PEVEREL SCOTLAND

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SECTION 1: INVITATION TO TENDER
1.0 Instructions to Tenderers
1.0.1 Procurement Timetable
The timetable for the procurement process is detailed below:

Task: Target date:
ITT issued 9th April 2013
ITT submission deadline 16th April 2013
Visits to 'The Development' 11th April 2013 - 14th April 2013
ITT submission review 16th April 2013 - 22nd April 2013
Contract awarded 24th April 2013
Contract commences 28th April 2013

1.0.2 Tender Return Date
The date for the return of tenders will be no later than 15:00hrs on 16th April 2013.

1.0.3 Delivery of Tenders
Completed tender documents should be returned electronically by email to southgate_tender@hotmail.co.uk

An electronic receipt of delivery will be provided.

1.0.4 Queries
No tenderer should approach the outgoing agent directly. All queries should be addressed in writing by email to
southgate_tender@hotmail.co.uk

1.0.5 Development Inspection
Appointments to visit Southgate should be made in writing by emailing the Southgate Owners' Steering Group at
southgate_tender@hotmail.co.uk

1.0.6 ITT Submission Caveats
Please note, incomplete or late submissions cannot be accepted.

Agents participating in this ITT will only have their submissions considered if they can answer YES to Yes No SOSG
following essential criteria: use only
1. Your organisation has a Property Factors (Scotland) Act 2011 registration number. Yes
2. Your organisation has a minimum of five years demonstrable experience managing new-build Yes
residential apartments.
3. Your organisation will act with sole responsibility as agent for 'The Development'. Yes

*No joint-venture or collaborative working between the appointed agent and another managing
agent/property factoring company will be accepted. If you cannot answer YES to this question
your organisation will be instantly disqualified from the ITT process. If subsequently, after
contract award, your organisation breaches the above, termination of contract will be made.

1.0.7 Confidentiality Statement
Tendering agents agree they shall not and shall ensure their employees and agents will not disclose, divulge, dispose of, or part
with possession, custody or control of any documents, material or other information (in whatever form) prepared, supplied or
obtained for, or pursuant to, this ITT exercise.

I, on behalf of the submitting agent, confirm I have read, understood and agree to be bound by the above statements.
Signed: Position with company: Business Development
Manager

Print Name: Brian Douglas Date: 16th April 2013

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1.2 Introduction
The owners at Southgate seek the appointment of new Managing Agents. This Invitation to Tender and supporting documents
describe 'The Development', explains the services that are required of the appointed agent (for guidance only) and invites
submissions of tenders and supporting documents.

The selection of a new agent will be made on the basis of price, quality of submission and the quality of references.

The Southgate Owners' Steering Group may wish to visit the offices of short listed agents and a selection of developments under
their management, prior to making a final decision. The appointment will be made on the basis of price and quality combined: price
will not be the sole criteria.

This approach is being taken as the approximate annual running costs for 'The Development' are understood, and therefore, what
is of importance to the co-proprietors, is that you can demonstrate you have the services and quality systems in place to manage
our investments and assets.

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SECTION 2: 'THE DEVELOPMENT'
2.0 Background and Overview
The ITT process for the appointment of a new managing agent is being conducted by a group of volunteer owners who formed a
Steering Group to facilitate this process at an owners' meeting held on 4th March 2013.

The expected date of appointment for the new managing agent will be no later than 28th April 2013 and will be for an initial 12
month term. The contract will continue thereafter unless terminated by either party or upon service of notice. The Notice Period to
be given by either party will be three months in writing.

A copy of the Property Specific Schedule of Services utilised by Redpath Bruce in their management of Southgate has been
provided for your reference - Appendix A (1) & (2).

Presently 'The Development's' day-to-day finances (budgets and actual) are accounted in arrears on actual expenditure.

A contingency maintenance fund is in place, however, at the time of issuing of this ITT, bank statements from Redpath Bruce are
still outstanding for both Phases of 'The Development'.

Within Phase 1 of 'The Development' there are eight properties in arrears and two within Phase 2. All ten have NOPLs registered
against them.

Development Phase Number: Address: Amount of arrears:
1 Flat 3/5, 1 Barrland Court £767.52
1 Flat 3/2, 3 Barrland Court £1152.17
1 Main Door, 92 Barrland Street £1432.81
1 Flat 3/3, 84 Barrland Street £1116.55

The debt collection agency appointed by Redpath Bruce, with responsibility for pursuing these outstanding debts, is Stirling Park.

At the time of issuing this ITT confirmed details on outstanding electricity due for Phase 1 has not been forthcoming. Redpath Bruce
have informed us that the communal electricity is provided by EDF Energy and despite lengthy correspondence invoices have yet
to be remitted. Redpath Bruce have formally complained to EDF and, most recently, to the electricity regulator OFGEM. A copy of
this correspondence is provided - Appendix B.

Currently Phase 1 has an ongoing NHBC claim, which was raised on behalf of residents, for defects within the communal
garden/patio/decking area which have resulted in water ingress to the street level car park. Phase 2 has similar issues but it is
unclear whether an NHBC resolution has been raised for this defect and clarification will be sought from the outgoing agents. A
copy of Phase 1's resolution is provided - Appendix C.

Despite being accessible only by secure door entry systems and remote controlled roller car park doors there have, on occassion,
been house breakings within 'The Development'.

For a period vandalism in the communal stairwells was also an issue but this appears to have been eradicated in more recent
times. Car crime continues to be a major concern, particularly within the 'secure' street level car parks for both phases.

More detailed reports on crime statistics for the area and 'The Development' can be obtained by contacting the local police (Gorbals
Office).

The following documentation has been requested from the outgoing agents and we have been informed it will be provided in 'due
course'. Construction plans of the buildings (as built) including Health & Safety files and O&M documentation including, but not
limited to, the following:

 electrical diagrams and tests;
 plumbing/piping and instrumentation system diagrams and written schematics etc;
 paint colour codes;
 exterior cladding suppliers;

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 exterior roofing suppliers;
 service history,, including certificates for lifts (including insurance inspections), fire alarm system (including smoke vent
system etc);
 water pumps (including service records); and
 correspondence in relation to building leaks and any roof repair work (including certificates/guarantees).

The outgoing agent has provided, to date, the following information for reference:

 Redpath Bruce's PI Schedule - Appendix D
 Summary of Insurance Cover (Phase 1) - Appendix E
 Southgate Valuation (Phase 1) - Appendix F
 Southgate Valuation (Phase 2) - Appendix G
 Claims Experience 2007-2008 (Phase 1) - Appendix H
 Claims Experience 2008-2009 (Phase 1) - Appendix I
 Claims Experience 2009-2010 (Phase 1) - Appendix J
 Claims Experience 2010-2011 (Phase 1) - Appendix K
 Claims Experience 2011-2012 (Phase 1) - Appendix L
 Claims Experience 2007-2012 (Phase 2) - Appendix M

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2.2 Ownership
2.2.1 Full name and address of developer is: Westpoint Homes
3 Arthur Street
Glasgow
G76 8BQ

2.2.2 Number of actual owners: 157 in total.
83 (Phase 1) and 74 (Phase 2).

2.2.3 Number of units for sale: Not known.

2.2.4 Number of owner occupiers: Not known.

2.2.5 Number of re-possessed properties at present: Redpath Bruce stated they have not been made aware of any pending
repossessions.

2.2.6 Owner names and addresses: Redpath Bruce will make this information to the newly appointed
Managing Agent upon request.

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2.3 Composition of 'The Development'
'The Development' at Southgate is comprised of two individual properties divided by an access road, namely Barrland Court.

Phase 1 - The Henry Ford Building is the larger of the two residential dwellings and is made up of 83 units in total. The property is
accessed by four main door entrances giving access to each of the individual four cores of the building. The only exception to this is
the property sited at 92 Barrland Street which has its own front door access. All four cores of the property provide access to the
street level car park.

Phase 2 - The Sir William Lyons Building is made up of 74 units in total. The property is accessed by three main door entrances
giving access to each of the individual three cores of the building. All three cores of the property provide access to the street level
car park.

2.3.1 Full address: PHASE 1 - THE HENRY FORD BUILDING

84 Barrland Street
Glasgow
G41 1RJ

90 Barrland Street
Glasgow
G41 1RJ

92 Barrland Street
Glasgow
G41 1RJ

1 Barrland Court
Glasgow
G41 1RN

3 Barrland Court
Glasgow
G41 1RN

PHASE 2 - THE SIR WILLIAM LYONS BUILDING

80 Barrland Street
Glasgow
G41 1AG

82 Barrland Street
Glasgow
G41 1AJ

2 Barrland Court
Glasgow
G41 1AL

2.3.2 Age of property and basic construction: 6 years.

2.3.3 Number and size of units including proportion Phase 1: 84 units.
details for charging purposes: Phase 2: 74 units.

The Deed of Conditions makes provisions for the breakdown of share
allocation. Please refer to the Invitation to Tender Supporting

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Documents pack - Appendix N: Deed of Conditions.

2.3.4 Number of adjacent blocks: Phases 1 and 2 are adjacent to each other within the boundaries of 'The
Development'. Originally 'The Development' was to be constructed of
five phases however the developers, Westpoint Homes, subsequently
decided to register Phases 3 and 4 under separate deeds and refer to
these as 'Utopia and Utopia 2' at Southgate.

The land allocated for the development of Phase 5 is now up for sale by
the developer.

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2.4 Maintenance Contracts
Presently Redpath Bruce have in place a number of ongoing maintenance contracts for a variety of services. A list of these services
and the appointed contractors can be found below. All contractors are the same for both phases of 'The Development' with the
exception of Grounds Maintenance.

1. Caretaking and cleaning: Request Clean

2. Window cleaning: Palmer & Co.

3. Lift maintenance contract: Northern Lifts

4. Smoke ventilation and dry risers: Wm Brown & Son Ltd

5. Door entry systems: Walker Security Systems

6. Electrician: Walker Security Systems

7. Garage doors: Bid Group T/A Lowland Ensor

8. Water pumps: Richie McKenzie

9. Water tank hygiene: Chemtech

10. Roof anchor testing / roof work: APS Safety Systems Ltd

11. Grounds Maintenance Phase 1: AW Landscapes Phase 2: Westpoint Homes

Note: It is expected that the new agent will undertake a comprehensive review of all service contracts within the first three months
of appointment and will submit a report summarising its findings with recommendations for change (if any) by no later than month
six of their initial period of management.

SOSG
use only
Please advise whether you maintain a list of approved contractors. If so, state what vetting procedures you have
adopted before they are approved by you and at what frequency and how the list is reviewed to ensure it is up-
to-date. If you do not maintain such as list, state whether you subscribe to any national databases e.g.
Construction Line.
Agent's comments: We do maintain a list of contractors that we use. Before contractors are added to our list they
must send us all relevant paper work and what developments they are working on so we can check out their
work and get references.

Please state whether there is any interested party relationship between your company, its partners/directors and
the contractors you employ. If so, state the nature of that relationship and what steps you undertake to avoid any
conflict of interest, whether actual or perceived.
Agent's comments: There are no interested parties between our contractors and our employees working for
Peverel Scotland.

Do you charge a fee for contractor selection and/or a percentage of their charges?
Agent's comments: We do not charge a fee for contactor selection

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SECTION 3: ABOUT YOUR ORGANISATION
3.1 Company Details
INFORMATION REQUESTED RESPONSE DETAILS

Company name: Peverel Scotland Limited

Correspondence address: 183, St Vincent Street, Glasgow, G2 5QD

Contact person responsible for ITT: Brian Douglas

Position: Business Development Manager

Telephone number(s): Direct Line: 0141 243 5393 Mobile: 07968 708 167

Email address: Brian.douglas@peverel.co.uk

Company status (e.g. Ltd, Partnership, LLP etc): Limited

Company registered head office address (if applicable): Queensway House, 11, Queensway, New Milton, Hampshire
BH25 5NR

Company registration number (if applicable): 3829468

VAT registration number (if applicable): 755-0122-59

Property Factors (Scotland) Act 2011 Registration Number: PF000095

Date established and/or incorporated: 1989

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3.2 Professional and Trade Memberships
Please provide details of any professional or trade bodies to which your organisation belongs.

Profesional/trade body name: Membership number:

Property Managers Association Scotland

Factors Act PF000095

Homes for Scotland

Institute of Residential Property Managers

***PLEASE FILL OUT SUPPLEMENTARY ITT DOCUMENT PACK TO COMPLETE THIS SECTION***

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3.3 Experience
Please read over the following questions and tick either YES or NO in response to each question and provide a brief explanation to
support your answer.

If you feel there are questions omitted that would benefit your proposal please use the additional information field at the end of this
section.

Insurances: Yes No SOSG
Please provide an up to date copy of your insurance schedules for professional indemnity, public and use only
employer’s liability and all risks insurance cover.
Agent's comments: Please see attached Yes

Does your company currently, or have you previously, worked with owner occupiers and tenants in Yes
multi-resident apartments?
Agent's comments: Please see tender pack

Does your company have a proven record in arrears reduction and recovery of bad debt? Yes
Agent's comments: Please see tender pack

Does your company have experience of managing developments/properties where the incumbent Yes
managing agent has served termination notices or abandoned their duties?
Agent's comments:

Does your company have experience of dealing with over occupied properties in-line with the current Yes
and applicable HMO legislation?
Agent's comments: We have good relationships with local authorities and councillors and have been
able to remedy these problems.

Does your company have experience in tackling and reducing/eradicating vandalism, criminal activity Yes
and anti-social behaviour?
Agent's comments: Meeting with various establishments for recognising on how these problems can be
resolved. We also build relationships with the police to make sure they are aware of the problems and
acting proactive for the development

Does your company have experience with cash flow management and sales ledger services? Yes
Agent's comments: Ensuring a good cash flow is fundamental to ensuring that the buildings are able to
be managed properly

Does your company have experience in developing and achieving/meeting KPIs and SLAs? Yes
Agent's comments:

Does your company have experience with asset management strategies and PPM development? Yes
Agent's comments: We as a company look at all ownership classes and investment models.

Does your company have experience in legal matters e.g. obtaining Counsel's advice; Court Yes
representation; working effectively with solicitors; or possess any in-house legal skills?
Agent's comments: We have our own in-house legal department.

Does your company have a successful record in managing and reducing legal disputes? Yes
Agent's comments:

Does your company have experience with contract law for the management of service contracts? Yes
Agent's comments:

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Additional Information:
Agent's comments:

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3.4 Your Portfolio
How many residential developments and units therein are currently under your company's management?
Agent's comments: Retirement Developments 67 – 3,323 Units Open Market Developments 128 – 7,113 Units

How many of the above are in the Glasgow area?
Agent's comments: Retirement Developments 17 – 819 Units Open Market Developments 24 – 1,579 Units

Please provide a profile of your current portfolio indicating the geographic spread, property types and client types and provide
examples of any managements you consider to be broadly comparable to Southgate.
Agent's comments: We look after various developments all over Scotland from the Borders to Brora in the Highlands. These
developments vary in size from 8 Units to 524 Units. Primarily we look after new builds similar in style to Southgate.

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3.5 References
Please supply references for a minimum of two and maximum of three developments you currently manage. These should be
similar to the Southgate development.

Referee 1 Details:

Development address: Riverside Park, Netherlee, Glasgow, G44 3PG

Contact name (Chairman/Secretary/Owner/Developer): Mr Maciver ( Chairman )

Telephone number: 0141 637 1655

Email address: Emily.maciver@btinternet.com

Referee 2

Development address: Admirals Gate, Minerva Way, Finnieston, Glasgow, G3 8AU

Contact name (Chairman/Secretary/Owner/Developer): Gavin Carre ( Chairman )

Telephone number: 07789693949

Email address: resident.admiral@gmail.com

Referee 3

Development address: Adam Wood Court, Troon, KA10 6BP

Contact name (Chairman/Secretary/Owner/Developer): Mr Angus Kean ( Chairman )

Telephone number: 01292 315 036

Email address: anguskean@sky.com

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SECTION 4: SERVICE SPECIFICATION
4.1 Services Included Within the Management Fee
The agent will be required to deliver a number of services on behalf of Southgate owners. We have outlined below a list of possible
services required which you should allow for in calculation of your management fee.

Please read over the following and tick either YES or NO in response to each question so we can establish what would be included
in your standard annual management fee for each unit.

We recognise this list is not complete and therefore would welcome input from your company regarding other services you may
provide which would be covered by the annual property management fee or indeed what additional costs these may incur (based
on each unit as a shared cost or as an individual cost).

Any services not included in your management fee should be accounted for in Section 8: Pricing of this ITT.

FINANCIAL PROVISIONS Included SOSG
Will you, in the course of your duties, as our appointed agent... Yes No use only
Prepare a reserve maintenance plan relating to cyclical maintenance;
Agent's comments: We would put a 10 year plan in place please see attachment on our tender Yes
document.

Provide annual common service charge budget estimation and funds administration;
Agent's comments: This would be done at the end of every financial year with the Residents Yes
Association or committee members

Ensure Weekly/monthly payment of wages/other invoices due for the operation of 'The Development':
Agent's comments: Yes

Regularly bill and collect common and block service charges, including monthly management fees, insurance premiums due and all
other sums owed by co-proprietors;

Provide periodic budget reports for income and expenditure and cash flow (3 monthly/quarterly) and making this information
available to all co-properietors;

Draft annual service charge accounts, provide all necessary information to and liaise with auditors for annual preparation of
financial accounts and circulate to all co-proprietors;

Provide arrears collection and debt recovery management;
Agent's comments: This service is included in you management fee. Yes

Provide advice on and management of block and common insurance and any other appropriate cover(s);

Provide a bank account in the name of the co-proprietors;
Agent's comments: Please see tender pack Yes

Manage all maintenance and other service contracts and undertake an annual review of all such contracts to ensure best value is
maintained;

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Preparation of replacement cost assessments for insurance purposes;

CONTRACT MANAGEMENT Included SOSG
Carry out periodic inspections to check condition and deal with any minor repairs to buildings, common
parts, plant and grounds, including where necessary liaising with local authorities, organisations and
their agents;
Agent's comments: Please see tender pack Yes

Undertake the roles of Contract Administrator and/or Planning Supervisor in the procurement and administration of major works
contracts, the use of specialist professionals/contractors and any pre-approved SLA;

Manage the day-to-day repairs and maintenance, promptly and efficiently and in line with 'The Developments' Deed of Conditions;

DEED OF CONDITION Included SOSG
Prepare statutory notices and organisation of co-proprietor consultation in line with the Deed of
Conditions;
Agent's comments: We are not a statutory authority therefore not able to prepare these notices but we Yes
would always use the Deed of Conditions as governance of managing the development

Ensure compliance with the Deed of Conditions and any other management policy developed and agreed with co-proprietors or
any Owner's Association formed;

Conduct yourself and carry out all duties/responsibilities including, but not limited to, the provision of suitable insurance cover in
accordance with the Deed of Conditions;

LEGAL STRATEGY AND CONTROL Included SOSG
Arrange periodic Health & Safety checks to ensure 'The Development' complies with all statutory
requirements, including Health & Safety legislation, and carry out all duties required as the responsible
person under such statutory obligations;
Agent's comments: We carry out a Health & Safety check annually for all our developments. Peverel Yes
Scotland has its own in-house Health & Safety department for advice on best practice

Prepare and provide evidence for court proceedings against individual owners or suppliers or services to 'The Development';

Prepare legal documentation, responding to and dealing with solicitors, buyers and co-proprietors for pre-sale enquiries and
property sales;
Agent's comments: We have a property transfer department who deals with for all pre-sales enquries Yes
and property sales.

Prepare and manage insurance claims on behalf of all co-proprietors;
Agent's comments: We do this for communal claims but owner of the property can deal with the Yes
insurance broker directly

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Formulate a safe and effective property strategy within current legislation and in accordance with current best practice;

COMMUNICATIONS Included SOSG
Deal reasonably with all enquiries in a timely manner from all co-proprietors and, where applicable,
advise all parties of their respective obligations and ensure compliance therewith;
Agent's comments: At Peverel Scotland we take our customer care very seriously and have produced a Yes
customer charter which is reviewed and communicated on a regular basis

Organise and attend general meetings/AGM/EGM of co-proprietors and be responsible for producing minutes;

Provide assistance on a suggested management policy if the co-proprietors decide to form an Owner's Association for
implementation across the development;

Provide status reports on financial, maintenance and legal matters to coincide with the co-proprietors/Owner's Association
meetings;

Report on significant owner communications;
Agent's comments: We report regularly at residents meeting on all matters from cash flow, debt, Yes
maintenance and progress with more social matters bad tenants or security concerns.

Document management procedures and issues and provide co-proprietor access to these;
Agent's comments: Please see attached Welcome Pack that would be issued to all owners. Yes

Produce a periodic newsletter/other circulars for all co-proprietors;
Agent's comments: Peverel Scotland do produce a general information news letter however if Yes
requested by a Residents Association or committee we can also produce a news letter specific for your
development

Keep all co-proprietors/Owner's Association informed on status of any agreed actions being undertaken on their behalf;

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SECTION 5: METHOD STATEMENTS
5.1 Method Statements and Supporting Documentation
Tenderers are requested to submit the following method statements and, where indicated, provide supporting documents as part of
their submissions. Tenderers should note carefully that due regard will be taken of the quality of these method statements when
selecting a managing agent.

In your submissions, please utilise, for ease of reference, the numbering indicated.

Method Statements and Supporting Documents Included SOSG
Yes No use only
5.1.1 Insurances:
Please provide an up to date copy of your insurance schedules for professional indemnity,
public and employer’s liability and all risks insurance cover.

5.1.2 Health and Safety:
Please provide a copy of your Health and Safety Policy. Please state whether any proceedings
have been raised against your company for breaches of the Health and Safety Acts. If so,
provide details.
Agent's comments: We have many Health & Safety policies in place as you will appreciate we Yes
work with many contractors and with employees working in an office environment and area
managers looking after different aspects of a development. As explained before we do have an
in-house Health & Safety department to ensure compliance and best practice.

5.1.3 Equal Opportunities:
Please provide a copy of your Equal Opportunities Policy.
Please state whether any proceedings have been raised against your company for breaches of
the Equal Opportunities Acts. If so, provide details.

5.1.4 Quality Assurance & Standards:
Please state what, if any, registration scheme you subscribe to. Please provide a copy of your
Quality Assurance Statement and Quality Assurance Policy and Manual, if applicable. Please
state what quality standards, if any, have been achieved such as ISO, IIP, or any other such
accreditations.
Agent's comments: We have all the quality agreements in place with our statement of services Yes
and have been successfully re-assessed for our IIP accreditation

5.1.5 Data Protection:
In light of the fact that, by virtue of the nature of its business, an agent holds certain personal
and sensitive information both on individuals and companies, explain how your company
complies with Data Protection legislation and the Freedom of Information Act.
Agent's comments: We have an in-house legal team which offers advice and good practice Yes
guidelines.

5.1.6 Complaints Policy and Procedure:
Please provide a copy of your company’s customers’ complaints procedure. Explain how the
policy’s existence is brought to the attention of the co-proprietors whose properties you
manage.
Agent's comments: Please see attached. This information is also contained in the welcome Yes
pack we also make public all complaints in accordance with our charter

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SECTION 6: TECHNICAL AND QUALITY QUESTIONS
6.1 Technical and Quality Questions
Tenderers are requested to complete the following technical and quality questions and, where indicated, provide supporting
documents as part of their submissions.

In your submissions, please utilise, for ease of reference, the numbering indicated.

Technical & Quality Questions Included SOSG
Yes No use only
6.1.1 Staff Resources:
Please state the names and roles of the person(s) within your company who will be appointed
to deliver the services at Southgate.
Agent's comments: Richard Orr, Kirsty West, Steven Maxwell, Diane Bateman Please see Yes
tender pack with the profile of each team member.

Property Management System:
State the Property Management System and/or Accounting Management System that you
would propose using. Please provide information on your corporate website and in particular
the extent to which an interactive facility is provided for residents to access information and pay
invoices on line. If no such interaction is provided, state whether you have proposals to
develop such a website and if so the timescale for such a provision.
Agent's comments: Property management system we use is Qube for internal use; our web site Yes
is www.peverelscotland.co.uk We also have Your Property Online which would be set up for
your specific development. Payments and all account information can be viewed, as well as
text or e-mail alerts and repair updates etc. You can view a demo on
https://myaccount.peverelscotland.co.uk/OwnersTenants/demo.aspx

Service Charge Accounting:
Please pay particular attention to the 'arrears management' element of this question (b) as this
is of extreme importance to the co-proprietors.

Please explain your fee structure and provide a statement of your service charge accounting
functions, describing, as a minimum:

(a) preparation of the estimate;
(b) collection of on account and balancing service charges and surpluses, including arrears
management;
(c) banking arrangements and allocation of interest gained;
(d) details of how your clients’ money is protected from fraudulent activities: please state
whether you subscribe to any clients monies protection schemes;
(e) payment methods available to co-proprietors;
(f) payment of suppliers;
(g) preparation of draft accounts;
(h) liaison with auditors and publication of final accounts

Please provide examples of reports generated by your property management system to
support the above.
Agent's comments:

A) Our service charge is prepared on the basis of anticipated expenditure within a budget year,
this takes into consideration fixed contract costs, planned maintenance items.

B) The annual budget is reconciled at the year end and any surplus or deficit will be accounted
to residents at this time. Arrears are managed by our Credit Control procedures please see our
tender pack.

C & D) All residents’ funds are held in an interest bearing bank account in the name of the
development. Any interest gained would be to the benefit to the co- proprietors. Your monies
are protected as Peverel Scotland are only the trustees of all development bank accounts.

E) Residents have the option to pay accounts by Bank transfer, cheque, credit or debit card,

P a g e | 21

cash and online via Your Property Online. Residents can also make payment of their service
charge by equal monthly payments by Direct Debit.

F) Contractors are paid in accordance with their own payment terms though where savings are
achievable through payment by Direct Debit such as utilities then these are utilised to ensure
best value for customers. Residents Associations are able to meet with us to review the year
end expenditure and during preparation of the annual budget.

G & H) All accounts can be independently audited if requested by the Residents Association.

General Management:
Please provide an overview of how you would propose undertaking your general management
functions to include, but not necessarily limited to:

(a) frequency and purpose of site inspections, including recording of same;
(b) management of on-site staff;
(c) management of services;
(d) communication with co-proprietors and residents;
(e) breaches of Deeds of Conditions;
(f) record keeping;
(g) dealing with out of hours emergencies.

Please provide examples of any newsletters you may have produced and any other documents
you feel would be useful in demonstrating your management methodology.

Agent's comments:

A) The routine management of the development would be specific to Southgate, this would
include visits every 6 weeks these would be recorded on our in-house inspection form and are
available to the Residents Association on request.

B) We have a team who will be actively involved at differing levels in the management of the
development to ensure all aspects are properly managed. Day to day enquiries such as
ensuring Deed conditions are met will be handled by your Estates Co-ordinator, Kirsty West.
Management of costs, contractor and proactive management of the building will be undertaken
by the Area Manager, Richard Orr. Areas of Credit Control and Accounts will be dealt with by
the respective departments. Richard has overall control of the service provision and this
enables matters to be escalated and dealt with appropriately.

C) Site inspections review both regular works and repair works carried out by contractors. We
also undertake an annual audit of the building which is produced in line with our customer
charter. And an annual Health and Safety review.

D) Communication with all residents is done in various ways E.G. Your Property Online,
newsletters, notice boards.

E) Each breach of the Deed of Conditions would be looked at and handled on its own merit.

F) All documents are kept electronically including your site inspections, certificates and
residents correspondence, with telephone calls being logged that require subsequent action.

G) We provide a 24-hour Careline service which allows all emergencies to be dealt with by
elected contractors to ensure costs are kept to agreed margins and takes away the worry for
residents in dealing with emergencies or raising insurance claims.

Handover Process:
In light of the extremely tight timescale involved with the appointment of a new agent please
indicate your handover process in the transfer of the management from the outgoing agent,
listing the information that will be required.

Agent's comments: We would be in-touch with the outgoing managing agent for all relevant
information relating to the development e.g. Names and address of owners, any floats to be
handed over.

Contract:
Please provide a copy of any standard contract you use for residential developments.
Agent's comments: Our standard contract is presently under review with our legal team to
ensure full compliance with Property Factors (Scotland) Act 2011.

P a g e | 22

Innovation:
Tenderers are invited to submit proposals and suggestions for any innovation you would bring
to the management of 'The Development' or changes to buildings etc. that would improve
efficiency, security etc.
Agent's comments: The building requires specific management of its large risks in the first
instance, this includes a review of its insurance terms and excess levels to manage its claims
experience and future premium levels; completion of the NHBC claims and management of
social problems like the HMO’s causing problems for example.

A full review of costs is already underway and we are aware of cost savings available through
our procurement channels, even in keeping some incumbent contractors but a full review of
operations won’t be completed until appointment.

P a g e | 23

SECTION 7: PRICING
7.1 Pricing Document
Completion of the tabular, Microsoft Excel, pricing document supplied is required.

The cost summary sheet has been provided so the agent can present the various cost elements, for the services being supplied on
a consistent basis, for assessment purposes.

Each of the tables should be completed as these costs will be taken into account when selecting the new agent for Southgate.

If you are unclear with any of the sections please do not hesitate to contact us for clarification - do not make assumptions.

These costs should also reflect your submissions in Section 4 of the ITT document.

For the purposes of this exercise all costs should be shown excluding VAT.

P a g e | 24

SECTION 8: CONTRACTUAL OBLIGATIONS
Outlined below are statements which we would like to form the basis of the contract in procuring the services of a property manager
as the agent for the Southgate Development - (Phases 1 & 2). If you have standard forms of contract which you would like to
present, then we will consider these also as part of your ITT submission.

Contractual Duties

 To agree, in writing, the terms of engagement to manage 'The Development', in as detailed a form as is reasonably
possible, and to make clear the fee structure and the categories of other services for which additional fees may be
charged.

 To manage 'The Development' in compliance with all the current applicable legislation (Property Factors (Scotland) Act
2011 asp 8, including the Code of Conduct), terms of the Deed of Conditions, contract documentation and good business
practice.

 To provide as cost-effective a service as is reasonably possible within the constraints of prudent and planned maintenance
and to ensure contractors who provide services have been assessed for competence and hold appropriate insurance
before operating on 'The Development'. Where contracted to do so, that all final work is checked and signed off before
funds are released.

 On request, to provide guidance to the Client as to the insurance requirements under the Deed of Conditions, and where
required, to supply an appropriate level of insurance cover, based on an independent valuation, sufficient to meet the co-
proprietors obligations.

Financial Duties

 To ensure that co-proprietors money is kept separate from agent accounts at all times and that 'The Development'
accounts can be individually identified.

 Funds in any one client account will not be used to finance another client’s property.

 Funds shall be held in a recognised bank or building society in a clearly designated client account. The agent will provide
a statement from the service provider, who must be regulated by the FSA, to confirm their compliance with these
requirements.

 To maintain a current insurance policy adequately indemnifying the agent against proven professional negligence claims.

 To ensure that co-proprietors' money is properly and regularly accounted for and that any funds or monies required, for
specific future works, are placed on deposit in an appropriate interest-bearing account to earn interest to the credit of that
account.

 To keep detailed records of all transactions relating to 'The Development' with all expenditure made from 'The
Development' account suitably authorised.

 To ensure that annual or other required periodic accounting is carried out promptly, ensuring adequate supporting
information is provided or available for inspection.

 To ensure all necessary information is made available for the audit of any end-of-period accounts so that the audit can be
carried out with the minimum of delay.

 Disclose all financial gains from commission received from Insurance and Contractors - any gains must benefit the co-
proprietors and NOT the agent.

Standards of Service

 To extend courteous and professional services to owners, tenants and members of the public, as far as is possible, to
ensure that, in all our dealings, there is no bias and all are treated equally.

 To maintain adequate records of all owners and tenancies and deal expeditiously with enquiries, particularly where
information is required, to assist in a sale.

 To be aware, as far as is reasonably possible, of the terms of the tenancies applicable to the property concerned and the
effect of legislation and any other relevant documentation, and to deal with owners and tenants both in the spirit of the
legal requirements as well as in the letter of the law.

 To ensure procedures are in place to deal with repairs within an appropriate time scale having regard to the urgency of the
matter and the availability of funds.

P a g e | 25

 To actively and regularly consult with the co-proprietors and encourage them to become part of the decision-making
process.

 To discuss and consult with co-proprietors, where major works are contemplated, and to meet to the statutory
requirements.

 To have appropriate regard to views of representative groups of owners’, even where they are not a formally recognised
Owners’/Residents’ Association.

 To manage the premises by enforcing burdens (such as the Deed of Conditions & Title Conditions (Scotland) Act 2003
and Tenements (Scotland) Act 2004 asp 11) for the common good, fairly and without favour where so instructed.

 To disclose in writing to relevant parties any existing conflict of interest, or any circumstances which are likely to give rise
to a conflict of interest (such as The Property Management Company, owning a property on the Clients development, or
acting as a letting agent for properties or providing insurance services).

 To declare any interest in any contractor or business employed to provide services at the property that may be associated
with the Managing Agent.

 To use all reasonable efforts, both in the interests of owners, landlords and tenants, to settle disputes by mediating and
negotiating with all relevant parties.

 To place the fullest emphasis on any matter relating to Health & Safety and environmental legislation, bringing to the
urgent attention of owners/landlords and/or residents any areas of concern.

Deemed Acceptance
Submission of this ITT and supporting documents will be deemed as acceptance of these Terms & Conditions. The ITT documents
and supporting submissions made by the successful agent thereto will form part of the contract documents to be appended to and
signed by the parties to the Form of Agreement.

Signed: Position: Business Development
Manager
th
Print Name: Brian Douglas Date: 16 April 2013

P a g e | 26

SECTION 9 : Declaration
Declaration to be completed by all applicants
i) We (the Agent) have provided all of the information requested as part of this ITT exercise (if not, please provide details in the
'Agent's Comments' section below).

ii) If successful, we (the Agent) will comply fully with the Contractual Obligations outlined in Section 8 (if unable to do so provide
details in the 'Agent's Comments' section below).

iii) We hereby authorise the Southgate Owners' Steering Group to take up references about our organisation from other clients and
from the company's bankers.

Agent's comments: Sorry agree with all except getting in-touch with our company bank as all developments accounts are held in
the development name and we are only trustees if anything was to happen to Peverel Scotland all monies would be safe in the
development bank account.

Signed: Position with company: Business Development
Manager
Print Name: Date: 16th April 2013
Brian Douglas

COST SUMMARY FOR ITT
&
PROPERTY MANAGEMENT SERVICES
AT
Southgate Phase 1
Barrland Street, Glasgow

(ON BEHALF OF THE CO-PROPRIETOR’S)

Mar-13

click here for contents

Contents
Introduction

1 Site Mobilisation

2 Additional Management Charges

3 Other Charges

4 Charges for Sale of a flat

5 Charges for Minor Works

6 Summary of Charges

Introduction Return to contents click here

Completion of this tabular pricing document is required as part of your ITT submission.

The cost summary sheet has been provided so the agent can present the various cost elements, for the services being supplied on a
consistent basis, for assessment purposes.

Each of the tables should be completed as these costs will be taken into account when selecting the new agent for Southgate.

If you are unclear with any of the sections please do not hesitate to contact us for clarification - do not make assumptions.

These costs should also reflect your submissions in Section 4 of the ITT document.

For the purposes of this exercise all costs should be shown excluding VAT.

Section 1: Mobilisation Return to contents click here

This section is to be completed by the Managing Agent with the relevant items they deem necessary to provide the services
required within Section 3 of the questionnaire and to meet the current code of practice for the Property Factors (Scotland) Act 2011
after month two of the managing agent commission.

Shared cost per
unit
Ref Description Cost
Total
Per Unit
Cost £'s
£'s

Please see tender pack as all answers to Section 3 are provided in
1.1 0.00 0.00
greater detail.

1.2 0.00 0.00

1.3 0.00 0.00

1.4 0.00 0.00

1.5 0.00 0.00

1.6 0.00 0.00

1.7 0.00 0.00

1.8 0.00 0.00

Total 0.00 0.00

Section 2: Additional Management Charges Return to contents click here

Within the table below, please use this for any charges outwith your standard management charges which may apply to all co -proprietors
if these are left blank then we will deem for these to be included within your fixed management fees per property.

Ref Description There is no additional charges outwith the Management Fee Shared cost per unit
Included
Cost
within Additional Cost
Per
ITT Cost PA Per Unit
Month
Section £'s £'s
£'s
3
1 Financial

1.1 Preparation of a reserve maintenance plan relating to cyclical maintenance; 0.00 0.00 0.00

1.2 Annual common service charge budget estimation; 0.00 0.00 0.00

Weekly/monthly payment of wages and other invoices for the running of the
1.3 0.00 0.00 0.00
development;
Regular billing and collection of common and block service charges, including
1.4 0.00 0.00 0.00
monthly management fees from all co-proprietor’s;
Provision of a periodic budget reports for income and expenditure and cash flow (3
1.5 0.00 0.00 0.00
monthly/quarterly) and making this information available to all co-owners;

1.6 Liaison with auditors for annual preparation of financial accounts; 0.00 0.00 0.00

1.7 Preparation and distribution of the notices for the AGM; 0.00 0.00 0.00

1.7A Preparation and distribution of the notices for an EGM; 0.00 0.00 0.00

1.8 Arrears collection & Debt Recovery management; 0.00 0.00 0.00

1.9 Provision of advice on block insurance and any other appropriate cover(s); 0.00 0.00 0.00

1.10 Provision of Co-owners Bank Account in the name of the Co-proprietor’s: 0.00 0.00 0.00

1.11 Other Services 0.00 0.00 0.00

1.12 Other Services 0.00 0.00 0.00

Total 0.00 0.00 0.00

2 Relationship with Owners and Residents

2.1 Attend to routine enquiries from Owners and Residents; 0.00 0.00 0.00

2.2 Respond to Solicitors' and Owners' enquiries regarding sales and Tenancies; 0.00 0.00 0.00

Attendance at general meetings of residents (there are x per year held at
2.3 0.00 0.00 0.00
............................ normally between XX to XX pm);

2.4 Administration of insurance claims; 0.00 0.00 0.00

2.5 Other Services 0.00 0.00 0.00

2.6 Other Services 0.00 0.00 0.00

Total 0.00 0.00 0.00

3 Repair and Maintenance Management

3.1 Preparation of a cyclical maintenance and repair plan; 0.00 0.00 0.00

3.2 Deal with day to day repairs and maintenance promptly and efficiently; 0.00 0.00 0.00

3.3 Preparation of maintenance plans and contracts for plant and machinery; 0.00 0.00 0.00

Advise on major contract work and the use of specialist professionals and
3.4 0.00 0.00 0.00
contractors;

3.5 Other Services 0.00 0.00 0.00

3.6 Other Services 0.00 0.00 0.00

Total 0.00 0.00 0.00

4 Deed of Conditions Compliance

Ensure owners compliance with the Deed of Conditions and any other management
4.1 0.00 0.00 0.00
policy agreed with the Co-proprietor's;

4.2 Provision of Owner and Tenant Compliance and Checks 0.00 0.00 0.00

4.3 Other Services 0.00 0.00 0.00

4.4 Other Services 0.00 0.00 0.00

Total 0.00 0.00 0.00

5 Legal Strategy and Control

5.1 Formulate a safe and effective property strategy within current legislation and in
accordance with current best practice; 0.00 0.00 0.00

5.2 Liaise with the Owner’s or Buyer’s solicitors; 0.00 0.00 0.00

5.3 Maintain adequate record-keeping for legal compliance; 0.00 0.00 0.00

5.4 Ensure Risk Management and Health and Safety compliance are maintained; 0.00 0.00 0.00

5.5 Other Services 0.00 0.00 0.00

5.6 Other Services 0.00 0.00 0.00

Total 0.00 0.00 0.00

6 Staff & Contract Management

Prepare job descriptions for employees and specifications for contractors and go to
6.1 0.00 0.00 0.00
competitive tender;

Supervise any employees and regular contractors such as cleaners / caretakers etc
6.2 0.00 0.00 0.00
on behalf of the employer;

Ensure appropriate training and compliance with Health and Safety and employment
6.3 0.00 0.00 0.00
legislation;

6.4 Other Services 0.00 0.00 0.00

6.5 Other Services 0.00 0.00 0.00

6.6 Other Services 0.00 0.00 0.00

Total 0.00 0.00 0.00

7 Co-proprietor’s / Owners Association Support

If the Co-proprietor’s form an Owners Association, provide assistance on a suggested
7.1 0.00 0.00 0.00
management policy for implementation across the development;

Attend Owners Association Meetings and be responsible for producing minutes (there
7.2 0.00 0.00 0.00
are 4 per year held at ................normally between x am/pm);
Provide a status report of financial, maintenance and legal matters to coincide with
7.3 0.00 0.00 0.00
the Owners Association Meetings;

7.4 Report on significant owner communications; 0.00 0.00 0.00

7.5 Document management procedures and issues; 0.00 0.00 0.00

7.6 Produce a periodic newsletter to residents; 0.00 0.00 0.00

7.7 Keep Owners Association informed on status of agreed actions; 0.00 0.00 0.00

Total 0.00 0.00 0.00

Total Summary 0.00 0.00 0.00

Return to contents click
Section 3: Other Charges:
here

Within the table below, please use this for any other charges outwith your management charges which may apply to individual properties such as;
Car park remotes or door access fobs (this table is not to be used for items such as selling a property).

Ref Description Individual cost per unit
Additional Cost Per
Cost £'s Unit £'s
We at Peverel Scotland do not charge any fees for the provision of routine management services. That includes
meetings,
3.1 or any other items connected to the development
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10

Note
These charges will not be carried forward to the summary sheet
:

Section 4: Sale of a Flat Return to contents click here

Within the table below, please use this for any charges outwith your management charges which may apply to individual properties for when a flat is sold.
If this section is left blank, then we will assume that these charges are included within the management fees.

Additional Cost Per
Cost £'s Unit £'s

3.1 Apportionment of services charges £38.30
3.2 Copy of insurance certificate £16.17
3.3 Confermation of common repairs £21.28
3.4
3.5
3.6
3.7
3.8
3.9
3.10

Note: These charges will not be carried forward to the summary sheet

Section 5: Minor Works Return to contents click here

Please complete the rates within the table below, These rates are applicable for any works carried outwith the day to day running of the
development, which can only be used for Capital / Revenue Work Projects, being additional works (Minor Works) and not maintenance works
therefore improvements, upgrades, changes, additions etc to the building would require additional professional services to ma nage this
this process outwith the core costs.

Item Project Value % Fee £0,000 Per Unit Notes

1 0 ≥ £10,000 0.00% £ - £ - We as the managing agent do not charge any addional
2 £10,001 0.00% £ - £ - fees for arranging minor or major works
3 £30,000 0.00% £ - £ -
4 £40,000 0.00% £ - £ -
5 £50,000 0.00% £ - £ -
6 £60,000 0.00% £ - £ -
7 £70,000 0.00% £ - £ -
8 £100,000 0.00% £ - £ -
9 £110,000 0.00% £ - £ -
10 £120,000 0.00% £ - £ -
11 £130,000 0.00% £ - £ -
12 £140,000 0.00% £ - £ -
13 £150,000 0.00% £ - £ -
14 £160,000 0.00% £ - £ -
15 £170,000 0.00% £ - £ -
16 £180,000 0.00% £ - £ -
17 £190,000 0.00% £ - £ -
18 £200,000 0.00% £ - £ -
19 £200,001 0.00% £ - £ -

Note: These charges will not be carried forward to the summary sheet

Section 6: Summary of Charges

The table below provides a summary of the proposed monthly charges for the Managing Agent contract

Cost
Cost
Total Per
Per Unit
Cost £'s Month
£'s
£'s

A Monthly Management Fee (to be input by Managing Agent) 1,382.50 8.75 8.75
1 Mobilisation Costs (carried forward from Section 1 worksheet) 0.00 0.00 0.00
2 Additional Management Charges 0.00 0.00 0.00

Total 1,382.50 8.75 8.75

Please see tender pack for full costs to each owner.



12th March 2013
JLT Specialty Limited
PO Box 600
Threefield House
7 Threefield Lane
Southampton
SO14 3RP

To whom it may concern Direct: 023 8037 4865
Fax: 023 8033 4476

Our contact: Alison Fox

Confirmation of Insurance Cover
Re: Knight Square Ltd, Knight Midco Ltd, Peverel Services Ltd, Peverel Management
Services Ltd, Peverel Scotland Ltd, OM Property Management Ltd, Pembertons
Residential Ltd, Retirement Homesearch Ltd, Peverel Operations PD Ltd, Stonedale
(2012) Ltd, Peverel Property Management Ltd, Peverel HMF Ltd, Retirement Care
Group Ltd

We act as Insurance brokers to the above named Client and at their request confirm
that the insurance summarised below has been effected. Brief details of the
insurance are as follows:

Insurance Type : Professional Indemnity

Period : 12 months at 8th March 2013

Limit of Indemnity : £5,000,000 in the Aggregate including costs and expenses

Territorial Limits : Worldwide excluding USA/Canada

Deductible : The first £100,000 of each and every claim, including costs
and expenses increasing to £150,000 in respect of mis-
management claims.
Subject otherwise to the terms and conditions of the Policy.

Insurers : CNA Insurance Company Ltd - £3,000,000
DUAL Corporate Risks Ltd - £2,000,000

Policy Number : To be confirmed

These statements have been made in good faith and are a summary of the insurance
cover in force as at the date of this letter (which insurance remains subject to the full
terms and conditions of the subscribing insurers’ policy), We accept no responsibility
whatsoever for any inadvertent or negligent act, error or omission on our part in
preparing these statements or for any loss, damage or expenses thereby occasioned
to any recipient of this letter however so occasioned.

Lloyd’s Broker. Authorised and Regulated by the Financial Services Authority.
A member of the Jardine Lloyd Thompson Group. Registered Office: 6 Crutched Friars, London EC3N 2PH.
Registered in England No. 1536540. VAT No. 244 2321 96

*57357377*

Should the insurance cover be cancelled, assigned or changed in any way during the
period of insurance, neither we nor the subscribing insurer(s) accept any obligation to
notify any recipient of this letter.

The subscribing insurers’ obligations under contracts of insurance to which they
subscribe are several and not joint and are limited solely to the extent of their
individual subscriptions. The subscribing insurers are not responsible for the
subscription of any co-subscribing insurer who for any reason does not satisfy all or
part of its obligations.

Notwithstanding the issuance of this letter we are and remain solely the agent of our
Client in this matter and owe no duties to any recipient of this letter. Should you need
any further information please contact the undersigned.

Yours faithfully

Alison Fox

Lloyd’s Broker. Authorised and Regulated by the Financial Services Authority.
A member of the Jardine Lloyd Thompson Group. Registered Office: 6 Crutched Friars, London EC3N 2PH.
Registered in England No. 1536540. VAT No. 244 2321 96

PEVEREL SCOTLAND

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