Contract between Brentford Dock Ltd and Pinnacle PSG
The board of Brentford Dock Ltd - which is supposed to represent its shareholders - refuses to allow its shareholders to have a copy of the contract between Brentford Dock Ltd and Pinnacle PSG. It "allows" shareholders to view the contract in the Management Office between 8.00 am to 5.00 pm Monday to Friday. Shareholders are not permitted to photocopy any part of the contract but can make as many notes as they like. There is no facility for those who work during the day to view the contract.
Shareholders are paying for this contract (through their service charge) and are not allowed to have a copy of it. Shareholders (service-charge-payers) do not know what is in the contract. No summary or any other document has been circulated nor has there been any discussion of the contract.
Key Points of Contract
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The main body of the contract is 63 pages long, split into 9 sections. In addition various schedules are attached to the contract. |
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It came into force on 1 June 2002 and is for the 3 years ending 31 May 2005. It can be terminated earlier by either Pinnacle or BDL, subject to various conditions being met, by giving written notice of at least 6 months. |
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BDL can further extend the contract by up to 2 contract years subject to giving suitable advanced warning prior to the end of the current period (31 May 2005). |
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This contract replaces anything that was previously agreed between Pinnacle and BDL. |
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There is a "non exclusivity" clause in the contract meaning that the Board of Directors can at anytime carry out any part of the services themselves or ask at third party to do so. |
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BDL can propose "major or substantial" changes to the contract and Pinnacle can adjust the price accordingly. |
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Pinnacle can propose "major or substantial" changes and BDL can evaluate them in full. BDL can modify, accept or reject Pinnacle's proposals without giving reasons. |
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The contract requires Pinnacle to develop a procedure for dealing with any claims, complaints or enquiries received in relation to this contract and their responses. This record is available to any Director on request. |
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The Board of Directors and Pinnacle will meet quarterly to review performance of the contract by Pinnacle. |
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A comprehensive record of reports of service 'failures' is also kept |
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Signed by John Swinney (Pinnacle PSG) and Charmian Allcock (Chairman, Brentford Dock Limited) and dated May 2002 |
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Includes sections on Quality Systems, People (Pinnacle are accredited with Investor in People Status) and Health and Safety |
Pinnacle's Responsibilities and Performance Standards
Pinnacle are required to perform the service to the "Contract Standard" which requires them to use all "due skill, care and diligence, comprehensively and strictly - in accordance, and in compliance, with:
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The key performance requirements [see below] for the Service, |
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All other provisions of the Contract Documents |
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Any local guidelines, in particular (but without limitation to) those relating to customer care, and any other such guidelines as may have been put forward to, and accepted in writing by, the Board of Directors. |
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The reasonable instructions issued to Pinnacle by any Authorised Director, pursuant to or in connection with the contract, |
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All legislation |
And shall do so:
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In an efficient, professional and courteous manner |
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In a manner which shall preserve, promote and enhance and shall not prejudice the reputation and interests of Brentford Dock Limited, |
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In good and full co-operation with Fellow Contractors; and; |
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In an efficient, professional and courteous manner |
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In a manner which shall preserve, promote and enhance and shall not prejudice the reputation and interests of Brentford Dock Limited, |
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In a manner, which secures to the highest standards, the interests and welfare of the residents and the management and maintenance of the Property." |
"Pinnacle PSG shall employ sufficient fully and suitably trained, briefed, qualified and experienced staff to ensure that the service is, throughout the Contract Period, provided in all respects to the Contract Standard".
Pinnacle will also train staff, where appropriate.
A performance default applies to any failure by Pinnacle to perform the service properly. The contract states, "It is understood and accepted by Pinnacle PSG that the overriding objective of this contract is to ensure that the service is provided such as to ensure that the Property [Brentford Dock] is managed and maintained to the highest standard."
The contract also includes provision for dispute resolution.
Service Delivery Plan
The contract includes a 'draft' Service Delivery Plan covering the Period June 2002 to May 2003. Key areas of activity include:
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Resident's Handbook (draft stated it was due for issue in the first week in June 2002) |
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Lease Extension Programme |
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Dock Road - Secure improved management of this area, ensuring vehicular access is limited in accordance with legal entitlement and that proper measures - including enforcement of any weight restrictions - are taken to protect damage to the surface |
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Parking Review - Pinnacle PSG shall use its best endeavours in conjunction with the BDL Board. Consultation with shareholders will form an important part of this review. |
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Five-year programme of estate works. Proposals by August 2002 - provides for subsequent consultation with shareholders |
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BD Leisure Services - full option appraisal of the Marina Club Operation for report to the BDL Board no later than August 2002. |
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BD Enquiry System - full implementation of computerised BD enquiry system covering property, leaseholders, vehicle and works interrogation facilities - no later than 30 September 2002 |
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Website Development - provide advice and assistance to BDL |
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Space Audit - By Nov 2002 - maximise space utilisation and income opportunities |
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Strategic Direction - Work with Chairman and Board to maintain and improve environment and capital value of properties. |
Contract Price
Comprised of 4 elements:
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1 |
Annual Sum |
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2 |
Hourly and Weekly rates |
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3 |
Any % Fees |
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4 |
Bond Premium |
It is believed the £618,003 in the table below covers 1 and 3 above. There was no total of Bond Premium in the copy of the Contract shown. Hourly and weekly rates apply as they are incurred (so obviously not included in figure below).
Pinnacle Fee for Year Ended 6 April, 2003
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Pinnacle fee £ |
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Estate Services |
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Wages and contact labour |
36,238 |
2 x handy persons |
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Gardening |
31,450 |
2 x gardeners |
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Estate Services |
104,250 |
6.5 x cleaners inc. road sweepers |
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Security |
73,288 |
2 x out of hours staff, call centre and contract security |
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Management & Supervisory |
120,774 |
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Other Estate Services |
25,000 |
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Repairs and Maintenance |
30,000 |
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Total Estate Services |
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421,000 |
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Admin Costs |
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Office Costs |
24,000 |
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Accountancy |
42,000 |
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Total Admin Costs |
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66,000 |
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Total Service Charge |
487,000 |
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Profit 8% |
38,960 |
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£525,960 |
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+ VAT 17.5% |
92,043 |
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TOTAL |
£618,003 |
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Annual Performance Review
The contract includes the provision that an annual performance review will be undertaken.
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Analysis of service through previous year |
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Successful service areas outlined and areas where improvement is required are also outlined |
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The reasons for success / failure identified |
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Comparison of service benchmarked against other Pinnacle clients |
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Risks, associated with provision of the service, detailed |
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Action plan setting out measures to be taken to improve service where appropriate. |
Between the 2nd and 3rd anniversaries of the contract starting BDL can carry out a thorough 'value for money review' of the contract and BDL can terminate, with 6 months notice, if they don't believe the contract is offering value for money.
This is a complete list of all the targets Pinnacle are working towards:
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Indicator |
Definition |
Performance Target |
Service Improvement Target |
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Income Collection |
% of service charge due which is collected by end of financial year |
Collection to accord with local guidelines. %s to be measured against a residual debt figure of 3% |
Yr 1 = 99.5% Yr 2 = 100.5% Yr 3 = 100% Yr 4 = 100% Yr 5 = 100%
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Customer Service (8.00am - 5.00pm |
Telephone Answering |
Within 6 rings |
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Letters & emails - time for a substantive response |
Within 6 working days |
Yr 1 - 2 = 6 working days Yr 3 - 5 = 5 working days |
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Out of Hours |
Telephone Answering Response Rate |
Within 6 rings |
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Out of Hours Attendance |
Within 6 rings |
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Patrolling |
Minimum 6 patrols per 12 hour shift |
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Key holding / Parcel Delivery Service |
As and when required |
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Estate Services |
Graffiti Removal |
Within 1 working day |
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Clearance of waste bins |
As & when half full but in any case no less than 3x per week |
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Cleaning (Estate & Blocks) |
All weekly tasks to be completed in accordance with mutually agreed local guidelines |
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Bulk Refuse Removal |
within 1 working day |
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Abandoned Vehicles |
Report to LBOH within 1 working day |
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Parking Enforcement |
Issue of notice within 2 hours |
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Gardening |
Grass Cutting: When or before 7cms The following in accordance with mutually agreed local guidelines: " Turfing / seeding " Management of banks & boundaries " Pruning & mulching of shrub beds " Implementation of tree programme |
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Repairs
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Completion Rate as a % of in-flat repairs within specified target time |
Urgent = 1 day Non-Urgent = 3 days |
Yr 1 = 80 Yr 2 = 85 Yr 3 = 90 Yr 4 = 90 Yr 5 = 90 |
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Completion Rate as a % of estate repairs within specified target time |
Urgent = 1 day Non-Urgent = 3 days |
Yr 1 = 85 Yr 2 = 90 Yr 3 = 95 Yr 4 = 95 Yr 5 = 95 |
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Replacement Bulbs |
Within 1 working day of report |
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Communications
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Dock Newsletter (all shareholders and residents) |
No less than 1 / month |
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Shareholder / Resident Meetings Attendance |
up to 3 x per year (each block) and 2 x year (estate) |
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Block Inspection |
Monthly |
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Brentford Dock Enquiry System |
Implementation & Maintenance |
All info to be backed up as agreed from time to time |
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Board Information |
Management Reports to Board |
Except by agreement with the Chairman, no less than 48 hours in advance of meeting. |
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Accountancy |
Management Accounts |
To relevant Board within 15 working days of quarter end |
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Annual Draft Service Charge Budget |
As per instruction from BDL Board, to include a monthly profile of anticipated income & expenditure |
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Spending Authorisations & Banking Arrangements |
As agreed from time to time and appearing in agreed local guidelines but always subject to prior Board approval for any spend outside the scope of the annual contract sum |
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Cashflow |
Monthly statement of cash at bank and projected movement over coming month to relevant Board |
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Monthly listing of creditors and debtors to level of detail requested from time to time to relevant Board |
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Remote access to information |
In accordance with local guidelines |
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