￡264,000 in Genuine Savings for Managing Agent

A Case Study showing how effective account management secures significant savings 

We were delighted to be appointed by a managing agent customer in the UK.

Challenges

• Disorganised/unmanageable portfolio
• Poor support from previous broker
• Out of contract supplies

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 had not 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.

Results

Over 90% of the supplies were contracted within the first 3 months resulting in combined annual savings of ￡246,488.

All supplies were aligned to a common contract end date allowing all property managers to be clear on when the contracts for their properties expired, alongside the possibility of negotiating better rates due to increased buying power.

All contracts were arranged without the need for a security deposit, and all security deposits from previous contracts were refunded back to the client in full.

Clifford Talbot Partnership arranged for all accounts to be put into the correct company name which allowed for many invoices to be paid. This reduced the amount of late payment/debt collection fees being charged, and removed the threat of disconnection.

As part our service, we also took over the tenant recharging for their multi-tenanted properties. We worked with the client to resolve a number of historical errors some which had errors going back as far as 6 years, to ensure all charges were clear and correct.

Client benefit of the service going forward

We continue to support the property managers though a dedicated account manager, and as such have built a strong relationship with the client and individual property managers.

This allows for them to be confident in the service they are receiving, as they know that their utilities are competitively and accurately tendered; bills are prompt and correct; and recharges robust.

This reliability and trust is important in such a highly competitive sector which is under constant scrutiny by both tenants and property owners alike.

About the Author: 

Steve Clifford is Joint Owner of Clifford Talbot Partnership which was formed in 1984 to provide solutions to energy and utility management issues in commerce, industry, government and the public sectors throughout the UK.

Call Steve on 01630 685 144 or email [email protected] if you are interested in discussing ways we may be able to reduce your costs.

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