Managing Agent Re-tender

Emerald Square Residents Management Company (“ESRManCo”)

Proposed Tender for Managing Agent

The Directors of ESRManCO have been concerned over a sustained period of time that the performance of Mainstay as managing agent for Emerald Square has been less than satisfactory, particularly in the areas of customer service and value for money. We have received regular complaints from residents about slow or unsatisfactory responses from Mainstay on issues reported by residents. The Board has been equally concerned that Mainstay has not secured value for money from its contractor base and so costs are higher than they should be.

The Board has not been convinced that following the acquisition of Mainstay by the UK's largest property management company, Firstport, some 2 years ago, that Mainstay or Firstport has an adequate plan to address these issues. We have met with senior directors from both Mainstay and Firstport to address these issues. Despite these, we have seen no discernible improvement.

In consequence we have decided to re tender the contract for our managing agent.

To recognise the claim that Firstport’s systems will be fully introduced to Mainstay by the late summer, we have allowed Firstport to participate in the tender process. It is a specific element of their tender that they incorporate an action plan which addresses the shortcomings we have identified. The other companies participating in the tender are Encore and Urang.

Each company has been asked to respond to a detailed Invitation to Tender, originally designed by St James. We then propose to conduct due diligence which will consist of, inter alia, each company demonstrating their customer response systems and referencing existing customers. While this process cannot eliminate all risk associated with changing a managing agent, we nevertheless believe that the risk is manageable and less than remaining with Mainstay without an impetus for change.

Our timing reflects the fact that all directors are volunteers and have other jobs. We expect tp receive all tender responses by 15 July. We will then carry out further due diligence including customer referencing and site visits in August. The Board will then evaluate each tender with a view to awarding the contract in September.

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