Over the years we’ve reviewed hundreds of Section 20 major works bills, and we’ve noticed that inflated bills tend to share the same patterns. Not every sign on this list is definitive proof of overcharging — but if you’re seeing two or three of them together, there’s a very good chance your bill deserves professional scrutiny before you pay it.
Sign 1: The Project Management Fee Is Over 15%
Project management or “contract administration” fees — charged by the managing agent for overseeing the major works — should typically fall between 8% and 12% of the contract value for most residential projects, in line with RICS guidance.
When we see these fees at 18%, 20%, or 25% of the contract sum, that’s a significant red flag. On a £50,000 contract, the difference between 10% and 20% is £5,000 — money directly extracted from leaseholders above any professionally acceptable benchmark.
Look for the fee in your bill. It may be called “contract administration,” “employers agent fee,” “project management,” or “surveying fee.” Whatever it’s called, compare it to the contract value and check the percentage.
Sign 2: All Three Quotes Are Surprisingly Similar
The Section 20 consultation process requires at least two quotes (three is better practice), and in theory these should represent genuine competition. In practice, if all three quotes come in within 5% of each other at a level that’s significantly above what an independent contractor would charge, that’s suspicious.
Genuinely competitive tendering typically produces a spread — different contractors price jobs differently, assess risk differently, and have different overhead structures. If three quotes for a £60,000 job come in at £58,500, £61,200, and £62,800, with no significant differences in approach or specification, consider whether the tender process was genuinely competitive.
This doesn’t prove misconduct — sometimes quotes are genuinely close. But combined with other signs, it’s worth investigating.
Sign 3: The Specification Is Vague or Contains Unexplained Contingencies
A well-drafted schedule of works for a major project specifies what’s being done, where, to what standard, using what materials, and how the cost has been calculated. If your bill contains lines like:
- “Roof works: £38,500” with no further breakdown
- “Contingency: £6,200” with no explanation
- “Preliminaries: £8,800” with no description
…then you’re not seeing what you’re paying for. This vagueness makes independent verification much harder — which is sometimes the point.
Request the full priced schedule from your freeholder or managing agent. You’re entitled to it. If they resist, that itself tells you something.
Sign 4: The Contractor Has an Obvious Connection to the Managing Agent
Managing agents and contractors operate in a relatively small world. Long-standing relationships develop, kickbacks exist (though rarely documented), and “preferred supplier” arrangements mean the same contractors get used regardless of competitive merit.
Look at who’s doing the work. Have they done work on your building before? Do you find them on the managing agent’s website under “approved contractors”? Are they listed in testimonials or case studies by the managing agent? These connections don’t prove wrongdoing, but they do create conflicts of interest that can affect pricing.
Under Section 20, the consultation must seek quotes from contractors not connected to the landlord. But “connected” has a narrow legal definition that doesn’t capture all relationships of interest.
Sign 5: The Cost Per Square Metre Doesn’t Align With Published Rates
Construction costs are benchmarked in published databases — the BCIS (Building Cost Information Service), operated by RICS, is the most authoritative. As qualified surveyors, we use BCIS data as a key reference when assessing Section 20 bills.
Some quick benchmarks to check your own bill:
- External masonry painting (2 coats): £18–£35/m²
- Felt flat roof replacement (standard): £70–£110/m²
- Scaffold erection, hire, and dismantle (4 weeks): £8–£15/m² of scaffolded elevation
- Communal internal redecoration: £20–£35/m²
If your per-square-metre rates are significantly above these benchmarks — particularly if there’s no obvious reason (complex access, premium materials) — that’s a strong signal to get a professional assessment.
What to Do If You See These Signs
First, don’t panic — and don’t pay immediately if you can help it. Start by requesting full documentation from your freeholder: the priced schedule of works, all quotes received, and the Section 20 notices. You’re legally entitled to these under the Landlord and Tenant Act 1985.
Then get an independent professional assessment. We review Section 20 bills in 48 hours at a fixed fee. We’ll tell you honestly whether your bill is fair, slightly inflated, or significantly overpriced — and what your options are.
Think your bill might be inflated? Get an independent assessment from Section20.org.uk — 48-hour turnaround, fixed fee. Email info@rapidqs.uk, WhatsApp us at +44 7438 628277 (5-minute response guaranteed), or fill in our contact form at section20.org.uk