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Final accounts for major woks

Once the contract has been completed fully, including the defects liability period during which the contractor can be asked to put right any sub-standard work (at no extra cost), the accounts are audited.

Once this is done, the TMO will calculate the charges again for each leaseholder on the basis of those costs actually incurred, and will notify each leaseholder of the differences between estimated and actual costs and recharges.

In the cases of any leases where limits have been incurred due to the initial period, when the final account is calculated, if the share still exceeds the limit the limit will remain (plus management fee). However, these limited charges may also be subject to an inflationary adjustment that may slightly increase or decrease the charge.

Leaseholders will also be notified that they have the right to inspect the invoices relating to all major works final accounts, just as they have for day-to-day service charge final accounts.

These notes are for guidance purposes only, as the charges are calculated on an individual basis for each leaseholder and for each contract, but they do provide a generalised guide to major works calculations.

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