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Qualifying Long Term Agreement relating to the appointment of consultancy services for construction works

Qualifying Long Term Agreement relating to the appointment of consultancy services for construction works The following letter was sent to the leaseholders of the Curnock Street Estate. The original document can be found here PART 1,PART 2

Leaseholder Services
London Borough of Camden
Bidborough House
38-50 Bidborough Street
London WC1H9DB
Tel: 02079744444

Date: 25th April 2014

Your Reference:
Our Reference: 14/004
Enquiries to: Mike Edmunds

The Leaseholder
Camden Street

NOTICE OF INTENTION TO ENTER INTO A QUALIFYING LONG TERM AGREEMENT (Section 20 of the Landlord and Tenant Act 1985 (as amended) and Schedule 2 of the Service Charges (Consultation Requirements) (England) Regulations 2003).

Dear Leaseholder,

Qualifying Long Term Agreement relating to the appointment of consultancy services for construction works.

I am writing to inform you that the London Borough of Camden (The Council'), as your landlord, proposes to enter into a long term agreement, details of which are givert-below.

1. Description of the agreement.

The Council is planning to enter into what the Act calls a "qualifying long term agreement". This is an agreement which lasts for more than 12 months and concerns services to be carried out in relation to the building or estate in which you are a leaseholder.

When delivering repairs and maintenance schemes, the Council sometimes requires specialist input, for example to design heating systems or prepare specifications. The Council also appoints service providers to carry out works such as fire risk assessments, structural monitoring, project management, quantity surveying, employer's agent and other roles.

These appointments are currently made on an ad hoc basis and this can be labour intensive. The Council intends, therefore, to establish a framework for consultancy services that meets the Council's requirements and has been subject to leasehold consultation. The aim of the proposed framework is to make it easier and cheaper for the Council to secure specialist services when these are required.

Where services relate to your property you will be liable to pay a proportion of the cost by way of a service charge. This will relate to, but not be limited to, the following categories called 'Lots':

Lot 1 - Small Commissions

This is for small commissions and can cover services in any of the lots described below, to a maximum value of £100,000 per commission. This is to help small to medium size enterprises access the framework.

Lot 2 - Design Services

• Design of construction works
• Design and surveying of mechanical and electrical services
• Mechanical and electrical engineers
• Condition and scoping surveys

Lot 3 - Structural Engineering

• Design and surveying of structural elements
• Structural engineers
• Geotechnical surveys

Lot 4 - Architectural Services

This lot would be used for small site developments, conversions and new build housing.

Lot 5 - Cost, Advisory and Commercial Services

• Commercial advice
• Price list composition
• Quantity surveyors
• Cost management
• Contract advice (e.g. facilitation, dispute resolution)

Lot 6 - Surveying, Project Management and Employer's Agents

• Employer's agent
• Project management
• Building surveying and inspection
• Planning advice and applications
• Consultation on works
• Lead consultants
• Contract administration
• Clerk of Works

Lot 7 - Compliance and Specialist Services

• Construction Design & Management (CDM) co-ordinator
• Risk assessments
• Asbestos surveys
• Logistics management

More details on the lots can be found at Annex 1.

2. Duration of the agreement.

The agreement is planned to run from November 2014 for a period of four years.

3. Value of the agreement.
The total cost of provision of all services across the Council is envisaged to be approximately £8 million.

4. Reasons why the agreement is necessary.

The proposed agreement is necessary so that the Council can comply with its contractual and statutory obligations to tenants and leaseholders, without excessive delays in obtaining the services outlined above and in Annex 1.

The services obtained through the framework will help the Council to design and specify works and monitor cost and quality when works are on site.

The framework agreement will reduce procurement costs for the Council and should secure savings from suppliers.

5. Observations.

You are invited to make any written observations regarding the proposals contained in this notice. If you wish to do this, you must send them to this office in writing to be received within 30 days from the date of this notice. All observations must be received by the 26 May 2014. Observations should be sent to the following address:

Mike Edmunds, Head of Leaseholder Services,
London Borough of Camden,
Leaseholder Services,
Bidborough House,
38-50 Bidborough Street,
London WC1H9DB

Or: Email and include the contract reference 14/004 and your property address and reference number in the email subject field.

6. Reason why the Council is not inviting nominations from leaseholders.

In the case of the proposed agreement the European Union requires the Council as a public authority to advertise the agreement by way of a public notice in the Official Journal of the European Union because of the estimated value of the services. Where it is necessary to issue such a public notice (as in this case), the right of leaseholders to nominate a consultant does not apply.

The public notice must give details and invite tenders from suitable consultants in respect of the proposed agreement. In view of this requirement, the Regulations state that it is not possible for leaseholders themselves to propose a person or consultant to tender for the contract, as would otherwise be the case. The Regulations also state that leaseholders must be informed of this fact.

Once observations have been considered and the consultation period has closed, the Council intends to place a public notice in the Official Journal of the European Union to invite expressions of interest in the framework.

7. Further consultation - Notification of Landlord's Proposal.

It is anticipated that once this initial consultation has concluded and upon receipt of the tenders/estimates, we will send you a further notice regarding the Council's detailed proposal in accordance with the Service Charge Regulations 2003. This will inform you of the proposed consultants and provide you with a further opportunity to be consulted about the proposed agreement.

8. Cost of the services.

As a leaseholder you will only be liable for a proportionate part of any costs incurred in relation to your building or estate under the agreement.

Yours sincerely

Mike Edmunds
Head of Leaseholder Services