The QLD
STRATA MAGAZINE APRIL 2022
Who is liable when faulty fire sprinklers flood a unit? Page 10 | Mahoneys + Strata Insurance Solutions
Using by-laws to limit tree heights and protect views Page 22 | Stratum Legal
By hook or by crook, the building MUST be maintained Page 26 | Tower Body Corporate + Strata Solve
About Us LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013. As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month. Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, flip to the end of this magazine.
Meet the team
Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians. Nikki shares her time between three companies, including Tower Body Corporate in SEQ, and is currently in her third term on the SCA (WA) Education and Professional Development Committee. More recently Nikki has become known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.
Nikki Jovicic Owner / Director
Liza came on board in early 2020 to bring some structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year. Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.
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Learn more here → https://www.lookupstrata.com.au/about-us/ You can contact us here → administration@lookupstrata.com.au
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Contents 4 Do I have to wait for the AGM to request approval for renovations?
William Marquand, Tower Body Corporate + Dakota
Todd Garsden, Mahoneys
6 Celebrating 10 Years | Supporting Lot Owners, Committees & Strata Buildings Australia Wide 8 Our caretaker has been a thorn in the side of many committees over the years William Marquand, Tower Body Corporate
ho is liable when faulty fire W sprinklers flood a unit? Todd Garsden, Mahoneys + Tyrone Shandiman, Strata Insurance Solutions
12 How do we know if our older building contains asbestos? Ryan Richards, Sedgwick
14 What if the BC is not prepared to enforce the bylaws? Chris Irons, Strata Solve
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Shared water meters - you’re on your own Sarah Price, Altogether Group
Panetta, Solutions in Engineering
20 Is the committee required to provide a space for bicycles? Frank Higginson, Hynes Legal
Strata Insurance Solutions
10
18 Are we required to have a WHS inspection every year?
22 Using by-laws to limit tree heights and protect views Michael Kleinschmidt, Stratum Legal
24 A proactive approach to upgrading common property William Marquand, Tower Body Corporate
26 By hook or by crook, the building MUST be maintained William Marquand, Tower Body Corporate + Chris Irons, Strata Solve
28 Reimbursing the building manager for items required to complete their work Frank Higginson, Hynes Legal
30 SCA (Qld) 2022 Level UP Conference SCA (Qld)
32 The QLD LookUpStrata Directory
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Requesting approval for renovations Do I have to wait for the AGM?
Do I have to wait for an AGM to request approval for work? The cost of the work will be under $3000 because family members will be assisting at no cost. I’d like to request approval from the body corporate to change a balcony wall in my apartment. Do I have to wait for the AGM or can this request be submitted at any time? If the cost of the work is less than $3000, can approval be given via a flying minute? I’ve arrived at an amount of $3000 for the work as family members will be carrying out part of the work at no cost.
Assuming that this is a common property wall, and is more than $3000, a general meeting would be required. This depends on whether the wall is part of the lot, common property and what the bylaws provide for this proposed improvement. Assuming that this is a common property wall, and is more than $3000, a general meeting would be required. The benchmark for the $3000 is based on value, not cost. So if the work is being done for free, but would otherwise cost more than $3000 it would still require a general meeting.
Todd Garsden | Mahoneys tgarsden@mahoneys.com.au
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Our caretaker has been a thorn in the side of many committees over the years Our caretaker has been a thorn in the side of many committees over the years. He has been allowed to run his own race and make changes to common property without committee approval. How do we turn this into a better relationship? Our caretaker has been a thorn in the side of many committees over the years. He has been allowed to run his own race and do as he pleases without any committee approval. He threatens committee members with lawsuits If they challenge him. He has erected fences on the common property to segregate his space, has built a deck on his assumed property and has installed 5 air conditioning units sitting on common property. He is aware he is required to ask committee approval for any changes but ignores this and goes ahead anyway.
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We have been advised to never stop paying him and that serving him with breaches is simply a waste of time as the BCCM rarely rules against Management Rights holders vs Body Corporates. What can we do about this situation?
An avenue for action may be the unapproved alterations as the body corporate can and should act to rectify any issues that affect the common property. As you indicate, most caretaker issues are extremely difficult to negotiate as their contracts give them a great deal of protection. It’s a long road following the steps of breaches and legal action, but that is the main path that is available and is still preferable to giving up. One way of looking at it is that instigating legal action is a prelude to an improved negotiating
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position with the caretaker. The ultimate end game of terminating a contract may not be achievable, but If you can make their life more difficult they may be prepared to raise the service level they offer to ease that pressure. If you have that in mind as your goal from the beginning it may be possible to create a win-win scenario for both parties as opposed to just viewing the legal process as a punitive action. From the description, it seems like the caretaker is engaging in behaviour that is also causing an issue around their activity as a lot owner or on how the common property is being managed. That may provide a greater avenue for action as the body corporate can and should act to rectify any issues that affect the common property. Is it possible, for instance, to remove the fences or air conditioning units? We can’t tell from the information here, but a bit of careful strategising could give you some of the leverage you are looking for.
William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au
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Who is liable when faulty fire sprinklers flood a unit? Todd Garsden, Mahoneys: Who is liable if a fire sprinkler is faulty and it is activated in an apartment causing water damage to a lot owner’s property? Ultimately, the party liable for the damage caused to the lot is the party that is responsible for the maintenance of the faulty sprinkler.
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Ultimately, the party liable for the damage caused to the lot is the party that is responsible for the maintenance of the faulty sprinkler. If any related party has an insurance policy to reduce that liability, then that is a benefit. All utility infrastructure that forms part of scheme land is, by default, common property (and the maintenance obligation of the body corporate) unless it solely relates to supplying services to the lot and is within the boundaries of the lot. Adjudicators have held that fire related infrastructure which only relates to one lot can actually service the entire scheme if it links back to a building wide notification system – making the body corporate responsible for its maintenance.
Accordingly, it is important to ascertain what part of the sprinkler system was faulty. Is it:
corporate and such repairs relate to general maintenance, defects or wear and tear.
1. a part that only services the lot (in which case the lot owner would be responsible); or
As the strata insurance policy does not cover damage to contents items including carpets, curtains/blinds, appliances and other contents items, we recommend a claim is made on the lot owners’ landlords or contents insurance.
2. a part that connects back to a building wide system (in which case the body corporate would be responsible).
Tyrone Shandiman, Strata Insurance Solutions: In this instance, it is recommended an insurance claim is made on both the strata policy and the lot owner’s contents or landlords insurance. From a strata insurance perspective, insurers cover the cost to repair water damage to insured property but generally exclude repairs costs related to finding and fixing the leak, as it is generally considered a maintenance responsibility failure by the owner or body Todd Garsden | Mahoneys tgarsden@mahoneys.com.au
If the insurer believes the body corporate is responsible for the damage, they can take recovery action against the body corporate and in such instances, the contents insurer may repay the excess subject to the policy terms and conditions. In such instances where a claim is made against the body corporate for legal liability for damage to lot owner’s contents a claim can be made on the Legal Liability or Public Liability section of the strata policy.
READ MORE ON THIS TOPIC HERE
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
Experts in Body Corporate Law and Dispute Resolution Mahoneys has a dedicated team of lawyers with experience in assisting bodies corporate with: management rights assignments and variations
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caretaker performance issues
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How do we know if our older building contains asbestos?
If an older building is not aware whether they have asbestos in the building, should that building have an asbestos report carried out? If there is no asbestos register, however you suspect asbestos may be present, call in a hygienist. Asbestos was used in buildings up to around 1985. After this they stopped using asbestos in construction. Some older properties have been renovated, and during the renovations the asbestos may or may not have been removed. If asbestos has been identified in a building, there’s normally an asbestos register at the property. For older style strata buildings where asbestos has been identified, there would be an asbestos register on site. Contractors will refer 12 www.lookupstrata.com.au
to this as it will clearly identify where in the building the asbestos is located and if any work needs to be done on the property. If there is no asbestos register, however you suspect asbestos may be present, call in a hygienist. A hygienist will carry out lab testing to confirm if asbestos is present, and also identify whether the asbestos needs to be removed or rectified.
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Ryan Richards | Sedgwick ryan.richards@au.sedgwick.com
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What if the BC is not prepared to enforce the bylaws?
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What are the legal obligations of the Body Corporate to enforce the by-laws and what can be done to get the Body Corporate to act within those legal obligations? My Body Corporate is a standard module. My Neighbour breached a by-law. I issued a form 1 to the Body Corporate and the Body Corporate followed up a form 10 and 11 to the accused with 14 days to comply. 14 days passed, and the accused continued with the by-law breach. 1 month on from the issuing of the contravention notices the accused was still breaching the by law. The Body Corporate committee held a committee meeting with this item on the agenda. At the meeting, the committee acknowledged the breach was continuing and stated they were not prepared to spend Body Corporate money to progress the case through BCCM. What are the legal obligations of the Body Corporate to enforce the by-laws and what can be done to get the Body Corporate to act within those legal obligations?
With that in mind, and what I’ve said above about cost and process, I think it is not a bad idea to reflect upon the by-law breach and the impact it is having upon you. In other words: is it going to be worth your effort? Sorry to put it in such pessimistic terms, I am only trying to be practical. If one of your aims is to hold the body corporate committee accountable for not pursuing this, then the best you could hope for would be that if this goes to adjudication, the adjudicator makes an adverse finding against the committee for their (apparent) inaction, as happened in the recent, high-profile smoking decision in Queensland. That said, there’s no punishment, fine, sanction or penalty which applies, other than the fact that adverse finding is on the public record. I’m not sure how that would help you though. READ MORE ON THIS TOPIC HERE
Chris Irons | Strata Solve chris@stratasolve.com.au
Legislation requires that the body corporate must (not may) enforce its by-laws. While I appreciate the body corporate’s desire to save money – after all, that is money that you will foot, as part of your levies – frankly it doesn’t have a choice. Legislation requires that the body corporate must (not may) enforce its by-laws. In this case it appears the committee has agreed there is evidence of the breach, so it must enforce. Given it has apparently decided not to, you have two options. You can either dispute their decision to not enforce, or you can enforce the breach directly against the accused. Both options will end up in my former Office (The Commissioner’s Office). On the latter option, there are a few steps you firstly need to undertake (e.g., you must try and resolve the matter with them directly). You need to be aware also that it will take several (many) months for the outcome to be decided. 15
authority to read the meter and charge you individually. But you have a couple of options.
Shared water meters - you're on your own When I bought my unit as a single working owner, I had no idea we had one water meter to be read and divided amongst 32 lots. Why do I need to pay for other’s high water usage? When we purchased my property, I was not aware that we have only one water meter reading to be divided between all 32 lots. I am the single occupant of my lot and I work full time. I pay the same as a lot occupied by 4 or 5 people and this bill does not vary even if I’m away for 4 weeks. I am not the only owner wanting a separate water meter. As the meter is on my property and apparently my responsibility, can I request to have it read and only pay that amount?
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The water authority may be willing to change to individual metered billing without too much of an issue. It takes a sharp conveyancer to point out that sort of detail. The CMS almost never says, “there’s only one water meter which divides the water between 32 properties”. It’s unlikely they’ll be a sign and the agents are not always across the detail. Water rates notices describe the distribution by contribution entitlement and unless scrutinised, it’s often hard to interpret when you’re faced with the myriad of competing challenges when buying a property in a strata scheme. Depending on the age and layout of your building, it may not be possible for the water READ MORE ON THIS TOPIC HERE
If you have existing meters installed, the first thing to do is call the local water authority to see whether their access policy has changed since the building was registered or is likely to change in the future. The authority may be willing to change to individual metered billing without too much of an issue. If the local water authority cannot access the meters easily or remotely, it is unlikely they will offer to change to individual metered billing. Your body corporate manager will be able to make some enquiries on behalf of the building. The next thing the body corporate can do is take responsibility for the entire building’s water usage each cycle. If you have existing meters installed or are willing to install them, the body corporate can change the contribution entitlement arrangement with the local water authority and be the responsible party for the water invoice each cycle. The body corporate is then responsible for individual water recovery from all owners. There is a cost for administering the water recovery as well as a risk of delinquent debt, but for conscientious and low water users this is often less than the cost of excess water usage. We have previously responded to a similar question from a NSW lot owner, and you may find it useful to read that response as well. Sarah Price | Altogether Group sprice@altogethergroup.com.au
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Altogether Academy is a program that will educate, empower, and support all strata managers, while covering education topics such as: • Energy fundamentals • Embedded networks • Sustainable technology such as electric vehicle charging capability • Utility data and metering • Government reform and utility regulation The program will give you the opportunity to learn from some of the energy industry’s most experienced voices, learn soft skills and take part in networking opportunities. Take control of your career, embrace Altogether Academy and talk to a Senior Energy Consultant today.
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Are we required to have a WHS inspection every year?
Is an 8 storey 30 unit strata plan under the accommodation module required to conduct a WHS inspection every year? The strata plan does not employ staff but has a contracted building manager/cleaner. A WHS report is the simplest and easiest way to show that, as a BC, you have fulfilled your duty of care and to alert you and your manager to anything that needs rectifying. William Marquand, Tower Body Corporate:
There is no requirement to have a periodic WHS inspection, however, as a body corporate manager I would recommend that you do. They are a very good way of ensuring that your site is safe for all who use it. In terms of the legislation, the basic requirement in the standard and accommodation modules for maintaining the common property is stated as: The body corporate must maintain common property in good condition, including, to the extent that common property is structural in nature, in a structurally sound condition. Maintaining a safe site is part of keeping a property in good condition so all body corporates have an obligation 18 www.lookupstrata.com.au
to keep their site safe, but there is no specific direction on how to do this. Body Corporate owners also have to consider their obligations under the WHS Act, particularly if they are deemed to be a PCBU – a person conducting a business or undertaking. However, these obligations do not extend to a requirement to have an annual (or any) inspection. You can find out more information about this on the Work Safe Queensland site: Apartment owners and bodies corporate
Dakota Panetta, Solutions in Engineering: Whilst it is hard to distinguish a direct correlation between a WHS report and a PCBU’s obligations under the WHS 2011, it is much simpler to consider the common law duty of care that everyone shares and that will ultimately see the BC liable for damages. A body corporate has a duty of care to the safety of every person on that property including residents, visitors and even trespassers. If someone injures themselves on common property, the first thing the courts will ask when
William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au
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a claim is lodged is: “what did you do as a body corporate that was reasonably practical to mitigate and minimise the risk of the injury that occurred?” If as a BC you did nothing, no annual safety report, no proactive maintenance, the body corporate will be liable for the personal injury. Each year we see millions of dollars paid out by Bodies Corporate for simple injuries on common property. A WHS report is the simplest and easiest way to show that, as a BC, you have fulfilled your duty of care and to alert you and your manager to anything that needs rectifying. Dakota Panetta | Solutions in Engineering dakotap@solutionsinengineering.com
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Is the committee required to provide a space for bicycles? Our by-laws state that unit car parks may be used only for parking of a registered motor vehicle. As there is no space for bicycles, is the committee required to provide a space? Our Body Corporate bylaws state that each unit’s car parking area may be used only for the parking of a registered motor vehicle. They also state that “an owner or an occupier must not park stand or rest a bicycle on any part of the common property other than in an area specifically designated for the parking of bicycles”. When our building was built about 20 years ago, no area was ever designated for bicycles and no storage facilities were provided for them. Is the committee obliged to provide a bicycle storage area? If so, as we do not have much area that could be set aside for bikes, would we have to provide one space per unit?
If there isn’t enough room for a space for a bike for everyone, the issue then becomes how you allocate them. To me, that by-law is more about what you can use exclusive use spaces for. It says you cannot use them for bike storage. I don’t think it follows that the committee must supply storage areas for bikes, although if they could, that inevitably should lead to more occupier satisfaction.
Frank Higginson | Hynes Legal frank.higginson@hyneslegal.com.au
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If there isn’t enough room for a space for a bike for everyone, the issue then becomes how you allocate them. Most bodies corporate seem to operate on a first in best dressed basis.
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Using by-laws to limit tree heights and protect views We live in a rural body corporate estate with waterfront views. Is it possible to draft a by-law to limit the tree heights on some of the lots within the estate to preserve the views for all? We live in a rural body corporate estate with waterfront views. The original building covenants for the estate included provisions for tree heights on private lots. 22 www.lookupstrata.com.au
We recently found out that because the developer’s building covenant is not registered within the CMS, the body corporate cannot take action with regards to that original covenant and therefore the tree heights which were stipulated in that covenant cannot be enforced. The reason for the tree height restriction was to maintain the vista of the waterfront views for all owners. The current by-laws refer to those original covenants with regards to tree heights, but it appears that
this clause is unenforceable due to the covenant not being a part of the CMS. It is likely that the majority of owners would like to set a limit on tree heights for those waterfront properties in the estate. This would maintain the vista and views for all properties, including views from the common areas. Is it possible to draft a by-law that would in effect limit the tree heights on some of the lots within the estate to preserve the views for all?
Fortuitously, inside a community titles scheme, (almost) anything is possible with unanimous lot owner support. In Queensland, trees can be very heavily regulated. Sometimes in rural settings, especially in riverine areas, there can be biodiversity protections arising under statute or a planning scheme. Added to that, local laws can also regulate tree removal. To deal with tree disputes with neighbours, we have the Neighbourhood Disputes (Dividing Fences and Trees) Act 2011.
Developers often put in place landscaping covenants for their benefit, but which don’t stack up after all of the lots have been sold. Inside a community titles scheme, landscaping codes can regulate trees, as can by-laws. All of that regulation creates a very difficult background for anyone trying to solve a tree problem. Fortuitously, inside a community titles scheme, (almost) anything is possible with unanimous lot owner support. For example, a landscaping code can be
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inserted into the community management statement provided it is not contrary to any laws! Whether there is universal support for regulating trees (to protect views) or not, it is essential that this body corporate takes detailed and considered advice. That advice can lay the foundation for discussions with all owners to reach a solution acceptable to the whole community. If those discussions break down, then the Body Corporate will be better placed to decide whether to pursue a non-consensual resolution.
Michael Kleinschmidt | Stratum Legal info@stratumlegal.com.au
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A proactive approach to upgrading common property
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Should the body corporate be accountable for regular upgrades to common property? Our 18 strata title units have a large shared common property that is becoming very shabby. Some old play equipment on the common property has not been upgraded for nearly 30 years etc. This has made selling some units very difficult. Should the body corporate be accountable for regular upgrades, say every 10 years? They are very resistant at present, even though there’s a large amount in the sinking fund and I’m wondering if this could be used?
A body corporate must maintain the common property in a good and structurally sound condition. A body corporate must maintain the common property in a good and structurally sound condition. If that includes the play equipment, then that has to be kept up to date just the same as the gutters or the driveway. From description, repair costs would likely come from the sinking fund but ongoing maintenance would be an admin expense.
Perhaps there is a better use for the space that could enhance the value of the property. Instead of being a source of discontent among owners this could be an opportunity to do something positive for the scheme. For individual owners, it’s worth remembering that you are entitled to an input in the running of your scheme. Decisions are made by the majority not by the few and you have the right to make proposals for either general meetings or Committee meetings. This could include upgrading or removing the play equipment. If you are concerned about the matter, you should discuss how to make a proposal with your body corporate manager, then attend the meeting and have a discussion. Ask other owners to get involved. If property prices are being affected then not taking action seems like a false economy.
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William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au
If the body corporate fails to do this then there are a number of serious liability issues. What will happen, for example, if the child injures themselves on a piece of unsafe equipment? Will your insurance cover you when you are not taking reasonable action to make the site safe? As a first step this matter should be reported to the insurer as they need to be advised on any risks at the site. Committee members need to consider that they have a duty of care to all occupants at the site. Critically this includes ensuring that the site is safe. Committee members can be held personally liable if their decision making is deemed negligent. Your insurance should have Office Bearer’s Liability to help cover such an event, but it is not a 100 percent guarantee. The other option here is that the play equipment should be removed. This would require approval at a general meeting, but if the equipment doesn’t provide any utility to owners it is not an unreasonable proposal. 25
By hook or by crook, the building MUST be maintained
Our committee has continuously voted against painting our 16 yr old building due to the cost. We don’t have sufficient money in the sinking fund. What do we do? Our building is over 16 years old and it has not been repainted. The body corporate committee members have continuously voted against having the building repainted because of the high cost. They have also voted against increasing the body corporate levies, so the sinking fund does not have a sufficient balance to pay for painting. What do we do now?
You will need to get a majority of owners to agree to the works which means presenting proposals at a general meeting. William Marquand, Tower Body Corporate: The legislation states that a body corporate must maintain the common property in a good and structurally sound condition. This includes painting, so by implication, the work should be done. If only life were that easy. In reality, you will need to get a majority of owners to agree to the works which means presenting proposals for them at a general meeting. One issue you raise here is that it seems to be the committee blocking the idea. 26 www.lookupstrata.com.au
Committees have a fair bit of power, but they are also restricted in their decision making and should be working in the interests of the body corporate. They don’t have a veto on issues like this. As an owner, you can put forward motions to have the works done at a general meeting. These should be accompanied by quotes, although they aren’t always easy to obtain for an individual owner looking at a large project like this. Contact some relevant contractors to see what they think. If you struggle to arrange good quotes, maybe you could look at a motion that says that the committee must seek and present quotes. You could also submit motions for the next committee meeting to prompt them toward further consideration – this at least keeps the item on the agenda so people can see how the committee are voting. A softer alternative would be to ask the committee to do a poll of owners to see if they would like the building to be painted. If enough people reply in the positive, it may give some impetus to the project. It’s a bit more extreme, but you could also write to owners yourself and ask them to contact the committee. If you have a body corporate manager, you should contact them and see what they think is the best approach for your
building. They should be able to guide you on the steps you can take and perhaps give you a link to a suitable contractor who can provide a quote. If you can proceed the matter to a general meeting then owners will have the opportunity to vote on the proposal. If there are no funds, a special levy may be required. If people vote no to the proposals then you could look at seeking an order against the body corporate for failing to meet its obligations. What would be the chances of success here? It would likely depend on the quality of your submission. It may also be an unpopular step with other owners. Still you have the right to protect your home and investment and when purchasing into a body corporate, all owners are signing up to adhere to the legislation. If that is not happening you may need to push for the outcome you seek.
Chris Irons, Strata Solve: Will has very clearly highlighted the challenges you face here and they are challenges I think quite a few lot owners face. And you can understand it up to a point. Maintenance costs money, sometimes an awful lot of it, which owners have to fork out for. The thing is, it’s not optional. One of the many points of
William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au
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difference between owning a lot in a community titles scheme and owning a free standing house is that in a house, you can choose to not maintain (or not be insured, as well as many other things), whereas in strata, you do not have a choice to not do those things. It matters not if the body corporate doesn’t have the funds, thinks it too costly or would prefer to defer. If the maintenance has to happen, the body corporate has to find the money for it, by hook or by crook (preferably not by crook). Many cases confirm this. In this one, refer to paragraph 120, in the which the adjudicator states that in relation to the body corporate maintaining common property: “If funds do not exist, then the body corporate needs to explore options to raise them. This is not an excuse not to conduct necessary scheme maintenance and rectification work”.
Chris Irons | Strata Solve chris@stratasolve.com.au
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Reimbursing the building manager for items required to complete their work As building managers, should we be reimbursed for items needed to complete works required under the caretaking agreement? We are the building managers of a unit complex. There is a requirement for us to purchase goods and services to complete works required under the caretaking agreement. Our body corp does not supply all items. When we seek reimbursement for these items, the strata manager advises ‘Your management agreement pays you remuneration for a supply of service which is inclusive of GST.’ So essentially they are saying that our management agreement payment covers the costs of all goods/services we purchase for the management of the building. Is this correct?
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What does the management / caretaking agreement say? This whole thing hinges on what the management / caretaking agreement says. The usual position is that the body corporate bears the costs of consumables (i.e. fuel, fertiliser, etc) and then equipment is sometimes borne by the caretaker and sometimes by the body corporate.
The other issue that often comes up is when a caretaker engages someone to do a job and there can be confusion about whether the caretaker or body corporate bears the cost of that. That then turns on what actual duties the caretaker must perform. If a caretaker engages someone to do a job their agreement says they must perform, then it is at the caretaker’s
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cost. Otherwise, it should be the body corporate’s cost but ideally, after the body corporate knows that is the case. This is quite often then coloured by whether the job is a ‘skilled trade’ which might be something a body corporate has to bear. Each contract is different. The answer to the question will more than likely rest with interpreting all of the above.
Frank Higginson | Hynes Legal frank.higginson@hyneslegal.com.au
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ACCOUNTANTS Tinworth & Co
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Seymour Consultants
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Quality Building Management
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Mathews Hunt Legal
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Bright & Duggan
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Northern Body Corporate Management
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DEFECT RESTORATION Building Rectification Services
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STRATA REPORTS BIV Reports
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ELECTRICAL
CLOTHES LINES Lifestyle Clotheslines
Altogether Group
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Higgins Coatings Pty Ltd
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Fire Matters
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WATERPROOFING The Superseal Group
Trusted Experts in all aspects of Waterproofing P: 07 5519 4916 W: https://supersealgroup.com/ E: admin@supersealgroup.com
WINDOWS & DOORS Windowline Pty Ltd
Australia’s strata replacement window & door specialists
P: 02 8304 6400 W: https://windowline.com.au/ E: info@windowline.com.au
Experts in electronic security since 2005 P: 1300 859 141 W: https://www.pacificsecurity.com.au/ E: operations@pacificsecurity.com.au 36 www.lookupstrata.com.au
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SUSTAINABILITY & ENERGY The Green Guys Group
Australia’s Leading Energy Saving Partner W: https://greenguys.com.au/ E: sean@greenguys.com.au
Arena Energy Consulting Pty Ltd
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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
LIFTS & ELEVATORS 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
RECRUITMENT SERVICES sharonbennie – Property Recruitment
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Would you like your Strata Story featured in the next edition of The QLD Strata Magazine? We want to share your strata stories with the LookUpStrata community. Some examples of what you may wish to share: • A project you have implemented in your complex that has made a positive impact (e.g a process, community building activities, parking procedure, ect) • Do you have a funny story to share about strata living? • Have you received a response back from one of the LookUpStrata professionals • that has positively impacted you or your complex? • Have you made a change to improve sustainability? (e.g installed solar, swapped over to LED lighting, reduced waste?) • You could even share a photo of the view from you balcony or catching up with neighbours for a coffee. If you would like to share your strata scheme story with the LookUpStrata community, Please send your story and photos to: administration@lookupstrata.com.au
Disclaimer: If you send your strata story to administration@lookupstrata.com.au, you are agreeing to have your story published on the LookUpStrata platform or via social media. We must have written permission from each individual shown in the photo. Submissions may be refused for any reason.
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