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Fixed fee for flat management major works?
i_am_bob
Posts: 28 Forumite
Normally companies who provide management services for blocks of flats charge a percentage of the cost of management work as their fee for major works.
Another way to do it would be for them to charge a fixed annual fee based on size / age / maintenance history of the block.
Is there such a thing, at present?
Would it be a good idea overall if so? The upside would be no financial incentive for management companies to go for expensive contractors or do more work than actually needed. A downside would be that you'd be paying in advance which might make switching management company a harder decision. You might pay more in fees than with a percentage, also. That seems like it might be a price worth paying to me (depending on the details).
On the other hand, if a fixed fee payment leads to poor maintenance, I would think you need to find somebody else anyway, however you're paying them.
What do you think?
Another way to do it would be for them to charge a fixed annual fee based on size / age / maintenance history of the block.
Is there such a thing, at present?
Would it be a good idea overall if so? The upside would be no financial incentive for management companies to go for expensive contractors or do more work than actually needed. A downside would be that you'd be paying in advance which might make switching management company a harder decision. You might pay more in fees than with a percentage, also. That seems like it might be a price worth paying to me (depending on the details).
On the other hand, if a fixed fee payment leads to poor maintenance, I would think you need to find somebody else anyway, however you're paying them.
What do you think?
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