Level Item In PF Code of Conduct? The Element Service Level Undertaking Core Services 6.4.1. Routine repair requests (instruct contractor) Yes Refer Contractors Timescale 6.4.2 Emergency requests Yes Within 24 hours 6.5 Property Inspection frequency Yes Weekly 6.4.4 Works extra to core services (menu/fee) Yes Factor to provide information as necessary Communication 9.2 Enquiries & complaints Yes 1-7 working days Insurance 8. Disclose commission/fee/rebate etc Yes N/A no commission will be claimed 2. Submit claims/ensure prompt action Yes 3. Inform claimant of progress Yes Repairs & Maintenance 6.1 Procedure to notify repairs & maintenance requests Yes On claim submission and monthly thereafter Annually unless otherwise advised by broker As in Written Statement of Services 6.3 Emergencies (notify contractor/do) Yes Do in 24 hours 6.2 Refer routine matters to contractor Yes Instruct contractor within 48 hours 6. Inform owners of progress incl. timescales Yes Monthly/or as agreed 5.2 Routine cleaning & planned maintenance schedule Yes As in Written Statement of Services 6.5 Periodic property inspection programme Yes By Request 7. Disclose prices or fee etc from contractor Yes On Request 7.9. Pursue contractor to remedy failings Yes Factor to provide information Security 5.2 Entry point locks etc to the Development to be checked weekly - Access security faults to be treated as emergency repairs 5.2 Intercom system (voice & remote door opening) to be operational - Refer Contractors Timescale End of Statement of Services. The Element Factors, Service Level Agreement 8