Page 5 - Knowles Close Proposal

Reserve Funds and Asset Gathering
We are of the view that reserve funds should constitute between 20-30% of overall service charge income. We appreciate that there is a balance that needs to be struck between a ordability and necessity, and our asset gathering protocols and subsequent CAPEX strategies will form the basis of our ongoing proposition. A detailed set of proposals will be put to the Management Company on appointment of our strategy here, with clear reference to ongoing service charge budget implications.
Value for Money
As a priority, we propose to review existing maintenance and utility contracts, and conduct a benchmarking process against our national contract rates for similar schemes. By agreement, we would look to tender any contract through a robust process, and we will review all contracts on an annual basis, as contracts fall due for renewal. Our approach to CAPEX and Reserve Funds are detailed in section 5.5.
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Mainstay Management Proposal: Knowles Close, Horton Road (West Drayton) Management Company Limited