Joint working to create a bespoke factoring agreement at Commonwealth Village
The Commonwealth Village is a mixed, large-scale development based in the centre of Glasgow, which was initially purpose built to assist with accommodation for the Commonwealth Games held in Glasgow during summer, 2014.
The development comprises seven hundred properties, consisting of beautiful triplex apartments, townhouses and standard houses and is inhabited by both private homeowners and social housing tenants. It is considered a technically built complex with extensive communal landscaping, which requires ongoing attention from skilled maintenance contractors.
The overall development has an active Village Residents’ Group (VRG), whereby volunteers represent and assist with safeguarding the common parts and looking after the best interests of the residents including working with the appointed factor, and other external parties such as the local authority.
Village Residents’ Group review their position and set their objectives
VRG members reached out to James Gibb following a decision by the private apartment block to dismiss their factor, who had been contracted by the homebuilders at the outset. The private apartment block is governed by a supplementary Deed of Conditions, which allowed homeowners to collectively decide to change their factor without having to consult with all other properties as well as providing the opportunity to think through the tender process, thus enabling them to create a bespoke factoring agreement.
The VRG wanted the same for the wider estate and together they discussed and created an appropriate tender process, which had good input from the residents and was designed to meet the needs and requirements of the estate as a whole.
James Gibb demonstrated factoring capabilities
Our initial interaction with the VRG was in January 2021, during the global pandemic, whereby several homeowners expressed concerns that their relationship with their current Property Manager was breaking down and wished to discuss an opportunity which was afforded to the private supplementary phase.
Shortly after, an online virtual meeting was called by the VRG members which allowed James Gibb to provide an introduction as well as create the opportunity for the attending members to raise concerns and openly discuss what they wished to achieve from their Property Manager.
When asked for feedback on the service currently being provided, certain residents felt that the existing Property Manager was unprofessional; that there was a lack of communication with residents, they were slow to respond to enquiries, had limited knowledge of the development and overall was an impersonal factoring company.
Joint working created a bespoke factoring agreement
During the process of agreeing a bespoke factoring proposal, it was evident that time and planning was required, and indeed applied by James Gibb to ensure that we could fulfil the expectations of the residents. During this period, we took the opportunity to work with key representatives to establish their needs, and of course to ensure that we could deliver on their objectives.
In addition, particularly for the grounds maintenance contract, we engaged with the VRG and designed a tailored Grounds Maintenance Specification, outlining the works which would be undertaken by their selected Grounds Maintenance Contractor, as well as the frequency of the maintenance visits.
Throughout this process several virtual meetings were held and once we understood, agreed and finalised the contract expectations, James Gibb invited contractors to tender, particularly for communal grounds maintenance, play park maintenance, insurance products etc. and presented a comprehensive, bespoke factoring proposal, which was welcomed by the VRG.
During this stage, it was imperative that the Deed of Conditions was reviewed as there were some complex apportionment requirements which needed to be applied, to ensure service charges were apportioned properly and would be accurately reflected in the estimated service charge proposal, to ensure each homeowner/ resident could clearly identify what they were legally obligated to pay.
In addition, the VRG took the initiative and included a Maintenance/ Sinking Fund, whereby the factor collects regular contributions to be put aside in a separate bank account and used for future large-scale maintenance such as tree works, replanting works and etc.
What attracted the VRG to James Gibb? Eileen Smillie, Chair of the Village Residents Group said. “From the outset, James Gibb demonstrated a willingness to communicate and to engage with the Village Resident Group members, homeowners, and residents, especially during the pandemic. Whilst thinking through what we wanted to achieve from our factoring contract, James Gibb applied patience, offered support, attended site visits (when possible) and allowed us to work with them to ensure we had a say in the services being provided. They went ‘above and beyond’ to look after our interests and allowed us to have a voice. We were not rushed, and the time and patience applied by all parties involved in the process was beneficial. Whilst we recognise that a lot of work is still required to bring the development to the standard we want, it was good to have the opportunity to be part of the planning process to achieve this. Whilst we also took saving money into consideration, as James Gibb were far more competitive that the existing factor, we really wanted to ensure that we received a good service, and this was the most important part during the decision-making process.”
Homeowner communication was a key element
Once the VRG and James Gibb were happy and comfortable, both parties worked together to provide all homeowners, including the Social Housing Companies with James Gibb factoring information requesting feedback to determine if there was an appetite across the Development to change factors. This led to an initial homeowners meeting being held which offered the chance for homeowners, and social housing companies to attend to ask any questions. As this meeting was not quorate, as per the Deed of Conditions, the homeowners had the opportunity to recall a further meeting within a certain time-period and the homeowners who attended/ represented by proxy vote was considered the established quorum, which would allow voting to take place.
On the 16th of October 2021, a second meeting was held. The VRG along with homeowners, including those represented by proxy and James Gibb representatives, collectively agreed to dismiss the current Property Manager and appoint James Gibb residential factors.
Contract transferred to James Gibb
The VRG issued a termination letter to the existing factor and once this was done, James Gibb communicated to arrange the transfer of the contract, which took place on 1st December 2021. Following the transfer, new contractors were appointed to undertake services and are currently working to bring the development up to a more maintainable standard. Regular development inspections are being carried out by James Gibb’s Senior Development Manager, Leanne Holt who also continues to work with the VRG and residents within the development.
Endorsement for James Gibb
Eileen Smillie, continued. “From the outset, the Village Residents’ Group were actively engaged with James Gibb. The Business Development Director we dealt with was receptive, flexible and invested in helping the homeowners. We were consulted with and very much part of the tender process. This helped us build a relationship with James Gibb.
Our members worked tirelessly to generate support from the wider development and factoring in everyone’s participation, we successfully terminated our previous factor and appointed James Gibb.
The main reasons for changing factor were that James Gibb:
- Was much more cost effective.
- Offered a better quality of service provisions.
- Demonstrated the ability to adequately factor a complex development like the Commonwealth, fully understanding the requirements to ensure the homeowners and residents receive a high standard of service.
- Demonstrated the ability to work and support the homeowners.
Since handover, we are starting to see the benefits of the change and we are hugely satisfied and grateful that we changed to James Gibb, which has been echoed by several residents. So much so, that I was personally presented with gifts and thank you cards from homeowners who were grateful for the efforts and work applied by all parties involved.
With the scale of the development, we recognise that the VRG and James Gibb went over and above, which has continued, and we are happy that the working relationship has continued, which has been so much better than what we previously had.
Now that the new factor is on site, whilst we recognise that some work is to be done which will be ‘work in progress’, we have noticed a difference and we hope that more residents will take pride in the Common Parts and their own properties to protect the overall amenity and aesthetics of the development, which of course helps sustain property values!”
James Gibb doing it the right way