Subject: RE: Jebb Ave estate property management - 4 quotes for review
From: "Guy Crotty" <[email-masked]>
To: "JAMC JEBB AVE management" <[email-masked]>
Date: Mon, 09 May 2022 21:33:39 +0100

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All

Following on from the below, Kenzo and I have done a bit more following up with the below four prospective Management Companies. We have:

Sent all four a standard set of questions (responses attached)

Looked at the rough sums comparing each company based on the same amount of capital works each year (see below)

Spoke to the reference of BlocNet

We have now compiled a decent amount of information on these companies which is a bit hard to navigate given the sheer volume. The summary recommendation from both Kenzo and I is to go with BlocNet. This is driven significantly by overwhelmingly positive feedback from the reference they provided but is also due to the following more nuanced view.

All seem to provide a similar type and level of service e.g. online portals, account management, capital works management, access to surveyors / legal / accounting

Cost wise:

Depending on how much we spend on capital works, BlocNet starts the cheapest but then is second cheapest to MIH

3/4 have similar price structures (BlocNet, InBlock and MIH) while Strangford provides a flat fee of £25200/year which includes all capital works management but NOT including surveyor fees.

Initially we thought Strangford might be attractive given the amount of capital works we have to do but as per my sums below, we would need to spend over £300K/yr to make them a clear favourite which I don’t think we would.

Engagement wise Strangford were the only ones to bother coming to the estate in person, but BlocNet have been the most proactive in terms of following up to see if we have further questions and were the only ones to get on a Zoom call (at their suggestion). Have also found the guys at BlocNet very personable to deal with.

References:

As above, the BlocNet reference was positive in every aspect and they were the first company to provide a reference (e.g. an actual person to talk to from a newer privately owned estate in White Chapel of 44 apartments) almost straight away

In contrast InBlock is still hedging in terms of providing one (i.e. waiting for us to confirm they’re shortlisted before providing) and the other two provided more generic written references.

Given the above, I would like to proceed with BlocNet which in terms of next steps would involve them coming to the estate and am sure if we wanted having a group call with anyone interested on the committee to ask any final questions. Obviously though, given the volume of information to unpack, very happy to have another committee meeting to discuss.

All the info I now have on the companies comes to 17MB – have attempted to attach as a large file but if that doesn’t work I’ll upload all to our website

Hopefully this all makes some sense.

@Kenzo – obviously welcome any input from you as well. Thanks for all your help!!

Cheers

Guy

Capital Works Cost / Yr

Cost per Year

Capital Works Charge

100000

200000

300000

400000

BlocNet

Total: ~£15,150/yr + VAT
(£260/flat/yr) + company secretarial (£395/yr) + bank account administration (£195/yr)

15150

4%

4000

8000

12000

16000

TOTAL/Yr

19150

23150

27150

31150

InBlock

Total: ~£14,000 - £16,800/yr + VAT
(£250-£300/flat/yr) - company secretarial and bank account management included

16800

5%

5000

10000

15000

20000

TOTAL/Yr

21800

26800

31800

36800

MIH

Total: £16,800/yr + VAT
(£300/flat/yr) - company secretarial and bank account management included

16800

3.0% (60K - 100K)
2.5% (100K - 200K)

3000

5000

7500

10000

TOTAL/Yr

19800

21800

24300

26800

Strangford

Total: £25,200/yr + VAT
(£8.65 + VAT per unit, per week based on 56 units)
Includes all financial management, secretarial, major works management

25000

n/a

TOTAL/Yr

25200

25200

25200

25200

From: [email-masked] <[email-masked]>
Sent: 14 March 2022 23:05
To: 'JAMC JEBB AVE management' <[email-masked]>
Subject: Jebb Ave estate property management - 4 quotes for review

All

We now have four quotes from prospective management companies. Have attempted to summarise below but have also attached additional detail e.g. draft management agreements. Strangford’s proposal is at the following link: Proposal from Strangford Management Ltd (betterproposals.io)

I have no doubt that we’ll have more questions (have already noted some in red below) but suggest we review as a group, consolidate questions and then go back at once.

Also, you will note that I’ve gone back to Whizz Estates to ask for our contract with them and our release terms from that contract. Slightly embarrassing to have to ask for it.

BlocNet

InBlock

MIH

Strangford

Fee structures

Total: ~£15,150/yr + VAT
(£260/flat/yr) + company secretarial (£395/yr) + bank account administration (£195/yr)

Total: ~£14,000 - £16,800/yr + VAT
(£250-£300/flat/yr) - company secretarial and bank account management included

Total: £16,800/yr + VAT
(£300/flat/yr) - company secretarial and bank account management included

Total: £25,200/yr + VAT
(£8.65 + VAT per unit, per week based on 56 units)
Includes all financial management, secretarial AND major works management

Capital works management / contractor management

- Fees:  4% of the contract sum (potentially some flex given scale of work required). Surveying fees additional - estimated 8-10% of works.
- No additional fee for obtaining comparable quotations
- Gave detailed description of how they would manage the process including suggestions of best time of year for conducting major works
- Manage end-to-end process on behalf of committee from leaseholder engagement to job spec to quoting to contractor management to construction management to payment
- Not associated to any contractor companies but have list of preferred and trusted contractors
- Happy to use JAMC preferred or recommended contractors

- Can set approval thresh-hold and have final say on approved contractors

- Fees: Sliding scale basis for works of different costs - Less than £10,000 10% (Min £750), £10,000 - £35,000 7.5% (Min £1000), £35,000 + 5% (Min £2000)
- £50 fee per quote (at agents discretion) to be charged - if part of section 20 with work proceeding in 12 months, wouldn't be charged
- Should a surveyor be appointed to draw up the specification, obtain the quotes and oversee and sign of the works, our fee will be capped at £500 plus VAT for the administrative and financial aspects only of the process.
- Manage end-to-end process on behalf of committee from leaseholder engagement to job spec to quoting to contractor management to construction management to payment
- Not associated to any contractor companies but have list of preferred and trusted contractors
- Happy to use JAMC preferred or recommended contractors

- Can set approval thresh-hold and have final say on approved contractors

- Fees: 2.5% - 3.5% for works requiring a surveyor, depending on the overall cost. If no surveyor, they charge 10%.
- Manage end-to-end process on behalf of committee from leaseholder engagement to job spec to quoting to contractor management to construction management to payment
- Not associated to any contractor companies but have list of preferred and trusted contractors
- Happy to use JAMC preferred or recommended contractors

- Can set approval thresh-hold and have final say on approved contractors

- Fees: no additional management fees for major works management. All included in fees.
- Manage end-to-end process on behalf of committee from leaseholder engagement to job spec to quoting to contractor management to construction management to payment
- Not associated to any contractor companies but have list of preferred and trusted contractors
- Happy to use JAMC preferred or recommended contractors

- Can set approval thresh-hold and have final say on approved contractors

Leaseholder / resident engagement

- Online portal for leaseholders to access budget information, monthly payments etc
- Leaseholders can also use online portal to raise a ticket (either personal or as a block) for general maintenance requests which is then visible to all leaseholders. SLA for response to request is 4hours.

- Soon to roll out new maintenance software with online facility, which allows owners, tenants to report a maintenance issue directly to us.

- Provide reasonable management information to the leaseholders
- Deal with day to day lessee issues
- TBC the channel(s) through which leaseholders and residents can engage the management co.

- Online portal providing Leaseholders with access Financial, Repairs and Maintenance updates and day-to-day updates (e.g. rubbish collection)
- Assume online portal is also available to residents i.e. to raise and track maintenance requests?

Legal services

- Access to Legal Services with additional charges over and above standard annual charge.
- If Legal Services required in relation to arrears management, costs to be charged to leaseholder

- Access to Legal Services with additional charges over and above standard annual charge.
- If Legal Services required in relation to arrears management, costs to be charged to leaseholder

- Access to Legal Services with additional charges over and above standard annual charge.
- If Legal Services required in relation to arrears management, costs to be charged to leaseholder

- Access to Legal Services with additional charges over and above standard annual charge.
- If Legal Services required in relation to arrears management, costs to be charged to leaseholder

Accounting services

- Manage regular payments to suppliers, manage service charges etc but would engage accountant to audit accounts and produce annual financial statements (~£450/yr)

- Manage regular payments to suppliers, manage service charges etc but would engage accountant to audit accounts and produce annual financial statements (~£XXX/yr)

- Collect and account for service charge and deal with bank account, deal with payments
- Provide information to accountants prior to the preparation of annual service charge accounts.' (~£XXX/yr)

- Collect and account for service charge and deal with bank account, deal with payments
- Do they do the accounts themselves or engage independent accountants at a fee?

Engagement to date

Recommended when looking at development proposal. Personable and easy. Calls over Zoom with both property management director and associated surveyor. Provided the least detail in their proposal – have gone back to ask for a draft management agreement.

Found from Google search. Engagement has been over the phone. Easy to talk to but not as personable as BlocNet.

Found from Google search. Engagement has been over the phone.

Found from Google search. Only company to come out for a sight visit Good to talk to when they visited but took several months to respond with quote after several chasers.

RICS regulated

Yes

Yes

Yes

Yes

References provided

Yes

No

No

Yes

Subject: You've been sent large files
From: [email-masked]
To: [email-masked]
Date: Mon, 09 May 2022 21:33:39 +0100

====================================================

You've been sent large files

====================================================

Guy Crotty <[email-masked]> sent you large files. Download them before Mon, 23 May 2022 23:59 +0100: https://login-uk.mimecast.com/lfs/app/?tkn=3.cHiH9h60W800NDkzZ7wxSW5S4xcKOJ_ToZa0fdD9wseg6c0po8VngzPHtMk4guunXngBwj5dyYBFo8moEsem7I8NFsh0k3oAv9PC1_vh4c0q8tHL3_4HTanQWmoeP6eDuF4wGvBwDetjid-34sVZfA.r2ztoavwSMoKR-VPf1V-Aw#/landing?token=7bVv5bp10w_jsjzB7PNrkZelLi0DW9ok3B4PuNs7afRlElQDxaPLBXKYotZcjhs2WBSSGuy6bZWF-sH_vSEb3Z_o6v3Dn1XgOLmAciEHz7QKIUxaZMhP1nROtNEMNhx-S6aDxRKfBT-5IrVrcqYG2knQ75qOt18X3Hp_iCqRP8uWx_NAEpS_tTEs0Cj-lGpCPC4fRlicmhenb3wQtIjIDjIlp1nKWP3yNpbNKAK5LPcir9-vzWUC_VY4XTenTNHJseYVV-vaMOqVKz30-8bfIYRaQO3Kl-xBjbOH7VZPhQYP93UsedXzGAcVbqTTwT5K68YaLwnh_5cdJiYfEEMOmNwat1RxbL4FeY7-ixXY32E&recipient=info%40jamc.co.uk&sender=guy.crotty%40baringa.com&go=download

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Files

File: Strangford_Prospective Man..._220331.pdf
   Size: 178.7 KBFile: MIH Prospective Management...estions.pdf
   Size: 665.8 KBFile: InBlock_Prospective Manage...stions.docx
   Size: 316.0 KBFile: BlocNet_Prospective Manage...- FINAL.pdf
   Size: 170.1 KBFile: New Management Companies.zip
   Size: 16.7 MB

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