Page 24 - Project Acanthus_Mainstay

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Mainstay: Response to Tender | Project Acanthus - Part Two
23. Comment on your approach to providing specialist service charge support and experience in managing FTT and mitigation of subsequent claims.
Mainstay is a member of the Association of Residential Managing Agents (ARMA), is approved under the ARMA Standards membership, and subscribes to The Property Ombudsman for dispute resolution. All accounting practices follow the RICS Service Charge Residential Management Code. Where our involvement begins at planning stage, we have experience of providing specialist advice on issues that may affect future management and service charges, for example service charge configuration, M&E specifications, estate management strategies, and security measures. Mainstay has experience in managing the full range of financial structures: for sites with single schedule accounting to those with complex multi-section accounting schedules, and assessing splits with the static and variable re-charge disciplines.
We use our Quality Assurance systems to ensure there are detailed processes in place for the delivery of all financial activities. These processes comply with the Institute of Chartered Accountants in England and Wales (ICAEW) Tech 03/11 Guidance on accounting and reporting in relation to service charge accounts for residential properties, on which variable service charges are paid in accordance with a lease or tenancy agreement. This helps mitigate claims by ensuring that service charge expenditure and payment requests are compliant, issued in accordance with lease terms, at the right time, and with correct apportionments.
Communication and transparency are key. We meet regularly throughout the year with our customers through group and individual meetings to ensure that questions can be addressed.
We provide breakdowns of service charge payment requests with easy to understand budgets and accounts, accompanied by comprehensive notes explaining the rationale behind budget lines. We are also clear about what is and what is not covered by our management fee from the outset and provide guidance to leaseholders on what areas of responsibility fall to the management company, freeholder and leaseholder.
Other management activities are covered by clear processes contained within our standard operating procedures, i.e. consultation on major works, dealing with lease breaches, contractor tenders, record keeping, etc. All of which are designed to ensure that these activities are undertaken
with transparency and are compliant and reasonable, thereby mitigating the likelihood of disputes.
The Property Manager consults with their Associate Director to establish the operating framework, which will include:
» Site visits, inspections and reporting
» Repair and services monitored and assessed
against SLA/KPIs
» Keeping both assets and people safe
» Budget control and reporting frequency
» Arrears (debtors) management and reporting
» Critical areas of concern that will need special attention
» Identification of cost savings and a continuous methodology for review
» Development of specific targets to meet established service levels
Where a dispute is raised, we aim to resolve using our complaints procedure. This is a staged process, which progresses through the management structure and is approved by ARMA-Q in accordance with their Consumer Charter and Standards. It is also the approved redress mechanism of The Royal Institution of Chartered Surveyors (RICS) of which we are a member. The key to dealing with potential or actual complaints is to be receptive, personal and proactive; an approach we aspire to in all our interactions.
Our support services function has experience in managing
First Tier Tribunal claims to an effective conclusion for all stakeholders. The mitigation of claims and open/transparent dispute resolution is part of our overarching approach to effective customer service, and tribunal claims are the last resort in our management approach. For the relatively few instances where a First Tier Tribunal application is made, we objectively review again the issues/circumstances and discuss the issues at a senior level. We then provide objective, considered responses to any court directions. We try to work to a resolution with
the applicant where the claim is relatively minor, and typically defend the majority of actions directly ourselves without
the need for involvement by a solicitor, given our positive experience and track record in this field.
Although some clients refer any tribunal claim to solicitors to respond, it is only in extreme circumstances we would normally consider such an approach. We would ordinarily deal with issues in-house as far as practicable. We have a panel of experienced legal professionals who we call on to assist us and have a solid track record and experience in managing tribunal claims.