Page 754 - (A) Mammoth (998pp)

Anyway - a solution - an equitable compromise -
Management's budget for the minimal works totals £12,500 with a contingency of £2500 all incl. VAT, ie a maximum outlay of £15,000 incl. VAT
This includes a good Terrazzo floor clean and polish as opposed to a professional renovation.
Management's initial (January 2012) budget for a more comprehensive Internals, given the Reserves and pending Externals, was £27,000 incl. VAT which covered all extensive Internals as outlined in both Management's original Decor Schedule Of Works and indeed in Wade Design Ltd's most recent Quote/Estimate - BUT, with one notable exception, namely that Wade's quote includes a professional and very extensive/comprehensive Terrazzo Floor Renovation which Wade costs at £18,402 (Management's quote for exact same work on their revised £35,000 budget was £12,982) - both quotes incl. VAT
Management's £27,000 budget only ever included a good and extensive clean and polish, and from tests made, in Management's opinion the result is more than acceptable, at a total cost of £888. 00 incl. VAT. And of course can be done every year to maintain any improvement.
Consequently Management would propose that those Lessees who have NOT agreed to Management's minimum legally required works as outlined in the Section 20 Notice, dated 7 January 2013 and have stated a preference for the far more extensive Schedule Of Works and wish to adopt Wade Design as the preferred quote and supplier simply make up the difference between the minimally required works budget of £15,000 and Wade's fully comprehensive budget.
Management calculates that Wade's quoted budget amounts to approximately £56,494 - £67,098 (depending on the final works required and approved by those Lessees who have indicated a Wade quote as the preferred). See attached Decor Spreadsheet for details.
Management would contribute, directly from Reserves, £15,000, with the outstanding balance due simply divided by those Lessees who wish to spend more, which, based on comments received back are Flats 3, 4, 5, 8 and 9. These Lessees would be required to pay their pro rata share prior to commencement of any works.
On a rough calculation, contributions from each of these five Lessees would total a minimum one off payment of £8298.80 or a maximum of £10,419.60 on the proviso that any additional costs from Wade for extras, contingency etc would again be paid by these same five Lessees and not from Management Reserves etc.
It should also be noted that these contributions will rise, pro rata, if any of the five Lessees has a change of mind.
Management have made clear the necessity for a unanimous vote amongst Lessees to spend more than is legally required for works within the headlease and most importantly, Management must retain sufficient funds to carry out the required and very expensive/extensive External works calculated to cost upwards of £80,000. It is anticipated that Reserves, based on the above proviso for Internals, will be sufficiently fully funded to commence Externals in September 2014.
All decisions as to Externals are the sole responsibity of Management with Lessees receiving Section 20 Notices as regards their final choice of supplied quotes or indeed their legal right to source their own independent quote working from Management's Surveyor's required Schedule Of Works to add to Management's quotes for all Lessee's final consideration.
I hope this now clarifies all queries and comments received as regards the 7 January 2013 Section 20 (1) and the continuing Internals debate.
Obviously there are still some aspects needing final confirmations based on the comments received to date, namely the supposed, and in Management's view totally scurrilous comments, re: the common parts debris of tatty, cheap and bad taste items (only some Lessee's comments), various account queries and most pertinently the decor style/colours/lighting/common parts artefacts, if indeed Management's reply letter of 6 February did not adequately answer all points raised.
As stated clearly in the letter of reply, if further clarification is need, please advise.
What is not on the Agenda is the hiring of Agents raised by some Lessees. To further that comment, those Lessees that still insist on retaining new Agents due their dissatisfaction with Mitre House Management Limited must make LVT their port of call.
All Internal's costs etc as described above are taken from the supplied Spreadsheet which all Lessees have a copy of, but attached below for ease of perusal.
<Mitre House, Kings Road revision No.9 dated 23.01.2013.pdf>
Paul Brown-Constable / +44 207 589 7502 Mbl: +44 798 33 33 543 on behalf of the Directors of
MITRE HOUSE MANAGEMENT LIMITED