The apportionment is the split of the cost across the properties that share the service. For example, everyone who shares the hallways, split the cost of the cleaning of those hallways. The details of your apportionment is set out in your tenancy or lease agreement.
The apportionment can impact your overall surplus or deficit. If your charge is split across a larger number of properties, generally an estate, then your charge would be lower than if it were split across a smaller group.
An example of how apportionment can affect your overall surplus or deficit:
A surplus of £1000 total at estate level. This is split across 100 properties = £10 surplus per property. A deficit of £1000 total at block level. This is split across 10 properties in the block = £100 deficit per property. This means there is a £90 deficit for that property in total.
A cost breakdown is an itemised list of individual jobs carried out on a block or estate, that makes up the total cost of each service.
Cost evidence packs
We keep copies of cost evidence for each service carried out as bulk invoices or works order to support the costs in your service charge statement. These do not provide information on the quality of the work undertaken, they’re simply proof that the work was competed, and how much it cost. We monitor the quality of work through other means. The cost evidence pack will include a cost breakdown.
What is a bulk invoice?
As you may know, we have framework contracts in place with some suppliers, for certain services, like responsive repairs.
These contracts cover wide areas and we receive bulk invoices from our contractors. As we manage thousands of homes, using bulk invoices makes the payment process much easier and more efficient.
What is a works order?
Under relevant legislation we’re required to provide supporting evidence for our costs. This doesn’t always have to be an invoice. If we don’t have an invoice, a works order is provided as an acceptable alternative. The works order still provides all of the relevant detail to support the costs you have been charged (i.e. description of works, total cost or works, etc).
Have another query about your service charges? Find out more information on our FAQs about service charges.