Choosing the right contractors and managing them effectively is one of the most important — and most challenging — aspects of residential block management. Here's our approach.

Choosing Contractors: Why Procurement, Due Diligence and Contract Management Matter

Whether it's a small repair or a major works project, the quality of the contractor appointed can have a significant impact on the safety, cost and long-term condition of a building.

For Freeholders, Resident Management Companies (RMCs), Right to Manage (RTM) Companies and Managing Agents, selecting the right contractor is about far more than simply obtaining the cheapest quotation.

A structured procurement process can help reduce risk, improve value for money and ensure works are completed to an appropriate standard.

Why Contractor Selection Matters

Poor contractor selection can lead to:

Defective workmanship
Health and safety issues
Project delays
Cost overruns
Insurance claims
Leaseholder disputes
Building safety risks

Conversely, a competent contractor can help deliver projects efficiently, safely and cost-effectively.

The Importance of Contractor Due Diligence

Before appointing a contractor, reasonable checks should be carried out to ensure they are suitably qualified, insured and experienced.

Typical checks may include:

Public Liability Insurance
Employers' Liability Insurance
Professional Indemnity Insurance (where applicable)
Relevant trade accreditations
Health and Safety policies
References and previous project experience
Financial stability
Risk assessments and method statements

The level of due diligence should be proportionate to the size and complexity of the works being undertaken.

Professional Accreditations

Depending on the type of work, contractors may be required to hold specialist qualifications or registrations.

Examples include:

Gas Safe Registration for gas works
NICEIC or NAPIT accreditation for electrical works
FIA accreditation for fire safety contractors
Specialist fire door certifications
Manufacturer approvals for specific systems

Appropriate accreditation helps demonstrate competence, but should not be relied upon in isolation.

Why Competitive Tendering Is Important

Competitive tendering helps ensure transparency and value for money.

Obtaining multiple quotations allows directors and managing agents to compare:

Cost
Scope
Experience
Programme
Quality
Warranties
Proposed methodology

The cheapest quotation is not always the best option.

The objective should be to appoint the contractor that offers the best overall value and is most likely to deliver a successful outcome.

Section 20 Consultation Requirements

Where qualifying works exceed the statutory consultation thresholds, landlords and management companies may be required to comply with the consultation requirements set out under Section 20 of the Landlord and Tenant Act 1985.

Failure to follow the correct consultation process can restrict the recoverability of costs from leaseholders.

Professional advice should be sought where major works are being considered.

The Importance of a Clear Scope of Works

Many disputes arise because contractors are pricing different things.

Before obtaining quotations, it is important that contractors are pricing against a clear and consistent scope of works.

A well-prepared specification helps:

Ensure quotations can be fairly compared
Reduce misunderstandings
Improve project planning
Reduce variations and unexpected costs

For larger projects, specifications are often prepared by surveyors, engineers or specialist consultants.

Contract Management Does Not End at Appointment

Appointing a contractor is only the beginning.

Effective contract management helps ensure that works are completed safely, on time and to the required standard.

This may include:

Regular site inspections
Progress meetings
Monitoring health and safety compliance
Reviewing programme milestones
Managing variations
Quality inspections
Resident communications

Ongoing oversight is often just as important as the procurement process itself.

Payment Controls and Retentions

Good contract management also involves controlling payments.

Payments are often linked to:

Agreed milestones
Interim valuations
Completed works
Practical completion

For larger projects, a retention may be held until defects have been rectified and the works have been fully completed.

This helps protect the interests of the client and leaseholders.

Common Misconceptions

"The Cheapest Quote Is Always the Best Option"

Not necessarily.

The cheapest contractor may not provide the best value, quality or reliability.

A significantly lower quotation can sometimes indicate omissions, misunderstandings or unrealistic pricing.

"Once the Contractor Is Appointed, the Job Is Done"

Not at all.

Successful projects require ongoing management, communication and oversight.

"Accreditation Guarantees Good Workmanship"

Not necessarily.

Accreditations are important, but they do not replace proper supervision, quality control and contract management.

How Archery Estates Can Help

At Archery Estates, we regularly coordinate contractor procurement and project delivery on behalf of Freeholders, RTM Companies and Resident Management Companies.

We assist with:

Contractor due diligence
Competitive tendering
Section 20 consultations
Major works procurement
Insurance-funded projects
Contract administration
Resident communications
Project monitoring and reporting

Our aim is to ensure that works are procured transparently, delivered professionally and provide value for money for leaseholders.

Need Advice?

If your development is planning maintenance works, major works or an insurance claim project and you would like guidance on contractor procurement or project management, contact Archery Estates for practical advice and support.