£264,000 in Savings for Managing Agent
How We Helped
We started by conducting a thorough review of all utility accounts to identify issues and savings opportunities.
A number of issues were identified:
- Utility contracts were not being competitively tendered, instead they had been renewed with the same supplier on uncompetitive rates for several consecutive contracts.
- Utility invoices were being paid without proper validation, so any errors were not being spotted or corrected.
- A number of supply contracts were arranged with security deposits, however some hadnot been reclaimed after contract completion.
- Incorrect contracting names had been used, resulting in invoices being paid incorrectly, or not paid at all.
- Escalating debt issues (in part due to the above point), putting supplies at risk of disconnection and creating unnecessary late payment charges.
- Over 60% of the 100 supplies were out of contract and had been for some time. Most were small supplies, but some were high consuming supplies that were costing the client thousands of pounds.
- A number of properties were recharging tenants incorrectly.
Unfortunately, the managing agent was previously unaware of this situation as they had entrusted their previous broker with the responsibility of managing their utilities on their behalf and had assumed all was well.