Commercial service charge administration and service quality

Abstract

The study sought to assess the impact of the administration of commercial service charges on service quality at Crested Towers building, located at plot 17 Hannington Road, Kampala, Uganda. The study was guided by three objectives namely; to establish the rationale for the administration of commercial service charges, to identify challenges and solutions to the administration of commercial service charges and to examine the impact of commercial service charge administration on service quality at Crested Towers building. Data was collected by use of a self-administered questionnaire from a sample of 40 respondents, all of whom were senior managers in their respective organizations that rent office premises at Crested Towers building. The questionnaires were designed in a way that reflects the objectives of the study so as to enable the researcher gather relevant data relating to the topic. Primary data was obtained directly from the field by use of the data collection instruments. The study design used was descriptive and case study design. Data was analyzed using Statistical Package Social scientists and data was presented in frequency tables and percentages. Correlation analysis findings indicated that administration of service charges greatly impacts the timeliness of service delivery (r = 0.464, p<0.1), a key consideration in the assessment of service quality. Hence the quality of the service is greatly affected by the service charge administration mechanisms. In addition, there was a positive relationship identified between service charge administration and transparency (r = 0.125, p<0.1). This indicated that if administration of service charges is transparent, then the tenants to the building would perceive a higher quality of services received. On the whole, Service quality was found to be positively impacted by the administration of service charges (r = 0.205, p<0.1). The study recommends the provision sufficient service charge information by service charge administrators to Crested Towers building occupants in order to gain tenant confidence; use of service level agreements to manage varying tenant expectations and undertaking quarterly service charge reviews as a budgetary control measure. The study further recommended the enactment of statutory best practice guidelines to govern the administration of commercial service charges and restricting the cost of service charge management only to the cost of managing shared services, as a means to safeguard tenants at Crested Towers building and other commercial properties against exploitation arising from incorrect management of the service charge account.