FEBRUARY 2023
Is the owners corporation responsible for the replacement of my balcony doors/windows?
Page 6 | Premium Strata
Compensation for loss of your car space
Page 26 | Madison Marcus
Living with enemies: Small steps to a harmonious building
Page 30 | Strata Solve
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4 Wait now, pay later
Lannock Strata Finance
6 Is the owners corporation responsible for the replacement of my balcony doors/windows?
Leanne Habib, Premium Strata
8 Changing the landscape of consumer protection
Sedgwick
10 Organising repairs to common property (within your lot)
Tim Sara, Strata Choice
12 Can I get my own defects report?
Pierrette Khoury, Khoury Lawyers
14 What if quotes are more extensive than the agreed upon works?
Leanne Habib, Premium Strata
16 Can an owner lodge a claim against the strata insurance?
Tyrone Shandiman, Strata Insurance Solutions
18 What financial information should the strata manager provide?
Rod Smith, The Strata Collective
20 Are we responsible for water damage to the apartment below?
Shane Williamson, Williamson Lawyers Pty Ltd
22 Are fire doors covered by warranty?
Rob Broadhead, 2020 Fire Protection
24 If we change strata managers, what happens to our term deposit?
Tim Fuller, Strata Guardian
26 Compensation for loss of your car space
James Moir, Madison Marcus
28 We have no access to the garbage room and rubbish is piling up
Peter Berney, Solutions In Engineering
30 Living with enemies: Small steps to a harmonious building
Chris Irons, Strata Solve
32 Information for strata groups, building managers and occupants
SCA (NSW)
36 The NSW LookUpStrata Directory
There has been a lot of discussion about record increases in the price of real estate recently but there is a more pressing issue that strata owners need to be aware of – the rising cost of construction works.
A combination of booming demand, labour shortage, material shortages and supply chain disruptions are creating the perfect storm for increased construction costs.
According to CoreLogic’s Research Director Tim Lawless, the heightened construction activity and rising costs experienced across Australia won’t be going away soon and will likely cause affordability challenges for owners across the country.
“The quarterly rate of growth in construction costs is happening
everywhere and is not restricted to one city or state, it’s a national trend,” he said. “This construction cost inflation could continue for another 12 to 18 months. It’s unlikely the industry can absorb a cost increase this significant into their margins and higher construction costs will ultimately be passed on to the consumer, placing further upwards pressure on the price of a new dwelling or renovation.”
“The quarterly rate of growth in construction costs is happening everywhere and is not restricted to one city or state, it’s a national trend,”
Already we’ve seen just how much pressure
is being placed on the construction industry, with Probuild and Condev both going into liquidation in recent weeks.
In short, costs are going up and the construction industry is buckling under the pressure.
The more you delay, the more you will pay.
Owners corporations who choose to delay any rectification, maintenance or uplift work on their property may be setting themselves up for a shock later on.
Regarding funding of any works, the corporation always has three options: to accumulate a Maintenance Fund over time, to have a Special Levy or to Borrow (or a combination of these three methods).
This article is brought to you by Lannock Strata Finance.
It takes time to accumulate moneys in a Maintenance Fund. Special Levies should be a quick solution but will be delayed if there are owners who find the cash flow impost too large.
“In short, costs are going up and the construction industry is buckling under the pressure. ”
A strata loan is immediate, unsecured and does not involve a mortgage, personal financials or guarantees.
So, what’s the right decision?
As with any big decision, it’s important to be informed. If your clients are looking at rectifying
defects or considering maintenance or renewal/ uplift projects over the next few years, it will be important to discuss with them the implications should they choose to delay the works.
Do you have a strata project that is needing finance?
We can help you with the finance you need for your next strata project.
Having operated for 20 years, our friendly team have the knowledge and experience to deliver the funds you require.
If an owner’s balcony doors/ windows need replacing, is this the responsibility of the owners corporation? Must we wait until the owners corporation decides to replace all of the balcony doors/windows in the building?
Depending on the age of your building, the registered by-laws and strata plan applicable to the scheme, the balcony doors/ windows will be either lot property or common property.
Depending on the age of your building, the registered by-laws and strata plan applicable to the scheme, the balcony doors/windows will be either private lot property or common property. Older buildings commonly have the balcony doors as the responsibility of the individual owner whereas newer buildings have such doors/windows as the responsibility of the owners corporation.
If they are common property, the balcony doors/windows are the responsibility of the owners corporation and the owners corporation must repair, maintain, and, if required, replace the balcony doors/windows. Therefore in theory, you should not have to wait for their replacement if they have fallen into disrepair.
The owners corporation has a strict duty to repair and maintain the common property, so if the balcony doors/windows in your scheme are common property and require repair or replacement, that would be the responsibility and cost of the owners corporation.
Alternatively, if you do not wish to wait for the owners corporation to replace the doors/ windows and you are happy to pay for the replacement yourself, you will need to obtain approval from the owners corporation by way of a by-law and ensure that the replacement balcony doors/windows are strictly in keeping with the appearance, look and feel of the building.
If they are private property, all repairs, maintenance, and replacement will be your responsibility. You will still need to ensure that the replacement doors match the appearance etc of the building.
Your strata manager will be able to advise you whether your balcony doors/windows are common property or your responsibility and what next steps should be.
Leanne Habib | Premium Strata info@premiumstrata.com.auREAD MORE HERE
Is the owners corporation responsible for the replacement of my balcony doors/windows?
Life comes with unexpected surprises, not all good. The same can be said for the construction industry, frequently plagued by supply chain disruptions, cashflow constraints, labour shortages, cost increases and defective construction. The latter often leaves consumers to pursue contractors on their own, with few options to address these issues, or feeling that costly litigation is their only recourse.
That said, the industry appears to be shifting towards a more consumer-centric market. With over 340,000 strata schemes across the country, owners have the right to expect a quality product.
For the first time in Australia, purchasers have an evidence-based rating to make an informed choice when purchasing a property. The independent construction industry rating tool - iCIRT- helps purchasers know which businesses are best equipped to build quality assets.
Created by Equifax in conjunction with the NSW government, key industry bodies and consumer stakeholders, iCIRT will improve trust and transparency in the construction industry. Trustworthy constructors that attain three gold stars or higher (maximum five) are recognised on a register at www.buildrating.com
To obtain a gold-rating, constructors must participate in an independent and rigorous review of their entire business. This process rewards those that perform highly while calling attention to those that don’t.
Karen Stiles, Executive Director of the Owners Corporation Network (OCN), confirms they support a simple star rating system to help purchasers make better choices, and reduce the risk of dealing with building defects. To drive proactive change, we need to work together — consumer, industry and government — by investing in and taking advantage of the programs available.
High-rise residential strata buildings have been in the spotlight globally, with highly publicised structural failures resulting in assets being condemned, buildings deemed uninhabitable, and even injury and deaths. In 2021, the NSW building commissioner’s office indicated that 39% of NSW buildings presented serious defects. Extrapolated nationally, that alarming figure would indicate nearly 80% of new apartments could suffer from serious defects.
In response, Resilience Insurance introduced latent defect insurance (LDI). iCIRT-rated developers can earn additional financial benefits, further protecting consumers with a 10-year insurance policy. This could change how Australia delivers quality buildings to consumers.
Corey Nugent, CEO at Resilience Insurance, explains that as one element of recent building industry reforms, LDI drives improved consumer confidence. More importantly, consumers will discover their bargaining power, demanding transparency in delivery and security of built assets.
LDI provides cover against loss from physical damage arising out of inherent defects within 10 years of the completion date. The cover extends to issues relevant to the structural works and building envelope, including waterproofing.
This is a new era of claims management. By monitoring performance throughout construction, LDI gives consumers an additional layer of quality assurance, ensuring buildings are constructed to the appropriate standards and comply with design and engineering specifications.
To navigate this ever-changing landscape, we must continue to adapt and challenge the norm — even as we’re asked to do things faster and more costeffectively, whilst keeping the consumer front of mind.
In working alongside Resilience Insurance, Equifax, and consumer advocacy groups like the OCN, Sedgwick has become a trusted partner in the industry.
We have been providing expert building consultancy services for the past 20 years. As the largest home warranty specialist consultancy firm in Australia, Sedgwick has extensive capability in forensic building consultancy, technical inspection service (TIS), policy assessments, preparation of scopes of work, tender validation processes and construction management. We specialise in managing remediation work within the residential, multi-storey residential and mixed-use strata complex landscapes.
For more information, please contact sales@au.sedgwick.com
James McIntosh National manager, technical servicesM. +61 420 959 938
E. james.mcintosh@au.sedgwick.com
Morris Mellinger Construction manager
M. +61 408 371 353
E. morris.mellinger@au.sedgwick.com
The owners corporation has arranged repairs within my lot. I’m not being kept informed. It’s my lot so shouldn’t I be kept in the loop?
My property is damaged. During the repair process, my strata’s contracted tradesperson and the strata manager do not keep me informed about what is being proposed. My strata manager insists that any information is the Committee’s business, not mine.
I was under the impression I owned my own home and had the right to know what was happening and when.
In a strata scheme, the owners corporation is responsible for the repair and maintenance of “common property”.
Common property can exist within the home – some common examples are the ceiling, the boundary walls, the floor (beneath the floor coverings), bathroom tiles and waterproofing (affixed to the floor and any boundary walls). I won’t delve into what is or is not common property in this response, as there are plenty of resources for that.
The important thing to remember is that in a strata scheme, you can have common property inside your home that does not belong to you. With the owners corporation being responsible for it, the owners corporation decides how it must be repaired/maintained, such as which tradespeople to use or their scope of works.
An owners corporation would not repair/ maintain anything that is not common property. There might be an insurance claim that covers damage to an owners property (e.g. kitchen cabinetry) however in this instance it is the insurer who is in control of the works.
Putting all of this aside, the controller of any works is not prevented from the simple courtesy of keeping you as an owner and/ or occupant informed of the works being done within your home or investment. Simple matters such as what is happening and when should be communicated to any resident to ensure the success of the job. After all, that resident has to be available to provide access.
It doesn’t necessarily give the resident the right to control the job, but it does promote harmony in community living and makes everyone’s lives easier.
Tim Sara | Strata Choice tsara@stratachoice.com.au
I believe there are defects in my roof space. Can I use an independent technician rather than someone chosen by the committee?
I need a technician to provide a diagnostic investigation of my roof-mounted air conditioner and my roof space. I believe there are defects in the roof space that separates my unit from the surrounding units.
I’d prefer to use an independent technician rather than someone chosen by the committee. Do I have to provide the committee with the details of my chosen technician? What information am I obliged to provide to the committee if I have a technician visiting the scheme to carry out a diagnostic report?
You could wait to see the outcome of the report by the committee’s chosen technician.
It is difficult to answer this question with limited information. Do all units have a roof mounted air conditioner? Was this installed subject to an exclusive use by-law? If it was, you would need to check the terms of the by-law to ascertain any ongoing obligations regarding liability for any issues arising and how this would affect you as the owner of the unit.
If the above is not applicable, you could wait to see the outcome of the report by the committee’s chosen technician. If you believe there are concerns with that report, an independent report could be requested in response. This would be the more costeffective approach.
If you wish to engage a technician to obtain a preliminary opinion before the committee retains a technician, I recommend you discuss it with the committee and advise.
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It was agreed to obtain quotes to remove mould from a wall and repaint. Quotes have come back for repainting a large area of the building in a new colour. Do we need a special resolution to proceed?
Two lots in our small strata scheme had mould on the external walls at the back of the building. It was agreed to obtain quotes to treat the mould and repaint the surfaces of the external back wall. Quotes have been submitted for the painting of the entire downstairs external walls, all eaves, and all doors including garage doors. There does not appear to be any damage to the downstairs apart from the mouldy back wall. Owners want to change the colour as well. As the scope has changed quite a bit from the work originally agreed upon, would this now require a special resolution?
The scope of work appears to be far broader than a strict repair and would likely be categorised as improvements. For that, a special resolution is required.
No special resolution is required if the Owners Corporation is exercising its repair and maintenance function, even if superior materials are used or colours are changed. However, the scope of work you refer to appears to be far broader than a strict repair and would likely be categorised as improvements/ enhancements. For that, a special resolution is required.
Further, the cause of mould should also be determined so that the Owners Corporation can establish if it is a repair they are required to address.
Leanne Habib | Premium Strata info@premiumstrata.com.au
A faulty tap damaged kitchen cupboards. The owner has made a claim against the strata insurance. What is the role of the Strata Manager (SM) in deciding whether or not to hand a claim to an insurer?
The common water supply runs past each lot’s yard. The individual supply comes off this line and enters each unit. One rental unit had faulty taps over kitchen sink, causing mould and deterioration in cupboards. The owner demanded a claim be lodged on strata insurance. The insurer paid the claim. They also activated the “water damage excess” clause, which meant that the OC had to cover virtually all of the costs of the new plumbing and cupboards.
What is the role of the Strata Manager (SM) in deciding whether or not to hand a claim to an insurer? Is the handover automatic or does the SM assess the details and determine the merit and any limits of common property?
Where the cause of water damage is attributed (by the insurer) to tap fittings over/ under sinks inside a lot, is the insurer (and thus the OC) obliged to pay out the claim?
If the Strata Manager and Committee perceive that an owner has neglected to repair the internal plumbing and cupboards, is it reasonable to:
• Direct the owner to claim on their own (contents or landlord) insurances, or
• Require the affected owner to pay the strata insurance excess for the OC?
The committee, and the strata manager in particular, have very limited powers to stop an owner from lodging a claim.
We advise our clients that, generally speaking, when a lot owner has paid for insurance and insurance premiums, they have an insurable interest in the policy. Often committees may feel that an owner should not have access to the policy, but in instances where there’s a dispute over whether the owner should or shouldn’t lodge a claim, insurers will often take precedence to insurable interest and lodge the claim from the owner.
The committee, and the strata manager in particular, have very limited powers to stop an owner from lodging a claim if push comes to shove. They can
always say to an owner, ‘No, we won’t allow you to claim’, and if the owner doesn’t dispute that, then it solves the issue. But if the owner really pushes the matter, it’s likely the insurer will accept the claim, because the owner has an insurable interest in the policy. The strata manager is probably off the hook here, because they’re just passing on the claim and facilitating that for the owner and the owner is entitled to claim. Most water damage claims are preventable and are a result of lack of maintenance, as you mentioned in this claim. Can the owner claim on their contents or landlords insurance? Landlords and
contents insurance does not cover any building fixtures and fittings and permanent fixtures. That includes any kitchen or bathroom fixtures, kitchen sinks, cupboards and so on, so these items can only ever be claimed under the strata insurance.
With regard to excess, NSW legislation is silent on this as well. I’ve done research on this because the legislation doesn’t specifically speak about excess, so I’d like to think the benefit principle applies here. You could argue the owner is responsible for the excess because they’ve benefited from the claim. In some of my research, there is also an argument that the owners
corporation maintaining the insurance policy is liable for the excess. I would like to think the first applies in this claim, and if it was me on the committee in NSW, I would be be seeking that the owner first pays the excess and if it’s disputed, then obviously get advice from your strata manager specific to that.
Tyrone Shandiman Strata Insurance Solutions tshandiman@iaa.net.au
Look at what your agreement says and what you’ve agreed with the strata manager, but as a minimum, once a quarter.
Under the Property Stock Agents Regulations section 37, there’s a report that’s required to be provided to the treasurer once every three months. This financial matters report must state the name and address of the owners corporation for which the report is prepared and talk about funds, (moneys coming in, money going out), and so forth.
We provide a set of financial statements to our treasurers each quarter. In addition to that, a lot of strata managers now have online portals
with up-to-date financial information, and for some of our buildings, we email them financial reports each month because that’s part of the terms of our agreements.
Look at what your agreement says and what you’ve agreed with the strata manager, but as a minimum, once a quarter under the Property Stock Agents Act.
Rod Smith | The Strata Collective rsmith@thestratacollective.com.auREAD
The Strata Collective was formed with a simple goal –to provide a professional strata management service to clients who want a close, personal relationship with their Strata Manager.
We are a next generation Strata Management business that you can count on.
Find out more about our award-winning services at thestratacollective.com.au
Around 10 years ago we obtained approval and installed shutters on our apartment. Now it appears the shutters may have caused water damage to the unit below. If approval was given by the strata manager, are we responsible?
Around 10 years ago we installed balcony shutters in our apartment. Before proceeding, the contractor emailed our strata manager requesting approval to proceed. They provided all details for the installation and we were given approval to proceed via email.
It now appears the installation of the balcony shutters might have caused a leak in the bedroom of the unit below.
• Was the strata manager’s approval to proceed sufficient for us to go ahead with these works?
• If not, are we at fault for proceeding with the works even though we obtained approval from the strata manager? At the time, we were not asked to action anything else before proceeding.
• If the contractor damaged the waterproofing during installation, is the contractor liable for the damage?
You
If the installation of the shutters you installed has damaged the common property (such as the waterproofing membrane). Section 132 of the Strata Schemes Management Act
2015 provides the owners corporation may obtain an order from the Tribunal requiring you to undertake rectification work or pay for the rectification work:
1. The Tribunal may, on application by an owners corporation for a strata scheme, make either of the following orders if the Tribunal is satisfied that work carried out by or for an owner or occupier on any part of the parcel of the scheme has caused damage to common property or another lot—
a. an order that the owner or occupier performs the work or takes other steps as specified in the order to repair the damage,
b. an order that the owner or occupier pay to the owners corporation or the owner of the lot a specified amount for the cost of repairs of the damage and any associated costs, including insurance and legal costs.
2. An amount payable by an owner or occupier to an owners corporation under this section is payable, and may be recovered, under this Act as if it were an amount of unpaid contributions.
It is important that you ascertain when the installation of the shutters was completed because you may have rights to claim against the contractor who installed the shutters. You may have recovery rights against the contractor for breach of contract or breach of the statutory warranties Home Building Act 1989. The damage to the unit below may be recoverable from the contractor as consequential loss. You should obtain legal advice promptly concerning this as it is a very technical area of law and strict limitation periods apply.
may have recovery rights against the contractor for breach of contract or breach of the statutory warranties.
You will also likely need to engage a building consultant to prepare a report.
If you are able to pass liability on the contractor, and recover from the contractor, this could assist you in responding to and resolving any claim the owners corporation makes against you in relation to the damage.
About whether you are at fault for proceeding with the works based upon an email from the strata manager, based upon the work you have described in your email, the work should have been undertaken pursuant to a by-law.
There could be a general by-law that authorises the installation of the shutters, and the email from the strata manager could be confirming you have approval under a by-law. However, if there is such a by-law, it is quite likely it will contain provisions that make you responsible for the damage to the waterproofing membrane. You should review the registered by-laws carefully and check to see whether any
relevant by-laws have been repealed since the time the shutters were installed.
If there is no by-law authorising the work, it is quite likely you installed the shutters without the proper authorisation and damaged the common property (the waterproofing membrane) in the process of doing so.
Whether you can rely upon the email from the strata manager to avoid, reduce or apportion any liability, would involve interpreting the email correspondence in the context of the circumstances at the time. This would be a complicated legal argument and you will need to obtain legal advice about this.
Shane Williamson | Williamson Lawyers Pty Ltd shane@williamsonlawyers.com.au
A fire door was installed around 25 months ago and is now warped beyond repair. Would it be covered by a warranty?
Are builders warranties strictly adhered to, or is there a fair and reasonable expectation things will last beyond a warranty period as is the case with something like a new fridge?
Our strata had a fire door replaced 25 months ago. The door is now so warped that it impossible to shut over the weekend and needs replacing. We will attempt to get this done by the builder who replaced it. Are the responsible for replacing the door under a warranty period?
I don’t see it is likely to be covered by warranty.
Sorry to the owners, but I don’t see it is likely to be covered by warranty as it’s outside the 2 years applicable to new construction and (usually) 1 year offered by maintenance installers.
That said – doors do not just magically warp and certainly not over a weekend (unless they were burnt or covered in water).
If the door is in a wet area, is situated close to steam or has ever been wet, the owners should look into ensuring the correct door for the usage is installed.
If the owners believe otherwise, perhaps seek legal advice.
Rob Broadhead | 2020 Fire Protection rob.broadhead@2020fire.com.au
If we change strata managers, what happens to our term deposit?
Our strata manager organised a 1 year term deposit. If we change strata managers, will the term deposit be closed or transferred to the new manager?
Under our instruction, our strata manager placed our sinking fund in a 1-year term deposit with a bank. If we switch to a different strata manager, will our term deposit be closed prematurely as a part of the handover to our new strata manager? Or can our term deposit be kept with the bank?
The answer can lie in the detail of the term deposit ownership, but several options are usually available to the committee.
Given the perceived costs of breaking terms, committees can feel limited in the lengths of terms they may wish to consider. Especially if they are considering changing agents/ managers!
The answer can lie in the detail of the term deposit ownership, but several options are usually available to the committee.
If the term deposit is in the name of the owners corporation and not the strata manager, with their own bank account which will not change with the manager, no change is needed.
If the term deposit has been struck with a bank using the owners corporation as the owner of the funds, but using an strata management trust account, then you simply need to update the details of the bank account where the money is redeposited at the end of the term. Typically a simple administrative task.
In the more likely event that the term deposit has been placed through the strata manager in trust, there is, depending on the bank, the ability to update the ownership to maintain the term. This will usually require that the
new agent be identified to the bank (under the AML/CTF Act 2006) and supplied with the usual strata management contract that links the agent with the owners corporation, along with a letter that explains the situation. Exploring the bank’s flexibility would be worthwhile if a committee feels this issue may occur.
Finally, there is always the ability to provide notice, typically 31 days, to the bank to have the term broken and the capital (and residual interest) returned early. The residual interest may have some penalty deductions. The interesting point here is that we have seen penalties be waived or reduced by some banks that value strata capital. Sometimes all it takes is a phone call to the right person.
Tim Fuller | Strata Guardian contact@strataguardian.comOur owners corporation has received a request from the development next door to place scaffolding on common property and across two private car parks. They have offered to pay compensation. How do we deal with something like this?
Our owners corporation has received a request from the development next door to place scaffolding on common property and across two private car parks. I am the owner of one of those car parks. The owners corporation has contacted owners to ask how much ‘compensation’ we would accept for being unable to use our carpark for 15 weeks.
The committee are also discussing the compensation they will accept in exchange for the scaffolding on common property.
The owners corporation has stated that, as there will not be a “change” to the common property, no special resolution is required. When I queried them about entering a lease without a special resolution, I was told the committee had “not presented to enter into a formal lease or deed of access” and therefore the matter is being handled by the strata committee.
Can the strata committee really rent out common property with no contract for an undisclosed sum without the owner’s knowledge or agreement?
This question about access requested by the developer next door for scaffolding access raises 3 issues – access to private car spaces, compensation and special resolutions.
1. The private car spaces and their airspace are not common property but lot property, so the owners corporation does not have the power to grant anyone access to them. In order to access land for scaffolding or anything else, the developer needs to come to an arrangement with the owner of the land where access is sought. In this case, as part of it is common property and part is lot property, the developer needs to come to an arrangement with those 2 owners and the owners corporation.
2. If no arrangements can be reached, the developer can apply to the local court for access orders (under the Access to Neighbouring Lands Act 2000). When doing so, the developer would usually have to pay the legal costs of the other party (in this case the 2 owners and the owners corporation), as well as their own legal costs, but will not have to pay any compensation unless there is actual financial loss. Compensation is not payable for inconvenience. If those 2 units are owner occupied, the court would be unlikely to order compensation. However, if one is rented and the rent had to be reduced due to the car space being out of action for a period, there is actual financial loss for which compensation would be payable.
3. Under section 112 (1) of the Strata Schemes Management Act 2015, a special resolution at a general meeting is needed to grant access to the common property, including by licence. The strata committee does not have the power to deal with this.
We have assisted with many of these types of matters, and usually, the best option is to negotiate an access deed with the developer. The developer would usually pay the owners’/ owners corporation’s legal costs (it is cheaper than going to court) and you might be able to convince them to pay some compensation, as a settlement deed is quicker, cheaper and more certain than legal proceedings.
When we run these matters, the first thing we usually do is ask the developer for some money into our trust account, so owners/ owners corporations are not out of pocket if it doesn’t proceed.
James Moir | Madison Marcus Strata@madisonmarcus.com.au
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Usually, the best option is to negotiate an access deed with the developer.
Due to a safety issue, residents are not allowed to access the garbage room. Rubbish in our large scheme is stacking up and blocking access to roadways and fire equipment. Surely this is a safety issue?
Residents are not allowed to access the garbage room in our 2 year old 150 unit complex due to a safety issue. Should this have been rectified by the developer?
We are placing large bins outside the double garbage room doors on our roadways. Residents also dump rubbish ranging from general waste to lounges or fridges adjacent to the garbage bins. Sometimes the rubbish is piled up so high the fire extinguisher is hidden. Pedestrians have to walk around the rubbish on the roadway to access visitor parking.
Is this acceptable and are there any laws being broken by continuing this practice? Could it this situation cause an insurance claim to be the responsibility of the owners corporation?
Under the Strata Schemes Management Act 2015 Section 80 (effective 30 November 2016), it became mandatory for developers to supply
all the new owners with an “Initial Maintenance Schedule”. The IMS sets out a schedule of what frequency of maintenance was required for the owners to undertake, ensuring that the building item performed as was intended. Section 115 of Act states that the initial maintenance of the common property of a strata scheme must contain maintenance and inspection schedules for any item that is on common property if the maintenance and inspection is reasonably required to avoid damage to the item or a failure to function properly for its intended purpose.
I’m making the assumption that the chute malfunctions and is the safety issue. In this instance the garbage room, if maintained as per the schedule, should work as intended for the lifespan set out in the schedule. Unit owners in a new strata scheme probably don’t even know there is a maintenance schedule. Or that they are required to follow it so as not to void any warranties. That’s the first step.
The second step is that the builder is required to lodge a bond (2% of contract price) to cover any defects that arise within the first 2 years. They also need to appoint a building inspector within the first 12 months of building work completion. The owners corporation then needs to appoint their own building inspector (independent of the developers inspector) within the first 2 years of occupancy. If no claims are made, the developer gets back the 2% bond. So, one can see how this system would help protect owners and developers from blaming each other for who’s responsible
for building defects. If the garbage room safety hazard is not defective due to poor installation or building practices but has arisen from not being correctly maintained, the owners must address this themselves.
Although I have not been advised if there is a Building Manager, one would think so for a scheme of this size so I’ll make that assumption. Firstly, the building manager must address any safety hazards located within the common property. If the garbage room safety hazard is fixable, it should have been fixed to remove the hazard. If the hazard cannot be rectified immediately then it should be removed. Failing that, warning signs should be placed and access to the area restricted until such time as it can be rectified, and it sounds like this is where the owners corporation is at.
On finding out that there is a safety hazard on the common property, the building manager would arrange for contractors to attend the site, provide quotes and pass these onto the strata manager. The strata manager would supply all quotes to the strata committee and seek their direction. The strata committee must approve one of the quotes to fix the issue.
Thanks to the pandemic, Australia is still witnessing a shortage of contractors and building materials. Maybe the process I’ve outlined above is already in place and, due to the lack of contractors available, this work cannot be addressed yet. Alternatively it could be as simple as a machine part that the developer or building manager is waiting for because the manufacturer is out of stock. Regardless, it is not acceptable for the building management/strata committee to allow for access to the building’s Fire Safety Installations to be blocked, as this creates fire safety issue. If damage is caused by a fire emergency, this could affect the building insurance.
I recommend your first course of action is to ask the strata committee in writing what has been done to address this matter plus whether there is an estimated timeline for
this to be resolved. If the strata committee doesn’t have wheels in motion then contact your strata manager in writing. Make sure that both parties have been informed of the lack of access to any firefighting equipment or blockages to the paths of travel to a place of safety in the event of an emergency evacuation.
Peter Berney | Solutions in Engineering peter@solutionsinengineering.comBut the pressing issue is the developing divisions between residents, some of whom support the resident whilst others support the committee member.
What avenues can be taken to stop this corrosive enmity? Does NCAT have any powers here or is private legal action necessary? Who do we consult or who has the power to order a stop to these exchanges?
Regardless of the method used, there is a need to have resilience about the process: you don’t just heal the type of wounds you are talking about overnight.
The situation you describe is, unfortunately, a common one in strata. Tensions arise, emotions get inflamed and it is because we are talking about people’s homes. The amount of emotional and financial investment is significant.
Two residents in our building have been enemies for years. The feud is often aired publicly and residents are starting to take sides. How do we get the scheme back on track?
A resident and a strata committee member in our Sydney strata scheme have been “enemies” for years. This animosity spills over publicly on occasion. Emails to the committee attacking the committee and/or the committee member involved in the “feud” are aired publicly. Anecdotal accounts about get-even attempts abound. Recently the resident referred to the committee member using profanities in the hearing of a number of residents. The committee member is seeking legal advice.
You mention legal advice is being sought –one can only presume that is in relation to a potential defamation proceeding. While I can’t comment on that, I am interested in your other comments about ‘developing divisions’. You seem to be talking about different factions and support bases. Again, this is not unusual in strata. Here’s a potentially provocative thought: can that be healthy? Maybe it demonstrates that people are engaged and taking an interest, which in my view is far better than an overwhelming apathy which means nothing gets done.
In terms of what to do from here if it’s getting out of hand, you could look at a process to bring the divisions together and be less extreme in their differences. That would involve consulting someone with communications and mediation expertise. Or, you could approach it from the point of view that it’s not about bringing people together per se, rather, it’s about harnessing the energy that obviously exists and putting it to better use. That might involve things like town hall forums and resident information sessions. Sometimes those kinds of consultative forums, where many owners
Strata Community Association (SCA NSW) is the peak professional industry body and consumer advocate for Strata and Community Title Management in New South Wales. Membership includes strata managers, support sta , and strata service providers to the industry. SCA (NSW) has in excess of 3,000 members who help oversee, advise or manage over 750,000 lots in NSW. SCA (NSW) champions consumer rights and advocates for the highest industry standards and professionalism.
Jemena is responsible for the safety and upkeep of all gas and hot water metering assets within their area. Alongside Zinfra and their partner contractors, they require access to their meters from time to time, to carry out the following work:
• Meter reads
• Inspections
• Maintenance
• Disconnections
• Meter upgrades
• Respond to gas leak reports
• Alterations or repairs
They conduct mandatory routine maintenance and inspection of meters at no additional cost, to help make sure you receive accurate gas bills from your energy retailer. These routine inspections take approximately 30 minutes to complete, and you will need to provide access to your unit when requested. They will require Strata and Building Manager’s cooperation to facilitate contact between Jemena and their customers to arrange access to carry out necessary works.
Under the energy laws and where you are a gas customer, under Jemena’s Deemed Standard Connection Contract, you have an obligation to provide access to metering equipment.
Please refer to Clause 9.1 – Access to the Premises
*Strata groups and Building Managers do not have the same obligations (unless they are users), many Jemena’s gas and hot water metering assets are within common areas where access is required to be provided and it is their responsibility to facilitate repairs and maintenance to common areas.
Minimising gas safety hazards and your reponsibilities as a customer
In accordance with NSW legislation – specifically the Gas Supply Act 1996 (NSW). These checks and upgrades reduce the likelihood of potential hazards such as gas leaks, which can destroy plants and vegetation, lead to fires or explosions, and be dangerous to people’s health, or in some cases even fatal.
For strata and building managers, this is why it is so important they get into contact with their customers - not only to ensure accurate gas bills for owners, but to ensure the safety of the gas network.
Jemena reserves the right to disconnect your gas supply for wrongful or illegal use of energy or interference. This includes interfering with metering equipment or the connection or supply of energy to your premises or anyone else’s. Please refer to Clause 7.1 –Wrongful and Illegal Use of Energy in our Deemed Standard Connection Contract to better understand your responsibilities as a Jemena customer.
Centralised Hot Water systems powered by natural gas ensure a constant supply of hot water to individual units in an apartment building.
There is a separate hot water meter in each unit so that each resident is only billed for the hot water they use. The recording is used to calculate the volume of gas consumed to heat the water you’ve used to bill you accordingly. If your building has a gas Centralised Hot Water system, your meter will typically be installed inside your unit, and can usuallybe found under the laundry tub or kitchen sink.
Building residents must engage an energy retailer of their choice and create a hot water account. Failure to do so could lead to your hot water supply being disconnected. Visit Energy Made Easy for help in setting up your energy account.
Owners corporations in the City of Sydney government area are eligible to apply for a Green Buildings grant.
Applications open Tuesday 7 February and close Tuesday 7 March. If successful, funding is for projects from 1 July 2023.
Funding available:
• up to $15,000 for 1st year NABERS energy and water ratings and action plans
• $5,000 for 2nd year NABERS energy and water ratings
Find out more about the City of Sydney’s green building grants .
For further questions, email the grants team at communitygrants@cityofsydney.nsw.gov.au .
Install My Antenna
Professional TV Antenna Service For You Today
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LookUpStrata
Australia’s Strata Title Information Site
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Your Strata Property
Demystifying the legal complexities of apartment living
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Strata Community Association
P: 02 9492 8200
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LUNA
Building and Facilities Manager
P: 1800 00 LUNA (5862)
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First Facility Management Pty Ltd
Putting You First
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Mimor
Connecting People – Creating Communities
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Stratabox
Building Confidence
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Urbanise
Automate your workload to increase efficiency.
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ResVu
Customer Service Software for Strata
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StrataMax
Streamlining strata
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MYBOS
Building Management - Residential & FM Schemes
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StrataVault
Connecting people, processes, and applications
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Sedgwick
Building Consultancy Division & Repair Solutions
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GQS
Quantity Surveyors & Building Consultants
P: 1300 290 235
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Roscon
Property services & facilities management
P: 1800 767 266
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E: info@roscon.com
Budget Vals
Built For Strata
P: 1300 148 150
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E: reports@budgetvals.com.au
QIA Group
Comapliance Made Easy
P: 1300 309 201
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Leary & Partners
Quantity surveying services since 1977
P: 1800 808 991
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Auric Projects
Managing clients
P: 02 9918 2200
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Mabi Services
Asbestos, Safety & Building Consultants
P: 1300 762 295
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Forte Asset Services
FIRE | ELECTRICAL | HVAC
P: 1300 920 752
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Quality Building Management
keeping your buildings legally compliant and safe
P: 1300 880 466
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HFM Asset Management Pty Ltd
Leaders in Building Efficiency
P: 0407 734 260
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E: david.chokolich@hfmassets.com.au
CORE Consulting Engineers
Delivering 360° engineering solutions for strata
P: 02 8961 3250
W: https://coreconsultingengineers.com.au/
E: admin@core.engineering
Seymour Consultants
Body Corporate Report Specialists
W: https://www.seymourconsultants.com.au/
E: info@seymourconsultants.com.au
Independent Inspections
Sinking Fund Forecast, Insurance Valuations, OHS
P: 1300 857 149
W: http://www.iigi.com.au/
E: admin@iigi.com.au
Solutions in Engineering
Quality Reports On Time, Every Time!
P: 1300 136 036
W: https://www.solutionsinengineering.com/
E: enquiry@solutionsinengineering.com
Landlay Consulting Group
A Strata Remedial Consultancy
P: 02 8095 8556
W: https://www.landlay.com.au/
E: admin@landlay.com.au
EYEON Property Inspections
Buy and Sell with More Confidence
P: 1300 798 274
W: https://www.eyeon.com.au/
E: info@eyeon.com.au
BIV Reports
Specialist in Strata Compliance Reports
P: 1300 107 280
W: https://www.biv.com.au/
E: biv@biv.com.au
Covid19 Plans
Covid19 Safety Plans for Strata
P: 1300 828 344
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E: plans@covidplans.com.au
Strataregister.com Pty Ltd
Find the Strata / CT Manager for your property
P: 0411 483 249
W: https://www.strataregister.com/
E: hello@strataregister.com
Kerin Benson Lawyers Pty Ltd
Specialised Legal Advice for Strata
P: 02 8706 7060
W: https://kerinbensonlawyers.com.au/
E: enquiries@kerinbensonlawyers.com.au
Madison Marcus Law Firm
Be Empowered
P: 131 529
W: https://www.madisonmarcus.com.au/
E: strata@madisonmarcus.com.au
Holman Webb Lawyers
Body Corporate Disputes & Litigation Specialists
P: 07 3235 0100
W: https://www.holmanwebb.com.au/
E: shane.roberts@holmanwebb.com.au
RC & CO Lawyers
Effective, resource, clear.
P: 1300 072 626
W: https://www.rccolawyers.com/
E: assistant@rccolawyers.com
Bugden Allen Graham Lawyers
Australia’s leading strata law experts
P: 02 9199 1055
W: https://bagl.com.au/
E: info@bagl.com.au
JS Mueller & Co Lawyers
Specialist ‘Plain English’ NSW Strata Lawyers
W: https://www.muellers.com.au/
E: enquiries@muellers.com.au
Khoury Lawyers Pty Ltd
Client focused, Results Driven
P: 0415 459 486
W: https://khourylawyers.com.au/
E: pierrette@khourylawyers.com.au
Williamson Lawyers
A construction and strata lawyer ready to listen
W: https://www.williamsonlawyers.com.au/
E: shane@williamsonlawyers.com.au
Bannermans Lawyers
High Quality Specialist Legal Services
P: 02 9929 0226
W: https://www.bannermans.com.au/
E: enquiries@bannermans.com.au
Grace Lawyers
Know. Act. Resolve.
W: https://gracelawyers.com.au/
E: enquiries@gracelawyers.com.au
Speirs Ryan
P: 02 9248 3400
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E: ssaw@speirsryan.com.au
Watson & Watson Lawyers
“when experience matters”…..
P: 02 9221 6011
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E: richard@watsonandwatson.com.au
Premium Strata
Diamond-Class strata management agency
P: 02 9281 6440
W: https://www.premiumstrata.com.au/
E: info@premiumstrata.com.au
The Strata Collective
A next generation strata manager. People matter.
P: 02 9879 3547
W: https://www.thestratacollective.com.au/
E: rsmith@thestratacollective.com.au
Bridge Strata P/L
The bridge between you and your corporation
P: 02 6109 7700
W: https://bridgestrata.com.au/wp/
E: jan@bridgestrata.com.au
Bright & Duggan
Strata Professionals
P: 02 9902 7100
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E: customercare@bright-duggan.com.au
Civium Communities
When you build trust, you build a community
P: 1300 724 256
W: https://civium.com.au/
E: clientservices@civium.com.au
Vital Strata
Strata Made Simple
P: 02 9008 1112
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E: hello@vitalstrata.com.au
Sky Living Strata
Providing a superior customer experience
P: 02 9299 1100
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E: enquiries@skylivingstrata.com.au
Norwest Strata Management
Efficient & Effective Strata Management Solutions
P: 02 9086 9123
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E: mail@norweststrata.com.au
Townhouse Strata PTY Ltd
Strata Management with a Difference
P: 02 4971 0363
W: https://www.townhousestrata.com.au/
E: alan@townhousestrata.com.au
Strata Central
Boutique Strata Management Services
W: https://stratacentral.com.au/
E: enquiries@stratacentral.com.au
Acumen Strata
Tailored Strata Management Solutions
P: 02 7253 5820
W: https://www.acumenstrata.com.au/
E: info@acumenstrata.com.au
Quantum United Management
Creating vibrant and connected communities
P: 61 383 608 800
W: https://www.quantumunited.com.au/
E: info@quantumunited.com.au
Strata Insurance Solutions
Protecting owner assets is who we are
P: 1300 554 165
W: https://www.stratainsurancesolutions.com.au/
E: info@stratainsurancesolutions.com.au
Whitbread Insurance Brokers
Empower Your Vision
P: 1300 424 627
W: https://www.whitbread.com.au/
E: info@whitbread.com.au
CHU Underwriting Agencies Pty Ltd
Specialist Strata Insurance Underwriting Agency
W: https://www.chu.com.au/
E: info@chu.com.au
Strata Community Insurance
Protection for your strata property. And you.
P: 1300 724 678
W: https://www.stratacommunityinsure.com.au
E: myenquiry@scinsure.com.au
Flex Insurance
Your Cover Your Choice
P: 1300 201 021
W: https://www.flexinsurance.com.au/
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Driscoll Strata Consulting
Knowledge | Experience | Service
P: 0402 342 034
W: https://driscollstrataconsulting.com.au/
E: enquiries@driscollstrataconsulting.com.au
MJ Engineering Projects
Remedial Consultant Engineers
P: 1300 571 991
W: https://mjengineeringprojects.com.au/
E: info@mjengineeringprojects.com.au
Klaar
The Strata Building Specialists
P: 02 8003 4547
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E: build@klaar.com.au
Altogether Group
Power.Water.Data
P: 1300 803 803
W: https://altogethergroup.com.au/home-business/
E: eaustin@altogethergroup.com.au
ENM Solutions
Providing Solutions for Embedded Networks
P: 1300 000 366
W: https://www.enmsolutions.com.au/
E: info@ENMSolutions.com.au
Energy On Pty Ltd
P: 1300 323 263
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E: EnergyServices@EnergyOn.com.au
McIntosh Electrical Pty Ltd
Powered by Trust
P: 1300 627 727
W: https://www.mcintoshelectrical.com.au/
E: jenny@mcintoshelectrical.com.au
EMERLITE ELECTRICAL SERVICES
We Answer The Phone - No Job Too Big Or Small
P: 07 5591 9191
W: https://www.emerlite.com.au/
E: office@emerlite.com.au
2020 Fire Protection
Experts in Fire Protection for Strata
P: 1300 340 210
W: https://www.2020fireprotection.com.au/
E: service@2020fire.com.au
Linkfire Pty Ltd
Your Essential Safety Partner
P: 1300 669 439
W: http://www.linkfire.com.au/
E: sales@linkfire.com.au
Fire Safety Constructions
Compliant Specialist since 1999
P: 02 9945 3499
W: http://www.firesafetyconstruction.com.au/
E: info@firesafetyconstructions.com.au
Betta Fire Protection
Compliance you can trust
P: 02 8669 9108
W: https://bettafireprotection.com.au/
E: info@bettafireprotection.com.au
Higgins Coatings Pty Ltd
Specialist painters in the strata industry
W: https://www.higgins.com.au/
E: info@higgins.com.au
Dulux Property Services
Total Building Maintenance & Remedial Solutions
P: 0411 152 430
W: https://www.duluxconstructionsolutions.com.au/
E: propertyservice@dulux.com.au
3 Colours Painting Services
3 Colours Painting Services
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Strata Guardian
Fight low returns and rising levies with us.
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Sydney Central Pumps
Fixing Pump Problems for 20+ years
P: 1300 558 059
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E: service@scpumps.com.au
Stormwater Sydney
Inspection, Repair and Maintenance of drainage assets
P: 1300 741 003
W: https://stormwatersydney.com/
E: admin@stormwatersydney.com
HYDRAULICA Pty Ltd
Specialise in Drain & Pipe Cleaning
W: https://www.hydraulica.com.au/
E: darren@hydraulica.com.au
The Drain Man
Award-winning drain clearing & relining specialists
P: 1800 843 372
W: https://www.thedrainman.com.au/
E: enquiries@thedrainman.com.au
Mr Washer, Plumber To The Rescue
Over 30 years serving Sydney Strata buildings
P: 02 8583 2360
W: plumbertotherescue.com.au/strata-commercial.html
E: jobs@mrwasher.com.au
Superseal Protective Coatings (SPC)
Waterproofing & Epoxy Specialists
P: 02 9774 1004
W: https://www.spcau.com/
E: info@spcau.com
Danrae Group
Remedial Waterproofing & Building Specialists
P: 1800 326 723
W: https://www.danraegroup.com.au/
E: enquiries@danrae.com.au
Network Pacific Strata Franchise
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P: 03 9999 5488
W: www.networkpacificstratafranchise.com.au/
E: networkpacific@franchisedevelopments.com.au
Windowline Pty Ltd
Replacement window and door specialists
P: 02 8304 6400
W: https://windowline.com.au/
E: info@windowline.com.au
The Window Guy
Don’t choose any guy, choose The Window Guy!
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Select Window Installations
Windows & door replacement specialists
P: 02 9938 1500
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Humenergy
People, innovation and value sharing
P: 1300 322 622
W: https://www.humenergy.com.au/
E: Info@humenergy.com.au
The Green Guys Group
Australia’s Leading Energy Saving Partner
W: https://greenguys.com.au/
E: sean@greenguys.com.au
Innovative Lift Consulting Pty Ltd
Australia’s Vertical Transportation Consultants
P: 0417 784 245
W: https://www.ilcpl.com.au/
E: bfulcher@ilcpl.com.au
Arena Energy Consulting Pty Ltd
Independent Embedded Network Consulting Services
P: 0452 411 247
W: https://www.arenaenergyconsulting.com.au/
E: joseph@arenaenergyconsulting.com.au
Strata Energy Services
Simplifying Energy For Strata
P: 1300 060 111
W: http://www.strataenergyservices.com.au/
E: info@strataenergyservices.com.au
Groundfloor™
Australian parcel, mail, and refrigerated lockers
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Valen Project Services
Client-Side Project Management Specialists
P: 02 8542 4293
W: https://valenprojects.com.au/
E: enquiries@valenprojects.com.au
Strata Solve
Untangling strata problems
P: 0419 805 898
W: https://stratasolve.com.au/
E: chris@stratasolve.com.au
Insight Resolutions
Reconcile and rebuild through mediation
P: 0413 334 633
W: https://insightresolutions.com.au/
E: vad.mediation@gmail.com
StrataLoans
The Experts in Strata Finance
P: 1300 785 045
W: https://www.strata-loans.com/
E: info@strata-loans.com
Lannock Strata Finance
The Leading Strata Finance Specialist
P: 1300 851 585
W: https://lannock.com.au/
E: strata@lannock.com.au
Austrata Finance
Pay Now or Pay Later: It’s Your Choice®
P: 1300 936 560
W: https://austratafinance.com.au/
E: info@austratafinance.com.au
sharonbennie – Property Recruitment
Matching top talent with incredible businesses
P: 0413 381 381
W: https://www.sharonbennie.com.au/
E: sb@sharonbennie.com.au
Ki Creative Design
Purposeful Design Solutions
P: 0451 541 006
E: kiara.mcilroy@gmail.com
Apt Roofing Pty Ltd
Everything Roofing!
P: 02 9666 7373
W: https://www.aptroofing.com.au/
E: admin@aptroofing.com.au
Tinworth & Co
Chartered Accountant & Strata Auditors
P: 0499 025 069
W: https://www.tinworthaccountants.com.au/
E: caren.chen@tinworth.com
Matthew Faulkner Accountancy
Strata Auditing specialists
P: 0438 116 374
W: https://www.mattfaulkner.accountants/
E: matt@mattfaulkner.accountants
QUATRIX PTY LTD
Intercoms, Access Control, CCTV, Data, etc.
P: 02 9554 3487
W: https://www.quatrix.com.au/
E: info@quatrix.com.au
Lock, Stock & Barrel Locksmiths Pty Ltd
P: 0411 700 072
W: https://www.lsblocksmiths.com.au/
E: info@lsblocksmiths.com.au
P: 1300 728 760
Clothesline
P: 1300 798 779
W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au
