Can our self-managed strata get a commission rebate from the insurance broker? Page 8 | Strata Insurance Solutions
Can owners do a letterbox drop to remind residents of our smoking by-law? Page 18 | JS Mueller & Co Lawyers
2025 Who ensures payment does not exceed the quote?
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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.
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 shares her time between three companies, including Tower Body Corporate, a body corporate company in SEQ.
Nikki is also 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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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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Delays with defects cost money. How to foster a sense of urgency.
Given that delays can increase costs, what strategies can strata communities use to foster a sense of urgency and prompt decision making? Why is alignment within the committee crucial for passing special resolutions?
Be clear with your fellow owners, tell them their options and the consequences of each option, and get expert advice to back you up.
You must stay ahead of what you’re doing, which means getting on to the maintenance early. Make the decisions, but make sure you take your community along with you.
Be clear with your fellow owners, tell them their options and the consequences of each option, and get expert advice to back you up. Then, ask them for a decision, pointing out all the time that this is obligatory. You don’t have a choice. They can’t delay because they don’t want to spend the money.
Michael Allen | Bugden Allen Group Legal
michael@bagl.com.au
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Who is responsible for registering by-law changes?
Our scheme made changes to the by-laws. No changes have been registered. A number of lots have been sold with incorrect by-laws attached. Who is responsible?
Our scheme approved two new by-laws, changed a by-law and deleted a by-law, but none of these changes have been registered.
Since the changes, five units have been sold, and at least three leases have been changed, all with the incorrect by-laws attached to the sale and lease contracts.
Who is responsible for registering the by-laws? Who is responsible for ensuring the correct bylaws are attached to legally binding contracts?
I have raised this problem with the strata manager and at the AGM, but no one is interested in fixing it.
An owners corporation has 6 months to register the by-aw from when the by-law is passed.
The by-laws for a strata scheme are basically a contract binding the owners corporation, owners, occupiers, mortgagees and covenant chargees.
While the secretary of the owners corporation must keep a consolidated, up-to-date copy of the by-laws for the scheme, it may not be the appointed or delegated secretary’s fault that there are errors and omissions in the by-laws and other parties may have been involved.
Given the important legal significance of the bylaws, the strata committee, by itself or through its lawyers, should undertake an audit of the by-laws, determine which ones have been omitted and remain unregistered and take steps to regularise same. The owners corporation can then re-pass any lapsed or omitted bylaws at a general meeting and ensure all correct consolidated by-laws are registered with the Registrar-General. An owners corporation has 6 months to register the by-aw from when the bylaw is passed.
The owners corporation should seek legal advice on the process because if any exclusive use/ works by-laws were once registered but are now omitted and the affected lots have changed hands, the new owners will need to consent to the re-passing of the by-laws and such consent may not be forthcoming.
Can our self-managed strata get a commission rebate from the insurance broker?
Is a self-managed strata entitled to a rebate from the insurance broker’s commission?
Your scheme can negotiate the remuneration structure with the broker.
You are entitled to negotiate with insurance brokers, especially if the strata scheme directly engages the broker. If the insurance broker pays a commission to strata managers and your self managed strata scheme engages them directly, your scheme can negotiate the remuneration structure with the broker. As is the case in any profession, you can negotiate fees.
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".
What if an owner wants to install an EV charger in their car space?
How do we best explore charger hardware, current management software and recharging software if a lot owner wish to install a charger?
We installed cable racks in our car parks to facilitate future EV car charging hardware installation in individual lot owner’s car spaces, i.e., cabling to distribution boards. We checked that we have sufficient switchboard capacity for a number of slow charges.
How can we best explore charger hardware, current management software and recharging software in the future should a lot owner wish to install a charger?
Level one charging is the most scalable option.
The size of the building doesn’t matter. Level one charging is the most scalable option, providing a solution where the residents simply pay for a device to be installed, and the supplier manages power thresholds at both circuit and site levels through rotation and load balancing. This approach offers the fastest, lowest cost, and most versatile solution.
While level two chargers are an option, unless you have substantial available power and significant resident demand for rapid charging, level two chargers will result in wasted infrastructure, increased expenditure, and considerable time and cost.
Charlie Richardson | NOX Energy charlie.richardson@noxenergy.com.au
Approval to install an automatic bollard in a disability parking space
Can I apply to the owners corporation for approval to install an automatic bollard in my disability parking space?
I was unaware when I purchased my apartment in North Sydney that it has a disability parking space. I don’t own a vehicle because I don’t drive. Other owner’s visitors or tradespeople always use the space.
Their cars block my garage door, and my visitors can never find anywhere to park. Can I apply to the owners corporation for approval to install an automatic bollard parking remote control in my parking space? Will the decision be impacted by my car space being a disability parking space?
Apply to the owners corporation for bollard installation and the committee will advise the process.
Yes. There are Australian Standards applicable to bollard installation within disability car spaces. Apply to the owners corporation for bollard installation, and the strata committee (or the strata managing agent) will advise the process thereafter. You may need a by-law, or it might be a minor renovation depending on the by-laws applicable to your scheme.
What is the incidence of pedestal paving hiding water issues beneath?
The success of pedestal paving depends on elements beneath, including drainage, falls to substrates, membranes and upturns.
Pedestal paving has become more popular in the past 5 -10 years, and our experience with water issues beneath is varied.
There is no specific Australian Standard yet that covers the paving installation. Therefore, installations rely on manufacturer recommendations combined with other standards such as waterproofing and drainage.
The success very much depends on elements beneath, including drainage, falls to substrates, membranes and upturns.
It can be a very effective product. I have seen some very good installations and some bad ones that have failed.
In instances where the substrate was incorrectly installed, issues have been undetected because they are not visible and difficult to access.
It is very difficult for building inspectors to check the substrate during a post completion inspection without lifting pavers. That becomes very time consuming and expensive for owners. For this reason, it can be a problematic area to regulate.
More often, I have seen blocked drainage due to build up where leaf and/or debris has fallen between joints.
Pedestal paving needs to be on a maintenance schedule where specific pavers are lifted above drainage points routinely so the paving can be inspected and cleaned.
Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com
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BUILDING CONSULTANCY
•
• Scope of works
• Dilapidation and risk surveys
• Dispute mediation and expert witness
•
• Construction management
• Capital works funds/maintenance
• Digital capability
• Façade assessments
REPAIR SOLUTIONS
• Emergency make safe
• Fire water damage restoration
• Leak detection
• Contamination response
• Building repairs
• Cost validation services
• Digital capability
LOSS ADJUSTING AND CLAIMS MANAGEMENT
• Third Party Administration (TPA)
Overcoming Client Objections: Insights
from QIA Group’s Inspectors for Strata Managers
As a service provider, at QIA Group, we understand that strata management can often feel like a juggling act, especially when it comes to dealing with client objections and committee concerns. Whether you’re managing maintenance, conducting meetings, or addressing resident complaints, your role is vital to the smooth operation of the building. Here’s a light-hearted look at how our inspectors at QIA Group handle objections during property inspections and how you, as a strata manager, can apply these strategies to your own work.
1. Listen and Acknowledge the Concern
It’s not uncommon for committee members to express concerns about reports and recommendations made during inspections. Often, they just want to feel heard and validated, which is why it’s essential to listen attentively and acknowledge their concerns. Some times, just letting someone vent can go a long way.
2. Stay Calm Under Fire
Dealing with objections can sometimes feel like you're standing in the middle of a storm, especially when committee members are upset about certain findings. However, staying calm and composed in these situations can turn a tense moment into an opportunity for education.
3. Offer a Solution, Not Just an Explanation
Clients don’t just want to know what’s wrong they want solutions. Our inspectors know that it’s essential to present possible solutions when discussing issues. This is a key opportunity to demonstrate your expertise and show that you’re focused on providin g value.
4. Set Expectations and Educate
Sometimes, objections arise because committee members don’t fully understand the scope of work, or the importance of certain recommendations. As specialists in our field, we excel at educating clients, explaining the why behind each suggestion. When expectations are set clearly, objections often fade away.
Funny anecdote:
In one instance, a committee was adamant that a building’s gutters were completely fine, despite our inspector pointing out some significant blockages. After some back and forth, the inspector suggested, “You know, gutters are a little like teenagers if you don’t check on them regularly, they can get into a lot of trouble.” The committee chair laughed, but after learning more about the risks of clogged gutters, they agreed to implement the recommended cleaning schedule.
5. Know When to Escalate
Despite all our efforts to offer solutions and education, there are times when the situation might escalate beyond what we can resolve in the moment. That’s when knowing when to escalate and bring in senior management or suggest further mediation is key. It’s not a failure it's just part of the process.
Final Thoughts
The next time you're faced with a heated committee meeting or a difficult client, remember: a little humour, a calm demeanour, and a solid solution can go a long way in turning a challenging situation into a positive one.
STRATA COMPLIANCE REPORTS THAT ARE EASY TO UNDERSTAND
Capital Works Fund Plans
What Inspection of the common property to create a forecast and timeline of future capital works expenditure
Why To help maximise the value of your property and minimise unexpected levies
To help comply with strata regulations which require an ongoing 10 year forecast
When Every 5 years (earlier if an unexpected change in property condition or budget occurs)
Building Maintenance Assessment Reports
What Inspection of common property to assist Owners Corporations and Bodies Corporate identify areas which require Maintenance & early identification of more serious building deterioration and defects.
Why Maintenance happens – In many cases the failure to adopt an approach or standard leads to inaction and potential for one costly maintenance issue after another with Owners possibly being forced to raise Special Levies to pay for the unexpected works.
When Yearly
Common Property Safety Reports
What Inspection of the common property to detail physical safety hazards and ways to address them
Why To help minimise potential hazards to property owners, residents and visitors
To help comply with safety regulations and common law duty of care
When Yearly
Fire Safety Audits & Evacuation Plans
What Inspection of the property to audit fire equipment records, evacuation plans and training
Why To help minimise the risk of personal injury and property loss as well as financial and legal liability
To help comply with fire regulations and common law duty of care
When Yearly in QLD, as required in other states
Insurance Valuations
What Inspection of the property to provide an independent estimate of the replacement cost
Why To help minimise the risk of being unable to rebuild due to insufficient insurance coverage
When Every 5 years
Asbestos Inspections & Reports
What Inspection of the common property including sampling and testing of suspected asbestos containing materials
Why To help minimise health risks and property contamination as well as financial and legal liability
To help comply with asbestos regulations and common law duty of care
When Immediately if asbestos is suspected
Yearly if the asbestos containing materials are unstable and/or changed, or 5 yearly if undisturbed
The information in this document is merely a summary for the purpose of providing a simplified overview, for detailed information please contact us. Timeframes are based on a combination of legislative requirements, common law duty of care and best practice to help meet compliance obligations and to assist in minimising personal injury and property loss as well as financial and legal liability. Timeframes can be customised to meet specific requirements.
Can owners do a letterbox drop to remind residents of our smoking by-law?
Can owners do a letter drop to remind residents of our smoking by-law and the ramifications of allowing smoke drift from cigarettes and other substances?
The anti-smoking by-law regarding smoke drift is hard to enforce. Owner-occupiers in our unit block asked our committee and owners corporation (OC) to send out reminder letters about the issue, especially regarding smoke drift. Our OC has a by-law about smoke penetration, including the mention of “other substances” that can be vapes or incense.
Our committee and owners corporation are not interested in addressing this matter, but as the smoke drift is especially detrimental to one owner with heart and respiratory problems, can owners do a letter drop to remind residents of the by-law and ramifications of allowing smoke to penetrate other units? We have a few new residents who may not be aware of the impact.
This action may lead to conversations about the matter and potentially even some action.
There is absolutely no difficulty with doing a letterbox drop and circulating a generic (that is a circular non-specific to any person) to all owners/occupants reminding them about:
• Your strata scheme’s by-law; and
• The “nuisance” provisions in the legislation, for example, pursuant to Section 153 of the Strata Schemes Management Act 2015.
It is possible that in doing this, you may create something of a “stir”, but it may also lead to some conversation in relation to the matter and potentially even some action.
Warwick van Ede | JS Mueller & Co Lawyers warwickvanede@muellers.com.au
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What can I do now to prepare for the Strata Schemes Legislation Amendment Bill 2025?
What can I do now to prepare for the upcoming NSW strata legislation changes before they come into effect?
Familiarise yourself with the changes.
First, familiarise yourself with the changes as they currently stand and keep an eye out for the regulations to be introduced and which are still unclear. A good thing to look out specifically for is where the Bill references regulations to be prescribed or words to that effect. That means they’ve created a skeleton regime and they will add more later by way of regulations. Read up on these changes so you are ready to read up on the regulations when it comes in.
Unfortunately, it’s impossible to prepare for the unknown but being familiar with the substantive legislative changes proposed but not implemented yet; when the regulations do come, you will be as prepared as possible. Watching presentations and being aware of issues, generally, is the best way to get ready.
Matthew Lo | Kerin Benson Lawyers enquiries@kerinbensonlawyers.com.au
READ MORE HERE
Always give the committee a decision to make
What techniques are recommended to change the language, attitude and bias of our committee who perceive lot owner concerns as ‘objections’ and ‘complaints’?
Always ensure you give the committee a decision to make.
Generally, we think your best bet is to ensure that your ‘objections’ or ‘complaints’ are succinct, accurate, objective and clear in your aim. In other words, make sure you avoid dissertations and ‘rants’ and always ensure you give the committee a decision to make. For example, requesting the committee to ‘decide’ or ‘resolve’ something and referencing a quote or similar, is more tangible and action-focused than suggesting they ‘investigate’ or ‘consider’ something.
This is general information only and not legal advice.
Chris Irons | Strata Solve chris@stratasolve.com.au
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Who ensures payment does not exceed the quote?
Who keeps tabs on how much a builder is paid to ensure they do not exceed the quoted price for a particular job?
Regarding bookkeeping and periodic payments in a builder’s contract, who keeps tabs on how much a builder is paid to ensure they do not exceed the quoted price for a job? Is there a process that rings alarm bells if overpayment occurs?
The project manager will verify and approve payment claims and track expenditures against the contract payment schedule.
Arranging payments for a strata scheme is typically a delegated function in a strata manager’s contract as part of their agreed services. In our business, for almost all of our clients, we have the approval to pay invoices on their behalf. I suggest checking Schedule A1 of your agreement, as this function will be expressly listed and documented.
If you have concerns regarding progress payments, you should speak with your strata manager and make arrangements to review and approve their invoices prior to payment.
Most of our major work projects engage a project manager to manage the project. In this instance, the project manager will verify and approve payment claims, track
expenditures against the contract payment schedule, and manage variation claims and the payments on those claims.
Our software system does show expenditure against budget at the time of invoice payment, however, it doesn’t put a flag up at the time of payment. We need to check this against the payment.
Rod Smith | The Strata Collective rsmith@thestratacollective.com.au
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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.
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If windows are dirty after a roof clean, who is responsible for the cleaning?
Our OC organised to wash the building’s roof, causing overspray onto a difficult to reach window. Is the OC responsible for the cleaning of the window?
Our owners corporation organised to wash the building’s roof. My hard to reach window was covered in large smudges from the overspray.
I have been chasing the strata manager to arrange window cleaning with no progress. The committee hasn’t responded.
I believe expecting me to pay for cleaning is unfair. Who is responsible for the window cleaning?
Having the window cleaned independently may be more efficient.
Under the Strata Schemes Management Act 2015 (NSW), the owners corporation is responsible for the maintenance and upkeep of common property.
If the dirt on your window resulted directly from roof cleaning works arranged by the owners corporation, and your window forms part of the common property or was affected as a consequence of those works, it would fall under the corporation’s duty to rectify.
That said, from a practical perspective, if the cost of engaging your own cleaner is modest and the inconvenience of pursuing a formal resolution is significant, it may be more efficient to have the window cleaned independently. This will avoid any ongoing prolonged back and forth and may be more cost-effective overall, particularly if a contractor would need to be engaged by the owners corporation at greater expense to all lot owners.
You may also consider submitting a request for reimbursement of the cleaning cost to the strata committee for their consideration and attend the next strata committee meeting to raise the matter directly.
James Delany | Alliance Management Services james@alliancemanagementservices.com.au
How can an OC effectively and promptly navigate remedial works?
With industry delays, how can an OC effectively navigate remedial works? Is it possible to expedite this process?
Our owners corporation (OC) is eager to complete required remedial works. However, the process has been painfully slow. How do we address delays outside of the OC’s control? It took seven weeks for two different design practitioners (DP) to visit the site and provide reports. Neither DP would provide cost estimates for levy planning or potential loans. We chose a DP and it took four weeks to prepare the tender scope and send it to a builder for a quote, which took six weeks. Finally, it will take another four weeks to review the quote, hold an EGM, issue contracts, and arrange insurance. This totals over 20 weeks before any work can be scheduled and levies or financing can be finalised.
This extended timeline puts the OC in a difficult position. We are vulnerable to pressure from owners, regardless of how well-informed they are. We understand there are backlogs and that DPs and builders can be selective about projects, e.g., both were offended when asked for references.
How can an OC effectively navigate remedial works? Is it possible to expedite this process?
Reasonable timeframes give the best chance of getting the right contractor at the best possible price.
Each project must be looked at on its own merit. There are usual timeframes for a project such as:
• Scope: 2 weeks
• Tender and Recommendation: 6 weeks (4 weeks to tender to four contractors and 2 weeks for review and recommendation).
These timeframes give the best chance of getting the right contractor for the project at the best possible price. Reducing the timeframe for contractors will likely force them into making some assumptions that they are likely to price high to protect themselves against unknowns.
In saying this, many things can be done to protect owners if there is a pressing need, such as emergency works to prevent water ingress. This allows more time for the main works to occur, while temporary works allow residents to remain in situ.
Sam
Hogg | PASG Projects info@pasg.com.au
Are we required to prepare and practice an evacuation plan?
Our new village operator asserts that, as residents live in independent units, they are not legally required to prepare and practice an evacuation plan. Is this correct?
Our strata village has a new operator. The previous operator prepared an evacuation plan for the village and practised it twice a year. The new operator asserts that as village residents live in independent units, they are not legally required to prepare and practice an evacuation plan. The Act seems to indicate they DO have an obligation for an evacuation plan. What is the legal position?
The applicability of AS3745 for evacuation plans and training is whether the site has any person or business that could be defined as a PCBU.
I’m not a lawyer, so I can’t provide a legal opinion, but the applicability of AS3745 for evacuation plans and training is whether the site has any person or business that could be defined as a PCBU, e.g., someone is conducting work there.
If so: “Under the Work Health and Safety Act 2011 (NSW), PCBUs must provide adequate training to all workers on site, including emergency evacuation procedures.”
Here’s some official info on the responsibilities of a PCBU: Glossary
I believe a lot is happening in the background to further define the specific applicability of all this to strata as the waters are muddied if a strata block has: contractors on site/ building manager on site/ persons working from home –particularly in the common area.
Rob Broadhead | 2020 Fire Protection rob.broadhead@2020fire.com.au
Can a building management committee be brought under the strata plan?
Can a building management committee be terminated and its services brought under the strata plan?
Our building has a building management committee (BMC). The strata plan runs the residential, and a BMC runs all associated services in accordance with the management plan.
Our strata manager said the BMC can be terminated, and the associated services can be bought under the strata plan. Is this legally possible? If so, would the cost of making these changes be viable?
The titling structure was likely set up in this manner for a reason.
Whilst it is technically possible to terminate the BMC and the strata scheme and create a new strata scheme, it is usually not commercial to do so, and I have never seen it done. The titling structure was likely set up in this manner for a reason. In addition, the consent of all lot owners within the strata scheme, the stratum lot owners, mortgagees and Council would be required to terminate the BMC and strata scheme.
Within the strata scheme, the owners corporation manages the common property and the relationships between the lot owners by way of its by-laws. Each lot owner contributes their levies in accordance with the schedule of unit entitlement
All costs for common property can only be paid in accordance with the unit entitlements unless a common property rights by-law modifies this position.
In a stratum subdivision, the building management committee (BMC) manages the shared facilities and manages the relationship between the stratum lot owners (members of the BMC). The strata management statement will set out how shared facilities are managed and the allocation of costs for the shared facilities. The strata management statement will also set the proportions of which each BMC member will need to contribute for each of the shared facilities.
The structure of a BMC thus allows for greater flexibility in how costs are allocated to its members. Doing away with the BMC might create greater inequities, and whilst one member of the BMC may benefit, other members will likely be detrimentally affected.
I suggest that if a member of the BMC is not happy with the apportionment of costs for the shared facilities, they consult the strata management statement and follow the dispute resolution mechanisms if the members cannot agree to review the apportionment of shared costs.
Matthew Jenkins | Bannermans Lawyers enquiries@bannermans.com.au
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