Preferred Contractors’ fees

ANSWER

David Hewett, of ARMA.org.uk, replies: ‘We assume when you say Management Company you mean managing agent, rather than residents management company. Whoever is the prime controller of a block of flats has a real duty of care when selecting and overseeing contractors. At the very least the agent would be expected to check your identity, financial status, competency, you have adequate insurance, your tax status, VAT status, you comply with health and safety requirements and all your employees are legally entitled to work in the UK - and keep this information up to date.
‘There is obviously a cost to the managing agent for this and therefore it is not unreasonable to expect these to be covered by the contractor.
There are national schemes run privately or by the Government that vet contractors and charge a fee for doing so. There is no right to ask for a fee but if you want to go on an ‘approved list’ then there is often a cost; of course you can decide commercially that the cost of being on such a list is not worthwhile.’