Service Charges (Consultation Requirements) (England) Regulations 2003

What it does

These Regulations set out the procedure behind section 20 of the Landlord and Tenant Act 1985. Wales has equivalent regulations (SI 2004/684).

The main procedures

• Schedule 4, Part 2, qualifying works (no long-term agreement): a notice of intention, a 30-day period for observations and contractor nominations, at least two estimates (one from an unconnected contractor), a statement of estimates with a further 30-day observation period, and a notice of reasons if the contract is not given to a nominated contractor or the lowest estimate.
• Schedule 1, qualifying long-term agreements: a similar two-stage process for agreements over 12 months.
• Schedule 3, works under an existing long-term agreement: a shorter, single-stage process.
• Other schedules cover public procurement cases.

Why it matters

If you skip a step, recovery is capped at £250 per flat for the works (or £100 per flat per year for an agreement) unless the tribunal grants dispensation. The Supreme Court in Daejan v Benson (2013) said the tribunal should focus on whether leaseholders were actually prejudiced.

Status

In force in England.