QUESTION
I have a question on S20 Qualifying Works.
One of the directors of an RTM has decided to run with a project to install a new patio. We would consider this as major works at the development and subject to S20 however; they have already bought the materials (under S20 threshold) and now want us to appoint a contractor to install the patio (under S20 threshold value). The purchase of the materials and the contractor will be over a S20 but the purchase of the materials is under and the employment of a contractor is under – what do you think?
We have a problem because the materials have already been purchased and can’t be refunded yet I’d consider the purchase of the materials as part of the whole project which should have been a consultation. Any advice would be appreciated.
ANSWER
I am afraid that in my opinion this set of circumstances will still require consultation under Section 20 as it is very unlikely to be regarded by a Tribunal as anything other than a single set of qualifying works.The fact that one of the directors has already purchased the materials is immaterial unless the Director is paying for them himself and does not require reimbursement. In that case no consultation would be required as the expenditure will be below section 20 limits provided that the materials are suitable for the proposed works..
However your contractors will, in addition have to confirm whether the purchased materials are suitable for the proposed works, if not then the RTM Company cannot be responsible financially for their cost.
Richard Sandler, Solicitor PDC Law
