The QLD
STRATA MAGAZINE JUNE 2022
What’s the best moisture content in the air to prevent mould growth? Page 12 | Sedgwick
Spending for items not in the budget Page 18 | Mahoneys
Leaf blowers and other ‘nuisances’ Page 28 | 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.
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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.
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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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Contents 4 Representatives on the Principal Body Corporate in a layered scheme William Marquand, Tower Body Corporate
6 Are we eligible to be included in the reinsurance scheme? Tyrone Shandiman, Strata Insurance Solutions
8 Inspirational building makeover nears completion Lannock Strata Finance
10 Are apartment buildings in Queensland required to install only energy efficient air cons? Michael Kleinschmidt, Stratum Legal
12 What’s the best moisture content in the air to prevent mould growth? Ryan Richards, Sedgwick
14 Should the gardener handyman have full insurance?
18 Spending for items not in the budget Todd Garsden, Mahoneys
20 Convincing lot owners of the importance of a healthy sinking fund Tim Fuller, Strata Guardian
22 Embedded networks for solar installations Drew McKillican, Altogether Group
24 Replacing non-compliant unit entry doors Stefan Bauer, Fire Matters
26 Builders warranty deadlines and approval for spending William Marquand, Tower Body Corporate
28 Leaf blowers and other ‘nuisances’ Chris Irons, Strata Solve
30 Building Defects SCA (Qld)
Tyrone Shandiman, Strata Insurance Solutions
16 Sinking Funds: Protecting the value of your property investment
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Representatives on the Principal Body Corporate in a layered scheme Can a partner of a lot owner be our body corporate representative on the Principal Body Corporate in our layered scheme? The partner of a lot owner (who is also a committee member) is a mechanical engineer and suitably qualified to monitor the maintenance of plant and equipment in our 100 lot building. He enjoys doing this. I am aware that he can be a member of our body corporate committee, which is a subsidiary body corporate in our layered scheme. Can he be our body corporate representative on the Principal Body Corporate?
If a non-committee member is going to be the representative on a building management group you would first have to consider if this is permissible under the terms of the managing statement. Usually, a scheme’s representative to a building management group is a member of the Committee who has taken on the extra responsibility. It’s a natural extension of the role of Committee member. If a scheme doesn’t appoint a representative directly, the Chair is the default representative.
If a non-committee member is going to be the representative on a building management group, you would first have to consider if this is permissible under the terms of the managing statement. If acceptable, you would then need to consider how the individual will be appointed to the position of representative. The managing statement might give some guidance on this, but if not then appointment could be via a general meeting or committee meeting. After that, some structure needs to be considered for how that individual interacts with the committee and receives instruction from them on how to act. This is also the case with committee members who are building management representatives, but that person is likely to be part of an ongoing decision making matrix whereas the non-committee member has to cross some bridges to be part of that. The concern would be that the management group representative acts beyond the limit of their authority and commits the scheme to costs or actions without having had either direction from the committee or body corporate to support that. All things considered, it may be possible but it might be easier if the appointee was simply a member of the Committee. For more information please see the government website on layered schemes: Running layered scheme William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au READ MORE HERE
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Are we eligible to be included in the reinsurance scheme?
I own a home within a strata title village in FNQ with a total of 17 homes. Our current insurance cover is $4,500,000. Are we eligible to be included in the reinsurance scheme? I own a home within a strata title village where there are a total of 17 homes, our current cover is $4,500,000. We live in FNQ. Naturally, there are many questions regarding the federal government’s reinsurance pool which become effective July 1 2022. Our insurance is not due until November 2022 and getting information from a broker has not been easy, as they don’t really look into the reinsuring until 6 weeks prior to renewal. We have been told that we may not be eligible to be included in the reinsurance scheme, so my question is why not?
Properties greater than 50% residential will be eligible under the reinsurance scheme. Under the Federal Government Cyclone and Cyclone-related Flood Reinsurance Pool, properties greater than 50% residential will be eligible under the reinsurance scheme. Notwithstanding, insurers are not required to join the reinsurance pool on 1st July 2022. Large insurers have until December 2023 to have all eligible policies transferred into the pool and smaller insurers until December 2024. It is possible that some (or all) insurers may not start offering policies under the reinsurance arrangement when it first comes in to effect. Negotiations are currently underway with insurers and the federal government on the implementation of the reinsurance pool and there have currently been no announcements by insurers on their participation in the reinsurance pool. Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE
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Inspirational building makeover nears completion.
This article is brought to you by
For decades the brutalist apartment block at 20 Illawong Avenue, Tamarama, was known as the ugly duckling of the east. Occupying one of the most sought-after pieces of land in Sydney, the 7 story, 1960’s apartment block had seen better days.
Photo of Illawong, 2020
For starters, the building had concrete cancer and there were two council fire orders. There was only one lift to service 78 units and parking for only 50 cars (none of which were under cover), and despite every apartment having 180-degree ocean views, there were no balconies. Today the building has been completely transformed with the one-time ugly duckling now looking more like a contemporary 5-star hotel overlooking one of Sydney’s most iconic beaches.
Due to efforts of the forwardthinking executive committee led by persistent chairman Christine Smetsers, the owners have not only fixed the defects but improved the property enormously by putting balconies on the ocean side for all 78 units; replacing the existing lift and adding a second lift; building an underground carpark for all units; and adding terraces on the western side of the property.
a substantial amount to fund the enhancement.
These works have increased the floor space of each unit by 25% and the owners believe the rectification, new balconies and car parks has meant the capital value of each property has skyrocketed.
A strata loan is an unsecured loan to the owner corporation. The funds can be used for strata improvement projects like refurbishment, renovations, defects, green projects and repairs. This allows owners to complete capital works on their buildings, often without the need to raise special levies.
And this was all achieved with minimal upfront costs being incurred by the owners. So how did they do it? Strata finance is gaining momentum in Sydney’s east as owners corporations look to fix defects and undertake aesthetic improvements to aging buildings.
In the process, the concrete cancer; fire orders; and other building defects are now rectified.
When completing a project using a strata loan, owners enjoy the lifestyle benefits and investment returns of completing the project sooner. Owners don’t have to wait around for a sinking fund to accumulate but can get work done at today’s costs and avoid the problem getting worse.
The work also included building 2 new penthouses, sales of which will contribute
“The fantastic outcomes being achieved by Skye Tamarama highlight how
Photo of Illawong, 2022
funding solutions assist strata owners affected by building defects and general deterioration,” says Paul Morton, CEO of leading strata lender Lannock Strata Finance. “Strata borrowing means that owners can achieve that fantastic dream for the property – balconies, car parking, roof-top garden, a penthouse on top – it’s all possible,” Mr Morton said.
Christine Smetsers, chairman of the strata committee said; “Another benefit is that health and safety issues are resolved as quickly as possible”. Value is restored to each individual property. An initial period of interest only gives owners time to evaluate their personal financial position. Owners should talk to their accountant about additional benefits of a strata loan.
Do you have a strata project that is needing finance?
Lannock CEO Paul Morton said the case of Skye Tamarama “showcases the benefits of strata finance over special levies”. Michael Pallier of Sotheby’s who is handling the sale of the two penthouses said; “Work is nearing completion at Skye Tamarama which represents Australia’s largest strata asset renewal project. The penthouses will be very well received by the market”.
Just like the Skye Tamarama Project, 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.
Australian Credit Licence 412905
Are apartment buildings in Queensland required to install only energy efficient air cons?
Are Class 2 buildings in Queensland required to only install 4-star energy efficient rating air conditioning? Was any change made to legislation in 2009 regarding minimum energy efficient rating for air conditioning units in class 2 (apartment) buildings? I was under the impression that air conditioning units now need to be a minimum of 4-star energy efficient rating. One of our owners is looking to install a unit with only a 3.5-star rating. Should the Committee approve this installation?
Barring a new build or a renovation that requires a building DA, the standard does not apply. The specific section of the relevant code that is applicable to energy efficiency related to this query is Queensland Development Code (QDC) MP 4.1 – Sustainable Buildings (Version 1.13- 17 September 2020) which supersedes QDC MP 4.1 – Sustainable Buildings (27 November 2009). That section applies to new buildings and imposes energy standards across the entire building, not just in relation to airconditioning units; the energy efficiency rating is averaged. (Note the ‘MP’ in ‘MP 4.1’ stands for ‘Mandatory Part’!). The standard also applies to renovations of a sole occupancy unit in a class 2 building, but only if a building development approval is required for those renovations.
body corporate (owners corporation) found in the Hunter Connection Food Court in Sydney’s CBD (see The Owners Strata Plan 50276 v Thoo [2013] NSWCA 270). Note however that the NSW legislation is (slightly) different, with respect to the relevant body corporate duty to maintain. While each ton of carbon into the atmosphere is another brick in the climate change wall, this committee should take care and assess the current application on its merits, and in the context of the particular circumstances of the Scheme. After that, they can get ahead of the game by adopting a ‘green’ by-law or two, to make the job easier next time. The Queensland Development Code can be found at the Queensland Government Business website: Queensland Development Code Michael Kleinschmidt | Stratum Legal info@stratumlegal.com.au READ MORE HERE
So, barring a new build or a renovation that requires a building DA, the standard does not apply… unless of course the Body Corporate picks it up in a by-law. A body corporate wanting to get serious about energy efficiency could put in place a by-law which makes clear that new or replacement air conditioners must have a higher energy efficiency rating. Absent a by-law, it would be an ‘adventurous’ committee that refused permission for the air conditioner install, on the basis of an inapplicable standard. Another justification for energy efficiency would be required, such as (for example) structural limits of the existing wiring network, and the need to ensure that the network capacity is not exceeded. Even then, this can be dangerous ground as the 11
What’s the best moisture content in the air to prevent mould growth?
I have a dehumidifier. To prevent mould growth, what relative humidity level should I be trying to get down to? If you can get down to around about 45% – 50% relative humidity, that’s the ideal moisture content in the air.
Mould grows in a perfect environment. You need to reduce the relative humidity. If you can get down to around about 45% – 50% relative humidity, that’s the ideal moisture content in the air. A lot of people don’t have a device to accurately monitor the relative humidity. Restorers normally carry it, along with thermal imaging cameras.
Anything above 65% creates an environment that is able to grow mould. Don’t go too dry. If you go below 45% relative humidity, you start to get an itchy throat and it’ll dry out the air probably a little bit too much. Aim for about 45% to 50% and you shouldn’t have a problem.
Ryan Richards | Sedgwick Ryan.Richards@au.sedgwick.com READ MORE HERE
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Should the gardener handyman have full insurance?
The gardener handyman does not carry any insurance. Is he covered under the Body Corporate insurance? We recommend the body corporate engage contractors who carry appropriate insurance. The strata policy extends to cover the body corporate for legal liability claims made for personal injury and property damage. While this can extend to cover liability the body corporate are drawn into as a result of the gardener’s action, it does not cover claims or legal actions made against the gardener. In this instance, the gardener would need to carry public liability insurance. While there is nothing specifically requiring the gardener to have liability insurance in Body Corporate Management Act, the Body Corporate should consider:
1. If someone was seriously injured as a result of the gardener and was not able to pursue their insurance they could be left in a problematic circumstance without the proper ability to recover financial losses from the gardener; 2. Solicitors for an injured party will more actively pursue defendants who can pay a claim (i.e. insured defendants) vs those who cannot. If there was an injury where the body corporate & gardener were drawn into the claim and the gardener was not insured, a solicitor may pursue the body corporate more actively having an adverse impact on the body corporate claims history. For the reasons stated above, we recommend the body corporate engage contractors who carry appropriate insurance. Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au READ MORE HERE
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Sinking Funds | GQS
SINKING FUNDS: Protecting th Value of your Property Investme
Do you understand the mechanics of your sinking fund? Many of us contribute hundreds, or thousands, of dollars sinking fund within our body corporate fees each year. But why, what is this for? How do we know it is being app and doing what it is supposed to? How does it protect the value of our investment? How do we accurately foreca
Firstly, what is a Sinking Fund?
Nearly all bodies corporate require a formal sinking fund to be set up (except for specified two-lot schemes). A sinking fund must allow for raising a reasonable capital amount from Owner’s contributions, to provide for necessary and reasonable spending relating to replacement, repair and/or maintenance of the property’s capital items. The law requires a sinking fund budget to consider the current financial year, and also the reservation of an amount to meet likely spending for at least the next 9 years. For example, these funds could be used towards, re-painting, repair/replace roofs, gutters, and downpipes, repairing or replacing components of the lift, replacing fencing etc. Appropriate budgeting and planning reduce the likelihood of special levies which typically become a serious burden on lot owners. It also ensures the body corporate has sufficient funds to maintain the level of amenity and quality of the property, which without can seriously affect re-sale when potential purchasers search body corporate records. If a Purchaser identifies that the property is in dire need of a re-paint, but the body corporate records show the sinking fund has a low balance, or shows a substantial future increase in levies, will they likely proceed with the sale at the desired price?
To ensure the Sinking Fund is being appropriately managed and doing what is intended, a professional Quantity Surveyor (QS) is engaged to complete a Sinking Fund Forecast. As the law calls for the budgeting of future works, it ensures bodies corporate are always looking ahead regarding future capital works. This is so that the sinking fund budget can accrue and have sufficient funds leading up to the required work. Unfortunately, 10 years (current and next 9 years) is not looking far enough into the future, many major works items worth considering may have a useful life greater than 10 years. It has become industry standard that your sinking fund forecast will include a 15-year forecast period so that the body corporate gets a 5-year shelf life out of the professionally prepared report, whilst still complying with the legislative requirement of budgeting for the current year and 9 years into the future. It is however still prudent for your QS to consider works required outside of the 10 or 15-year forecast period to ensure the body corporate funds are not left short in the future.
he ent
s towards the propriately managed ast for future works?
The preparation of a sinking fund forecast is recommended to be prepared by a suitably qualified and experienced QS.
10% or more, when compared to the forecast, then it should be reviewed. Your levies could be too high, or too low.
Why a QS? QS’ are experts in historical, current, and future construction related expenses. Preparing sinking fund forecasts, however, is a niche offering in the QS field and experience in preparing these reports is crucial. With experience comes a large array of critical data. Analysing similar properties, of a similar and greater age, size, construction type, style and location can greatly assist in forming up an accurate future cashflow. Future capital works are estimated by measuring and costing the work as at the date the report is prepared and utilising an escalation factor to estimate a future value of the work. As we have seen in recent years, volatility in the construction and export/import markets can have a dramatic effect on the health of the sinking fund and previously estimated future value of the work. We strongly recommend if the closing balance of your sinking fund is out by
The sinking fund forecast exercise is also heavily reliant on the information and input by the body corporate / strata manager, on-site management and/or relevant committee members. To enable an accurate forecast, we as QS’ require access to financial records, details on recently completed works, current quotes to hand, future planned works (potentially already discussed at a recent AGM), plans of the property and the committee’s view or vision on works that require more immediate attention than others. At the end of the day the body corporate will vote on whether works proceed or not, so it is important the committee be consulted prior to forecasting works. An inspection is also a crucial piece of the puzzle. An inspection ensures all related works are captured and budgeted for, it is often where the committee / on-site
1300 290 235
info@gqs.com.au
gqs.com.au
management has the opportunity to raise any sinking fund related issues and also, crucially, share the history of the property that may affect the accurate forecast of future expenses. Importantly, a sinking fund forecast is a budgeting exercise and a QS is not a qualified building inspector. It is however recommended that a building inspector (like our in-house qualified building inspectors) be engaged prior to the preparation of the sinking fund to ensure any defective or deteriorating works are considered within the forecast. With the current construction market in the state that it is in, it has never been more important to ensure you are accurately, and regularly, budgeting for future capital works borne by the sinking fund. It often means the difference between a well maintained and well-funded property, and a poorly maintained and under-funded property causing it’s Owner’s financial and even mortgage valuation stress.
Spending for items not in the budget At a general meeting, if owners vote in favour of purchasing certain capital items but the committee has made no allowance for the cost in the expenditure component of the sinking fund budget, can a committee provided the amount falls within its spending limit, purchase that equipment if either there are surplus monies in the sinking fund and/or the monies previously collected for that equipment haven’t been expended? 18 www.lookupstrata.com.au
A committee does not need to obtain additional funding at general meeting for any and all expenses that are not specifically budgeted for. The short answer is yes. A committee does not need to obtain additional funding at general meeting for any and all expenses that are not specifically budgeted for. This is why it is called a budget – it is not intended to be 100% precise. This was well discussed in Parkwood Villas [2010] QBCCMCmr 521 where the adjudicator relevantly provided:
“The legislative provisions clearly indicate that the budgets contain ‘estimates’ of necessary expenditure. There is no suggestion in the legislation, either in the provisions relating to the budgets or relating to the control of spending, that budgets set the limit of expenditure on any line item or that spending cannot be approved on any specific project if that would put the spending on that budget line item above the budget estimate for that item. The reality of budgeting is that some items will be overestimated and some will be underestimated, because in some areas it can be legitimately difficult to estimate what expenditure may be necessary. For example, it may have been difficult to predict the number of dispute resolution applications that would be lodged by the applicants against the Body Corporate in the last financial year. I consider it would be an unreasonable expectation that a body corporate must review its accounts for every budget line item every time even small amounts of expenditure are incurred. It would similarly be unreasonable to
expect that a body corporate must call a general meeting to adjust the budget if the expenditure on a budget line item had exceeded the estimate by even a small amount. This could create a requirement to call general meetings regularly throughout the year to amend the budget, which could be very expensive and is simply not required by the legislation. What the legislation does require is that the body corporate must call a general meeting to approve a special levy if its budget will not accommodate a new liability that arises. If an unexpected expenditure arises, but existing funds will cover that expenditure because other areas of expenditure have been lower than estimated, a special levy may not be required.” Todd Gardsen | Mahoneys tgarsden@mahoneys.com.au READ MORE HERE
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Experts in Body Corporate Law and Disputes Mahoneys has a dedicated team of lawyers with experience in assisting bodies corporate with: management rights assignments and variations
debt and levy recovery
common property subdivision and sales
lot entitlement issues
general disputes and advice
building defect disputes
community management statements
building management statements
by law enforcement and by law reviews
LAAN access notices
selling schemes to developers
defamation
caretaker performance issues
neighbouring development issues
www.mahoneys.com.au
Brisbane office L 18, 167 Eagle Street Brisbane Qld 4000
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p 07 3007 3777
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Convincing lot owners of the importance of a healthy sinking fund
How do you persuade a reluctant strata committee and lot owners that we need to increase levies to build a healthy sinking fund? How do you persuade a reluctant strata committee that we need to increase quarterly levies or raise a special levy to build up a very low sinking fund? What tips can you give to help the community to convince lot owners to get an unhealthy fund back to a healthy balance?
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Lower levies may be more money in your pocket right now, but is that always the case at the other end? Show them our recent video: A Healthy Sinking Fund Means Healthy Property Values. Hopefully, this will get lot owners and committees talking about what happens when things go wrong and talking about what happens if we haven’t got enough in the sinking fund and something happens.
There is always scheduled, or unscheduled, maintenance that needs to happen. If there are no funds available for these works, is everybody happy with a large one-off or what could be ongoing special levies, increases or loans to meet that necessary expenditure? The money has got to come from somewhere. If the work has to do with safety, it could be a huge priority that needs to be done with little or short notice. It may not be able to be put it off. Lower levies may be more money in your pocket right now, but is that always the case at the other end? Tim Fuller | Strata Guardian contact@strataguardian.com READ MORE HERE
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Embedded networks for solar installations
How and when is an embedded network a good solution for a strata property wanting to install a large solar PV system for the benefit of all owners? You get the commercial benefit. It stays within the community. The reason embedded networks are so important is that it gives you the flexibility to install this type of generation and retain the benefit. The benefit is lost at the point in time it connects to the grid. Embedded networks consolidate the grid connection to the point, and then everything internally is your own private network. Having solar in an embedded network means that you can distribute that solar power within the embedded network without incurring any of the fees or charges we’ve talked about from the distributor. You can forego all of those kinds of impasse, which means you get the commercial benefit. It stays within the community. The question then of whether or not that goes directly to the owners corporation or to the residence, electricity is a lot like water. 22 www.lookupstrata.com.au
It will flow wherever its first point of demand is, so it doesn’t really matter where you install it, it’s just going to go where it’s wanted. The correct metering infrastructure will let you actually determine exactly where that power went, and then you can do some kind of financial or data administrative reconciliation behind the scenes. We do this quite often. We’ve got a large development underway in Northwest Sydney. It will have one of the largest solar arrays of any residential community in the southern hemisphere. All the solar power goes directly into the common areas and then just goes into wherever it needs to and then we work it all out financially behind the scenes. I wouldn’t be too concerned about the infrastructure side, how it’s actually installed. If it’s within an embedded network and you have a provider that has the sophistication to do those calculations and to do the administration, then you can actually have the commercial benefit of that power delivered wherever you want it to be delivered. Drew McKillican | Altogether Group DMcKillican@altogethergroup.com.au READ MORE HERE
the altogether academy Helping to educate and innovate for a better tomorrow. At Altogether, we’re a multi-utility service provider on a mission to make the world a brighter place. We’re passionate about creating sustainable communities. Leaders in the utility industry, we continuously lobby the government on matters to help improve customer protections. With imminent legislation changes on the way, we’re also well positioned to help Strata Managers and Body Corporates navigate their way through the new obligations and rights. That’s why we’re here to help with the Altogether Academy.
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.
SCAN H ERE
For more information, or visit altogethergroup.com.au
power. water. data
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Replacing non-compliant unit entry doors
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At a recent fire inspection, we found out the unit entry doors in our building are not compliant due to the gap around the door frames. We have the certified Certification of Occupation from when the building was constructed in 2010. Do we need to replace the doors? I own and reside in a unit that is in a complex of six. There is a main entry to the foyer and all unit entry doors are off the foyer. The building is two levels. We had a fire inspection and each unit entry door has compliance issues, particularly with the gap around the door frame. One unit door has a much bigger gap and the whole door requires replacement. Do we need to have each door repaired/replaced if we have the Certification of Occupation signed by a building certifier when the building was constructed in 2010?
The owner/occupier must repair/ replace any fire door to ensure the safety of the building’s occupants. The simple answer is yes, the owner/occupier must repair/replace any fire door to ensure the safety of the building’s occupants. This is set out in the Building Fire Regulations and penalties apply. In regards to the gaps around the door and frame, it is important to check the allowable gaps that the door has been approved to. There are fire doors that have been certified with a gap greater than that prescribed in AS1905 on the day of construction and may therefore be compliant. If the information is not on site, the fire door certification is part of the building’s approval process and the information should be available in the approval documents.
Stefan Bauer | Fire Matters sbauer@firematters.com.au READ MORE HERE
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Builders warranty deadlines and approval for spending Our complex is coming up to the end of the warranty period. The committee has employed a building inspector to compile a list of defects. Can the committee make this decision without approval for the spending?
The question is whether it is better to act outside the boundaries of the legislation to secure the rights of the body corporate or to adhere strictly to the legislation and let the warranty period pass?
Our complex is nearing the end of the 6 year, 6 month builders warranty period with the construction company and our BCC has employed a building inspector to inspect all 120 units. This will allow the BCC to present all building defects to the builder for rectification. The BCC have also employed a lawyer to represent all owners if the matter goes before the QBCC for adjudication.
Unfortunately, body corporate timelines for decision making don’t always match the timeline for other parts of the industry and sometimes an executive decision has to be made – the responsibility for this falls on the Committee.
The cost so far for this task is in the vicinity of $24,000 and the BCC, without consultation or approval from all owners, is paying for the services from the sinking fund. They intend to increase sinking fund contributions at the next AGM to raise the funds to pay for the project. Can the sinking fund be used for this purpose? Can the BCC expend this amount without approval? 26 www.lookupstrata.com.au
The defect timelines often cause issues for body corporates as, while there is an extended period for body corporates to take action, in reality it also takes a long time for owners to organise the necessary funds and information to make a filing against the builder or developer. Many schemes are not really aware of the rules or don’t think about them too much until the deadline approaches – this isn’t necessarily bad management so much as it is human nature.
Faced with the hard deadline of the warranty period, Committees find themselves in the position of needing to take action without having the time to seek proper approval. The question then is whether it is better to act outside the boundaries of the legislation to secure the rights of the body corporate or to adhere strictly to the legislation and let the warranty period pass? There is probably no fixed answer to this as the decision may well depend on the strength of the case and the quantum of the defects, but many body corporates will opt to do as your site seems to have done which is take action first. Once that decision is made, the Committee can seek after the fact ratification of the decision. It’s not ideal, but neither is the construction industry, or apparently the construction of your building, and sometimes needs must.
limit for a 120 lot complex. As for which fund the money should come from – most typically, legal costs are paid from the admin fund. I think it is reasonable to ask the rationale for taking the money from the sinking fund. You could put this question to the Committee, the body corporate accountant or the scheme’s auditor if you have one. William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au READ MORE HERE
If you object to that, then that is your right. I’d start by asking some questions to the Committee about the decision making process that has taken place and why action wasn’t taken earlier. If the Committee was acting in earnest in trying to secure the best outcome for the body corporate, they should be happy to discuss their rationale. Maybe you could volunteer to be part of the committee to assist with the decision-making at the scheme moving forward. If you think the choices of the Committee were egregiously incorrect, then you could look at the possibility of having committee members replaced or seeking some limitation over the commitment of any further costs. Whatever the situation, make sure you get as much information as possible in advance so that you can decide your response from a position of understanding. It’s also worth noting that depending on the spending limits at your site, it is possible the decision was within the cost limit of the committee. You might want to check this with your body corporate manager – $24,000 would be the standard 27
Leaf blowers and other ‘nuisances’
We are constantly listening to a leaf blower two floors below us. This noise ruins our Saturday afternoons. Is this a nuisance? We live in a complex consisting of both residents and holiday accommodation. We are constantly listening to a Leaf blower two floors below us. This noise ruins our Saturday afternoons because we have to shut doors and windows to shut out the constant on and off leaf blower noise. Why is this allowed in a unit complex? Surely it is a nuisance.
What you perceive as ‘not permissible’ and ‘surely’ a nuisance may be entirely reasonable to someone else. I’m going to flip this around… We live in a complex consisting of both residents and holiday accommodation. We are constantly having someone complaining about our leaf blower from two floors above us. Their complaints ruin our Saturday afternoon because we have to listen to them go on and on about us doing leaf blowing. Why is this allowed in a unit complex? Surely it is a nuisance.
28 www.lookupstrata.com.au
You can see the issue. What you perceive as ‘not permissible’ and ‘surely’ a nuisance may be entirely reasonable to someone else. In strata, there is give and take. Yes, you have rights as an owner – then again, other owners have other rights too and their interests may not be the same as yours. It is ultimately a balancing act. In this particular case, yes a leaf blower may be a nuisance. That said, if it is only happening a few hours on a Saturday afternoon, you may be hard pressed arguing that it is. A different story if it started at, say, 0500 on a Sunday or 2300 on a weekday and lasted for six or seven hours thereafter. ‘Nuisance’ is not
defined under strata legislation, although it has been established through caselaw. This case sets that benchmark. If you read it, you will see it is a hard threshold to reach. If you haven’t already, you should have a chat to the other owners. They may not be aware of the issues you are experiencing. Perhaps you can negotiate some more suitable times this activity can occur. Failing that, you may wish to bring this issue to the attention of the committee, who also have a responsibility in situations like this. If you consider a by-law is being breached, you may also wish to pursue the formal by-law enforcement process.
Again, though, I’d be urging you to consider what I’ve said above and see what you can do to reach some informal, mutually agreeable outcomes here. Chris Irons | Strata Solve chris@stratasolve.com.au READ MORE HERE
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Building Defects It is a well-known fact that poor construction quality is an issue which plagues the high-rise building sector. The average person should have the right to expect that products they buy, no matter how big or small are fit for purpose. Of course no industry is perfect and, rightfully, when everyday products are defective, Australians have the protection of the Australian Consumer Law to give them rights and recourse. It would shock most to know that when it comes to potentially the most complex, and certainly expensive purchase a person makes (an off the plan lot in a high-rise complex) there is no such guarantee. This is because, at present, the Queensland Home Warranty Scheme does not extend to construction above three storeys – a frightening thought, indeed. The Queensland Home Warranty Scheme is unique in Australia in that it is a first resort scheme, meaning there is no requirement to pursue a contractor through the court system. This makes life a little easier, but of course, for owners in buildings above three storeys, this is of little comfort. High-rise construction is potentially where owners need the most regulated recourse. Boutique builders undertaking small developments are often local with personal and professional ties to the community and in this way, it is often easier in practical terms to obtain a better result when addressing defects. In a high-rise development, all too often the developer is a sophisticated, well-resourced entity, with “project companies” being standard industry practice. This means that complex, and quite frequently very expensive litigation are the only recourse for a community which may have the amenity of their new home severely compromised by defects. The human effects of building defects are all too often ignored. For many young people, the prospect of a purchase in a new high-rise development represents years of hard work and saving. It is their start on the property ladder and is a watershed moment in the lives of many. To have this excitement quashed by stressful litigation, or an inability to use a large part of your lot, is understandably soul crushing.
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www.qld.strata.community Homes represent security, aspiration and a sense of belonging. Studies indicate that home ownership has social and mental health benefits beyond the security of tenure it provides. To leave someone homeless, or with a damaged home can significantly impact their psyche. One need only look at the following quotes from submissions to the New South Wales Parliament regarding building defects: I am now out of pocket over $550,000 (paid for by way of a mortgage) and I am still not living in my home due to major building defects, gross negligence and unreasonable delay on the builders’ part. This whole situation has left me with medically-diagnosed severe depression. I will start by stating that words and numbers on a page cannot adequately convey the human pain and suffering caused, firstly by the handful of individuals responsible for this sorry affair but also the environment within which they were allowed to operate. Besides the financial cost, there is also a real hard to measure negative impact on time, health, relationships and ultimately quality of life in the past 8 years for all concerned. SCA (Qld) will advocate relentlessly to ensure that this kind of tragic human cost is something people in Queensland never have to be exposed to in the future. These stories are truly heartbreaking. Protecting people from construction defects isn’t something abstract, it’s about defending the integrity of people’s homes. I am proud of our advocacy team for pushing this issue in the strongest possible terms and believe it will be an economic and social win for Queensland to protect high-rise owners.
Kristi Kinast SCA (Qld) President
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SOFTWARE Mimor
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Stratabox
Building Confidence P: 1300 651 506 W: https://stratabox.com.au/ E: contact@stratabox.com.au
ResVu PTY LTD
Customer Service Software for Strata P: 0874778991 W: https://resvu.com.au/ E: enquiries@resvu.com.au
StrataMax
Streamlining strata P: 1800 656 368 W: https://www.stratamax.com/ E: info@stratamax.com
MYBOS
Building Management - Residential & FM Schemes P: 1300 912 386 W: https://www.mybos.com.au/ E: sam@mybos.com.au
Strata Vault
Securely share documents with third parties P: 1300 0 VAULT (82858) W: https://www.stratavaults.com/ E: julie@thestratavault.com
Urbanise
Automate your workload to increase efficiency. P:1300 832 852 W: https://www.urbanise.com/ E: marketing@urbanise.com
EDUCATION & TRAINING LookUpStrata
Australia’s Strata Title Information Site W: https://www.lookupstrata.com.au/ E: administration@lookupstrata.com.au
Your Strata Property
Demystifying the legal complexities of apartment living
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Strata Community Association P: 02 9492 8200 W: https://www.strata.community/ E: admin@strata.community
ACCOUNTANTS Tinworth & Co
Chartered Accountant & Strata Auditors P: 0499 025 069 W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com
FACILITY MANAGEMENT LUNA
Building and Facilities Manager P: 1800 00 LUNA (5862) W: https://www.luna.management/ E: info@luna.management
FRANCHISERS Network Pacific Strata Management Queensland Join our successful team P: 03 9999 5488 W: https://www.networkpacificstratamanagement.com.au/qld/ E: bodycorp@networkpacific.com.au
DELIVERY & COLLECTION SERVICES Groundfloor™
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ANTENNAS Install My Antenna
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Professional TV Antenna Service For You Today P: 1300 800 123 W: https://www.installmyantenna.com.au/ E: info@installmyantenna.com.au
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BUILDING ENGINEERS & INSPECTORS Budget Vals
Built For Strata P: 1300 148 150 W: https://www.budgetvals.com.au/ E: reports@budgetvals.com.au
Seymour Consultants
Body Corporate Report Specialists W: https://www.seymourconsultants.com.au/ E: info@seymourconsultants.com.au
Palmer Acoustics
Specialist Acoustic & Audio Visual Engineering P: 61 7 3802 2155 W: https://palmeracoustics.com/ E: ross@palmeracoustics.com
GQS
Quantity Surveyors & Building Consultants P: 1300 290 235 W: https://gqs.com.au/ E: info@gqs.com.au
HFM Asset Management Pty Ltd Building Efficiency P: 1300 021 420 W: https://www.hfmassets.com.au/ E: info@hfmassets.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
Voltin
10,000 Safer Cities P: 1800 865 846 W: https://www.voltin.com.au/ E: accounts@voltin.com.au
Leary & Partners
Quantity Surveying Services Since 1977 P: 1800 808 991 W: https://www.leary.com.au E: enquiries@leary.com.au
Pircsa Pty Ltd
Professional Insurance Restoration and Consultancy P: 0460 555 077 W: https://pircsa.com.au/ E: steve@pircsa.com.au
QIA Group
Compliance Made Easy P: 1300 309 201 W: https://www.qiagroup.com.au/ E: info@qiagroup.com.au
Quality Building Management
keeping your buildings legally compliant and safe P: 1300 880 466 W: https://qbm.com.au/ E: qbm@qbm.com.au
Solutions in Engineering
Quality Reports On Time, Every Time! P: 1300 136 036 W: https://www.solutionsinengineering.com/ E: enquiry@solutionsinengineering.com
Property Safety Services
Your compliance needs, your way P: 0414 558 222 E: contactus@propertysafetyservices.com.au
Forte Asset Services
Operational Excellence in Every Building P: 1300 920 752 W: https://www.forteassetservices.com.au/ E: info@forteas.com.au
Sedgwick
Building Consultancy Division & Repair Solutions W: https://www.sedgwick.com/solutions/global/au E: info@au.sedgwick.com
Core Project Consulting
Delivering 360° engineering solutions for strata P: 02 8961 3250 W: https://core.engineering/ E: admin@core.engineering
Mabi Services
Asbestos, Safety & Building Consultants P: 1300 762 295 W: https://www.mabi.com.au/ E: cinfo@mabi.com.au
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INSURANCE Strata Insurance Solutions
STRATA LAWYERS Mahoneys
Protecting owner assets is who we are. P: 1300 554 165 W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au
Body Corporate Law & Dispute Resolution Experts P: 07 3007 3777 W: www.mahoneys.com.au/industries/bodies-corporate-strata/ E: info@mahoneys.com.au
Whitbread Insurance Brokers
Hynes Legal
Empower Your Vision P: 1300 424 627 W: https://www.whitbread.com.au/ E: info@whitbread.com.au
We are different. P: 07 3193 0500 W: https://hyneslegal.com.au/ E: frank.higginson@hyneslegal.com.au
QUS Pty Ltd
Bugden Allen Graham Lawyers
CHU Underwriting Agencies Pty Ltd
Mathews Hunt Legal
Strata Community Insurance
Stratum Legal Pty Ltd
Flex Insurance
Grace Lawyers
Strata Insurance Underwriting Agency P: 1300 814 011 W: https://www.qus.com.au/ E: qus@qus.com.au Specialist Strata Insurance Underwriting Agency P: 1800 022 444 W: https://www.chu.com.au/ E: info_nsw@chu.com.au Protection for your strata property. And you. P: 1300 724 678 W: https://www.stratacommunityinsure.com.au E: myenquiry@scinsure.com.au Your Cover Your Choice P: 1300 201 021 W: https://www.flexinsurance.com.au/ E: info@flexinsurance.com.au
STRATA LOAN PROFESSIONALS 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
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Specialising in property development & strata law P: 02 9199 1055 W: http://www.bugdenallenlawyers.com.au/ E: info@bagl.com.au BODY CORPORATE LAWYERS... EXCLUSIVELY P: 07 5555 8000 W: https://mathewshuntlegal.com.au/ E: admin@mathewshuntlegal.com.au Delivering strategic solutions in strata law P: 07 5406 1281 W: https://www.stratumlegal.com.au/ E: info@stratumlegal.com.au Know. Act. Resolve. P: 07 3102 4120 W: https://gracelawyers.com.au/ E: enquiries@gracelawyers.com.au
Holman Webb Lawyers
Body Corporate and Strata Dispute Experts P: 61 732 350 100 W: https://www.holmanwebb.com.au/ E: contact@holmanwebb.com.au
CONSULTING Strata Solve
Untangling strata problems P: 0419 805 898 W: https://stratasolve.com.au/ E: chris@stratasolve.com.au
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STRATA MANAGEMENT Tower Body Corporate
Your Building Matters P: 07 5609 4924 W: https://towerbodycorporate.com.au/ E: info@towerbodycorporate.com.au
Bright & Duggan
Strata Professionals P: 02 9902 7100 W: https://bright-duggan.com.au/ E: customercare@bright-duggan.com.au
Vision Strata Services
Your local Strata Firm based on the Gold Coast QLD W: http://visionstrata.com.au/ E: info@visionstrata.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
Northern Body Corporate Management
Specialist Body Corporate Management for North Queensland
P: 07 4723 8217 W: https://www.nbcmqld.com/ E: nbcm@bigpond.net.au
Network Pacific Strata Management
Supporting our Qld strata communities P: 07 5609 8677 W: www.networkpacificstratamanagement.com.au/ E: info@networkpacific.com.au
Bryant Body Corporate Management Not All Agents Are the Same! P: 07 5437 7777 W: https://www.bryantstrata.com.au/ E: peterbryant@bryantstrata.com.au
CLEANING Ai Odour Control Systems
Actualise your facilities’ potential P: 1300 728 760 W: https://www.aiodourcontrolsystems.com.au/ E: info@aiodourcontrolsystems.com.au
DEFECT RESTORATION Building Rectification Services
P: 07 5539 3588 W: https://www.buildingrectification.com.au/ E: admin@buildingrectification.com.au
STRATA REPORTS 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 W: https://covid19plans.com.au/ E: plans@covidplans.com.au
INVESTMENT SERVICES Strata Guardian
Fight low returns and rising levies with us. P: 1300 482 736 W: https://www.strataguardian.com/ E: contact@strataguardian.com
INTERNET & TELECOMMUNICATIONS Spirit Technology Solutions Do IT with Spirit P: 1800 774 748 W: https://www.spirit.com.au/ E: developers@spirit.com.au
Archers the Strata Professionals Your Partners in Strata W: https://abcm.com.au/ E: marketing@abcm.com.au
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ELECTRICAL
CLOTHES LINES Lifestyle Clotheslines
Altogether Group
Power.Water.Data P: 1300 803 803 W: https://altogethergroup.com.au/ E: eaustin@altogethergroup.com.au
Clothesline and washing line supplier & installer P: 1300 798 779 W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au
PAINTING
Energy On Pty Ltd
Providing utility network solutions P: 1300 323 263 W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au
EDSI Solutions
Electrical Concierge Services P: 07 3205 7002 W: https://edsi.net.au/ E: admin@edsi.net.au
ENM Solutions
Providing Solutions for Embedded Networks P: 1300 000 366 W: https://www.enmsolutions.com.au/ E: info@ENMSolutions.com.au
FIRE SERVICES Fire Matters
Fire Safety Compliance P: 07 3071 9088 W: https://firematters.com.au/ E: sbauer@firematters.com.au
Hartec Fire Systems
Fire Systems Maintenance & Admin Solutions P: 1300 300 367 W: http://www.hartec.net.au/ E: info@hartec.net.au
Simpli Fire Consulting FREE Evacuation Diagram Review with Every Fire System Audit
P: 0439 100 286 W: https://simplifire.com.au/ E: campbell@simplifire.com.au
Higgins Coatings Pty Ltd
Specialist painters in the strata industry P: 1300 HIGGINS W: https://www.higgins.com.au/ E: info@higgins.com.au
Dulux Property Services
Total Building Maintenance & Remedial Solutions P: 0434 834 799 W: https://www.duluxconstructionsolutions.com.au/ E: propertyservice@dulux.com.au
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
PLUMBING Fair Water Meters
Fair water - fair bills P: 1300324701 W: https://fairwatermeters.com.au/ E: info@fairwatermeters.com.au
SAFETY & SECURITY Pacific Security Group
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
Independent Embedded Network Consulting Services P: 0452 411 247 W: https://www.arenaenergyconsulting.com.au/ E: joseph@arenaenergyconsulting.com.au
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
RECRUITMENT SERVICES sharonbennie – Property Recruitment
Matching top talent with incredible businesses P: 0413 381 381 W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au
MARKETING Marketing for Strata
Building Brand Authority & Thought Leadership P: 61 425 232 394 W: https://www.marketingforbusiness.com.au/ E: janette@marketingforbusiness.com.au
Ki Creative Design
Purposeful Design Solutions P: 0451 541 006 E: kiara.mcilroy@gmail.com
Australia’s Vertical Transportation Consultants P: 0417 784 245 W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au
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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