Page 889 - (A) Mammoth (998pp)
P. 889
It was further confirmed in emails to you when you provided your own Spreadsheet, when it was pointed out (on many occasions) that your WADE total costs did not include VAT, but Management's total as outlined on your Spreadsheet, did include VAT. It was also pointed out you had used our average quote costs (incl. VAT) and hence the figures for Management's total were incorrect, both because you had used our average quote costs, as well as including VAT on Management's total, but not on WADE's. Consequently your Spreadsheet was both incorrect and very misleading, again as pointed out innumerable times.
Your reply, if you recall, was that it was industry practice to quote ex VAT. I agreed, but pointed out that in law, Tenants/Lessees have to be advised of all costs plus any VAT. That's Landlord & Tenant Act law.
On receipt of your answers to items (a) - (j) above, plus any other comment you wish to make, I will forward Management's Spreadsheet outlining both WADE's & Management's total costs including VAT, with full detailing, costs per contractor (best value, not average) etc etc.
I would finally add, that had you followed, as requested but rejected, Management's Works Specifications, comparisons from various contractors would have been made so much easier. As such, any comparison between Management's costs (following the correct Table of Works Specifications) and alternative quotes (WADE's and HEMI's in your case) is not as clear cut as it should be. Exactly as I warned would be the situation if proper procedures were not followed. And it's still not totally clear why alternative quotes were necessary, save for an insistence coming from various quarters that the works required one single contractor as opposed to Management's far more economic separate contractor's quotes per job. A saving I would propose of around 60% if not more. Thoughts of your recommended Solicitor's fees come floating back!
In truth, this whole project is now a total disaster despite Management's professional and sensible stewardship in sourcing very economic costings/quotes as well as preparing and supplying two alternative concepts for Lessee's consideration. i can safely assure you that I personally am not about to sanction a budget of £60,000 odd or even £35,000, or even £27,000 for Brass Lanterns, white walls, black lift doors and a £17,000 professional floor clean. My vote will be to do the absolute minimum required under the terms of the Head Lease - one colour emulsion/gloss throughout, two coats, scrub clean the floor for a reasonable amount, fix anything that needs fixing both cosmetically and legally and that's it - can all be done for less than £15,000 incl. VAT - meaning no argument or disappointment over style and plenty of funds left in Reserves for Externals etc.
And I find it hard to believe than anyone else would want to spend £60,000 either, save maybe for you and Flats 3 and 9. And seeing as I have no idea of what was discussed, agreed, disagreed at your recent meeting, it's impossible to properly ascertain what you mean by a consensus? Certainly Flats 2, 6 and 7 are not in that consensus. Leaving Flats 4 and 8 to make clear their final budget preferences.
I believe Segar has emailed you for an update on your meeting/consensus before any decision can be made on issuing the first of three Section 20s.
You will note that Hemi quoted £1870.00 to refurbish existing hall utility room - meaning I presume, the cleaner's cupboard - you'll be relieved to know that I did that myself during the summer for only £1800, a saving of £70.....that's a joke by the way but does put things into perspective let alone focus - I also have cleaned up the roof, cleared the roof gutters twice, cleaned the lift motor room and the rear yard plus a few other improvements here and there including some attractive plants and pots throughout the building - let alone the accounts and banking etc, and and I will continue to do various other jobs over the winter months to further improve Mitre House - all to date at no cost whatsoever for my time and effort to the Service Charge/Reserves, save for paint, equipment and cleaning items - I'm saving everybody, including me, a small fortune! Which is why, I repeat yet again, we purchased the Head Lease despite your assertion that the purchase was to safeguard our money..... that begs the question, from whom?
Paul
(not copied to all at this stage).
Paul Brown-Constable / Mbl: +44 207 589 7502 on behalf of the Directors of
MITRE HOUSE MANAGEMENT LIMITED
7 Mitre House / 124 Kings Road / Chelsea / London SW3 4TP www.mitrehouse.org / email: mitrehouse@graffiti.biz
On 21 Nov 2012, at 11:49, Michele Hillgarth wrote:
From Paul: “ 03_Management have upwards of three quotes per works to be undertaken, and in some case 4 or 5 - it is not possible to present all, or even the cheapest/expensive - hence my sensible AVERAGES on the voting bulletin. You have been advised ad nauseum that Managements specifications, matching almost exactly the same works that you arranged quotes from Hemi and Wade, amount to £35,000 incl. vat versus £60,000 incl. vat from Wade, as an example”
Your quotes have not been supplied to anybody. If you really have the proper comparison contractor quotes why are you refusing to supply them? Please forward your original quotes from your associated contractors as I have done with Wade. Until you do so your quote cannot be validated and there cannot be considered or approved.
For clarification - Please re-read the spread sheet and the specifications provided - there are significant differences in costs because Wade includes additional items which your quotes does not. Examples of some of the differences are below
Wade Quote
£7,540 for a full overhaul of woodwork £2,686 New brass handrail for stairway
Paul Quote
Not included Not included