Navigating strata insurance options when you have a highrisk commercial tenant
Page 10 | Strata Insurance Solutions
Overcoming limit of supply for EV charging in a 60s apartment block
Page 14 | NOX Energy
With the changes to strata legislation in NSW, should we review our by-laws?
Page 26 | Kerin Benson Lawyers
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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.
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Initiating action quickly when faced with an urgent issue
What specific steps can a committee legally take to initiate action quickly when faced with an urgent issue, and what are the potential risks of using these expedited procedures instead of the standard process?
Get your fellow lot owners and committee members to take action and make decisions.
The body of the presentation provides the specific rules for each state. Take the most urgent circumstances, such as when there is literally a crane transporting pallets over your swimming pool. Generally, you should get the committee together to make a decision to commence proceedings and authorise the expenditure.
In advance of that meeting, contact as many lot owners as you can and invite them to attend. Involve as many people as possible. Engage the lawyers. With the assistance of your strata manager, get the ratification process going.
Show that you’ve acted in good faith, typically without negligence, and acting without negligence means getting legal advice as quickly as possible.
Get your fellow lot owners and committee members to take action and make decisions.
Michael Kleinschmidt | Bugden Allen michael.kleinschmidt@bagl.com.au
Strata window and door replacement specialists
Over 35 years of customised solutions
Choice of products from all suppliers
Outstanding safety record
High quality products and workmanship
Personalised client service
Are cost-plus agreements like giving the builder a blank cheque?
We engaged a builder to address concrete cancer on a standard costs-plus agreement. On the final invoice, the OC was not privy to how he came up with the costs. Did we write this builder a blank cheque?
We engaged a builder to address concrete cancer within a lot. The OC signed a standard costs-plus agreement from HIA. The OC were happy to pay costs and give the builder a profit, believing that the contract entitled them to see details of the builder’s costs, like timesheets and receipts for the materials. However, when the bill came, the builder provided a cubic measurement (litres) and a per-litre cost. The volume was about right, but the OC was not privy to how he came up with the costs.
When we challenged the bill and asked for more information, the builder refused and declared that this was industry standard. They would not provide actual figures for time and materials.
Did our building write this builder a blank cheque? When remediating concrete cancer, is there a better way to engage builders to keep them accountable and have a more transparent “costs plus” agreement?
This is very complex and difficult for owners unless the agreement is absolutely crystal clear.
Volume measurement for repairs is not ideal, particularly from an owner’s perspective. It’s extremely difficult to be able to determine how much was done. Experts have experience. Part of the issue here, is getting a very firm upfront and signed agreement with the builder to determine how the final price will be calculated.
I’m not a fan of volume measurement because, as a supervisor, I sometimes find it difficult to check, but there are strategies. We can have hold points in an inspection process where we indicate the builder can’t proceed past a point until something’s been addressed. The expert has the opportunity to look at the progress and potentially measure and understand how much volume has been used.
It’s about upfront transparency. An expert knows how to manage the process. It is very complex and difficult for owners to take on unless the agreement is absolutely crystal clear.
Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com
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Navigating strata insurance options when you have a high-risk commercial tenant
Will any insurers deal directly with an owners corporation with a high-risk commercial tenant?
Our owners corporation has a highrisk commercial tenant. Are there any insurers that deal directly with the owners corporation? Our strata manager and broker are only offering one option for insurance. Most of their panel of insurers will not insure us because of one owner’s tenant. This has resulted in an enormous increase in our insurance costs and, of course, the commission we pay.
I started looking into obtaining our own insurance as we thought it might be more cost-effective. I found that most strata insurance companies only deal with brokers, trapping us into a really bad deal.
The direct market usually insures retail clients, and most of the commercial strata options involve insurance brokers.
You may be able to go to CHU or Strata Community Insurance for assistance as a direct option. However, in this instance, the commercial market currently favours the broking market.
Mention this offer when requesting a quote from us, and we will provide a discount off our standard fee for service of $250 (GST Inc) for buildings with 10-25 lots or $500 (GST Inc) for buildings with more than 25 lots for the first year you insure with Strata Insurance Solutions.
To redeem this offer email a copy of your current policy schedule to Strata Insurance Solutions within 1 month of the publication of this magazine. Your policy can expire any time in the next 12 months. However we can only provide quotes 30 days prior to the expiry of your policyif your policy is not due now, we will schedule a quote at the appropriate time. To ensure we apply this offer to our quotes, please specifically mention you would like to redeem the "LookUpStrata Special Offer".
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When a chairperson acts alone
Can the chairperson act without the committee’s backing?
The chairperson was dissatisfied with a tradesperson’s work. They emailed me, the secretary, to gather feedback from the executive committee. After receiving unanimous approval for the quality of work from the committee, the chairperson instructed the tradesperson to redo a significant portion of the work upon their return.
Should the chairperson have taken these actions without the backing of the committee?
The chairperson shouldn’t be acting unilaterally but rather in accordance with a majority of their fellow committee members.
Overseeing trades is not strictly within the role of the chairperson. Moreover, the chairperson shouldn’t be acting unilaterally but rather in accordance with a majority of their fellow committee members. In light of this, the strata committee may wish to consider removing the chairperson from office or the committee altogether.
The strata committee can remove a member from office, but an ordinary resolution at a general meeting will be required to remove a member from the committee altogether.
Leanne
Habib | Premium Strata info@premiumstrata.com.au
Overcoming limit of supply for EV charging in a 60s apartment block
Our 60s apartment block has an old switchboard. Even with solar grants, we can’t change the board’s capacity. How do we overcome the limit of supply so we can install EV chargers?
The switchboard in our 60s apartment block was installed in the 80s. We get anything from 40 amps to typically 60 amps per unit. It’s just not feasible to run a 32 amp level 2 EV charger. We’re stuck with 16 amp level 1 chargers. It is hugely expensive to upgrade the switchboard. Even if we get a solar for apartments grant, discounted batteries or free chargers, none of this helps if our switchboard can’t cope.
We also need a special vote to get the upgrade approved. What’s motivating owners to upgrade electricity switchboards? There’s no direct benefit. I’d like to know more about limit of supply. Better advocacy for this problem, plus government support, would be great.
In the case of extremely limited supply, we suggest a full power audit in advance to see how much ‘headroom’ you have.
You are right about the distribution board and main switch upgrades. They typically run anywhere from $3k-$10k to bring them up to current standards. It is definitely a larger cost but one that generally brings benefit and compliance to the whole building.
In the case of extremely limited supply, we suggest a full power audit in advance to see how much ‘headroom’ you have. Our experience is that there will still be room for several 10A GPOs, and even more when you load balance between them.
Charlie Richardson | NOX Energy charlie.richardson@noxenergy.com.au
Whose
finances
take priority in a payment plan dispute?
If a dispute over a levy recovery matter proceeds to NCAT to determine the reasonableness of a proposed payment plan, will the Tribunal consider the owners corporation’s financial position?
The financial position of the owners corporation would likely be a less persuasive consideration as opposed to a lot owner’s financial position.
The current amendment only uses the term “reasonable” without providing a list of what factors may be considered in arriving at a “reasonable” refusal of a payment plan. This is likely something to be clarified in the regulations, yet to be rolled out. Generally, whilst the owners corporation’s financial position may be a consideration, it would likely be a less persuasive consideration than a lot owner’s financial position.
Matthew Lo | Kerin Benson Lawyers enquiries@kerinbensonlawyers.com.au
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Low water pressure causing AFSS issues: What
are our strata’s options?
Our yearly fire inspection revealed low water pressure and the requirement for a tank. Our fire protection company cannot sign off on the AFSS due to our lack of compliance. What do we do?
I’m a strata committee member for our 70-yearold, 25-unit building. Our yearly fire inspection revealed low water pressure, requiring a new 25,000-litre water tank. Installation of a new tank is costly, and we have no land available. Our fire protection company cannot sign off on the AFSS due to our lack of a compliant fire safety system.
A December 2024 report from Sydney Water indicated that our building does meet their flow and pressure requirements. What can we do?
Get a second opinion before doing anything further, and if that shows the issue is genuine, contact a fire engineer.
The Sydney Water Pressure Flow enquiry is a computer-generated report showing the theoretical pressure and flow available to the building at the street main tap-in point, e.g. out the front of the building.
The flow test undertaken by your fire contractor must be done at the “most hydraulically disadvantaged” location in the building. e.g. the location that is highest and furthest from the building entry.
The contractor’s test proves whether there is sufficient water at the furthest point for the fire brigade to use in an emergency.
Hence, while there is a relationship between the street mains pressure and flow and the contractor-completed test, the Sydney Water test does not take into consideration these factors:
1. Height difference – for every metre the hydrant is above the street main, the pressure delivered drops by 10 Kilopascals.
2. Back-flow prevention valve (the big blue thing out front) will reduce pressure by 50-150kPa.
3. Friction losses – every bend, tee and valve causes friction that reduces pressure between the street and the farthest hydrant.
4. Time of day and usage – if everyone is having a shower or watering the garden at the same time, one-off pressure issues can occur.
The contractor is doing exactly what they should in not endorsing the AFSS when the hydrant system has been proven not to perform as designed.
I highly recommend the owners get a second opinion before doing anything further, and if that shows the issue is genuine, contact a fire engineer who can potentially help with alternate/ performance solutions that may avoid the standard solutions raised by your contractor.
Rob
Broadhead | 2020 Fire Protection rob.broadhead@2020fire.com.au
Staying Ahead in Strata: Why Compliance is More Critical Than Ever
As strata communities continue to grow and evolve, so too do the expectations placed on strata managers and owners' corporations to maintain high standards of safety, financial planning, and regulatory compliance. The push for greater transparency and accountability across the sector means proactive strata management is no longer a luxury it's a necessity. One key area of focus is long-term maintenance planning. More strata schemes are recogni sing the importance of robust Capital Works Fund Plans, not only for budgeting purposes but also to future -proof their assets. Alongside this, regular safety inspections, insurance valuations, and asbestos management are becoming the norm to ensure both resident safety and legal peace of mind.
That’s where QIA Group comes in. Since 2005, we’ve provided tailored compliance solutions to strata properties across the country. From expertly prepared maintenance reports and asbestos audits to our clear and actionable safety reports, QIA Group helps clients navigate complex requirements with ease. Our reports are designed to be concise, practical, and instantly useful because we understand the realities of strata management. Don’t wait for issues to arise ensure your properties are compliant and future-ready today. Contact QIA Group to explore our full range of compliance services.
Dealing with frivolous repair requests and excessive communication
How does the committee respond to requests to repair minor and frivolous items in a lot?
An owner made numerous claims on the committee to repair minor and frivolous items in their lot, e.g., a missing insect screen clip and two cracked tiles on the kitchen splashback.
How does the committee respond to nuisance claims? This owner emailed the committee 189 times in 2024.
Consider making an application for mediation in a bid to temper this incessant communication.
While these claims do seem frivolous, the owners corporation has a strict duty to repair and maintain the common property On the other hand, there is case law in support of the proposition that an owners corporation needn’t respond to every item of correspondence, especially where it is wasteful, abusive, excessive, etc.
Consider making an application for mediation in a bid to temper this incessant communication.
When undertaking building remediation in a strata property-whether due to water damage, structural issues, or fire safety compliance-cost is always a primary concern. Strata committees, often operating under tight financial constraints and special levies, may consider managing the project themselves to cut costs.
One of the first roles questioned is that of the project manager (PM). However, omitting this key position can lead to significant and costly consequences.
Why a Project Manager Matters
A project manager is the central coordinator of a remediation project, responsible for aligning consultants, engineers, contractors, and the strata committee. Their oversight ensures the project remains on schedule, within budget, and compliant with legal and building standards. Without a PM, these responsibilities fall on committee members who may lack the technical expertise or time to manage the complexities involved.
The result? Delays, costly errors, and potential rework —all of which can inflate costs well beyond the PM's original fee.
Selecting the Right Contractors
Choosing qualified contractors is critical to project success. PMs bring vetted networks of reliable tradespeople and service providers. They assess past performance, verify credentials, and detect potential issues before contracts are signed. This professional insight avoids reliance on superficial marketing or low bids that can result in poor outcomes.
Defining a Clear Scope of Works
Cost overruns frequently stem from vague or incomplete project scopes. When details are unclear, contractors may underquote and later issue expensive variation claims. PMs collaborate with engineers and consultants to ensure that the scope is detailed and complete before tendering. This precision minimises ambiguities and the risk of disputes.
PASG Projects
Contracts That Protect You
A well-drafted contract is another layer of financial protection. Project managers ensure contracts are tailored to the specific remediation needs and include clear terms for quality, timelines, payment schedules, and managing changes. This reduces legal risks and ensures accountability across all parties.
Ongoing Management and Oversight
A PM’s job doesn’t end at contractor selection. They oversee day-to-day operations, monitor progress, resolve issues, and approve work before payments are made. Their constant presence helps prevent disputes, delays, and substandard workmanship, protecting your investment from start to finish.
An Investment That Pays Off
Hiring a project manager isn’t an added cost-it’s a strategic investment. The right PM can save far more than they cost by avoiding expensive pitfalls and ensuring the job is done right the first time.
issues before contracts insight avoids reliance bids that can result in
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Contracts That Protect A well-drafted contract protection. Project tailored to the specific include clear terms schedules, and managing risks and ensures accountability
Ongoing Management
PASG Projects
A PM’s job doesn’t end oversee day-to-day resolve issues, and are made. Their constant disputes, delays, and protecting your investment
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With
the changes to strata legislation in NSW, should we review our by-laws?
Would any clauses in our current by-laws conflict with the new NSW strata legislation? Should our owners corporation consider reviewing or updating our by-laws and policies?
There is significant benefit in owners corporations reviewing their by-laws and policies to ensure they are consistent with and/or take full advantage of these amendments.
There are by-laws which could be rendered inoperative by the amendment. It is hard to say in isolation which by-laws, but two examples which would be rendered inoperable are:
1. by-laws that prevent the installation of sustainability infrastructure solely for the purpose of preserving the external appearance of a lot or the common property. The changes, with the new Section 139B expressly render such bylaws inoperative.
2. by-laws requiring a lot owner to pay the recovery legal costs without a Tribunal or Court order will be rendered inoperative once Section 86(2AA) comes into force.
The recent changes are quite extensive and follow from the 2021 statutory review of the SSMA. These changes are intended to be far reaching. There is thus significant benefit in owners corporations reviewing their by-laws and policies to ensure they are consistent with and/or taking full advantage of these amendments.
Matthew Lo | Kerin Benson Lawyers enquiries@kerinbensonlawyers.com.au
Holding our AGM despite an obstructive owner
How can we proceed with an AGM meeting when an owner is unresponsive and obstructive?
We are experiencing ongoing disputes with an owner who is not a member of the strata committee. This individual has made a series of unfounded allegations against both owners and the committee chair. We have attended mediation regarding matters that have the support of the majority of owners within our complex. Most recently, this owner lodged an insurance claim on behalf of the complex without informing the strata committee, and the basis of this claim appears to be false.
To address these issues formally and facilitate open discussion, we attempted to schedule our AGM. However, the owner has ceased responding to emails.
Our complex does not have a strata manager, so we need to understand our rights and the proper procedure for convening a meeting despite this owner’s lack of engagement.
The secretary should convene the AGM at a time that works for the majority of owners.
I commend you on your efforts to include the owner in the matters of your strata scheme. In many cases, strata buildings do not get 100% agreement to proceed with the decisions of the majority. Fortunately, most decisions, such as approving quotes, confirming the insurance and approving budgets, require a simple majority vote in strata schemes.
Also, not all owners attend AGMs. You will note from the legislation that the quorum for an AGM is 1/4 of the owners that are entitled to vote being present (either personally or by proxy).
I understand why you want to discuss these items with owners at the next AGM. However, note that they are no longer replying to emails.
Here is my suggest:
• The secretary should convene the AGM at a time that works for the majority of owners.
• Like all owners, this owner is welcome and invited to attend. You can place motions on the agenda to deal with the matters that you want to discuss.
• The owner does not have to attend – it’s up to them and they can attend.
• If they don’t attend, you can have another meeting with them at a later time.
Rod Smith | The Strata Collective rsmith@thestratacollective.com.au
The Strata Collective. Where People Matter.
The Strata Collective was formed with a simple goal –to provide a professional strata management service to clients who want a close, personal relationship with their Strata Manager.
We are a next generation Strata Management business that you can count on.
Can by-laws validly prohibit a lot owner from operating or leasing to a specific industry in a commercial strata warehouse?
Can a commercial strata warehouse’s by-laws restrict a lot owner from operating a business in a specific industry or from leasing their lot to a business in that industry?
Can a commercial strata warehouse owners corporation stop a lot owner renting their lot to a mechanic, repairer/panel beater, or stop the lot owner from operating as a mechanic himself? Can strata by-laws specify what types of industry they can reject, even within a designated industry zoning warehouse?
In addition to taking into account the zoning of the area, the Tribunal would likely need to consider evidence in relation to any other restrictions.
Based upon the information provided, a bylaw that specifically prohibits a certain type of business, if the business is within the permissible zoning use, may be ruled to be invalid by the NSW Civil and Administrative Tribunal pursuant to Sections 139 and 150 of the Strata Schemes Management Act 2015
Section 139 provides that “A by-law must not be harsh, unconscionable or oppressive.”
Section 150 provides that “The Tribunal may, on the application of a person entitled to vote on the motion to make a by-law or the lessor
of a leasehold strata scheme, make an order declaring a by-law to be invalid if the Tribunal considers that an owners corporation did not have the power to make the by-law or that the by-law is harsh, unconscionable or oppressive’’.
In addition to taking into account the zoning of the area, the Tribunal would also likely need to consider evidence in relation to any other restrictions on the use of the property which may be specified in the development consent conditions and whether the business activity adversely affects how other lot owners use and enjoy their lots and the common property.
However, you should consider all of the current by-laws. There may be by-laws that place some limitations on your business activity. For example, by-laws may prohibit the parking of motor vehicles on the common property, and if you do not have your own parking spaces available, this could present a problem. Another example may relate to waste and hazardous materials. Will the motor vehicle parts and panels be stored on the common property? If so, this could be an issue.
Alternatively, your problems may not arise from a new by-law prohibiting use but may instead arise in relation to any by-law you need approved to set up the workshop. You may need the owners corporation’s approval if you need equipment installed. If you are establishing a new business from scratch, you may need council approval, which may need the owners corporation’s approval. If the
owners corporation is aware that you require its approval to establish or operate the business, it may be easier for the owners corporation to justify withholding its approval than it would be to justify creating a new by-law.
You should also keep in mind that the owners corporation makes its decisions by passing resolutions at general meetings. The approvals you require may need to be made by special resolution. Of the value of the votes cast, you need to ensure not more than 20% of the votes are against you. Discussing your requirements with the other lot owners before preparing any by-laws may be in your best interest. This may assist you in preparing any by-laws and obtaining the votes you require if/when your requested motions are considered at the general meeting.
As a side issue, I also make you aware of Section 82 of the Strata Schemes Management Act 2015, which provides that “If the use to which a lot in a strata scheme
is put causes an insurance premium for the strata scheme to be greater than it would be if it were not put to that use, so much of a contribution payable by the owner of the lot as is attributable to insurance premiums may, with the consent of the owner, be increased to reflect the extra amount of the premium.” This may be something you need to consider.
Considering all of the above, I recommend obtaining legal advice from a legal practitioner specialising in strata law. A legal practitioner can advise on risks and strategies based on the planning laws, the by-laws and other factors I have not considered. Although my response to your question has raised some potential issues, with good legal advice and representation, you should be able to navigate these issues.
What are the different ways to repair concrete cancer? Are there options like polymer-modified repairs or electrochemical treatments besides the traditional method of removing and replacing damaged concrete?
It depends where the concrete cancer or spalling is appearing.
It really depends on where the concrete cancer or spalling is appearing. Cracks can be injected with epoxy for structural issues or polyurethane for waterproofing. It is still better to treat the cause of the issue by re-waterproofing it above the crack.
If the issue is spalling, the most common repair method is to grind out the affected concrete, treat the corroded reinforcement and rebuild using a specific mortar.
Sam Hogg | PASG Projects info@pasg.com.au
Will a strata inspection report provide information about concrete issues in the building?
As a potential buyer, what information can a strata inspection report provide me about the history of concrete issues in the building?
There might be information in the strata records about the existence of concrete issues.
A strata inspection report is prepared following a search of the records for the strata plan. It is not an inspection of the building itself. The strata records inspector will not have been to the building. Nonetheless, if there are past or current concrete issues in the building, there might be information in the strata records about these issues.
Some examples of the types of information include:
• Comments in meeting minutes or correspondence expressing concern about the deterioration of concrete in the building.
• Decisions by owners shown in meeting minutes to arrange for an expert to inspect the building to assess any concrete issues.
• Engineering or other expert reports prepared following an inspection of the building, setting out the extent of issues discovered.
• Tender of similar documents providing quotes for remediation works.
• Expenditure shown in the financial accounts for the building for consultants or concrete remedial works
In some cases, concrete issues may initially be isolated, and an inspection might be limited to the issues visible. Over time, these issues might become evident in other areas of the building. As a result, past remediation works might not mean the problem is completely solved.
If the records don’t provide a clear, up-todate picture, it’s important that the search agent follows up with the strata manager to find out the status of any current or recent concrete issues.
If you have specific concerns about a particular building, please let the strata inspection business know about your concerns so they can focus on this issue while searching the strata records. If a strata inspection report is already available for the property you are interested in, please contact the business that searched the records to ask about any issues that concern you.
You may believe there are potential concrete issues in the building based on what you have seen during a property inspection. If the strata inspection report doesn’t provide any documents showing issues, it might be worthwhile to have a qualified building inspector visually assess the building.
Michael Ferrier | EYEON Property Inspections michael.ferrier@eyeon.com.au