Purchase terms for a property management company using contractors

A managing agent instructs contractors every day on behalf of landlords and client companies whose money it is spending, and the contractor's invoice goes to whoever the paperwork says. Contractor terms have to say whose contract it is, set authority limits and call-out procedures, require competence and certificates, deal with access and tenants, and keep the agent out of the liability while keeping the contractor responsible. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Letting agents, block managing agents and property management companies in England and Wales engaging plumbers, electricians, gas engineers, cleaners, gardeners and general maintenance contractors on behalf of landlords, resident management companies and freeholders. These are business-to-business terms for the agent's side.

What matters in an agent's contractor terms

Whose contract it is

The terms should say that the agent instructs the contractor as agent for the landlord or client company named in the instruction, that the contract is between the contractor and that client, that the agent is not liable for the client's payment, and that the contractor invoices as the instruction directs. Where the agent contracts as principal for its own services, the terms should say so for those instructions, because a contractor who cannot tell will invoice the agent.

Instructions, authority limits and call-outs

Work should be done only on a written instruction from the agent, within the value stated on it, and the terms should say that work beyond the instruction needs further written authority, that emergency call-outs are limited to making safe with a quote for the rest, and that the contractor's call-out and hourly rates are those agreed on the schedule. A contractor who did more than asked has done it at their own risk, and the terms should say so.

Competence, certificates and compliance

The terms should require the contractor to hold the registrations and qualifications its trade requires, to provide certificates for gas work under regulation 36 of the Gas Safety (Installation and Use) Regulations 1998, electrical work under the Electrical Safety Standards in the Private Rented Sector and Social Rented Sector (England) Regulations 2020 and other regulated work in the form the landlord needs, to carry public liability insurance at a stated level, and to comply with section 3 of the Health and Safety at Work etc. Act 1974 in its own work. Where certificates are late, the landlord's compliance is at risk, and the terms should make their prompt delivery a condition of payment.

Access, tenants and conduct

Contractors deal with tenants, and the terms should require them to arrange access through the agent, to give the notice the tenancy requires, which for repairs is the 24 hours' written notice in section 11 of the Landlord and Tenant Act 1985, to treat tenants and their property with respect, to leave premises clean and secure, to report anything of concern to the agent, and not to take instructions from tenants. Keys are the agent's, signed for and returned, and tenants' details are personal data under the UK GDPR and the Data Protection Act 2018 used only for the job.

Invoices, payment and ending the arrangement

Invoices should reference the instruction, be itemised, and go to the client as directed, with payment on the stated terms from client funds held by the agent and no liability on the agent, and the terms should say that interest under the Late Payment of Commercial Debts (Interest) Act 1998 runs against the client as the terms provide. The agent should be able to remove a contractor from its panel at any time, and the contractor should not solicit the agent's landlords directly.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Email me at geoffrey@caesar.co.uk with what you need and any documents, and I will confirm the scope and the fee in writing, usually the same working day.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

A contractor did extra work without our authority and has invoiced the landlord. Does the landlord pay?

If the terms say work beyond the written instruction needs further authority and is at the contractor's risk, no, for the unauthorised part. The instruction and its value limit are the evidence.

The contractor is chasing us, the agent, for payment. Are we liable?

If the terms say the agent instructs as agent for the named client and is not liable for the client's payment, the contractor's claim is against the client. Make sure every instruction names the client.

A gas certificate arrived a month after the work. Can we withhold payment?

If the terms make prompt delivery of certificates a condition of payment, yes, until it arrives. The landlord's obligations depend on it.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms of business for a letting agent
• Terms and conditions for a block management company

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.