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Knowledge Base arrow Agency Issues arrow Rights of an agent arrow Supervising major building works

Question Title: Supervising major building works

Question:
167
I act as agent for several client landlords. One of them recently asked me to locate suitable contractors and supervise a substantial refurbishment project on one of his rented houses - the total cost of the works was over £3000.. The project took a substantial amount of time (much more than expected) to supervise and now it is completed satisfactorily, I would like to make an administrative charge to my client for the extra work. The landlord expects that I should do this work within my standard management fee. Am I entitled to make an additional charge ?
Answer:
An agent has several important rights. Of these, probably the most important (to the agent at least) is his right to remuneration. Even if there is no express term in the agency agreement, a right will be implied that a professional will be paid a reasonable sum for services rendered. Unless you have stated in the agreement with your client that your standard management service will include supervision of all maintenance or rebuilding works, you are entitled to make an additional charge. Best practice would be to ensure that your terms of business explicitly exclude major works (e.g. works over £500 value) from the standard management service. Some practitioners publish and charge a supervision fee based on a percentage of the final project cost.
References: Pages: Hyperlinks:
Letting Handbook Chapter 17 letting-handbook-and-factsheets.html

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