Major works

Major works are large, 'one-off' projects. They aim to extend and improve your building's life. They include replacing old windows or a broken lift. Major works are payable under the terms of your lease. Major works are also a service charge, but one that is subject to a more rigorous form of consultation.

The way we have to consult you is set out in law, and is referred to as Section 20 Consultation (opens new window).

Section 20 of the Landlord and Tenant Act 1985 (amended by the Commonhold and Leasehold Reform Act 2002) says we must consult you if we wish to recharge you over £250 for major works to your building.

How we calculate your contribution

To find your share of the repairs, we divide the total cost by the number of flats in your block. If you live in a block of 100 flats and a new lift costs £100,000, your share is £1,000.

Documentation you will receive

Before we begin any work on your block, you will receive two, and sometimes three, formal notices.

Notice of intention

This notice sets out:

• the works we intend to carry out to your block
• why we need to do them

The notice asks for your feedback on the proposed works. It also invites you to nominate a contractor for the tendering process.

Gateshead Council must follow several rules when choosing contractors. Contractors must be registered on Gateshead Council's Construction DPS to be invited to tender for works contracts. They must be in the relevant categories of work.

We will review any names from leaseholders or a tenants' association before seeking tenders under the Construction DPS. We will then contact them to encourage an application to the Construction DPS to be invited to tender for the works.

Notice of proposal

After we have had a chance to consider your feedback, usually 30 days, we tender the works. You will receive a notice of proposal. It will list the tenders we received and your estimated charge. You will again be asked for your feedback before we award the contract.

Award of contract

If we use the lowest-cost tender, we will let the contract immediately. If we don't use the lowest-cost tender, we will write to you explaining why within 21 days.

If the major works are under a qualifying long-term agreement (QLTA), we will only serve you a notice of intention. You will not receive a notice of proposal.

After the work is complete, we will calculate its cost. Then we will issue you an invoice, the same as with your service charge.

Qualifying long-term agreement

A qualifying long-term agreement (QLTA) is a contract with a contractor for goods or services. It lasts over 12 months and costs leaseholders at least £100 per year. QLTAs could include major works, like fitting a door-entry system, or services, like buildings insurance. We enter into QLTAs to try and get a better deal on our major repair costs.

A QLTA with a contractor means that one contractor will do specific work for us at a set price for the contract's duration. For example, we could have a QLTA with a contractor to fit all our door-entry systems for the next three years.

If the major works are listed on your landlord's offer notice (section 125 notice)

If we do works within the first five years of your lease, your charge is limited to the amount on your s125 notice. This will also include a inflation allowance. If we do the works on your s125 after five years, you will be recharged the full apportioned sum. This is true even if the amount on your s125 notice is less.

If the major works are not listed on your landlord's offer notice (section 125 notice)

If we do works within the first five years of your lease, it is an un-itemised repair if not on your s125 notice. It will be included in your annual block repair estimate limit, plus inflation.

If you've been charged the maximum for your block repairs, you won't be charged extra for the major works.

Methods of payment and assistance

Major works charges are payable within 21 days of receipt of the invoice. If not, we offer various major works payment options (Excel doc, 13 KB)(opens new window) and help.

Tell us if you are finding it difficult to pay your bill. We are here to give you the help and support you need to manage your payments. We can help you choose the best of our payment methods. We'll also check that you are getting all your entitled benefits. We will work with you to help you get your service charge back on track. We can also put you in touch with agencies that give free specialist advice.