Southside - Braemar Estates tender

Southside (Hurst Street)
Management Company
Ltd

Contents
A. Introduction
B. About Braemar Estates
C. Capability and Experience
D. Quality of Service
E. Health & Safety and Risk Management
F. Operational Methods
G. Staff Management
H. Financial Management
I. Handover and Transition Process
J. About Southside
K. Cost reductions and Improvements
L. Management Fees
M. Proposed Fee Structure
APPENDICES
APPENDIX 1 - BE NEW DEVELOPMENT INFORMATION PACK
APPENDIX 2 - BE REQUEST FOR INFORMATION
APPENDIX 3 - BE PROFESSIONAL INDEMNITY INSURANCE
APPENDIX 4 - BE ACCOUNTS PROCESSES
APPENDIX 5 - BE INSURANCE
APPENDIX 6 - BE STANDARD MANAGEMENT AGREEMENT
APPENDIX 7 - BE SERVICE CHARGE ARREARS COLLECTION
APPENDIX 8 - BE TAKE-ON SHEET MANAGEMENT AGREEMENT
APPENDIX 9 - BE SUPPLIER INFORMATION FORM
MANAGEMENT AGREEMENT

A. Introduction
Braemar Estates (BE) is delighted
to tender for the management
of your development, Southside
Apartments. BE is a specialist
mixed-use property management
company working throughout
the country managing over
5,000 apartments totalling over
£1.2bn.
We are proud that our level of service has garnered
us attention by winning awards and brought us to the
attention of the Directors of SMC. The most important
aspect of our management is the feedback we get from
our clients.
We see Birmingham as one of the key cities for our
business and, as such, it holds great importance to us. To
be invited to tender for such a prestigious development,
located right in the city centre is exactly the type of
development we want to be managing.
Developments like Southside fit exactly within our ideal
type and style of development – a large mixed-use
development right in the heart of a bustling city. Through
our continuous investment in our staff and service
offering, we are confident that we will provide and excel in
delivering the service you expect from a development of
this type and, if successful, look forward to working with
you in a long and fruitful relationship.

B. About Braemar Estates
Braemar Estates (BE) is part
of Brooks Macdonald Group
plc, one of the UK’s leading
independent investment
management companies, listed
on AIM and regulated by the
Financial Conduct Authority.
We are an award-winning, specialist property manager
with a diverse portfolio of upwards of 5,000 UK residential,
commercial and mixed-use units. These properties include
some of the country’s highest profile developments with a
combined value in excess of £1.2 billion.
Our approach is based on highly effective communication
with clients and residents and a collaborative working
relationship with our supply chain. This is supported by
a genuine commitment to customer service which is
reflected in our references and awards.
BE benefits from the wider Group’s financial strength
and resources enabling us to invest in our systems and
our people, to keep us at the forefront of the property
management industry, and ahead of the industry’s fastchanging
compliance and regulatory requirements.

To us, every client and every building is different; however
our foundations for successful building management to
date have been built on three key components, that we
refer to as the ‘3Cs’:
• Compliance - strict adherence to relevant Health &
Safety, regulatory legislation and ARMA-Q standards
• Communication - effective and sustained levels of
communication
• Cashflow – the pro-active management of buildings to
enable them to produce the very best financial returns
and client service
OUR SERVICES INCLUDE:
• Preparation of annual budgets, management of
accounts and submission of confirmation statements
• Arrangement of buildings’ insurance if required
• Regular site inspections with reports automatically
uploaded to our Health & Safety management systems
• Strict adherence with Landlord and Tenant legislation
• Planned and reactive repairs and maintenance
• Appointment and management of appropriate
contractors
• 24/7 out-of-hours call out service
• Full Health & Safety and fire risk assessment
compliance
• Communication through multiple platforms to ensure
wide coverage and customer awareness.

B. About Braemar Estates - General Information
Registered company name and address
Braemar Estates (Residential) Limited, Richmond House,
Heath Road, Hale, Altrincham, England, WA14 2XP
Contact details
0161 929 2300 / Info@braemar-estates.com
Web address
www.braemar-estates.com
Name and address of bankers
RBS, 280 Bishopsgate, London, EC2M 4RB
Name of ultimate holding company (if applicable)
Brooks Macdonald Group plc
Organisation chart (with qualifications)
Group structure is detailed below. Please see Staff
Management (Section G ) for a detailed organisation chart.
Group Structure
BROOKS MACDONALD GROUP
PLC
BRAEMAR
GROUP
LIMITED
BROOKS MACDONALD FUNDS
LIMITED
BRAEMAR ESTATES
(RESIDENTIAL)
LIMITED
NORTH ROW
CAPITAL LLP
BRAEMAR FACILITIES
MANAGEMENT
LIMITED

Number of employees
51
Number of sites under management
54
Number of properties under management
5,144
Number of properties where Ground Rent is collected
16,903
Value of properties under management
£1.2bn
In-house qualified surveyors/lawyers
In-house legal team with qualified surveyors and trainee
lawyer
Financial and Company Standing
BE is a wholly owned subsidiary of Brooks Macdonald
Group plc. The backing we receive from a plc parent
allows BE to invest into the latest software, compliance/
governance and Health & Safety.
Copies of the published accounts for the group are
attached with this submission. Below is a summary from
the published accounts.
Summary of Group
Accounts
Year ended 30.06.2016 30.06.2015 30.06.2014
Total funds under management (“FUM”) £8.30bn £7.41bn £6.55bn
Revenue £81.4m £77.7m £69.1m
Underlying pretax profit £15.5m £15.1m £13.3m
Underlying earnings per share 87.92p 91.33p 86.24p
Pretax profit £15.9m £11.4m £10.6m
Earnings per share 94.41p 68.30p 69.01p
Proposed final dividend 23.0p 20.5p 19.0p
Total dividends 35.0p 30.5p 26p

C. Capability and Experience - Overview
Braemar Estates (BE) manages
properties for a broad range
of clients including Grosvenor,
Cathedral Group, Higgins Homes,
Nikal, Muse Developments,
Select Group, Ground Rents
Income Fund plc (GRIF), Maro
Developments, P J Livesey
Group, Barclays Corporate and
Investec Bank. We also act on
behalf of numerous Residential
Management Companies (RMCs)
and private investors.
We understand the importance of managing all forms
of risk including reputation risk and maximising the
performance of assets.
We follow the best practice and guidelines of the Royal
Institution of Chartered Surveyors (RICS). We are corporate
members of the Association of Residential Managing
Agents (ARMA-Q), the National Association of Estate
Agents (NAEA) and the Association of Residential Letting
Agents (ARLA).
Our property managers are all appropriately qualified to
provide a dedicated and professional management service,
and include members of the RICS, NAEA, ARLA, IRPM. In
addition a high proportion of our team are NEBOSH or
IOSH qualified.
We are one of only a handful of property management
companies who have achieved the ARMA-Q ‘Outstanding’
award. This rigorous audit process conducted by ARMA
reviews property managers in terms of consistency, quality
and compliance of financial, legal and customer processes.

BE has received industry wide
and national recognition for its
property management ability.
We continually strive to exceed
expectations for our clients and
the properties we manage.
BEST MANAGING AGENT
FOR A MIXED-USE BLOCK 2016/17
BE was awarded “Best Managing Agent for a Mixed-
Use Block” at the prestigious News on the Block awards
2016/17. The awards were judged by six leading figures
from property regulatory bodies with a contribution from
clients and industry peers who were able to vote online.
NEW BUILD PROPERTY MANAGER
OF THE YEAR 2015/16
In December 2015 we won New Build Property Manager
of the Year at the News on the Block Awards, recognising
the work our team undertook turning around the security
and anti-social behaviour issues at a prominent city centre
block we have now managed for five years.
LETTINGS MANAGEMENT TEAM
OF THE YEAR 2014/15
In December 2014 we were crowned winner of the
Lettings Management Team of the Year award at the News
on the Block Property Management Awards. We were also
a finalist in the New Build Property Management Company
of the Year category.
NEGOTIATOR AWARDS 2014/15
We won a silver award at the 2014 Negotiator Awards in
November in the Property Management Company of the
Year category, as well as in the specialist category of Best
Block Management at The Lettings Agency of the Year
Awards in association with The Sunday Times in June 2014.
We were also shortlisted at the 2014 RESI Awards in the
Property Manager of the Year category in May 2014.

C. Capability and Experience - Developments
BE manage developments
across the country and will
use the expertise of managing
complicated mixed-use schemes
to build a service tailored to
your requirements. Some of our
schemes include:
Masshouse, Birmingham
Beetham Tower, Birmingham
DEVELOPMENT LOCATION DETAILS
Beetham Tower Birmingham 152 apartments and a Radisson Hotel occupying the lower floors
Masshouse Birmingham 340 apartments and 6 commercial units
Postbox Birmingham 258 apartments and multiple retail units
Nottingham One Nottingham 248 apartments and office accommodation
Wapping Wharf Bristol 193 apartments and retail and leisure units across the Wharf
complex
Greenhouse Leeds 183 apartments and commercial units for up to 30 starter
businesses
One Park West Liverpool 326 apartments and 10,000 sq ft of commercial space

The Hive Reception, Birmingham
Alexandra Tower Liverpool 201 apartments and office accommodation
Beetham Tower Manchester 220 apartments, the Hilton Hotel occupying the lower floors and a
Bar on the 23rd Floor
Lumiere Manchester 138 apartments and office accommodation
Sand Aire House Kendal 82 apartments and multiple office accommodation
Gateway Park Preston 93 apartments and retail unit occupied by Aldi
Bezier London 194 apartments in two towers of 13-15 storeys with multiple retail
units to the ground floor
Clapham One London 136 apartments, leisure centre, public library and medical centre
Lewisham Gateway London 800 new homes, 65,000 sq ft of retail, restaurant and commercial
space and a new urban park
The Postbox, Birmingham
The Hive, Birmingham

MASSHOUSE, BIRMINGHAM
A MODERN DEVELOPMENT WITH TWO LARGE PURPOSE BUILT BLOCKS, SAT ON A PLAZA, WITH
GROUND FLOOR SHOPS AND RESTAURANTS, WITH A DUPLEX UNDERGROUND CAR PARK
THE CHALLENGES
• Part-time Building Manager and Security due to
budgetary constraints
• High overseas student population, who stay for short
term lets
• Inherited several small building defects
• Continuous development around Masshouse with
improved services and high end finishes, has an effect
on property value
• Building works in the area (HS2), could see a potential
hike in the rental value of the properties, which may
require the need to upgrade the communal areas
• Contractor performance needed reviewing and
contractors revising
• Inefficient CHP system, with heat loss bills being
funded by the Service Charge

OUR APPROACH
• Restructuring the on-site team to focus on problem
times and areas
• Engaging with the Leaseholders so they take more
interest in their development, how BE spends their
Service Charge and what services we provide to their
tenants
• Ensuring that our team had the correct training and
support to deal with the facilities and equipment on
site (IOSH qualification, understanding of CHP systems
etc)
• Set up community Facebook group to encourage
Leaseholders and Residents to form a residents’ group
and provide feedback on the budget, service charges,
services etc
• We have a clear management and reporting structure
(PM > BM > Security, cleaners, handyman)
• BE developed a lift contract for contractors to ensure
a maximum of 12 month commitment and mitigate
lenghty and costly contract clauses
THE RESULTS
• We have a reliable team who are able to change and
adapt to the ever changing lifestyle and demands of a
large city centre development
• Practiced processes with the knowledge and
experience to deal with the varied daily issues
• We have a transparent relationship with the
Leaseholders and the Client. We are on hand to help
Leaseholders understand their obligations
• Leaseholder engagement - BE captures feedback for
reports of issues using various platforms, enabling the
PM team to respond in an efficient manner
• We have upgraded the lighting system which has
saved thousands in electricity costs
• We have started to upgrade the internal communal
areas to keep up with surrounding developments

BEZIER, LONDON
A MODERN DEVELOPMENT WITH
TWO TOWERS, GLASS FAÇADE AND BALCONIES
THE CHALLENGES
• 24/7 Concierge
• A high value development with high net-worth
residents
• Inherited concierge and front of house team with
quality and training issues
• Window cleaning issues due to the design of the
building
• Supply chain issues on appointment where quality and
value for money was evident
• Lift contractor agreements needed to be reviewed and
streamlined
• Transient residential population which raised issues
over building security and accurate data on residents
• Wrongly specified Biomass boiler that has never been
used

OUR APPROACH
• The on-site team were employed directly by the
Management Company to ensure continuity of
personnel, training and quality service were provided
at the development
• The property management team developed a
change to reporting and communication to create
transparency on spend, planned and reactive work
• Re-tendered all supply chain to provide quality and
value for money
• The team set processes and procedures in place for
the use of sales and letting agents
• Introduced a monitoring system for delivery to agreed
set standards
• BE developed a lift contract for contractors to ensure
a maximum of 12 month commitment and mitigate
length contracts
THE RESULTS
• The building runs efficiently with a team of four
concierge, a building manager and a property manager
• The BE team have established protocols to mitigate
poor service and increased costs - redesigning the
existing ways of working
• The team have a good working relationship with the
client and managed the process of transfer from the
incumbent
• BE managed the transfer from client to a resident
management company - including handover, issue of
share certificates and registering the company
• With a properly specified CHP system the cost of
electricity for communal areas was reduced by over 50
per cent
• Using energy efficient and appropriate level lighting
with movement sensors can create further cost
savings

BEETHAM TOWER, MANCHESTER
A 47 STOREY, ICONIC SKYSCRAPER.
THE CHALLENGES
• 169 metres high with a large glass panel envelope
• Repairs and maintenance restricted to wind speeds
below 15 MPH
• External cradle operation restricted to temperatures
above 5 degrees Celsius
• Large glass panes with replacement costs up to
£80,000
• 22 individual glass panes replaced since 2006
• Road closures required for working at height
• Careful planning with contractors, local authority,
emergency services, neighbours and residents
• Multiple stakeholder communication for planned and
emergency repairs
• Strict security to avoid anti-social behaviour
OUR APPROACH
• Biometric entry system for residents
• 24/7 concierge
• Check in and moving-in protocols, including welcome
pack and instructions on appliances and use of the
facilities
• Supply chain management for sales and lettings
• Regular checks of the façade conducted during glass
cleaning
• Installation of wind speed device accessed through the
internet
• Robust procedures to work with glass specialists for
independent decisions
• Internal processes for communicating and coordinating
planned and reactive works
• Transparency in budgets and accounts and rationale
for expenditure
• Monthly residents association meeting to discuss
progress and spend
• Use of facebook, twitter, on-site staff, email and
texting for emergency and routine communications
• Anti-lift surfing bars installed to prevent lift surfing
• Full security and disaster recovery protocols have been
agreed with Manchester City Council and the Home
Office anti-terrorism department

THE RESULTS
• Robust protocols for dealing with glass repairs and
charges
• Strong relationships with all stakeholders to manage
defects and damages to the building
• Strong and open relationship with Residents
Association
• Transparency in the reporting of planned & reactive
works, costings, timings and value for money
• Strong processes to manage resident experience,
noise issues and anti-social behaviour (which has
resulted in zero Airbnb)
• Clear guidance on using appliances and facilities such
as bin chutes mean less maintenance and unpleasant
smells
• The use of Biometric entry systems needs to be added
to terms and conditions of rent agreements
• Robust checking in procedures and timings for moving
in.
• Ensure entry security for both carpark and pedestrian
access is carefully monitored and updated to prevent
unauthorised access

ONE PARK WEST, LIVERPOOL
A GLASS FAÇADE MODERN MIXED USE SCHEME,
PART OF THE LIVERPOOL ONE DEVELOPMENT
THE CHALLENGES
• Rough sleepers and Anti Social Behaviour (ASB) from
the local open space
• Plant and equipment that needs to be sourced from
outside the UK
• Airbnb or other short term subletting
• Commercial unit noise that disturbs residents
• Controlling temperature and cooking smells in
communal spaces
• Cradle maintenance
• Communal water heating and maintenance
OUR APPROACH
• Development of an entry system strategy including
access and CCTV monitored on-site
• Critical part ordering and storage to mitigate the risk
of long delivery periods
• Working with commercial tenants, particularly the
gym to retrofit suitable soundproofing to reduce noise
pollution
• Training for on-site concierge to remove the problems
associated with Airbnb and specialist security
protocols
• Retrofit/adaptation of smoke vents to control airflow,
corridor temperature and cooking smells
• Introduction of alarm systems to notify the property
management team of faults, allowing a four hour
window before loss of hot water to the building

THE RESULTS
• The building is a secure and pleasant building to live in
• Alarm systems to ensure security and manage reactive
maintenance
• BE management team are notified of problems, such as
hot water failure so they can be rectified before residents
become aware of the situation
• Window cleaning and cradle maintenance on all
buildings is an issue and can be costly to a development.
If BE is consulted early in the process we can assist with a
cost effective strategy
• Well managed 24/7 concierge add security and provide
additional services such as parcel collection and on-site
assistance
• Management of issues and concerns of residents and
commercial tenants to ensure good relationships within
this community
• By involving BE we can advise on flooring specifications,
lighting, heating and security strategies to ensure a
building is secure, comfortable and efficient

D. Quality of Service
Braemar Estates (BE) invests
heavily in its staff, procedures
and processes to ensure clients
receive a great service. Being
part of an FCA regulated group
also provides our clients with
the reassurance that our work is
always of the highest standard.
backing and experience of a company who have £10bn of
assets under management and therefore the investment
we make into our systems and people is without equal in
the industry.
Quality of service on a day to day level is also important
– especially to our Leaseholders and the Directors of the
RMC’s we work for. SMC, as the Directors of the Residents’
Management Company have the choice of moving the
management of your building at any time and therefore
we work hard to ensure we offer the best possible service.
accredited and therefore have on-going professional
development ensuring that they are always aware of all
aspects of their field and any developments in legislation
and compliance.
The BE business model is to out-source certain functions,
for example, cleaning. This allows us to offer our clients the
most effective service offering whilst keeping costs down.
By not employing staff, this saves our clients in various
ways and also allows us to ensure that any companies who
work for our clients meet the strict criteria that BE sets out
for them.
This benefits our clients as they know we have the financial
All of our Property Managers are either RICS or IRPM

We tender for a specific scope of works, so that each
contractor is tendering for the same work and therefore
we and the Directors can compare like with like.
Site visits and detailed inspections of that work.
Depending on what the work is, BE obtain a method
statement and risk assessment and then issue a permit to
obtain work.
For major works there will most likely be a number of onsite
meetings to check progress and then sign it off.
As we visit regularly, we would know whether the work
had taken place and check the quality before the invoice is
paid. We would also liaise closely with the on-site team to
ensure a cohesive and consolidated approach.
includes checking accreditation with CHAS and SAFE,
following up on references provided as well as ensuring
that they have the appropriate professional indemnity
insurance in place.
The performance of all contractors will always be
communicated to the Directors.
We go through a thorough vetting of all contractors. This

E. Health & Safety and Managing Risk
Braemar Estates (BE) has
market leading health &
safety, governance and legal
functions to ensure one thing
– the Landlords and Directors
of Resident Management
Companies (RMC) we run are
always covered in relation to
compliance. This is why we are
trusted by some of the largest
banks and property funds in
the country to manage their
properties.
Risk management, fire and health and safety compliance
Health and safety legislation places duties on Landlords
and RMC Directors where members of the Board have
both collective and individual responsibilities for health &
safety. At BE, we take health & safety very seriously. We
understand the importance of full compliance to protect
everybody involved at the development, from residents
and people visiting or working within the development, as
well as your interests as Directors.
To help monitor and manage risk in a more efficient,
effective and compliant manner, we’ve introduced a new
cloud based Health & Safety management system called
Meridian. Meridian has a direct link to our insurance
underwriters and has been designed to reduce risk at each
development under management.
From Meridian we will report on the key information you
will need to ensure compliance and this will range from
periodic maintenance through to thorough insurance
inspections (as required by law) of items such as lifts,
BMU/Access cradles and /or anchorage points if applicable,
emergency lighting testing, vehicle gate maintenance,
water hygiene monitoring as well as your fire and general
risk assessments to give examples.
“Our Meridian System allows
for all site inspections to be
monitored and the synergy with
‘Propman Online’ means all site
inspections can be made readily
availabile 24/7 to the Directors
and Leaseholders.”

Health & Safety
BE has engineered a bespoke property-related health and
safety risk management solution which we would look to
implement at SMC.
BE is instructed by some of the largest Landlords in the
country whose service and compliance standards are
above the recognised standards of the industry,
These Landlords are in a similar position to yourselves,
they are directors and liable for all compliance relating to
their properties. Coupled with this, these landlords have
investors who expect both strong returns and certainty
of returns therefore any property related risk must be
completely negated and neutralised.
It is often underplayed by Managing Agents the legal
responsibilities that directors are under and must act by
to discharge. Should any issues arise that cause injury to a
resident or visitor to Southside, the Directors of SMC will
be one of the parties who may be liable. If the building
is found not to be compliant, the directors may have
proceedings brought against them which could result in
prosecution and in the worst case, prison.
That is why our compliance and governance is so much
more thorough than other property management agents.
We never want our clients to be exposed and for that
reason we invest in the best standards of risk assessment
and health and safety checks and fire risk management.
BE utilises a system called Meridian. This is a transparent
management software which allows reporting for directors
and ensures that your building is being managed correctly.
It allows our Property Managers to see issues as soon as
they arise and take action accordingly.
Our compliance and governance is superior to other
property management companies. We invest in the best
standards of risk assessments and health and safety
checks and fire risk management.
The system ensures that upcoming services/dates (for
example, lift servicing) are flagged a month ahead of
schedule to ensure the work is carried out in time.
Compliance and health and safety is an area which in our
view is sometimes ‘dumbed down’ within the industry. BE
believes this is wrong and Directors should be aware of
the risks and how they are managed professionally.
No other property management company invests in
governance and health and safety to the same extent.
We do this to protect residents, directors, assets of the
building and peoples homes.
“We will work with the
Directors to set parameters
for expenditure limits
and we regularly obtain
2-3 quotes for works that
fall outside of whatever
parameters are set.“

F. Operational Methods
Braemar Estates’ experience
means our processes, people
and compliance functions offer
a transparent, clear and smooth
service to our clients. Our ethos
is not to just looking after bricks
and mortar, we are looking after
people and their homes.
With over £1.2bn under management currently, it is vital
that we have our operational methods at the forefront of
what we do.
We understand that your development is the most
important one to you, and this is the service you will
receive from us. The investment in our processes allows
us to offer you the service you expect whilst being able to
offer economies of scale in terms of the services we offer.

F. Operational Methods - IT
Braemar Estates (BE) uses the
following software to run its
property management function.
All employees have access to
these programs and it allows
for the smooth running of our
managed sites.
PropMan
Property Management Software - PropMan is used
for the logging of all information relating to all of our
Leaseholders, Tenants and Landlords. It contains and
manages all maintenance requirements/requests, ground
rent amounts and collection dates as well as the service
charge payments and frequency. PropMan allows the
Property Managers and Directors to monitor every aspect
of the buildings under management including all of the key
financial reporting required.
• Mailings - Through this system we can raise mass
mailings to our Leaseholders and Tenants to ensure
that ground rents, service charges and fees are paid in
a timely manner.
• Financial - Through the monitoring of all Leaseholders
and their properties, it allows our Accounts Team
and Credit Control Team to know specifically when
demands need to be raised and when Leaseholders
need to be sent reminders/be chased for payments to
ensure the smooth running of the finances of each of
our developments.
• Logging calls - The system also allows us to log all calls
and emails which come into the business.
• Text messaging - PropMan automates text message
prompts to Leaseholders to remind them about their
upcoming Service Charge/Ground Rent payments
to ensure prompt payment, as well as being able to
notify Residents of the day-to-day maintenance issues.
• Online log-in - There is also an online log-in portal for
Leaseholders and tenants to check their accounts and
make payments.

PropCo
Lettings - This system enables our lettings team to manage
all aspects of letting our Landlords’ apartments. From
referencing and inventory management to day-to-day
management of tenants. This is done for both buildings
which we manage as well as for other Landlords who
choose our lettings management service due to the quality
and level of service that we offer.
Meridian
Health and Safety - Meridian is our state-of-the-art Health
and Safety management software that all of our Property
Managers use on all of our sites. Meridian enables us
to ensure our clients’ sites are compliant with the latest
legislation and allows our clients to be sent details via
monthly reports to check on this.
The Meridian system is tablet based – any potential issue
are logged after an initial site visit by the Meridian Staff (all
former Fire Brigade Chiefs) and then any and all actions are
logged online under a traffic light system.
Health and safety management system
Full access for clients to the reports on their building.
This would work in a similar fashion to the requested 1,2,3
system, however due to its level of detail, we can assure
Leaseholders and Directors that BE are always aware of
any potential issues on our sites.

F. Operational Methods - Lease compliance
Our Legal Department is well
placed to advise on all aspects
of breach to leases and policies.
Landlords and RMC Directors are
able to oversee any issues which
are flagged and may bring legal
proceedings so that appropriate
measures can be taken.
Our approach begins with a thorough lease review
undertaken by the Property Manager and overseen by Ian
Eaton, Property Director. It is important to identify areas
which have caused difficulty in the past and quickly agree a
standard approach, such as keeping a pet in the building or
other consent related matters.
These matters form part of a risk allocation and will need
a robust and consistent response in order to maintain
compliance.
Dialogue is key. Braemar Estates (BE) will agree the
required standards of behaviour, agree the protocol for
consents and how anti-social behaviour, such as noise
nuisance, will be dealt with.
As a rule we follow the standards established by ARMA,
but we would want to be confident that we have the
whole-hearted support of the Landlord/Directors before
taking any sort of enforcement action. The arrangement
that we have with Brethertons, one of the country’s
leading property debt specialists, ensures that legal costs
are never passed back to the service charge, but are the
responsibility of the defaulting leaseholder to pay and the
lease is clear on the ability of the freeholder to pursue the
leaseholders for costs in connection with arrears.
The Postbox, Birmingham
“This development contains two blocks and 258 apartments. It has
underground car parking and a 24-hour concierge. Since taking over
management, BE has saved the development money on the Service
Charge, implemented energy-saving technologies in the communal
areas and enforced the strict lease ending the nightly letting of
apartments which was occurring.
BE hold regular meetings with the Residents’ Management Company
who have seen an increased reserve fund since BE took over and now
have a PPM schedule which they have signed off. Victoria Smith, who
we propose for the management of the Southside development, also
manages this scheme and was responsible for the results above.”

We will provide regular updates on arrears and this
presents the ideal opportunity to agree the escalation of
troublesome leaseholders to the litigation process.
BE has particular experience in handling matters at the
First-tier Tribunal (FTT) and where possible we adhere to
the spirit of the legislation which is to provide a very low
cost arbitration process. This is handled internally by highly
qualified staff.
Where complex matters of law require detailed
interpretation, we instruct experienced enfranchisement
Solicitors and Counsel. We work with a panel of expert
litigators and we always seek cost undertakings before
proceeding further. We keep clients fully informed as to
progress and process during proceedings.

F. Operational Methods - Communication
Communication between
Braemar Estates (BE) and the
Directors of Management
Companies is vital and the most
important aspect of property
management. BE uses a variety
of methods to communicate
with landlords, residents and
leaseholders depending on the
message that needs to be given.
Our communication methods
are:
Site visits
As a minimum, the Property Manager visits each site once
a month to check the facilities and perform an inspection.
The site visits are planned in advance and publicised
online and through social media so residents have the
opportunity to book time with their Property Manager at a
surgery.
Property Managers will also attend site on an adhoc basis.
This is in addition to routine inspection visits and can be
for inspecting any works undertaken or just to ensure the
building is running smoothly.
All information and data gathered from site visits is
uploaded immediately to Meridian (our Health and Safety
management tool), including photos and comments so
actions are logged and tracked in real-time.
Text Messaging
In cases of emergency and large issues with buildings, text
message is the most effective way of informing a large
number of people about a particular emergency or issue.
Email
Email is used in three ways:
• Global
Reporting to everyone, residents/leaseholders/
stakeholders about issues relating to the building
• Personal
In response to enquiries raised by residents/
leaseholders
• Directors
Monthly reporting to all Directors with updates about
the development, upcoming works and anything which
is outstanding
Facebook
Facebook Groups are for residents to air opinions, requests
and to discuss their building generally. Our Property
Managers all have access to their development’s groups
which allows them to respond in a timely manner.
Letters
Letters are sent out when legally required or following
resident requests.
Online Portal – insurance/newsletters/payment
methods/charges
BE has an online log-in portal ‘Braemar Online’ where
leaseholders and residents can view details of:
• Insurance
• Newsletters
• Payment Methods
• Service Charge Statements

Insurance and Processes
BE partners with Lockton LLP, a specialist insurance
broker, who manage all of our insurance policies. Our loss
adjusters are McLarens, who manage the insurance claims
process. Lockton LLP has their own monitoring portal to
enable claims to be transparent.
AGM Minutes
The Property Manager ensures that each AGM is fully
minuted and actions agreed. These minutes are sent to
all Directors and are available to residents via our on-line
portal.
Newsletters
We send an e-newsletter to all residents to provide
updates on the development, what works have been
carried out and future maintenance. This is also a good
way of keeping residents informed of anything other items
such as events happening near the development.

F. Operational Methods - Supplier Management
Braemar Estates (BE) works
closely with suppliers who
meet our strict in-house
guidelines. This ensures health
and safety compliance so that
the Landlords/Directors are
protected in the event of any
incidents on site.
Communication is vital and BE
produces periodic updates on
all aspects of Health and Safety
and compliance. This is coupled
with Meridian, our state of the
art health and safety program
which is overseen by our Head of
Health and Safety.
Contractor Management
The quality of contractors employed on-site is crucial to
our service delivery and reputation.
Contractor management is, therefore, an essential part of
the role we undertake.
The number of contractors and suppliers engaged by BE
rises and falls in line with our level of activity, as does the
number of hours they work. Verifying that our contractors
share our focus on safety and efficiency is crucial, and
essential to maintaining our licence to operate.
Potential contractors must have the right level of
experience, competence and responsibility to supply the
provisions, equipment and services needed to help us stay
customer-focused. It is a pre-requisite that contractors
have appropriate levels of Public Liability Insurance.
Experience, competence and demonstrable performance
are some of the key characteristics we consider when it
comes to choosing the right contractors to work on the
sites we manage.
Our Invitations to Tender set out our expectations and
include copies of our Business Principles, Corporate Social
Responsibility, Health, Safety, Security and Environmental
Policies, and our Code of Business Ethics, to which
potential contractors must confirm their capability to
comply.
Our policy is to always ensure that our contractors are
appropriately accredited.
We recognise that this creates a steep learning curve for
some of the smaller suppliers, particularly where they are
locally based, but we are committed to working with them
to achieve the desired standards.

Local Contractors
Our procurement policy encourages the use of local
contractors wherever the right expertise is available or
can be developed without compromising high standards
and principles. We always include local companies with
the required competence in bid lists and request local
participation by contractors to consider the use of local
labour where possible.
We are committed to supporting skills development in
local communities and using local labourers.
By sharing information with local enterprises and
encouraging alliances between our local contractors and
regional companies, we have sought to drive continuous
improvement of local workforce skills, including skills that
are transferable to other sectors.
The quality of contractors and suppliers providing goods
and services for our clients is critical to the quality of our
service delivery and reputation.
Supplier management is an essential part of the service
we provide for our clients and we make full use of the
standard operating procedures inherent in our property
management system, Propman.
New Supplier Set-up
Prior to inclusion of our list of preferred contractors or
suppliers, we check the following:
• business address, directors, company registration and
tax details
• scope of works and services provided
• areas of operation
• banking (details on letter headed paper) and insurance
details (copy of valid Public Liability Insurance
schedule) to an acceptable level
• health & safety compliance
• BE has moved to a system of third-party H&S
accreditation and only firms who are either “Safe
Contractor” or “CHAS” can be admitted to our list of
references and previous work experience
• Our Supplier information form must be completed
by the Property Manager, authorised by a Director
of BE and emailed with all relevant attachments to
contractors@braemar-estates.com in order to be set
up on Propman (please see appendix).
Supplier Management
Once a contractor is admitted onto our system, raise a
Purchase Order (PO) subject to the individual order limits
set for our client.
Orders above this level require authorisation in line with
the approval process agreed with our client.
All relevant information including the PO or WO number
is included on the order, together with reference to the
agreed price or quotation.
Our system has built-in safeguards where PO or WO
may not exceed planned budget expenditure against a
particular budget heading and this requires a manual override.
Annual review of contractor information and performance,
especially information updates. Note: our system
blocks staff from using contractors with expired critical
information such as Public Liability insurance.
New supplier inclusion sign-off
The inclusion of a new supplier onto our Propman System
must be counter-signed by one of the following:
• Finance Director
• Commercial Director
• Director of Property Management
• Finance Manager

F. Operational Methods - Cleaning and Security
The safety, security and
cleanliness of your building is
of paramount importance when
choosing a Managing Agent.
Braemar Estates (BE) has the
experience, contractors and
staffing to ensure that your
development will be well looked
after and most importantly
a safe and secure place that
people will want to live.
Security
The security of any of our developments is paramount. As
Directors and therefore Leaseholders it is of paramount
importance that your properties are located in a safe
environment. BE works with the local police at every
development we manage to ensure that we are regularly
updated as to any activity in the local area.
CCTV
On a site as large as Southside, CCTV it is key to ensure
that all of the entrances and exits are well monitored
and regularly serviced. We will ensure that all CCTV is
operational and all operatives are adequately trained.
Emergency Guide
We have emergency procedures for all of our
developments. In the foyers there are always detailed
instructions and new Residents are always briefed through
their Welcome Packs. On a number of our sites, we also
utilise text messaging to communicate information to all
Residents if and when required.
Data Disaster Recovery
As part of a larger plc group, our IT technology is extremely
robust and secure. All of our data is backed up regularly to
off-site data centres and these are maintained by a team of
IT engineers on a daily basis.

Waste Management
Monitoring cleaning/Inspections
Part of the role of the Concierge, Building Manager and
Property Manager is to ensure that the cleaning of the
site is being carried out satisfactorily. This is part of our
supplier checks. Regular inspections are carried out so that
if anything requires attention, we can act proactively.
Recycling
Recycling is a large part of our business. We like the
developments we run to be as ‘green’ as possible to cut
down on the level of waste. This is often well received
by Residents who like the idea of being able to recycle
– especially if it is made easy for them! We organise
recycling when required with the local council.
Window cleaning
Window cleaning is vital to the look and feel of any
development. We have a number of great window cleaning
contractors who are able to perform abseil cleaning as and
when required by the lease. All of our contractors carry
the correct qualifications and insurances for the jobs they
do. The cleaning of the development will be carried out in
a cyclical nature and we will adhere to the lease to ensure
this is done as frequently as required. From experience of
working on buildings in Birmingham, the only factor which
can inhibit window cleaning is the weather, but we are
confident of being able to carry out at least one full clean
of Southside per year.

G. Staff Management
Victoria Smith and Chris
O’Reilly are the core day-today
team who will manage
the development and ensure
both planned and reactive
maintenance are dealt with
appropriately. Victoria is
one of Braemar Estates (BE)
most experienced Property
Managers and will have
overall responsibility for the
development. Victoria currently
manages Beetham Tower,
Masshouse and The Hive in
Birmingham. Chris O’Reilly is
the Building Manager at the
Beetham development and
provides a wealth of experience
on both Property Management
and Birmingham.
Property Manager – Victoria Smith
• Position – Property Manager and Associate
• Length of time in position – 3 years
• Skills and Qualifications – MIRPM AsscoRICS IOSH
Property Management Director – Ian Eaton
• Position – Director
• Length of time in position – 7 years
• Skills and Qualifications – Bsc, PgDipSurv, 14 years in
Property Management
Building Manager – Birmingham – Chris O’Reilly
• Position – Building Manager
• Length of time in position – 5 years
• Skills and Qualifications - IOSH
Service Charge Accountant – Catherine Cook
• Position – Service Charge Supervisor
• Length of time in position – 10 years
• Skills and Qualifications - AAT
Financial Controller – Patricia Corless
• Position – Financial Controller
• Length of time in position – 10 years
• Skills and Qualifications - AAT
Assistant Property Manager – Caroline Davey
• Position – Assistant Property Manager
• Length of time in position – 5 years
• Skills and Qualifications – IRPM IOSH
Credit Controller – Jess Chandler
• Position – Head of Credit Control
• Length of time in position – 4 years (10 years in
Property Management Credit Control)
• Skills and Qualifications – working through AAT and
IRPM qualifications
Accountant – Geoff Spencer
• Position – Service Charge Accountant
• Length of time in position – 2 years
• Skills and Qualifications - ACCA
Legal Enquiries – Katie Mercer
• Position – Leasehold and Legal Executive
• Length of time in position – 3 years
• Skills and Qualifications – IRPM and LLB (Hons)

Team Structure and Qualifications
COMMERCIAL DIRECTOR
ROBERT DEAN
MBA AssocRICS MIRPM
PROPERTY MANAGEMENT DIRECTOR
IAN EATON
Bsc PgDipSurv
FINANCE DIRECTOR
WILLIAM TAYLOR
ACA MIRPM
COMPLIANCE
TEAM
PROPERTY
MANAGER VICTORIA
SMITH MIRPM
AssocRICS IOSH
ACCOUNTS TEAM
H&S
TEAM
LEGAL
TEAM
ACCOUNTS
PAYABLE
ACCOUNTS
CREDIT
CONTROL
SERVICE
CHARGE
ALEX COOKE
MIRPM
KATIE MERCER
LLB (Hons) IRPM
JOANNE WILDBURE
AAC
GEOFF SPENCER
ACCA
JESS CHANDLER
IRPM AAT
CATHERINE COOK
AAT
ASSISTANT PROPERTY
MANAGER
CAROLINE DAVEY
IRPM IOSH
BUILDING MANAGER
CHRIS O’REILLY
IOSH
CONCIERGE TEAM
x 4

H. Financial Management
Braemar Estates (BE) manages
properties for property
funds, pension funds and
most importantly, Residents’
Management Companies. We
understand the importance of
ensuring that your development
is well run, financially sound and
that you get the best service for
the money you pay towards the
development.
With this in mind, we have
invested heavily in a plc standard
Accounts Team, a Credit Control
Team and a Service Charge
Accounts Team to ensure that all
financial matters relating to your
development are well managed.
We have a fully qualified in-house accounting team who
deal with all aspects of property management including
service charges, insurance and budgets.
The BE Credit Control department deals with all aspects
of payments relating to both ground rent collection and
service charge fees.
BE actively manages over 5,000 apartments, totalling
just over £1.2bn in value. The developments range from
portfolios of small blocks to large mixed-use schemes with
the average fee being £18,000. For similar schemes to SMC
the average fee is over £100,000.
In addition, the Credit Control department collects Ground
Rent for clients on a further 17,000 apartments.
BE is one of the first managing agents in the country to
be awarded ARMA-Q ‘Outstanding’. The rigorous audit
process conducted by ARMA reviews property managers in
terms of consistency, quality and compliance of financial,
legal and customer processes.
It was important for BE to join ARMA and take part in their
thorough audit process. As a business we constantly strive
to improve and set our own standards above the industry
norm and benchmark against these standards.
Our achievement of being rated ‘outstanding’ sets the
standard for the operating procedures we implement, the
standard of our communication and the service we offer to
leaseholders, residents and stakeholders.
We are extremely proud of this and it recognises the
investment we have made in the services provided to our
customers.

The Accounts Team will be on hand to prepare Service
Charge accounts and offer advice on the amounts to be
paid into reserve funds to ensure cyclical maintenance
expenditure is covered. They will ensure that all invoices
are checked, verified and paid in a timely manner.
The Credit Control Team are responsible for the collection
of ground rent and service charge arrears. This team
specialises in the collection of these arrears and have a
proven track record of bringing down arrears on sites we
have taken over and ensuring that all tenants/leaseholders
are up to date with their accounts.
The Legal and Compliance Team, along with the Health
and Safety Team are able to advise the best insurances
required for block insurance and any other cover required.
BE has invested in a state of the art Health & Safety
Management System to ensure the correct checks and
actions are taken within the business. This allows BE to be
ahead of the competition in terms of legislative change,
implementation and governance.
BE has Director level relationships with some of the largest
specialist insurance companies within the property sector.
Lockton LLP are our insurance partner and provide a
proactive broking service to both BE and our customers.

H. Financial Management - Forecasting
Due to our experience of
working with similar type
developments, Braemar Estates
(BE) is able to forecast future
spend incredibly accurately.
Financial forecasting is based
on actual prior year spend and
known expected expenditure
including Sinking Fund spend
from an independently produced
PPM schedule.
Once these are in place, Service Charge budgets are
produced by the Property Management Team with
assistance from the Service Charge Accounts Team before
being signed off by the SMC Directors.
Service Charge and Ground Rent Notification
Service Charge and Ground Rent Demands are always
invoiced via post to Leaseholders separately and in
accordance with the existing schedule. This is in-line with
our current procedures for other developments.
Service Charge and Ground Rent Collection
BE issues demands 30-60 days in advance of the due date
to Leaseholders (including text message reminders) and,
currently, run a 42 day collection following the due date
for all other clients before debts are sent to solicitors for
collection through the courts.
The vast majority of these demands are paid in a timely
manner, however for those that are not, we have
procedures in place to minimise the time taken to recover
these debts (please see the attached appendices). We will
always use the processes highlighted in the appendices
when recovering debts and our Credit Control Team are
employed simply to communicate with Leaseholders to
minimise the time taken between a demand being sent
and a payment being received.

Typically, recovery through the courts can take as much
as an additional 60 days and we are unable to affect this
as managing agent. BE would be prepared to reduce our
internal collection timeframe if this is felt to be overly
generous by SMC.
As the processes for debt recovery are so strict, we are
able to demonstrate the dates of correspondence sent and
these will be in line with our collection timeframe.
Payment Methods
Leaseholders can make payment by BACS, through
Braemar Online via Sagepay on the BE website, Direct
Debit and cheque, although we much prefer not to accept
cheques. We do not offer card payments made over the
phone. There are no fees for Leaseholders paying by credit
cards – these are absorbed by BE.
Data Protection Act
All data is stored securely in line with the Data Protection
Act. Our DPA Registration Number is: Z974952X

H. Financial Management - Invoice Payments
We understand that financial
organisation and paying invoices
on time is key to the successful
running of any development. As
such we have strict processes in
place to ensure invoices are paid
in a timely manner and there are
no accounting hiccups.
Invoice Payments
To ensure all invoices are paid in a timely manner,
we operate payment runs every two weeks and have
automated our payments by priority in respect of health &
safety, staff, utilities and insurance before other suppliers
are paid. Due to our size, we are able to operate with
segregation of duties, often with five or six members
of staff in different teams included in the procurement,
purchase ledger and payment process. Controls in place
such as these offer our clients peace of mind over the
procurement and purchase ledger process.
Payment of ‘Major’ Invoices
The payment of ‘major’ invoices being approved by the
SMC Board Directors before the order for works being
placed etc is in line with our processes and we are happy
to work to your approval process.
Unauthorised and Duplicate Invoices
Our purchase ledger process has automated duplicate
invoice protection and duplicate invoices cannot be
entered onto the software we use. We would work to the
limit agreed for ‘major’ works, and all invoices would be
reviewed against the agreed budget before payment is
made.

Third Party Payments
There are no additional fees for processing third party
payments.
Spend v Budget
The Accounts Team can provide details of spend against
budget through the year and review the sinking fund
against a PPM schedule as appropriate, at least annually.
End of Year Accounts
The accounts are reviewed by a third party, a qualified
chartered accountant, to facilitate challenge. We believe
this to be a sensible level of review and good governance.
The timing of the closing of these accounts depends
entirely upon the year end of SMC with a target of 4
months. These accounts would be sent to SMC for
approval.
Contingency Plans
We include a contingency value of 2.5% on items excluded
under the reserve fund management fee etc. For example,
funds attributed to the Fire Alarm, Smoke Vents, Cleaning
etc will all have 2.5% charged. This 2.5% will then be held
as contingency.
When preparing the Service Charge Accounts, this money
(if not required) is then credited back to the Leaseholders.
Service Charge Collection Effectiveness
BE has recently undertaken our January billing in respect
of clients’ Ground Rent. We were able to recover 90% of
over £2m within 42 days of the due date and passed 10%
to solicitors to recover.
Sinking Funds
BE banks with RBS. Sinking funds can either be held in
separate physical bank accounts or held in a separate
‘virtual’ account in our RBS Client Monies banking system.
This is common practice. Each bank account we operate is
reconciled every day.
Sinking Funds are held in ring-fenced interest bearing
accounts for all sites. Any sums that are to be expended
from the Sinking Fund have to have at least two SMC
directors’ approval.

I. Handover and Transition Process
Braemar Estates (BE) employs
dedicated Property Managers
who deal directly with the
enquiries and requirements of
leaseholders and residents alike.
We pro-actively limit the number
of buildings each Property
Manager manages to ensure
our high quality of service is
maintained.
Our team will initiate introductory communications with
leaseholders following our appointment as managing
agent:
PRE-HAND OVER
Introductory leaseholder letter to include:
• Details about BE
• A guide to living in a managed development
• What costs leaseholders are responsible for
• When service charge is payable and how much is
payable
• ‘Braemar Online’ login details
• Contact details of tenants if applicable
• Property management team contacts
ON HAND OVER
All leaseholders are issued with a welcome pack which
includes for example:
• Details about BE and the development
• A practical guide to living in the development
• Building and fire regulations
• Instruction manuals for all appliances (if available)
REGULAR COMMUNICATIONS FROM OUR PROPERTY
MANAGERS
Second introductory letter from your property manager to
include:
• Your property manager’s contact details
• Planned property improvements
• Out-of-hours details
• Debt collection processes
Monthly property updates to all leaseholders to include:
• Details of maintenance works
• Site issues
• New members of site staff or contractors
• Reminder of ‘Braemar Online’ functionality
• Request for contact details of tenants if applicable
Opposite is the three stage process for mobilising a
contract. Internally, the diagrams are used by the team to
ensure the smooth transfer to BE.

Initial Stage
The initial stage of our take-on procedure is to carry
out site visits and understand as much about the site as
possible. Every development is different and this in-depth
understanding of the scale of the operation will enable us
to put into place a plan of action to ensure the smooth onboarding
of the development.
Instruction Stage
This stage is all about requesting information from the
incumbent management agent so that the BE team can set
up processes and budgets. It also allows us to open client
bank accounts, TUPE any staff and organise all contractors
required on the site.
Management Stage
The Management Stage is the effective start date. This is
when our management will go ‘live’ and BE will run the
development for SMC. The Accounts Teams will work on
all aspects of the financials, a full Health and Safety survey
will be carried out to highlight the overall compliance of
the development and our Property Manager will be on-site
frequently to ensure a smooth start to management.

J. About Southside - Our Understanding
Southside Apartments is a
stunning development located
in the city centre of Birmingham.
Built by Crosby Homes and
completed in 2006, it consists
of 461 apartments and seven
commercial units.
There are two blocks with 16 cores, each with their own
entrances and lifts. There is a Concierge Service for the
Residents and this ensures that the development is well
run and the Residents are looked after.
A private walkway runs through the blocks and water
features decorate the courtyards.
The Directors of Southside (Hurst Street) Management
Company are inviting Managing Agents to tender to ensure
they are receiving the best value for money for their
Service Charge fees and to ensure the development is
looked after to the highest possible standard.
As part of the process a team from Braemar Estates (BE),
which included a Property Management Director and
the Property Manager for our Birmingham sites, who
we would dedicate to Southside Apartments, visited the
development in April and found it extremely useful in
compiling this response to tender.
BE manage a number of developments in Birmingham,
from the iconic Beetham Tower, to smaller and more
niche developments in and around the city. This presence
ensures BE has the personnel, processes and team in
place to successfully manage a scheme of this size and
importance.
BE local management team for Birmingham is based in
Beetham Tower. This management team are well placed to
provide support and regular site visits and inspections for
the Southside Development.

K. Cost Reductions and Improvements
Braemar Estates (BE) specialises
in the management of mixed-use
developments throughout the
UK. Through the management of
over 5,000 apartments totalling
over £1.2bn in assets, BE is able
to both manage and advise.
We have proposed two management scenarios. The first
is designed around the current management set up and
whilst we will work to maintain and improve the standards
of the development, this strategy would very much
maintain the status quo which is why Southside is such a
popular place to live. It would keep the Concierge Team
employed by the managing agent and cover all aspects of
management that you, the Directors, expect.
The second management scenario is designed to put
the Service Charge to the best possible use. Our site
visit was extremely useful in being able to put together
the below strategy which allows Directors, Leaseholders
and Residents to benefit from our vast experience on
Birmingham sites.
Employment of Concierge Staff
Under the current management model, the Concierge
are employed by the managing agent rather than the
Residents’ Management Company. Whilst we understand
the Directors wish to minimise work liabilities and time
taken, this is an extremely expensive way to employ staff.
Our proposal would be for SMC to employ 4 Concierge
staff. BE will manage all staff, day-to-day issues, pay role,
PAYE, insurances etc, the costs of which will form part of
our management fee proposal.
This saving could be substantial and allow Directors to
spend this saving on other aspects of management. Savills,
as they are providing the Concierge as part of their service,
will add VAT onto the wage costs of any staff they employ.
This is money that could be spent on improving various
aspects of the development, or be used to enhance any
existing Sinking Fund.
KEY
Potential saving
Potential large saving
Potential significant saving

There are also significant benefits to both staff and
residents to this type of employment model, that we have
seen at similar Management Company run developments.
Staff have a great deal more ownership when they are
employed by the building they work at. More ownership
results in reduced absenteeism and greater output during
their working hours. We would propose to provide their
uniform and have their identity ‘underpinned’ to the
building too, which would also present a more consistent
and tailored approach.
BE can manage these staff day-to-day in relation to all
aspects of the running of the building and can ensure,
through our relationships with similar companies, that all
liabilities to the Directors are limited. This means you will
get the same level of service without the requirement to
pay an additional amount of Service Charge in unnecessary
VAT.
BE manages similar sites like this across the city, and this
means that we are perfectly positioned to be able to cover
any sickness or absence of the Concierge Team by our
existing staff, which would mean no extra cost to SMC.
Our Birmingham office is closely located to Southside
Apartments, within Beetham Tower, so any additional
cover required can be on-site quickly.
Handyman
For a site as large as Southside, we would recommend
a handyman. This person can be directly employed
and could carry out the day-to-day maintenance and
management jobs. This could be anything from gardening,
to general repair duties around the development, which
would again make a contribution to reducing costs. For
example, to employ a painting and decorating contractor
is much more expensive than employing a handyman
where materials would be the only additional cost. This
has worked extremely well at other Birmingham sites
like Masshouse where a handyman has been directly
employed and has reduced cyclical costs by 75%.
Lifts
Southside have a large number of lifts, one per block,
totalling 16.
A common issue BE tackles on developments we take on is
unfair lift contracts. When we met on-site we understood
that there was a better way of structuring the lift contracts
for the benefit of all at Southside.
BE employs the services of a lift consultant to negotiate
contracts in our clients favour (SMC/BE). This is because
for too long the contracts associated with lift maintenance
have been heavily weighted in the lift manufacturer’s
favour. BE would implement a strategy in either
management scenario as it is in the best interests of all
involved.
We change all this with our Lift Consultant. On numerous
sites, they renegotiated contracts for schemes similar to
Southside, providing a better service, better standards and
making contracts better value for money.

Health & Safety
This is one of the major areas which is fundamental to
the success of BE and therefore our clients. H&S is often
overlooked or taken as a given. Bearing in mind that
as Directors of the SMC, you are directly responsible
for all aspects of Health & Safety and that all issues of
compliance are met, it should be one of the main priorities
for you.
As such, BE continually invest heavily in H&S systems which
are industry leading and the most transparent you will find
of any property management company.
As Directors, you are responsible for every single aspect
of H&S throughout the development. By employing a
management agent, this responsibility is not diminished,
which is why it is important that you employ the correct
one.
By using the management expertise of BE you will
know that your development is well managed and fully
compliant with current legislation. Our in-house legal team
will also be able to help with keeping you abreast of all
future changes that are forthcoming and as such you will
be fully prepared.
Car Park Vents
The car park vents are integral to the look of the
courtyards and therefore need to have an attractive value,
value-for-money, low maintenance solution.
One solution, which would also deter residents from
walking across them and would therefore prevent damage,
is to install planters or a sedum style roof. This is extremely
hard wearing, low maintenance, attractive and will
discourage vandalism.
Car Park Lighting
The car park lighting looks to be on constantly, and whilst
we understand this from a security point of view, we
have similar sites where this has been reduced whilst not
creating a dangerous environment.
This is done by changing the lighting to LEDs and putting
them on PIR sensors, so that they are only on when they
need to be. Therefore the car park will always be lit if
someone is in it and will be off the rest of the time.
On our other sites where we have implemented this
change, the lights have paid for themselves in less than
18 months and the savings on electricity have been
astonishing.

Lease Violations
BE have an in-house Legal Team who advise all of our
Property Managers, Leaseholders and Landlords on
legal disputes and lease violations. This team enables
our Property Managers to manage our buildings more
effectively and minimise the number of lease violations
which occur. In the past these efforts have been to
eliminate short-term sub-leasing of properties (for
example, through AirBNB), remove nuisance Tenants, and
to enforce leases where violations have occurred or where
changes to the property require the correct permissions.
With BE’s Legal Team, the Leaseholders at Southside will
have a team of experts working for them who are able to
ensure the development is run well, leases are enforced
and problems kept to a minimum.
Consents on leases can also be granted quicker and this
will enable the smoother running of the development.
Insurance
BE can procure insurance through our specialist partner
Locktons. The industry norm is for agents to receive an
administration fee of up to 25% for arranging insurance.
Our proposal to SMC is to split this administration fee. 20%
will be retained by SMC and BE to retain 5% to cover the
cost of claims handling. We recommend this 20% be put
towards the Reserve Fund of the Service Charge.
High speed broadband
Through the network of large developments we manage,
we have sourced the best broadband providers on the
market. For this instruction, we would like to introduce
Hyperoptic to install their award winning high-speed
broadband to the Southside development free of charge
– all residents would need to pay for is connection – and it
will be available immediately!
It is increasingly more important for developments to have
the best in terms of broadband as this is often one of the
main criteria that residents use when choosing where to
live.

L. Management Fees
Fixed Costs for Providing a Fully
Managed Service
Fixed Cost Items
Unit Cost
(£)
Sum p.a.
Company Secretarial Fee - £0
Set up / Mobilisation Costs (if any) - £0
One off Staffing & Training Costs - £0
Full Management Service Fee – per
Residential Apartment (461)
Full Management Service Fee – per Retail
Unit (7)
(£)
£225 £103,725
£200 £92,200
£180 £82,980
£112 £784
£100 £700
£90 £630
Other costs (please specify) - £0
Total (£) 1 Year: £104,509
Total (£) 3 Years: £92,900
Notes
Included in BE Management
Fee
Included in BE Management
Fee
Included in BE Management
Fee
1 Year Management
Contract
3 Year Management
Contract
5 Year Management
Contract
1 Year Management
Contract
3 Year Management
Contract
5 Year Management
Contract
Included in BE Management
Fee
NB ALL COSTS ARE EXCLUDING VAT
Total (£) 5 Years: £83,610

Costs for Additional Services Offered
Additional Services
Unit Cost
Sum p.a.
Notes
Planned Maintenance Programme Fee e.g.
Redecoration of site every 5 yrs
Direct Fee to Leaseholders for Sale of an
Apartment.
Handling of Apartment Sales Enquires or
Applications for Alterations
Handling of Retail Unit Sales or
Lettings
(£)
(£)
£0 £0
£200*
Included in BE Management
Fee. The cost of PPM is
passed on at cost which will
be recovered through the
service charge.
*This cost will be paid by
the Purchaser NOT the
Leaseholder
TBC TBC Determined by the lease
TBC TBC Determined by the lease
Other costs (please specify) £0 £0

Variable Costs for Providing a Fully
Managed Service
Variable Cost Items
Unit Cost
(£)
Sum p.a.
(£)
Notes
Supervision of Major works
Included in BE Management Fee
(please specify scale of Major works)
Supervision of Minor works
Included in BE Management Fee
(please specify scale of minor works)
Mark-up or Fee on unsupervised third- party
services or invoices received.
None
Apartment / Building / Car Park Service
Cost recovered from Leaseholder
Charge notification & collection
Ground Rent notification & collection
Cost recovered from Leaseholder
On-going Staffing & Training costs
To be agreed with SMC
Accountancy & Auditing Fees
Third party cost and passed on to SMC at cost
Health & Safety £1,500 For full survey and set-up with our specialist
provider. This is recoverable through Service
Charge
Public Liability Insurance
TBC, the development insurance will include
Public Liability Insurance. There will be no
admin or mark fee paid to BE for arranging the
insurance
Handling of Insurance, Valuations, Claims
To be agreed with SMC. Valuations are
undertaken every three years by a chartered
firm of surveyors and passed on to SMC at
cost. See Insurance section.
General Admin Fees
Other costs (please specify)
Included in BE Management Fee
N/A

M. Proposed Fee Structure
We have put together the
following fee proposal, based
on the length of contract SMC
wish to sign up to. As with any
contract, the longer our contract
with SMC, the more economies
of scale we have and are able to
pass on to SMC. The longer the
contract, the more efficiencies
we will be able to gain and
therefore the more savings we
can pass on to you.
Apartments Term Per Unit Sub Total VAT Total
Commercial
Units
461 12 £225 £103,725 £20,745 £124,470
461 36 £200 £92,200 £18,440 £110,640
461 60 £180 £82,980 £16,596 £99,576
Term Per Unit Sub Total VAT Total
7 12 £112 £784 £157 £941
7 36 £100 £700 £140 £840
7 60 £90 £630 £126 £756
Opposite is a proposal for
how we could structure the
management deal:
Totals Cost over 5 years Saving
1 year term £125,411 £627,054 £0
3 year term £334,440 £555,170 £53,510
5 year term £501,660 £501,660 £125,394

APPENDICES
Appendices can be found
as separate attachments
within the email
submission

APPENDIX 1 - BE NEW DEVELOPMENT INFORMATION PACK
APPENDIX 2 - BE REQUEST FOR INFORMATION
APPENDIX 3 - BE PROFESSIONAL INDEMNITY INSURANCE
APPENDIX 4 - BE ACCOUNTS PROCESSES
APPENDIX 5 - BE INSURANCE
APPENDIX 6 - BE STANDARD MANAGEMENT AGREEMENT
APPENDIX 7 - BE SERVICE CHARGE ARREARS COLLECTION
APPENDIX 8 - BE TAKE-ON SHEET MANAGEMENT AGREEMENT
APPENDIX 9 - BE SUPPLIER INFORMATION FORM