Procuring major works on London residential blocks
Major works on residential blocks — including external redecoration, roof replacement, structural repairs, fire safety remediation and mechanical and electrical upgrades — represent significant expenditure that is ultimately borne by leaseholders through the service charge. For managing agents, procuring these works competently and transparently is both a legal obligation (under Section 20 of the Landlord and Tenant Act 1985) and a professional duty to their clients.
The Section 20 process
Section 20 of the Landlord and Tenant Act 1985 requires landlords and their managing agents to consult leaseholders before carrying out qualifying works where any leaseholder's contribution will exceed £250. The consultation process has three defined stages.
Stage 1 is the Notice of Intention. This describes the proposed works, the reasons for them, and invites leaseholders to make observations and nominate contractors within 30 days. Stage 2 involves obtaining tenders, including from any contractor nominated by a leaseholder. Stage 3 is the Notice of Estimates, which presents the tenders received (or a summary), the managing agent's recommended contractor, and invites further observations within 30 days. Failure to comply with the Section 20 process limits the recoverable cost from each leaseholder to £250 per qualifying work, regardless of the actual cost.
Why procurement matters
Effective procurement protects leaseholders from overpayment, ensures the works are carried out to an appropriate standard, and protects the managing agent from challenge at the First-tier Tribunal (Property Chamber). Poor procurement — whether through inadequate specification, non-competitive tendering, failure to follow Section 20, or selection of an inappropriate contractor — can result in substandard works, cost overruns, leaseholder disputes and reputational damage to the managing agent.
We provide procurement and tendering services for managing agents across London and have detailed experience of the Section 20 process and its practical challenges.
Getting the procurement right
Clear specification
The specification is the foundation of any successful procurement. It should describe the works in sufficient detail to enable contractors to price accurately and consistently, set out quality standards and material requirements, define the scope of work clearly to minimise the risk of variations, and comply with current regulatory requirements (including CDM, Building Regulations and any fire safety standards). A well-written specification, prepared by a building surveyor with knowledge of the building, is the single most effective way to ensure competitive and comparable tenders.
Competitive tendering
A minimum of three tenders should be obtained, plus any leaseholder-nominated contractor. Tenders should be issued to contractors with relevant experience, appropriate insurance, a track record on similar projects and adequate financial standing. The tender documents should include the specification, drawings, a form of tender, a programme requirement and details of the proposed contract form. All tenderers should receive the same information and have the same opportunity to clarify queries through a formal process.
Balanced evaluation
Tenders should be evaluated against pre-established criteria, not just on price. A weighted evaluation matrix covering price (typically 40–60%), relevant experience, proposed programme, methodology, health and safety approach, and references provides a transparent and defensible basis for contractor selection. The evaluation should be documented and available for leaseholder scrutiny. Selecting the cheapest tender without considering quality is a common cause of problems on major works projects.
Contract and administration
Major works should be carried out under a recognised form of building contract (such as JCT Minor Works or Intermediate). Appointing an independent contract administrator to manage the contract, issue instructions, value payments, monitor quality and certify completion provides essential protection for the managing agent and leaseholders. Without proper contract administration, the risk of cost overruns, quality issues and disputes is significantly increased.
Frequently asked questions
What is the Section 20 consultation process?
Section 20 requires consultation with leaseholders before qualifying works costing any leaseholder more than £250. The three stages are: Notice of Intention, tendering (including leaseholder-nominated contractors), and Notice of Estimates. Leaseholders have 30 days to respond at each stage. Non-compliance limits recovery to £250 per leaseholder.
How should managing agents evaluate tenders?
Use a weighted evaluation matrix covering price, relevant experience, programme, methodology, health and safety, and references. Establish the criteria before tenders are issued. The cheapest tender is not always best value — quality, competence and track record should carry significant weight in the evaluation.
Do managing agents need a contract administrator for major works?
While not legally required, appointing an independent contract administrator is strongly recommended. They manage the contract, issue instructions, value payments, monitor quality and certify completion. Without one, the managing agent is exposed to risk and may lack the technical expertise to manage the contract effectively.
What are the common pitfalls in major works procurement?
Common pitfalls include inadequate specification, Section 20 non-compliance, selecting solely on price, poor insurance provisions, failure to obtain competitive tenders, inadequate contract administration and insufficient contingency. Engaging an experienced building surveyor to manage procurement helps avoid these issues.
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Links checked 18 July 2026. These primary and professional sources provide general context; they do not confirm how the guide applies to a particular building or appointment.
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Ross Alinari
Director, Construction and Project Delivery.
Writes on Construction delivery, Refurbishment, Remedial works, Procurement, Project oversight. See the full team profile.