Please note that landlords must send each tenant and RTA (if applicable) a notice of the intention to enter into a long-term contract. A qualified long-term contract is a contract for the provision of works or services valid for a period of more than 12 months and for which the cost to each tenant is more than £100 per year. For example, it could provide maintenance for elevators, cleaning services or gardening. Certain agreements, including employment contracts, are excluded. [3] The law does not specify the conditions under which the landlord addresses tenants designated by tenants when he wishes to obtain estimates of work or services. Most owners require their contractors to have certain basic criteria (e.g.B. Liability insurance, tax exemption certificate in force, confirmation of VAT status, copies of health and safety policy and confirmation of company status). While it may be advantageous for development to have a longer-term contract – potential discounts for suppliers, stability of supply, etc. – freeholders often choose to keep the contract duration at 12 months or less in order to avoid the consultation process.

However, in October 2014, the Court of Appeal overturned that decision, so that the reintroduction of the “sets” approach, i.e. consultation under Section 20, should apply to individual rates of qualifying works, without reference to periods or years of service. 2. All affected tenants must pay a service fee of £100 or more per 12-month period for the costs of such goods, services or works. If the rules for consulting both works are not respected, tenants only have to pay £100 for long-term qualification contracts, although the following areas are not included: example of a declaration of intent to enter into a long-term contract that does not require notice if the lessor receives notice before the due date, they must respond in writing within 21 days of receiving the Beoba Send the direct shipment to the tenant concerned. (Please note that the landlord must send individual responses to any tenant who has sent comments, not a general notification to everyone who has received the previous notification.) The case emphasizes that landlords and tenants must be cautious when agreeing on the wording of contractual terms, make it clear whether they want agreements to be QLTA in accordance with Section 20A, and ensure that these intentions are reflected in the wording of the agreement. The most common error is not sending a notification at all in accordance with section 20. Sometimes owners are not aware of the requirement, sometimes they forget that short contracts can go beyond their initial duration, making them qualified long-term contracts. This is often the case for cleaning contracts and floor maintenance contracts. If they wish to waive the advisory requirements, owners must ensure that contracts are drafted in such a way that a duration of less than 12 months is possible. If a continuous contract is to be concluded, the terms of termination should be carefully worked out so that the contract can be terminated within 12 months.

In the Court of Appeal`s first decision on long-term qualified contracts, Corvan (Properties) Ltd v. Abdel-Mahmoud [2018] EWCA Civ 1102, McFarlane LJ considered a management agreement providing that “the duration of the contract shall apply for a period of one year from the date of signature of this agreement and shall then continue until it is terminated by one of the parties with a period of three months”. . . .