Case Studies

When managing service charge funds, it is important that every significant quotation is properly reviewed rather than simply accepted at face value.

At Lower Dee Mill, the appointed lift maintenance company advised that the lift within Block 1 required an upgraded Biodyn 12 drive unit. A quotation was subsequently submitted for £9,882 plus VAT, bringing the total potential cost to almost £12,000.

Given the size of the proposed expenditure, we did not consider it appropriate to simply place the order and pass the cost on to the leaseholders.

Our team, working alongside the appointed lift consultant, carefully reviewed the quotation, the nature of the proposed works and the maintenance contract already in place. We questioned why the replacement drive unit was being treated as an additional charge and asked the lift company to explain why the work was not covered under its existing contractual obligations.

Following further discussions and continued scrutiny, the lift company confirmed that the drive upgrade would be completed under the existing maintenance contract.

As a result, the work is now progressing at no additional charge to the development, saving the leaseholders of Lower Dee Mill almost £12,000 including VAT.

This is a clear example of why proactive management and careful contract review matter. Large service charge costs should never be accepted without proper consideration, particularly where an existing supplier contract may already provide the necessary cover.

At Paramount Block and Estate Management, we treat client and service charge money with the same care and attention that we would give to our own. By asking the right questions, challenging costs where appropriate and remaining determined on behalf of our clients, we were able to achieve an excellent outcome for everyone at Lower Dee Mill.