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Section 20 Stage 2 observation letter template
Received a Statement of Estimates? You have 30 days to respond. Use this free template to challenge the estimates, follow up on your nominated contractor, and request full inspection of the documents.
Select your stage
Steps
Step 1
Check your deadline
Find the date on the Statement of Estimates. Your 30-day window runs from that date, not the date you received it.
Step 2
Review the estimates
Check that both estimates are from independent contractors, that the scope is identical, and that your nominated contractor is included if you made a nomination at Stage 1.
Step 3
Send and keep a copy
Enter your email to receive the letter as a PDF. Send by email and recorded delivery. Keep a copy of everything.
A Statement of Estimates is the second formal notice in the Section 20 consultation process. Your landlord must send it after Stage 1 closes. It sets out at least two estimates for the proposed works. At least one must come from a contractor with no connection to the landlord or managing agent.
You have 30 days from the date on the Statement of Estimates to make written observations. This is Stage 2 of the consultation process. After Stage 2 closes, your landlord will award the contract and the works can proceed.
Common issues at Stage 2: estimates from connected contractors; your nominated contractor's estimate missing without explanation; estimates with different scopes making direct comparison impossible; costs that seem disproportionate to the works described.
Your details
Shown on your letter so they can reply to you.
Recipient details
Estimates details
These are the details from the Statement of Estimates sent to you by your landlord or managing agent.
Section A: Observations on the estimates (optional)
Leave blank if you have no observations to make on the estimates
Section B: Nominated contractor not included (optional)
Complete this section if you nominated a contractor at Stage 1 and their estimate is missing from the Statement of Estimates
Section C: Request to inspect full estimates (optional)
Section D: Challenge to independence (optional)
Complete the sections that apply to your situation. All sections are optional. Complete only those relevant to your circumstances.
How to send your letter
- Send by email to your landlord or managing agent and request a read receipt.
- Also send by recorded delivery to their registered address. That creates a paper trail if anything is disputed later.
- Keep a copy of everything: the original notice, your letter, and any replies.
If you are worn down by slow consultation and unclear costs, remember that leaseholders who use Right to Manage run their own major works process in the open. Check if your building qualifies.
Frequently asked questions
What is the difference between Stage 1 and Stage 2 of the consultation process?
Stage 1 is the Notice of Intention. Your landlord tells you about the proposed works and invites you to nominate a contractor and make observations. Stage 2 is the Statement of Estimates. Your landlord shares at least two estimates and invites further observations. You have 30 days to respond at each stage.
Can I still nominate a contractor at Stage 2?
No. The right to nominate a contractor only applies at Stage 1. At Stage 2 you can make observations on the estimates and follow up if your Stage 1 nomination was ignored.
What if my nominated contractor is not in the Statement of Estimates?
Your landlord must try to obtain an estimate from your nominated contractor. If their estimate is missing and no explanation has been given, raise this in Section B of this letter. Keep your original Stage 1 letter and proof of delivery as evidence.
Can I request to see the full estimates?
Yes. You have the right to inspect the full underlying estimates, not just the summaries in the Statement of Estimates, free of charge at a reasonable time and location. Use Section C of this letter to make that request.
What happens after I send my Stage 2 observations?
After the 30-day Stage 2 period closes, your landlord will award the contract. If they choose a contractor who is not the lowest estimate and was not nominated by leaseholders, they must write to you within 21 days explaining why. The works can then proceed.
What if I think the estimates are too high?
Raise this in your Section A observations and ask for further justification. You can also apply to the First-tier Tribunal after the works are completed to challenge whether the final charge is reasonable. Paying the service charge demand does not mean you accept it as reasonable.
Do I need to complete all four sections?
No. Complete only the sections that apply to your situation. If you have no concerns about contractor independence, leave Section D blank. If your nominated contractor was included in the estimates, leave Section B blank.
This template is for general guidance only and does not constitute legal advice. If you are in any doubt about your rights or obligations, seek independent legal advice before sending. Read our full disclaimer.