MANAGEMENT CONTRACT In respect of MAINTENANCE AND COMMON REPAIRS Between THE CITY OF EDINBURGH COUNCIL,
(Hereinafter referred to as “the Council”),
City Chambers, High Street Edinburgh And
MR/MRS etc _____
first name _____________ Surname _____________ Residing at
(If different from the tenement address)
HOME ADDRESS (House No, or name, Flat No):
_____
___________________________________________ ___________________________________________ _________________________________________________
(Hereinafter referred to as “the Owner”)
WHEREAS: FIRST The Owner is the heritable proprietor of the property known as and forming (hereinafter referred to as “the Dwelling House”) being part of the tenement building number: ADDRESS comprising # flats and # Commercial Premises. Property owned at above tenement: _____________
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SECOND
The Council is prepared to provide the Owner with a property management service in terms of Section 170 of the Local Government & Housing Act 1989 and The Housing (Relevant Works) (Scotland) Regulations 1992 The Owner has agreed to pay the Council a Membership Fee of £100.00 (plus VAT) per annum for the provision of the aforesaid property management service. In addition a 10% administration charge will apply to all maintenance and repair costs. The Council and the Owner have agreed that for the purposes of this Agreement, the common parts are as defined in the Tenement Inspection Report annexed and signed as relative hereto; The Council and the Owner will agree upon the maintenance and repair work to be performed each year in accordance with the arrangements set out in clause 3 hereof;
THIRD
FOURTH
FIFTH
THEREFORE: PROVIDED that all the Owners of the properties of the aforesaid tenement building agree to appoint the Council as property manager THEN the Council and the Owner hereby agree as follows:1. The Owner appoints the Council as property manager in terms of the aforesaid Section 170 of the Local Government & Housing Act 1989 and The Housing (Relevant Works) (Scotland) Regulations 1992 for the purpose of arranging that the common repairs be carried out to ensure that the building is kept in a good state of repair to the reasonable satisfaction of both parties throughout the term of this Contract. 2. This Agreement will continue for an initial period of one year from the date of commencement and thereafter continue on a year to year basis unless terminated by a majority of the owners serving one month’s prior written notice on the Council. The Council may terminate this Agreement at any time on giving one month’s written notice to all the Owners of the tenement building. 3. (a) The Council or its representatives will prepare an annual Tenement Inspection Report recommending the repair and maintenance work they consider necessary. The Council may on request procure cost estimates for the recommended repair and maintenance work.
(b)
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(c)
The Owners of the said Tenement Building in consultation with the Council will jointly decide on the repair and maintenance work that will be carried out. The Council will confirm in writing to all Owners details of the repair and maintenance work which they have been authorised to arrange. The Council will only proceed to arrange the said works upon a majority instruction (i.e. more than 50 percent) of the tenement Owners In the event of an emergency repair (emergency repair being defined as a repair required either to prevent water damage or to contain a security issue to/at the tenement) the Council will be entitled to immediately carry out such repair without obtaining a majority instruction and will apportion the costs of such emergency repair in terms of this agreement. In respect of the common repairs to be carried out: -
(d)
(e)
4. (a)
The Council or its representatives will arrange for preparation of all necessary contract documents and will appoint a contractor on behalf of the Owner. Said contractor will carry out the common repairs. The Council, on receiving reasonable notice shall permit the Owner to inspect the Contract Documents at the Council offices. The cost of the Common Repairs shall be apportioned between all of the owners of the properties at the aforesaid tenement on the basis of equal shares. Alternative arrangements will be recorded and signed by all owners on an annex to this contract. Joint owners will be liable jointly and severally to reimburse the Council for the costs pertaining to their individual dwelling house.
(b)
(c)
5.
A non-interest bearing account for the tenement building will be opened by the Council’s Finance Department and will operate as follows: (a) The Council will arrange payment from the said Account, of all costs involved in executing the said common repairs. The Owner hereby irrevocably agrees to pay the Owner’s costs (including VAT due to any contractor employed to perform work) calculated in accordance with Clause 4 (c) above, together with the Management Fee of £100 (plus VAT) per annum and, where required, the administration charge. Such payments shall be made not later than twenty-eight days after the date on which the Owner
(b)
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receives such a request in writing from the Council or within such other period as may be agreed in writing by the Council. (c) On the completion of any repair/maintenance work, following payment of all sums due to the relevant contractors and the Council, any sums remaining will be divided between the Owners of the tenement building for the time being in proportion to their responsibility for the repairs as detailed on Clause 5 (b) and 4 (c) above. The Council may, following discussion with the owners, request payment from the Owner of further estimated costs in so far as such costs exceed those previously estimated and paid. This payment shall be not later than twenty-eight days after the date on which the Owner receives such a request in writing from the Council or within such other period as may be agreed in writing by the Council. When the Council demands payment from the Owner, it is agreed that the Owner will not be entitled to withhold payment (in whole or in part) on the basis that in the Owner’s opinion the works have not been carried out to his complete satisfaction. The whole sum is payable on demand to the Council. If the Owner fails to pay any of the above Owner’s estimated costs or other charges as they fall due hereunder, or the annual membership fee, the Council shall be entitled to recover such sums, with interest, from the Owner as a debt. In the event of any dispute between parties relating to the terms and conditions of this Agreement or the provision of the services, either party may serve a notice on the other outlining the terms of the dispute and proposing a time and place for a meeting between both parties where both parties shall attempt to resolve the dispute. If the dispute is not resolved within five days of the meeting, the matter may be referred by either party to a mutually acceptable third party appointed by the President of the Law Society of Scotland on the application of either party. The decision of any such third party will be final and binding on both parties.
6.
(a)
(b)
(c)
7.
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8.
(a)
It is hereby declared and understood that in appointing any Contractor in pursuance of this Agreement, the Council is acting in the capacity as agent for the owner. All rights and duties arising from any such contract made by the Council shall be enforceable by or against the owner and the contractor. The Council shall neither be liable under such a contract nor be entitled to enforce such a contract. For the avoidance of doubt, it is hereby declared that the Council will not indemnify the Owner against loss caused by any contractor employed in pursuance of this Agreement. The Council has in place Public Liability Insurance cover in respect of accidental injury or damage sustained by third parties as a result of negligent acts or omissions by the Council or its employees. The Council also carries Professional Indemnity Insurance cover against claims for breach of professional duty arising out of negligence in the performance of its duty. The limit of liability under Professional Indemnity cover referred to at clause 9 (a) is, in respect of any one default resulting in direct loss or damage of property, or a series of defaults resulting in direct loss or damage to property, one million Pounds (£1,000,000) The Council shall not be liable for loss of profits or of business or of revenue or of good will or of anticipated savings or any indirect or consequential loss or damage. For the avoidance of doubt, it is hereby declared and agreed that the Council shall not be liable to the Owner or to any third party for the negligent acts and omissions of contractors appointed by the Council on the Owner’s behalf, nor shall the Council be liable for the negligent acts and omissions of such contractors’ employees, agents or sub-contractors, nor shall the Council be liable to the Owner for breach of contract by such contractors or their sub-contractors. The terms of this contract shall be without prejudice to the Council’s statutory powers.
(b)
9.
(a)
(b)
(c)
(d)
10.
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11.
On the sale, transfer, disposal by the Owner, his/her/their executor, agent or representative of the dwelling house the Owner, his/her/their executor, agent or representative shall ensure that there is a condition in either the missives of sale/ transfer/settlement binding the successor in title to adopt the rights and obligations of the Owner under this agreement failing which the Owner shall be held to be liable for any outstanding obligations in terms of this agreement. On that basis no payments made by the Owner to the Council shall be refundable on a sale. Furthermore the Owner, his/her/their executor, agent or representative shall forward a copy of the missives/transfer/ settlement to the Council.
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JOINT DUTIES: of the Council and Owners COUNCIL DUTIES 12 QUALITY OF WORK The Council or its representatives will inspect repair work prior to issuing payments to contractors. The Council will investigate any complaints of unsatisfactory work. Owners will assist here by reporting any such complaints to the Council as soon as possible. 13 MUTUAL REPAIRS Where any repair is mutual to an adjoining building the Owners will require to raise a Statutory Notice themselves but the Council acting in its capacity as Edinburgh Stair Partnership will work in conjunction with the department of the Council responsible for managing Statutory Notices to ensure works are organised in an efficient manner. 14 CONSULTANTS For major works the employment of a consultant may be necessary, for example a Structural Engineer or Quantity Surveyor. The fees (including VAT) rendered by any consultant will be recovered from the Owners. 15 MONITORING ACCOUNTS The Council will check all invoices when rendered, including the charge of VAT, prior to paying contractors. 16 QUALITY OF SERVICE The Council will respond to all written enquiries within 10 working days. The Council will provide all owners with a “Building log book” to record all the material supplied during the course of the maintenance contract.
OWNERS DUTIES 17 ACCESS Owners will allow the Council access to survey the building in order to report on its condition and will allow contractors access to carry out required work. Owners will notify their insurers prior to any major repairs being undertaken.
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MEMBERSHIP FEE The Council Membership Fee will be fixed at £100 (plus VAT) per annum per Owner for the duration of the contract, to be reviewed thereafter. The membership fee will cover routine management duties but it is understood that if because of the complexity of a particular repair or because of any other reason the Council is involved in extra work an additional fee may be chargeable.
19
PAYMENTS The Owner(s) will pay all charges when requested notwithstanding any repair works that have not commenced/been completed. ADDITIONAL
20
Further services will be developed by the Council, in conjunction with owners, and will be appended to this management agreement. DATA PROTECTION NOTICE ESP is part of Services For Communities within the City of Edinburgh Council and as such is registered under the Data Protection Act. The Data Controller is: Michael Thain, Private Sector Services Manager, 23 Waterloo Place, Edinburgh EH1 3BH.
ESP has a legal obligation under the Data Protection Act to ensure that all information held and processed about the Owner complies with the principles of the Act. The Act requires all personal information to be treated in the strictest confidence and to be used only for the purposes of which the Owner is aware. 21 I understand and agree to the following: Information about me will be held on file both on computer and on a paper record. I can ask to see the information held about me or ask for a printed copy. The information I provide gives a true and accurate account of my circumstances. The council reserves the right to review and amend all charges on an annual basis. Any amendments to charges will be notified by the Council by giving one month’s prior written notice and will be effective on the next annual renewal date.
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IN WITNESS WHEREOF these presents typewritten on this page and the eight preceding pages are executed as follows: They are subscribed by the said: ___________________________________________
(Owner(s) Name, Block letters please)
On the _______ (date) of _____________ (month) Two Thousand and ____ ___________________________________________
(Signature)
Before this witness: ___________________________________________
(Witness Name, block letters please)
_______________________________________ (Signature) Address of witness: _______________________________________ _______________________________________ _______________________________________
And they are subscribed on behalf of the City of Edinburgh Council by: ______________________________Who is a Property Manager of
Edinburgh Stair Partnership, City of Edinburgh Council, 4 Queen Street, Edinburgh
Telephone: 0131 529 7234
On the ________ of ___________ Two Thousand and ____ (Date of Commencement)
Before this witness ______________________________________( Sign) Name of witness ________________________________________
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