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The Co-operative has a programme for major works to all its properties, but we recognise that there are times when members might want work done before it is scheduled. That’s why, in April 2008 we’re introducing our new “Choices” concept for kitchen replacements.
These are the principals behind the scheme.
1. Typically a kitchen refurbishment costs the Co-operative ~£3,500. This work involves;
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Designing kitchen layouts on an individual basic.
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Removing and laying aside, ovens, fridges etc.
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Stripping out the existing kitchen units.
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1st fix plumbing and electrical.
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Installing new kitchen units.
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2nd fix Plumbing (sink, washing machine etc.)
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2nd fix Electrical (replacing existing sockets and installing additional sockets etc as required.)
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Making good walls.
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Tiling all walls above worktops, up to the underside of wall units.
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Reinstalling fridges, cooker, washing machine etc.
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On average
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Material costs £1,500
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Labour and other costs £2,000
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2. Currently we expect kitchens on average to last for 20 years.
3. The early replacement of a kitchen has the following effect on the Co-operative;
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The early loss of an asset (either now or at the next replacement)
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The early spending of our cash reserve.
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4. To be fair to all Members, the Co-operative must recover these losses from the Member wanting us to replace the kitchen early, on the following basis;
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Asset loss, equals 1/20 of the cost for every year before the original replacement date. |
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E.g. A kitchen replaced 5 years before schedule
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5/20 x £3,500 = £875 |
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Early spend of Cash, equals 6.87% of our spend for every year before the original replacement date |
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E.g. A kitchen replaced 5 years before schedule
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6.87% x £3,500 x 5 = £1,202 |
Therefore the total to be recovered is
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= £2,077 |
If this is recovered over 5 years (60 Months)
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= £34.62
per month |
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5. To reduce the risk of loss to the Co-operative, to be eligible Members must have a stable rent account. I.e. not received a rent arrears letter for 2 years, or a Notice of Proceedings’ for 5 years.
6. A Direct Debit agreement must be set up for the repayment of the costs.
7. Where a Member wishes to replace the kitchen themselves, upon completion of the work the Co operative will pay towards the replacement on the following basis;
We will calculate the potential payment (up to £3,500) by;
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| Calculating the expected replacement date of your kitchen based on our assessment of its quality and history of replacements in your home. If for example, a kitchen with a 15 year life was fitted 5 years before our expected replacement date. This would extend 10 years into the life of the kitchen that we would have fitted. |
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We will then pay you 10/20 of £3,500
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= £1,750 |
Less the cost of the early spend of Cash, as above
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E.g. 5 years before schedule
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6.87% x £1,750 x 5 = £601 |
Therefore the total to payment is
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= £1,149 |
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In this case you will be totally responsible for the maintenance of your kitchen up to its expected replacement date.
8. The number of participants will be limited in the first year
If you wish to participate in the scheme please contact Hugh Crothers, Property Manager for further details.
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