Page 103 - (A) Mammoth (998pp)

Wade supplied two quotes as you well know -
The first (2 July 2012) totalled £52,269 incl. vat or £66,378 incl. VAT depending on whether the various extras were to be included.
The second (23 Jan 2013) totalled £51,647.76 including VAT for a slightly reduced set of works and is the one you were referring to when we met on Monday.
The cheapest EXTERNALS Quote to date is £78,468. 80 incl Vat. Of course, Wade might come in cheaper.
So, if we were to adopt Wades's INTERNALS' second quote for £51,657.76 and our cheapest (to date) EXTERNALS quote of £78,468.80, it would total £130,126. 56 incl vat.
We have in Reserves (as per accounts YE2013) £82,700. Between 1 Jan 2014 and date of works, 1 September 2014, we will have added £8100 to Reserves making a total in hand for externals/internals budget of £90,800
If we spend £130,126 with only £90,800 in the bank, we must raise a further £39, 326.
As with any budget, a reasonable amount must also be included for emergency contingencies, such as works costing more due to hidden defects unearthed once scaffolding etc is erected for a closer inspection. There are also some contingencies needed to pay the Surveyor's Fees etc of approx 11% of total budgets approved etc.
As such we feel an additional £9000 would be appropriate to have in reserves for any unforeseen contingency, or indeed any works needed at Mitre House prior to the 1st September schedule commencing.
Consequently we have a deficit of reserves totalling £48, 326 (£39,326 + £9000).
If all 9 Lessees agreed, each Lessee would be required to pay £5369.55 prior to any contract agreement with any contractor/supplier for both Internals and Externals. And to be a firm commitment, those additional funds should be in Reserves from each Lessee by latest 1st July 2014. It would also be on the understanding that is non refundable under any circumstances including sale of property subsequent to payment. The new purchaser would have to be approached by the seller for the refund, not to Management.
To be fair to me, I wasn't too far out with my previous analysis - see your reply to me on 30th January this year, below:
"We have all requested your surveyor’s schedule, which you must already have in order to have given us an initial quote of £75,000 unless you simply plucked this figure out of thin air. So please
send it rather than holding it back until 1st March. The internals and externals are not separate issues, they are related in terms of budget allocation so this is simply delaying decisions further.
You keep referring to a figure of £60,000 but it has never been that even including VAT – the quote
supplied last year from WADE on 3rd July, which you have received at the time, was £42,605.20 plus VAT which is £51,126.22 so please stop exaggerating because you don’t want to use them."