Maintenance checks vs fire safety audits: What’s the difference...and do I need both?
Page 27 | Fire Matters
Non-committee member involvement in committee meeting discussions
Page 32 | Grace Lawyers
What if we cannot form a committee due to a disruptive owner making it too difficult for others to volunteer?
Page 34 | Strata Solve
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.
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, 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.
Liza came on board in early 2020 to bring 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.
Consultants
Can
an owner request copies of quotes approved by the committee?
Can an owner with transparency concerns request copies of quotes approved by the committee, and is the committee obliged to supply them?
A body corporate organised report indicated varying unit maintenance requirements, and the committee performed maintenance on seven units.
Payment made to the company for each unit’s work was the same amount for each unit. An additional payment of the identical amount was paid for three of the seven units. Given that the reports varied for each unit, it is difficult to understand why there was unity in the maintenance cost for all units.
Can an owner request copies of the quotes approved by the committee? Is the committee obliged to supply the quotes?
An owner can request copies of the quotes.
Yes, an owner can request copies of the quotes. The committee is not obliged to provide them to you. If they don’t, you could arrange to inspect the books and records and access them that way.
Also consider submitting an owner’s motion to the committee requesting the documents be sent to owners. The committee could still vote against this motion, but it may help to make the matter more public.
That said, the way you have presented the issue makes it sound somewhat confrontational. You could request the quotes by writing to the committee for a plainEnglish explanation of what expenses were undertaken and why. Explain that you are not ‘inspecting’ the committee but are interested in the process and keen to know more.
From the committee’s end, it is reasonable for owners to ask these questions and explaining approval processes can be a good way to build trust. Of course, you can’t explain every minor choice, but having a reasonable flow of information between owners and the committee can help with understanding. If you have made a reasonable decision in good faith you should be prepared to discuss that.
William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au
We engaged a builder to address concrete cancer on a standard costs-plus agreement. On the final invoice, the BC 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 BC signed a standard costs-plus agreement from HIA. The BC 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 BC 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
BUILDING CONSULTANCY
• Defect reports and forensic engineering
• Scope of works
• Dilapidation and risk surveys
• Dispute mediation and expert witness
• Contractor procurement and cost validation
• Construction management
• Capital works funds/maintenance plans
• Digital capability
REPAIR SOLUTIONS
• Emergency make safe
• Fire water damage restoration
• Leak detection
• Contamination response
• Building repairs
• Cost validation services
• Digital capability
• Façade assessments TO LEARN MORE, CONTACT:
• Third Party Administration (TPA)
1300 735 720 sales@au.sedgwick.com 1300 654 599 sales@au.sedgwick.com
Our body corporate is only 46% insured, and we have a high water damage excess of $20,000. How is this excess amount reasonable and isn’t the body corporate required to be 100% insured?
Why is our body corporate only partly insured? My property has suffered severe mould damage due to a burst hot water pipe in the wall. The estimated damage is likely to exceed $50,000.
The body corporate’s insurance has a water damage excess of $20,000, and the claim will only be 46% covered. If the total claim is $50,000, 46% is $23,000. With the excess of $20,000, I only receive $3000.
How high can an excess be for it not to be a burden on owners? Is the excess allowed to be this high? Should the body corporate be responsible for the remaining 54% (less excess)? Doesn’t legislation state the body corporate must be 100% insured for the rebuild value?
It’s worth noting that there are buildings across Queensland with similarly high excesses due to market conditions and insurer appetite for certain risks, particularly water damage.
Based on the information provided, several important issues warrant clarification under the Body Corporate and Community Management Act 1997 (Qld) (BCCM Act) and the relevant regulation module for the scheme.
Under the BCCM Act and associated regulation modules (e.g. Standard Module s198), the body corporate must insure all buildings for full replacement value. A policy covering only 46% of the damage appears to fall short of this legislative requirement.
However, there are provisions in the BCCM Act (s189) that allow a body corporate to apply to the Commissioner for an exemption from the full replacement cover requirement where the body corporate can not comply with the requirement under the regulation module applying to the scheme to insure for full replacement value. This exemption is not automatic and must be formally applied for and approved.
If no such exemption has been obtained, the body corporate may be in breach of its obligations.
The question also mentions that the insurance policy includes a $20,000 water damage excess. It’s worth noting that there are buildings across Queensland with similarly high excesses due to market conditions and insurer appetite for certain risks, particularly water damage.
That said, under the BCCM Act, the committee must act reasonably (Section 94). The regulation modules also require that any excess must not impose an unreasonable burden on the owners.
Whether an excess is “reasonable” is subjective and depends heavily on the specific circumstances. For example, if $20,000 was the only excess available from any insurer, this would likely be considered differently than if a $5,000 option was available and the committee opted for the higher excess without due consideration.
3. Responsibility for the Uninsured Portion
The question of whether the body corporate is responsible for covering the uninsured 54% of the claim is complex. It depends on several factors, including:
• Whether the body corporate has applied to the Commissioner for an exemption under Section 189 of the Body Corporate and Community Management (Accommodation Module) Regulation 2008;
• What insurance options were available, and whether the committee acted reasonably in its decision-making?
• Whether there was a failure to comply with legislative obligations to insure for full replacement value.
Due to the subjective nature of these considerations and the need to assess available evidence, it is impossible to definitively determine responsibility for the uninsured amount without more comprehensive information.
Tyrone Shandiman | Strata Insurance Solutions tshandiman@iaa.net.au
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".
In the life of every body corporate, there is a moment when people need to step back and ask the question: Are we being reasonable?
Or, in other words: Just because we can take this course of action, does it mean we should?
We see this a lot with by-laws. The general rule of thumb is that a by-law must not be oppressive or unreasonable, having regard to the interests of all owners and occupiers of lots included in a scheme Once registered it is the task of the committee to oversee the governance of the by-laws
However, the test of ‘being reasonable’ can sometimes go by the wayside when people focus too keenly on the process and not the desired outcome
Defining ‘reasonable’ is no simple task.
An example of being unreasonable could include the sudden rigid enforcement of a by-law that has been inconsistently enforced before
Or, a committee knowingly adopting a by-law into the Community Management Statement that it knows is invalid but chooses to enforce regardless until challenged by an aggrieved lot owner
A no-pets by-law is a good example of this practice.
It’s surprising how often some committees will try to brazen it out by clinging to invalid by-laws that are well passed their best-by date in a bid to achieve a particular outcome
In the back of each committee member’s mind should be the twin questions: What are we trying to achieve, and What’s the best way of achieving it?
The by-laws may clearly state the process to follow should an owner fall behind in the payment of levies
However, if it’s known that a lot owner is going through some temporary financial difficulties, would it not be better for an adult conversation to take place and a payment plan agreed as opposed to just commencing a legal proceeding for recovery?
The strict adherence to the policy may well tick all the process boxes, but does it achieve the desired outcome of getting the levies paid?
The world no longer operates 9-to-5 People have hybrid working arrangements with some days in the office and other days at home Shift work is commonplace across many industries
Scheme by-laws that were first drafted in the previous century can sometimes struggle to keep up with the changing work-life landscape
By-laws that restrict access to common property such as gyms and swimming pools may no longer be appropriate for residents who don’t live that traditional 9-to-5 work regime
From a committee’s perspective, it may be possible to restrict the use of the gym to between 9am and 6pm, but is this reasonable in the current work environment?
Volunteering to work on a body corporate committee is a big commitment in time and emotional energy.
Making sure the by-laws are valid and up to date is one task. Making sure they are applied in a fair and reasonable manner is enitely another.
Frank Higginson, Hynes Legal
A r e y o u r b y - l a w s
l e g a l l y v a l i d a n d
e n f o r c e a b l e ?
C l a i m y o u r
F R E E B y - L a w s
A s s e s s m e n t
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
What specific steps can a council 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 council 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 council 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 council members to take action and make decisions.
Michael Kleinschmidt | Bugden Allen michael.kleinschmidt@bagl.com.au
At Altogether, we've delivered reliable, localised essential services to over 500 communities across Australia. Our mission is to help communities make informed decisions about using electricity.
Our smart meters can help households and businesses take control of energy usage with accurate, real-time data,sage insights, and alerts. As such, customers can enjoy lower costs by making the most of off-peak rates while also reducing the need for additional fossil fuel use during peak demand.
Contact us to learn how our solutions can benefit your community. find out more
When a new community title scheme is established the developer has an obligation – to both the body corporate and the caretaker – to ensure the caretaking agreement is appropriate for the scheme.
It is not uncommon for bodies corporate and caretakers to have issues with the caretaking agreements and remuneration in new schemes, and we regularly act for bodies corporate where:
• the schedule of duties is not appropriate or tailored to the needs of the scheme (we have seen agreements which refer to pools and lifts when the scheme had neither!);
• there is a divergence between the extent of the duties and the remuneration which the body corporate is required to pay (this can result in the body corporate under paying or over paying for services).
When these issues arise, the body corporate has two options:
• amend the agreement; and/or
• look to the developer for damages.
In this article we discuss what is required to amend the caretaking agreement to address issues with the caretaker’s duties or remuneration –with a specific focus on the lesser known, and often overlooked, statutory review process.
A caretaking agreement can be changed in a number of ways, namely by:
• mutual agreement between the body corporate and the caretaker;
• an existing contractual mechanism under the agreement itself (e.g. a market review clause); or
• the lesser known, and often overlooked, statutory review process.
It is this last alternative with which this article is concerned.
A statutory review allows either the body corporate or the caretaker to request a review of either:
• the remuneration payable to the caretaking service contractor; or
• the duties carried out by the caretaker.
This right of review exists regardless of what is contained in the agreement itself and cannot be contracted out of.
The circumstances that must exist for a statutory review to take place are when the:
• caretaking agreement is entered into during the “original owner control period”;
• “original owner control period” has now ended; and
• caretaking agreement has not been assigned.
Once requested, the review must be completed before the end of the “review period” (which is usually around 3 years after the scheme was established).
The key elements to a successful statutory review are timing, following the correct process, and having the right commercial strategy from the outset.
By Ben Seccombe, Partner.
The circumstances for a statutory review rely heavily on timing.
The “original owner control period” relates to the period when the developer has the ability to force the body corporate to make decisions. This decision making control is exercised through the developer’s right to vote through lots it still owns or as part of an agreement with other lot owners.
The “review period” ends on the latest of:
• three years from the commencement of the caretaking agreement; or
• the anniversary of the annual general meeting held after the “original owner control period ends”.
These complicated timing calculations result in a window of opportunity of between approximately one and three years from the scheme’s registration date – which can be extended if the developer still owns a majority of lots in the scheme for longer than normal.
The body corporate begins the statutory review process by:
• passing an ordinary resolution;
• notifying the caretaker;
• obtaining a “review advice” within 2 months from notifying the caretaker;
• giving the caretaker a copy of the “review advice”;
• negotiating an outcome with the caretaker; and
• approving the change at a further general meeting.
If after negotiating, the Body Corporate and the Caretaker are unable to reach agreement on a revised salary or duties, the Queensland Civil and Administrative Tribunal has the power to make a decision and determine the salary or duties which should apply.
In implementing the statutory review process there are a number of complicated legal and commercial considerations that the body corporate needs to consider as part of its strategy. As examples:
• is the body corporate going to be better or worse off by starting the statutory review process?
• what aspects of the agreement should be reviewed – duties or remuneration?
• which consultant should be engaged to provide the “review advice”, and when?
• has the “original owner control period” started and is there sufficient time to complete the statutory review within the “review period”?
• has the caretaking agreement already been reviewed or assigned?
• how will the caretaker respond to any notice of the statutory review –will it be disputed?
These issues (and others) need to be considered by the body corporate as part of any statutory review process.
Mahoneys has acted in every significant statutory review dispute since the legislation was enacted and has significant expertise in this area.
Mahoneys is an independent law firm offering a range of commercial advice, transaction support, and dispute resolution services. With offices in Brisbane and the Gold Coast, we have a dedicated team of lawyers who specialise in body corporate and strata law.
We have a long history of acting for bodies corporate - our work includes acting for lot owners and bodies corporate on all matters relating to the Body Corporate and Community Management Act and associated legislation – including in the following areas:
• Management rights assignments and variations
• Common property subdivision and sales
• General disputes and advice
• Community management statements
• By law enforcement and by law reviews
• Selling schemes to developers
• Caretaker performance issues
• Debt and levy recovery
• Lot entitlement issues
• Building defect disputes
• Building management statements
• Laan access notices
• Defamation
• Neighbouring development issues
A key to our success has been the quality of our team and our unwavering commitment to providing market leading legal services. Our dedicated body corporate team is made up of leading industry lawyers, led by 2 experienced partners:
Todd Garsden who heads up Mahoneys’ body corporate practice is an industryleading body corporate lawyer who predominately acts for bodies corporate, body corporate managers and lot owners on all matters affecting bodies corporate.
Ben Seccombe who heads up the Mahoneys’ Dispute Resolution team, is a nationally recognised litigator with significant experience advising bodies corporate including on contract issues between resident manager and body corporate, by-laws, building and construction (including defect management), statutory compliance and insurance. Ben also has significant experience helping bodies corporates terminate and sell body corporate schemes to developers.
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
As strata communities continue to grow and evolve, so too do the expectations placed on strata managers and body corporates 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 Sinking Fund Forecast 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.
•
•
What is the extent of a caretaker’s authority in body corporate matters beyond their defined duties?
It appears increasingly common for owners to express dissatisfaction with the caretaker’s conduct.
While the management rights agreement outlines the specific caretaker duties, it is crucial to clearly define the scope of their general involvement in body corporate affairs.
What is the extent of a service contractor’s authority in body corporate matters beyond their defined duties? Do service contractors have the authority to determine body corporate policies or procedures?
Our caretaker is exceeding their defined role, seemingly attempting to manage the resort instead of operating as contracted support staff. They run the resort as their fiefdom. As a paid contractor (’employed help’), the service contractors may have input into discussions during committee meetings. Does this extend to the power to establish body corporate policy and procedures?
Although issuing breach notices is a potential course of action, the underlying issue seems to be a lack of understanding by the service contractor regarding the limitations of their role.
To help alleviate conflict, are there legal or industry guidelines that define the limited involvement of service contractors in setting body corporate policy and procedures?
The
key is finding a solution that minimises time, cost and emotional toil.
Respectfully, we don’t think you are on the right track here.
When it comes to ‘policies and procedures’, there are two instruments defining that: the management agreement, and the legislation. There is next to no scope for any other party, committee included, to be setting ‘policies and procedures’ outside of that framework.
A service contractor is not a paid employee. They are engaged under contract, which is a very different thing. Referring to them as ’employed help’ is, we think, derogatory and does not help the situation. Nor does describing it as a ‘fiefdom’. Also, it is more than simply ‘having input’ into a committee meeting. The management rights holder is automatically, under legislation, a non-voting committee member.
Purchasing management rights in a strata scheme is a significant investment of funds, time and emotional commitment on the part of the purchaser, and it stands to reason that they would want to do everything they can to protect and enhance that investment. In that respect, they are virtually identical to a lot owner.
There is no standard contract, and we do agree that disputes arise between committees and service contractors over performance of duties. Then again, disputes arise in just about every walk of life and sector of industry, so this is not so unusual. The key is finding a solution for all concerned that minimises time, cost and emotional toil so that these disputes can be managed and even prevented in future.
This is general information only and not legal advice.
Chris Irons | Strata Solve chris@stratasolve.com.au
Strata Solve helps people untangle and resolve their strata issues. Sounds simple when you put it like that, doesn’t it?
Director Chris Irons (pictured, with his strata-approved greyhound Ernest) has an unrivalled strata perspective. As Queensland’s former Body Corporate Commissioner, Chris has seen and heard virtually every strata situation and nuance. He knows that while legislation provides a framework, there are many ambiguities to navigate through and in which pragmatism, commonsense and effective communication are vital.
As an independent strata consultant, Chris provides services which are all about empowering owners, committees, managers, caretakers, and others, to protect their strata interests. With a high-profile media and online presence, and as an accredited mediator, Chris is also able to carefully ‘read the room’ and craft the right narratives in even the most complex strata situation. Strata Solve is not a law firm. Chris instead thinks of steps you can take before you embark on lengthy, costly, and stressful legal proceedings. Regardless of the client, all people in strata have one thing in common: their substantial investment in the strata scheme. Strata Solve prioritises that investment in each tailored solution we provide. Get in touch to find out more.
email: chris@stratasolve.com.au web: stratasolve.com.au
If the body corporate paints the inside and outside of the fire door, can an owner repaint the inside of the door with a colour of their choice?
Our strata scheme is a building format plan under the accommodation module.
For fire doors located in a boundary wall between a lot and common property, is painting the inside of the fire door and the fire door frame an owner’s responsibility?
If the body corporate paints the inside and outside of the fire door, can an owner repaint the inside of the door with a colour of their choice?
Fire doors don’t come cheap, so tread carefully.
The fire door, including the frame, would usually be considered body corporate property in its entirety. The rationale is that the body corporate needs to guarantee the door’s integrity to ensure it does its job, which is to prevent the spread of fire.
The body corporate may not mind if you paint the door inside your lot, but you should check this with the body corporate and the fire contractor. I expect that the response of the fire contractor will be critical. The body corporate may be indifferent to the internal colour of the door, but if you damage it, perhaps by using the wrong type of paint or covering the door’s information tag, you could find yourself responsible for the replacement of the door. Fire doors don’t come cheap, so tread carefully.
William Marquand | Tower Body Corporate willmarquand@towerbodycorporate.com.au
What’s
the difference... ...and do I need both?
Many building managers and body corporates assume that fire safety audits and maintenance checks are interchangeable However, this is not the case, they both play vital roles in keeping your property safe and compliant. Here’s what you need to know:
Maintenance Checks ensure your fire safety systems are operational Qualified technicians test and service smoke alarms, sprinklers and emergency lighting and inspect fire extinguishers. These routine checks prevent failures but don’t guarantee legal compliance.
Fire Safety Audits are in-depth assessments carried out by licensed auditors, who evaluate your building
against legislative requirements, such as Queensland’s Building Fire Safety Regulation 2008 Auditors do not service equipment, their focus is on reviewing system adequacy, evacuation plans, documentation and compliance risks
Why you need both Maintenance keeps systems functional. Audits ensure legal compliance.
Neglecting either risks fines, safety hazards or system failures Scheduling regular maintenance and fire safety audits protects occupants and avoids legal repercussions.
Need a Fire Safety Audit? Contact us to ensure your building meets regulations Stay compliant, stay safe!
Stefan Bauer Fire Matters
Can the chair be negligent and held civilly liable by not taking any action to repair a leak?
In our small strata, most owners are absentee. The committee chair is one of the few residents. The committee’s other members are all absentees but readily contactable.
The chair discovered a major “concealed” water leakage and called in a plumber.
The plumber quoted on repairs but was not instructed to take further action, so the water continued leaking for a considerable time.
The chair did not inform the committee members about the leak or the plumber’s visit.
The other committee members became aware of the problem after the affected lot’s owner received their water bill.
One of the committee members immediately intervened and called the plumber to repair the leak.
By not taking any action, was the chair negligent? Can they be held civilly liable under Section 101a?
Negligence is a complicated and misunderstood area of law.
Negligence is a complicated and misunderstood area of law. To prove negligence, the following elements need to be made out:
1. There was a duty of care;
2. The duty of care was breached;
3. The breach caused the loss; and
4. Actual damages were suffered
Without a complete review of all the relevant circumstances, it is not possible to make a conclusion as to whether the chairperson was negligent in not fixing the water leak.
However, some considerations on the issue would be that:
1. The chairperson does not (nor does any other committee member) have the power to authorise a plumber to carry out works. Such a decision can only be made by the committee, a general meeting or an adjudicator in an emergency;
2. There are various code of conduct obligations with respect to how committee members ought to act in certain circumstances. Consequences of such breach do not necessarily mean personal liability will accrue; and
3. Section 101A of the BCCMA is not just about negligence. There is an element of good faith that cannot be ignored.
Todd Garsden | Mahoneys
tgarsden@mahoneys.com.au
Our large scheme has had no internet for three months. The onsite manager has not been helpful, and no one knows what the problem is. How do we move forward?
We live in a strata complex of 80 units over three buildings. We’ve had no internet for three months. The internet service provider claims it’s a NBN Co problem. NBN Co claims the problem is the cabling from the MDF to our unit. There may also be an issue with the copper wiring in the building.
The onsite manager has not helped resolve the matter. Owners have had to do most of the investigating. We feel we have been paying body corporate fees, but not been provided with any services. How do we resolve this?
Get someone who knows what they are doing to come and assess where the issue stems from and then point fingers at the right entities to fix it.
To be fair, I don’t think this is as much an onsite management responsibility as it is the body corporate’s. The internet should travel through utility infrastructure, which is normally a body corporate responsibility. The onsite manager would normally act on the committee’s directions with respect to obtaining quotes from people with the right expertise to fix the problem.
The starting point would seem to me to get someone who knows what they are doing to come and assess where the issue stems from and then point fingers at the right entities to fix it. The body corporate should normally take responsibility for that in the first instance, because there is going to be some cost involved in that assessment.
Frank Higginson | Hynes Legal frank.higginson@hyneslegal.com.au
Since 2001, Seymour Consultants has applied professionalism, honesty and integrity to every project and built a reputation as a market leader in the Strata Industry.
With a background of over 25 years experience in Quantity Surveying, Construction and Development, you can be sure to benefit from our experience for your reporting and project based needs.
Call us today on 07 5573 4011 Email us on: info@seymourconsultants.com.au Visit our website: www.seymourconsultants.com.au
Our main objective is to work in partnership with you as we share a joint interest in the success of each and every project.
• Fire Safety Auditing, Evacuation Planning & Training
• Pool Certification
• Facility Manager & Caretaker Recruitment
• Lot Entitlement Reporting
• Building Condition Reports
• Quantity Surveying
• Health & Safety
• Sinking Fund Forecasts
• Asbestos Auditing
• Insurance Valuations
• Caretaking Performance Reviews
• Caretaking Remuneration Reviews –Time & Motion Study
• Management Rights – Suitability Interview & Assessment
• Tax Depreciations
• Part Five Reporting
When owners attend committee meetings, what recourse do they have if excluded from discussions during the meeting?
Owners (or their representatives) have a legislative right to attend committee meetings. What recourse do attending owners have when:
1. the chairperson requires the owner to leave meetings when the discussion or vote doesn’t directly relate to them, such as an alleged by-law breach by another resident, and/or
2. the committee members intentionally talk to each other in such a low tone so as to ensure it is inaudible to attending owners.
Such actions fly in the face of transparency, often the cornerstone of harmonious community living.
The committee can decide whether a non-committee member may or may not be present for an item of business.
The committee has the power to decide whether a person who is not a committee member that is attending the committee meeting may be present for an item of business about by-law contraventions, starting a proceeding, defending a proceeding, and a dispute between the body corporate and certain other persons (such as owners, occupiers, caretakers).
Those items of business need not relate in any way to the non-committee member who is attending the committee meeting for the committee to decide that the person must not be present while the item of business is being conducted. The non-committee member must leave the meeting for those items of business, if that is the committee’s decision. If you do not want to be required to leave, you will need to be on the committee (though there are other reasons why a committee member may still be required to leave a committee meeting from time to time).
When the non-committee member is present in the committee meeting, that person may observe the meeting and only speak to the committee if invited to do so by the committee. The non-committee member can be directed to leave the committee meeting (and must comply with such direction) if the person speaks to the committee without invitation.
If the non-committee member is unable to hear the discussions taking place in the committee meeting, it will depend on the interpretation of the word ‘observe’ as to whether there is anything the committee needs to do to accommodate attendees. A request to the committee to increase the volume of their voices when discussing items of business would be a good start if that has not already occurred.
Brendan Pitman | Grace Lawyers brendan.pitman@gracelawyers.com.au
What if we cannot form a committee due to a disruptive owner making it too difficult for others to volunteer?
An owner in our small strata scheme is so challenging to work with that no one wants to be on the committee.
My SMSF owns one lot in a six lot strata scheme in North Queensland. The other five lots are owner occupied. We have two executive committee members and four ordinary committee members. I am not an executive committee member, although I have been.
One lot owner has managed to get on the wrong side of everyone in the complex, as well as the current body corporate manager and previous managers. Nobody is willing to work with this person or be associated with them because of constant name calling, negative criticisms, and insulting and disparaging comments.
Four members (2 executive and 2 ordinary) are like minded and often vote the same but we struggle to keep a committee together because of the abusive emails each of us have received from this one owner as well as the constant demands and interference with maintenance orders (telling tradespeople how to do their job). I don’t live in the complex, so I am somewhat removed from the situation, but other owners report they always avoid this owner.
The executive committee are leaving or resigning. Nobody will take up an executive position due to the stress of dealing with the disruptive owner. Our body corporate manager, who used to help enormously, said they will only accept/read emails from the chair. Members support the body corporate manager’s position.
1. What if we cannot form a committee?
2. Who appoints an administrator?
3. Can the administrator also be the body corporate manager?
4. Can we dissolve the body corporate? If so, what are the pros and cons?
While strata should be about methodical decision-making and businesslike behaviour, emotions can quickly supplant objectivity when it comes to people’s homes.
Firstly, we are sympathetic to your situation. Unfortunately, it is a situation we hear about a fair bit. In other words, you are not alone. That, arguably, is because while strata should be about methodical decision-making and businesslike behaviour, emotions can quickly supplant objectivity when it comes to people’s homes.
We address your specific queries below, and then offer a more general observation:
1. You must form a committee – it’s a legislated requirement – and if you can’t form a committee, that is when an administrator might need to be considered. There is also an option of a ‘Part 5’ arrangement involving your body corporate manager, although, given what you have said, it would be unlikely your manager would offer that.
2. An adjudicator in the Commissioner’s Office appoints an administrator on application by an owner. Administrator appointments are historically very rare.
3. Yes, they can. An administrator can also be someone like an accountant, a lawyer or indeed, ourselves.
4. It is highly unlikely you would qualify to be able to terminate (dissolve) your body corporate at this point. New legislation enables termination with 75% of owners, but that is under ‘economic reasons’, and you haven’t outlined economic circumstances here.
The general observation we’d make is this: as challenging as it may be to deal with this individual, it is in your and the other owners’ interests to find a way to do so, because the alternatives are time-consuming, stressful and incredibly costly (administrator fees are not small, to say the least). Moreover, your property values are at risk from the continuing conflict.
It might be time to consider stepping back a bit and considering alternative dispute resolution, mediation or approaches which do not involve formal proceedings. You do not have to like this person – you simply have to be able to have a business relationship with them. Strata Solve does a lot of work in this space – you might like to reach out to us to see if we could assist.
This is general information only and not legal advice.
Chris Irons | Strata Solve chris@stratasolve.com.au
READ MORE HERE
Tower Body Corporate
Your Best Decision
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
SSKB Strata Managers
A Positive Difference in Strata
P: 07 5504 2000
W: https://sskb.com.au/ E: sskb@sskb.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
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
Quantum United Management
Creating vibrant and connected communities
P: 61 38360 8800
W: https://www.quantumunited.com.au/ E: info@quantumunited.com.au
Archers the Strata Professionals
Your Partners in Stratas
W: https://abcm.com.au/ E: marketing@abcm.com.au
Commercial Building Facade Solution
Precision Diagnostics-Innovative Solutions
P: 0488 223 359
W: https://www.cbfs.com.au/ E: mike@cbfs.com.au
Building Rectification Services
P: 07 5539 3588
W: https://www.buildingrectification.com.au/ E: admin@buildingrectification.com.au
Altec Building
Remedial Building & Waterproofing
P: 02 9744 2039
W: https://www.altecbuilding.com.au/ E: info@altecbuilding.com.au
Building Experts Australia Pty Ltd
Building Solutions
P: 0475 454 350
W: https://bexa.net.au/ E: bruceh@bexa.net.au
Rawlinsons
Calculated Confidence
P: 08 9424 5800
W: https://www.rawlinsonswa.com.au/ E: info@rawlinsonswa.com.au
Strataregister.com Pty Ltd
Find the Strata / CT Manager for your property
P: 0411 483 249
W: https://www.strataregister.com/ E: hello@strataregister.com
Diamond Property Inspections
Property Inspections You Can Trust
P: 1300 368 000
W: https://diamondinspections.com.au/ E: orders@diamondinspections.com.au
Sedgwick
Building Consultancy Division & Repair Solutions
W: https://www.sedgwick.com/solutions/global/au
E: sales@au.sedgwick.com
QIA Group
Compliance Made Easy
P: 1300 309 201
W: https://www.qiagroup.com.au/
E: info@qiagroup.com.au
GQS
Quantity Surveyors & Building Consultants
P: 1300 290 235
W: https://gqs.com.au/ E: info@gqs.com.au
Seymour Consultants
Body Corporate Report Specialists
W: https://www.seymourconsultants.com.au/ E: info@seymourconsultants.com.au
BCRC
Construction Materials & Durability Consultants
P: 02 9131 8018
W: https://bcrc.com.au/ E: sydney@bcrc.com.au
Palmer Acoustics
Specialist Acoustic & Audio Visual Engineering
P: 61 7 3802 2155
W: https://palmeracoustics.com/
E: ross@palmeracoustics.com
HFM Asset Management Pty Ltd
Building Efficiency
P: 0407 734 260
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
Leary & Partners
Quantity Surveying Services Since 1977
P: 1800 808 991
W: https://www.leary.com.au
E: enquiries@leary.com.au
BIV Reports
Specialist in Strata Compliance Reports
P: 1300 107 280
W: https://www.biv.com.au/ E: biv@biv.com.au
Pircsa Pty Ltd
Professional Insurance Restoration and Consultancy
P: 0460 555 077
W: https://pircsa.com.au/ E: steve@pircsa.com.au
Solutions in Engineering
Quality Reports On Time, Every Time!
P: 1300 136 036
W: https://www.solutionsinengineering.com/ E: enquiry@solutionsinengineering.com
CORE Consulting Engineers
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
Olive Tree Consulting Group
Solutions in Strata Compliance
P: 0400 161 659
W: https://olivetreeconsultinggroup.com.au/
E: admin@olivetreeconsultinggroup.com.au
Leo & Associates Consulting Engineers
Enhancing Structures, Empowering Futures
P: 0452 205 727
W: https://laconsulting.com.au/ E: Leo@laconsulting.com.au
Expert Subsidence Engineer Reports
P: 0403 434 092
W: https://www.forensic-engineers.com.au/ E: admin@forensic-engineers.com.au
Ostanes Engineering
We Engineer
P: 0411 631 777
W: https://ostanes-engineering.com/ E: info@ostanes-engineering.com
Strata Insurance Solutions
Advice You Can Trust
P: 1300 554 165
W: https://www.stratainsurancesolutions.com.au/ E: info@stratainsurancesolutions.com.au
Whitbread Insurance Brokers
Empower Your Vision
P: 1300 424 627
W: https://www.whitbread.com.au/ E: info@whitbread.com.au
CHU Underwriting Agencies Pty Ltd
Specialist Strata Insurance Underwriting Agency
W: https://www.chu.com.au/ E: info_nsw@chu.com.au
Flex Insurance
Your Cover Your Choice
P: 1300 201 021
W: https://www.flexinsurance.com.au/ E: info@flexinsurance.com.au
Strata Community Insurance
Protection for your strata property. And you.
P: 1300 724 678
W: https://www.stratacommunityinsure.com.au/ E: myenquiry@scinsure.com.au
Driscoll Strata Consulting
Knowledge | Experience | Service
P: 0402 342 034
W: https://driscollstrataconsulting.com.au/ E: enquiries@driscollstrataconsulting.com.au
Body Corporate Brokers
United, Protecting Communities
W: https://bcb.com.au/ E: sarah.johnson@bcb.com.au
Sure Insurance
Sure. Insurance, but Fair
P: 1300 392 535
W: https://sure-insurance.com.au/strata-hq/ E: strata-quotes@sure-insurance.com.au
CRM Brokers
The smart insurance choice
P: 1300 880 494
W: https://www.crmbrokers.com.au/strata-insurance/ E: crmstrata@crmbrokers.com.au
Strong Insurance
Fast & efficient strata insurance across Australia
P: 1800 934 099
W: https://www.stronginsurance.com.au/strata-quote
E: admin@stronginsurance.com.au
Hynes Legal
Leading Lawyers. Living Strata. P: 07 3193 0500
W: https://hyneslegal.com.au/ E: frank.higginson@hyneslegal.com.au
Mahoneys
Body Corporate Law & Dispute Resolution Experts
P: 07 3007 3777
W: www.mahoneys.com.au/industries/bodies-corporate-strata/ E: info@mahoneys.com.au
Bugden Allen
Australia’s leading strata law experts
P: 02 9199 1055
W: https://www.bagl.com.au/ E: info@bagl.com.au
Mathews Hunt Legal
BODY CORPORATE LAWYERS... EXCLUSIVELY
P: 07 5555 8000
W: https://mathewshuntlegal.com.au/ E: admin@mathewshuntlegal.com.au
Moray & Agnew Lawyers
Legal strategies and solutions for our clients
P: 03 9600 0877
W: https://www.moray.com.au/ E: https://www.moray.com.au/
Grace Lawyers
Know. Act. Resolve. P: 1300 144 436
W: https://gracelawyers.com.au/ E: enquiries@gracelawyers.com.au
MiMOR
Connecting People – Creating Communities
W: https://www.mimor.com.au/ E: info@mimor.com.au
Stratabox
Building Confidence
P: 1300 651 506
W: https://stratabox.com.au/ E: contact@stratabox.com.au
Town Square
Productivity and Communications Platform for SMs.
W: https://townsquare.au/ E: hello@townsquare.au
ResVu
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
Urbanise
Automate your workload to increase efficiency. P:1300 832 852
W: https://www.urbanise.com/ E: marketing@urbanise.com
onsite.fm
Building Management Software
P: 02 7227 8550
W: https://onsite.fm/ E: hello@onsite.fm
eVotters
The online voting solution
P: 61 28011 4797
W: https://www.evotters.com/ E: support@evotters.com
LookUpStrata
Australia’s #1 Strata Title Information Site.
W: https://www.lookupstrata.com.au/ E: administration@lookupstrata.com.au
Strata Community Association
P: 02 9492 8200
W: https://www.strata.community/ E: admin@strata.community
Owners Corporation Network
The Independent Voice of Strata Owners
W: https://ocn.org.au/ E: enquiries@ocn.org.au
Your Strata Property
Demystifying the legal complexities of apartments
W: https://www.yourstrataproperty.com.au/ E: amanda@yourstrataproperty.com.au
Tinworth & Co
Chartered Accountant & Strata Auditors
P: 0499 025 069
W: https://www.tinworthaccountants.com.au/ E: caren.chen@tinworth.com
Matthew Faulkner Accountancy
Strata Auditing specialists
P: 0438 116 374
W: https://www.mattfaulkner.accountants/ E: matt@mattfaulkner.accountant
Astute Accounting Service
We Serve You Better
P: +61 2 8011 4797
W: https://astuteservice.com/ E: contact@astuteservice.com
Altogether Group
Power.Water.Data
P: 1300 803 803
W: https://altogethergroup.com.au/ E: eaustin@altogethergroup.com.au
Energy On Pty Ltd
Providing utility network solutions
P: 1300 323 263
W: https://www.energyon.com.au/ E: EnergyServices@EnergyOn.com.au
ENM Solutions
Providing Solutions for Embedded Networks
P: 1300 000 366
W: https://www.enmsolutions.com.au/ E: info@ENMSolutions.com.au
Fire Matters
Fire Safety Compliance
P: 07 3071 9088
W: https://firematters.com.au/ E: sbauer@firematters.com.au
Sunshine Coast Fire Compliance
Your building fire safety ~ our expertise
P: 0448 196 402
W: https://www.scfc.net.au/
E: michelle@scfirecompliance.com.au
Lifestyle Clotheslines
Clothesline and washing line supplier & installer
P: 1300 798 779
W: https://www.lifestyleclotheslines.com.au/ E: admin@lifestyleclotheslines.com.au
Higgins Coatings Pty Ltd
Specialist painters in the strata industry
W: https://www.higgins.com.au/ E: info@higgins.com.au
Rochele
Prompt & Professional
P: 1300 808 164
W: https://rochele.com.au/ E: jeremy@rochele.com.au
Lannock Strata Finance
Simplifying strata funding
P: 1300 851 585
W: https://lannock.com.au/ E: strata@lannock.com.au
StrataLoans
The Experts in Strata Finance
P: 1300 785 045
W: https://www.strata-loans.com/ E: info@strata-loans.com
Pacific Security Group
Experts in electronic security since 2005
P: 1300 859 141
W: https://www.pacificsecurity.com.au/ E: operations@pacificsecurity.com.au
Humenergy
People, Innovation and Value Sharing
P: 1300 322 622
W: https://www.humenergy.com.au/ E: Info@humenergy.com.au
Fair Water Meters
Fair water - fair bills
P: 1300324701
W: https://fairwatermeters.com.au/ E: info@fairwatermeters.com.au
Strata Solve
Untangling strata problems
P: 0419 805 898
W: https://stratasolve.com.au/ E: chris@stratasolve.com.au
Tender Advisory
Tender Solutions: Consult. Procure. Support.
P: 0435 893 670
W: https://www.tenderadvisory.com.au/ E: info@tenderadvisory.com.au
Building and Facilities Manager
P: 1800 00 LUNA (5862)
W: https://www.luna.management/
E: info@luna.management
BME Group
Re-Defining the Standards of Building & Facilities
P: 02 8283 7531
W: https://bmegroupbuildingmanagement.com.au/ E: lachlan.hunt@bmegroup.com.au
sharonbennie – Property Recruitment
Matching top talent with incredible businesses
P: 0413 381 381
W: https://www.sharonbennie.com.au/ E: sb@sharonbennie.com.au
Specialising in Strata recruitment
P: 0448 319 770
W: https://www.essentialrecruitmentsolutions.com.au/
E: maddison@essentialrecruitmentsolutions.com
A team of friendly, open minded professionals
P: 0468 659 100
W: https://www.abnlift.com/ E: andrew@abnlift.com
Innovative Lift Consulting Pty Ltd
Australia’s Vertical Transportation Consultants
P: 0417 784 245
W: https://www.ilcpl.com.au/ E: bfulcher@ilcpl.com.au
Trusted Specialised Advice
P: 07 5509 0100
W: https://theliftc.com/ E: sidb@theliftc.com
Australian parcel, mail, and refrigerated lockers
P: 03 9982 4462
W: https://groundfloordelivery.com/ E: ask@groundfloordelivery.com
Arena Energy Consulting Pty Ltd
Independent Embedded Network Consulting Services
P: 1300 987 147
W: https://www.arenaenergyconsulting.com.au/ E: info@arenaenergyconsulting.com.au
Embedded Network Arena
Independent Embedded Network Consulting Services
P: 1300 987 147
W: https://embeddednetworkarena.com.au/ E: info@embeddednetworkarena.com.au
Install My Antenna
Professional TV Antenna Service For You Today
P: 1300 800 123
W: https://www.installmyantenna.com.au/ E: info@installmyantenna.com.au
Windowline Pty Ltd
Australia’s strata replacement window & door specialists
P: 02 8304 6400
W: https://windowline.com.au/ E: info@windowline.com.au
Clear Edge Frameless Glass
Energy Efficient Balconies for Elevated Living
W: https://www.clearedgeglass.com.au/ E: sales@clearedgeglass.com.au
Total Entrance Solutions
The total solution for all entry requirements
P: 1300 781 851
W: https://www.totalentrancesolutions.com/ E: jason@totalentrancesolutions.com
Asset Strata Valuers
Leaders in Strata Property Valuations
P: 1800 679 787
W: https://assetstratavaluers.com.au/ E: workorders@assetstratavaluers.com.au
Adelaide StrataVal
Strata & Community Insurance Valuations
P: 08 71112956
W: https://www.strataval.com.au/ E: valuations@strataval.com.au
Delphi Consultants & Valuers
Building Insurance Valuation Services
P: 07 3852 6012
W: https://www.delphiproperty.com.au/insurance-valuation E: info@delphiproperty.com.au
Ensure Group – Property Valuers
Insurance Valuation Experts
P: 03 9088 2032
W: https://www.ensuregroup.com.au/ E: valuations@ensuregroup.com.au
Sovereign Valuations
Valuation Experts for Strata Insurance & Disputes
P: 1300 710 000
W: https://www.sovereignvaluations.com.au/ E: p.ferrier@sovereignvaluations.com.au
As of April 2022, The Strata Magazines received a national audience engagement of around 20,000 views within one month of their release.
For the Strata Magazine Media Kit
LookUpStrata’s Newsletters have a national audience of just under 20,000 subscribers.
For the National Newsletter Media Kit