The Section 20 consultation process, stage by stage, with what each notice must say

Section 20 is the procedure most often done nearly right. The notice goes out, the estimates arrive, the contract is signed, and three years later a leaseholder at the tribunal points out that the second notice did not summarise the observations, or the reasons letter was never sent. The cap then applies: £250 a flat for works, £100 a year for an agreement, and the balance stays with the client. This guide sets out each stage as the regulations write it. For the dates on a particular job, use the Section 20 checker.

When it applies

Qualifying works are works on a building or any other premises. A qualifying long-term agreement is an agreement entered into by or on behalf of the landlord for a term of more than twelve months. Consultation is required where any one tenant's contribution to the works would be more than £250, or to the agreement more than £100 in an accounting year. The test is the largest contribution under the leases, not the average.

Where consultation was not carried out, the tribunal may dispense with the requirements under section 20ZA if satisfied it is reasonable to do so. Dispensation is an application, with a fee, a hearing and no guarantee; it is used for emergencies, not for jobs that could have been planned.

Qualifying works, no public notice: Schedule 4 Part 2

Stage 1, the notice of intention. Written notice to each tenant and to any recognised tenants' association. It must describe the proposed works in general terms, or say where and when a description may be inspected; state the landlord's reasons for considering the works necessary; invite written observations within the relevant period and say where they are to be sent; and invite each tenant to propose, within the same period, the name of a person from whom the landlord should try to obtain an estimate.

The relevant period is 30 days beginning with the date of the notice. The day of the notice counts as day one.

Between the stages. The landlord must have regard to any observations received. It must try to obtain an estimate from a person nominated by the association, and from a person nominated by one or more tenants under the rules in the Schedule for choosing between several nominations. It must obtain at least two estimates, at least one of them from a person wholly unconnected with the landlord.

Stage 2, the statement of estimates. The landlord supplies free of charge a statement setting out, for at least two of the estimates, the amount specified as the estimated cost, and a summary of the observations received with the landlord's response to them. All the estimates must be made available for inspection. The notice must invite written observations on the estimates within a further relevant period, 30 days beginning with the date of that notice, and say where to send them.

Stage 3, the award. The landlord must have regard to observations on the estimates. Where it enters into a contract for the works, unless the contractor is a nominated person or submitted the lowest estimate, it must within 21 days of entering into the contract give each tenant and the association written notice of its reasons for awarding the contract, or say where and when a statement of reasons may be inspected. It must also summarise the observations received and respond to them.

Qualifying long-term agreements, no public notice: Schedule 1

The same three stages, with a notice of proposals in place of the statement of estimates. The notice of intention describes the relevant matters in general terms and invites observations and nominations within 30 days. The landlord then obtains at least two proposals, one from a person wholly unconnected with it and one from any nominee, and serves a notice of proposals setting out the relevant matters in each, inviting observations within 30 days. Within 21 days of entering the agreement, unless with a nominee or the lowest proposal, it gives reasons.

The notice of proposals for an agreement must also state the proposed duration, and where the proposal relates to a contract with costs that cannot be fixed, the basis on which they will be calculated.

Where public notice is required

Where the works or agreement must be advertised under the public procurement rules, Schedules 2 and 3 apply and the sequence changes, because the public notice replaces the nomination stage. Most private blocks never meet those rules; local authority and housing association landlords do.

Building safety works

Since 1 April 2023, where works are to remedy a relevant defect in a relevant building under the Building Safety Act 2022, the notice must also describe the steps the landlord has taken under section 20D to recover the cost from other parties. Our guide on what the Building Safety Act asks of a managing agent covers which buildings are caught.

What the file has to show

Proof of service on every leaseholder and the association, dated copies of each notice, every observation received, the written response to each, all the estimates, the statement, the contract date and the reasons notice. Tribunals decide these cases on the paper. When the works are done and the demand goes out, the demand checker covers the rest.

This is general information for England, not legal advice.