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The ofďŹ cial newsletter of Unit Owners Association QLD

SEPTEMBER 2012 MARCH 2011

and the Tender Process Choose Carefully

Become a Member Today Click to Join now www.uoaq.org.au

EST. 1978


UOAQ - Become a Member Today! From the Editor www.uoaq.org.au Unit Owners Assocation QLD 6th Floor. 333 Adelaide St, Brisbane Q 4000 E help@uoaq.org.au P 3220 0959 uoaq.org.au

Brisbane

P 3220 0959 or www.uoaq.org.au and request to communicate to a particular person Sue Ekert, Bob Boundy, Elle Young, Paul Cassels. Published by Unit Owners Association QLD

Paul Cassels

I note the reticence of the BCCM suggesting that they are not able to assist much, as they are not involved in the drafting of the legislation.

Editor Paul Cassels

Gold Coast

Wayne Stevens, Greg Carroll, Roger Dearing

Art Direction

Dan Hancock - P 3162 8823 E hi@danhancock.com.au

Web Development

John Connole - P 0439 879 740 E john@stickybeakmedia.com.au

One item of discussion which may/ should be within the realm of their responsibilities, specifically providing education to owners, deals with BC Committees indiscriminately supporting extensions to Caretakers’ contracts, which preclude the Carmel model from being adopted – tendering the Building

Management Contract (can only be done in the last year of the contract prior to expiry), and with NIL purchase value of a contract which leads to significant cost reductions in the building management contract, the impact on significantly reducing levies is denied to owners. This comes about by the Caretaker’s jostling to have the committee filled by owners compliant to the wishes of the Caretaker, which can result in outcomes against the interests of owners, but very compliant friendly to the Caretaker. Under the Code of Conduct, BCC members have obligations to act in the best interests of owners, but no such obligation to act in the best interests of Caretakers. Given the significant education sheets produced, will the BCCM produce an education sheet on this issue, warning BCC Committees of their obligations in this matter?

Sponsors

We appreciate the support of our sponsors to help us do the work we do. To become a sponsor of UOAQ, please contact Paul Cassels on 3220 0959

CTS Management Suite 35, Level 6. “Northpoint” 231 North Quay Brisbane QLD 4000 Telephone 07 3211 4445 Fax 07 3211 4410 Mobile 0419 741 066 Email coralie.mott@ctsm.com.au www.ctsm.com.au

SIGN UP TODAY. uoaq.org.au

Hartley’s Body Corporate Management

yourstratamanagement.com.au

Coralie Mott

(BA Dip Ed, Cert IV in BCM)

Director and Body Corporate Manager

Quality Building Management Pty Ltd.

COMMUNITY LIVING SOLUTIONS

Strata Inspections and Reporting

Reducing Costs & Increasing Value for Unit Owners

yourstratamanagement.com.au

ORIENTATED { WEBRESULTS DESIGN & MARKETING }

Unit Owners Association QLD

www.stickybeakmedia.com.au

PROUD SUPPORTER OF UOAQ

Help for Members

Members of the UOAQ are welcome to contact committee members of the association for any help on any body corporate matter.

Disclaimer

Articles contributed to this newsletter are published as a service to members and do not necessarily reflect the opinion or policy of this Association. To contact the committee of the UOAQ for assistance with a body corporate matter please e-mail help@uoaq.org.au

2

UnitNews September 2012

Branding and Identity

danhancock.com.au uoaq.org.au


Written by: David Leary FAIQS AFAIM

Quick News

Rum Contracts and the Tender Process If the caretaking and letting contracts for your complex are nearing the end of their term, it is a good time to consider your options before automatically extending the existing arrangements. Our company has arranged for the calling of tenders for a number of schemes of varying size and complexity in recent months. This has allowed the bodies corporate in each scheme to gain maximum benefit from arms length market competition. In three schemes (two in Brisbane and one in Sydney) the caretaking contracts were tendered. Two had existing caretaking contracts in place, and the offers received from competing tenderers were substantially less than the price paid under the previous contracts. We are currently involved in a third scheme on the Gold Coast where the contract has lapsed. The evidence (based on temporary fill-in contractors) is that the savings will be in line with the aforementioned schemes – that is around 35% - 40% less than is currently paid.

Hartley’s Body Corporate Management ‘Looking after all your Body Corporate Needs’

In each case, when asked for their preferred contract term, the committee members opted for three years. This effectively means that the contracts are non-saleable contracts for service. Bodies corporate are often surprised to learn that there are contractors interested in these types of contracts. Our experience is that there is no shortage of reputable caretaking contractors wanting to tender. If your scheme has parallel letting and caretaking contracts in place, and you wish to continue with this arrangement, it may be possible to receive tenders that provide even greater savings for the body corporate. This can occur due to the reduction of costs that accrue from not having to finance the purchase of the letting and caretaking contracts, as is the case in a standard commercial transfer. In a competitive arms length tender, these savings will be represented as lower costs to the unit owners in both the letting and caretaking contract charges. When is it appropriate for your body corporate to take advantage of its option to tender the caretaking contract , you will need to check your agreement, and if necessary, seek independent legal advice. Most of all, flag the contract renewal date. Automatically extending the existing contract is seldom a good idea. Reputable caretakers will always be happy to submit a tender for the ongoing provision of caretaking services. The difference is that in a free market competition, the body corporate stands to benefit by testing the true value of the services being provided. It is our experience that many small schemes that were set up by developers to have a resident unit manager, do not need one. These include schemes where the majority of owners do not want the inconvenience of short-term tenants and/or schemes that have such a small number of duties, outside contractors can service their needs adequately. Once again, calling tenders for the provision of these individual services will have the effect of ensuring value for money is received by the body corporate.

David Leary FAIQS AFAIM Leary and Partners

uoaq.org.au

■ Financial Management ■ Agendas & Meetings ■ Administration of your Scheme ■ Maintenance ■ Dispute Resolution ■ Compliance

E david@leary.com.au P 07 3858 8222

September 2012 UnitNews

3


Quick News

Written by: Gary Bugden*

Smoking in Home Units A recent overseas court decision and an even more recent New South Wales survey have highlighted an increasing concern about the effects of smoking in home unit buildings. An on-line survey undertaken recently on behalf of the NSW Government sought to identify the issues that most concern people who live in strata and community title complexes. Surprisingly, the issue of smoking in home units generated more comments than any other single topic in the survey. The report to Government stated that the “overwhelming majority of correspondents strongly objected to being subjected to second hand smoke in strata buildings and demanded that smoking be banned from communal areas and open air balconies”. The Government is understood to be considering such a ban, although no commitment has been made in this regard. During the course of that survey being undertaken, a battle was raging in British Columbia and Canada, before the Human Rights Tribunal. The applicants, who lived in a 39 unit complex, experienced second-hand smoke entering their unit as a result of other residents smoking tobacco and marijuana on the patios and decks below. They alleged that the condominium

corporation failed to accommodate their complaints adequately or appropriately because they refused to enforce existing by-laws or make a new non-smoking by-law. The Tribunal found that the applicants were physically and psychologically vulnerable and that they were treated by the condominium corporation and its managers with “what can best be termed a patronizing or benign neglect for a period of almost three years”. The condominium corporation was held liable and ordered to pay damages. Although this case was based on the human rights of the applicants, North American commentators agreed that there was potential for the condominium corporation to be held liable to the applicants on the grounds of “negligence”, because it failed to act to protect the unit owners. The legal system in British Columbia is based on English common law, as is the Australian system, and Australian Courts often consider Canadian decisions, particularly on questions of negligence. Both of these recent events are timely reminders for bodies corporate to consider the health and wellbeing of unit residents when

it comes to the effects of tobacco smoking (and marijuana smoking, if that fits your building) on common property and unit balconies. There is nothing in the standard (Schedule 4) Queensland by-laws that enables a body corporate to address the problems of cigarette smoking. Even by-law 6 which regulates behaviour likely to interfere with the peaceful enjoyment of a unit or common property is of no use – because it only applies to the behaviour of “invitees” and does not apply to the behaviour of owners or occupiers. Section 167 of the BCCM Act prohibits the use of a large amount of common property in a way that causes a nuisance or hazard, and it could be argued that smoking may in some circumstances fall within that prohibition. However, it would be preferable for the body corporate to make a new by-law to deal specifically with the issue. Because by-laws can regulate the use and enjoyment of both common property and units there would be no problem with the introduction of a by-law that regulated or prohibited smoking on common property and on balconies or patios of units. There are various options as to the extent of restrictions that may be applied by such a by-law.

* Gary Bugden OAM DUniv is an author and Brisbane lawyer who practices exclusively in body corporate law. E gary@mystrata.com W www.garybugden.com

4

UnitNews September 2012

uoaq.org.au


uoaq.org.au

Everything Covered? For Professional, Friendly assistance and quotes call

Sinking Fund Forecast Insurance Valuation Builders Warranty Condition Assessments Safety Risk Reports Asbestos Reports Fire Safety Reports And much more

1300 880 466 inspections@qbma.com.au www.qbm.com.au

Management Rights | Levy Collection | Dispute Resolution Quality Building Management Pty Ltd.

QBSA ACT Licence No. 109408a0

Strata Inspections and Reporting

Community Management Statements | Review of By-laws Establishment of Schemes | Construction Defects Lot Entitlement Disputes | Exclusive Use Conveyancing

Leary & Partners Caretaker Duties Valuations and Tenders Are you a member of a body corporate and concerned about the level of remunera-tion paid to your resident unit manager? Does your body corporate wish to call tenders for the caretaker duties?

Our company has prepared numerous valuations of Caretaker Duties for buildings from Port Douglas to Coolangatta. We have experience with large hotel style com-plexes of three hundred units right down to small boutique developments of less than fifty units for both valuations and a calling of tenders.

BODY CORPORATE MATTERS? ENGAGE THE BODY CORPORATE LAWYERS

T: 07 3393 0433

For a fixed fee quotation or to discuss these specialist valuation services call us on 1800 808 991 or email enquiries@leary.com.au

F: 07 3393 0533

mail@herdlaw.com.au www.herdlaw.com.au

“Performance Based� Management Solutions Our Professional Body Corporate Management Service includes:

CTS Management

- Performance Based Management Fees - Maximising Returns on Surplus Funds with Cash Flow Management - Formulating Cost Effective Budgets - Conducting Efficient Meetings - Management of Insurance Quotations & Claims - Extensive Industry Knowledge & Experience - Transparency & Accountability For All Owners

Contact our officeE for an Obligation Free Proposal David Leary FAIQS AFAIM david@leary.com.au Leary and Partners

uoaq.org.au

Suite 35, Level 6, "Northpoint", 231 North Quay Brisbane Qld 4000 Phone 07 3211 4445 Fax 07 3211 4410 Email info@ctsm.com.au

www.ctsm.com.au Proud Member of:

P 07 3858 8222

September 2012 UnitNews

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Quick News

2 Part Series - Continued this issue Below are some direct price comparisons to highlight the cost implications of not testing suspect material for the presence of asbestos. The clear recommendation is to ensure that all complexes constructed prior to 2004 obtain an asbestos audit, and that samples are taken of all suspect materials. 19 Lot BFP complex - 1 positive sample Company

Asbestos Audit

Register

Management Plan

Samples

Sample result

Year 2 Review

Total Cost

Company who takes samples

$605

Included

$179

1 sample @$40

Positive

$512

$1336

Other company who do not take samples

$618

With Management Plan

$298

No samples taken

All must be assumed as positive

$618

$1534

19 Lot BFP complex - want samples to prove if materials on site contain asbestos

ASBESTOS SAMPLING Presented by QBM w p

qbm.com.au 1300 880 466

Company

Asbestos Audit

Register

Management Plan

Samples

Sample result

Year 2 Review

Total Cost

Company who takes samples

$605

Included

$179

1 sample @$40

Positive

$512

$1336

Other company who do not take samples plus 3rd party contractor to take samples

$618

With Management Plan

$298

No samples taken

All must be assumed as positive

$618

$1824

1 sample @$40

$250

19 Lot BFP complex - 1 negative sample Company

Asbestos Audit

Register

Management Plan

Samples

Sample result

Year 2 Review

Total Cost

Company who takes samples

$605

Included

Not required as sample was negative

1 sample @$40

Negative

$0

$645

Other company who do not take samples

$618

With Management Plan

$298

No samples taken

All must be assumed as positive

$618

$1534

Cost comparison when maintenance works are to be undertaken. 19 Lot BFP complex - 1 negative sample Company

Asbestos Audit

Register

Management Plan

Samples

Sample result

Maintenance works on area contain assumed asbestos materials

Year 2 Review

Total Cost

Company who takes samples

$605

Included

Not required as sample was negative

1 sample @$40

Negative

$5250 (they know the material does not contain asbestos)

$0

$5895

Other company who do not take samples

$618

With Management Plan

$298

No samples taken

All must be assumed as positive

$7250 (they must get an asbestos removalist as the material is assumed to contain asbestos)

$618

$8784

The clear recommendation is to ensure that all complexes constructed prior to 2004 obtain an asbestos audit, and that samples are taken of all suspect materials. Call QBM/AAI Now on 1300 880 466 • Protect your health • Protect your investment • Save Money

6

UnitNews September 2012

uoaq.org.au


Feature Story

Written by: Brent Deller

Spilling the Beans What barista tools do I need to make the perfect espresso or café latte? 25% of the perfect coffee is the equipment and this includes the barista tools that are used. Now there are hundreds of barista tools and coffee accessories out there but there are four that every barista should have. 1.

Digital Timer – The time in which your coffee pours is critical when trying to achieve the prefect espresso and is a great indicator to diagnose any problems. The general target for a single shot of coffee is 25 to 30 seconds. If your coffee tastes bitter and weak, chances are that your shot has poured too fast. On the flip side, if your coffee tastes bitter and burnt, it’s likely that your extraction has poured too slow and burnt the coffee.

3.

Hand Tamper – after dosing the ground coffee into your group handle you need to tamp to compact the coffee. To do this correctly you will need the correct hand tamper. When selecting a hand tamper, be sure to select a tamper with the correct base size to fit your group handle; this can range from 48mm to 58mm in diameter. If you’re not sure what size hand tamper you need, just measure the diameter of the basket in your group handle.

2. Espresso Measure Glass – the amount of coffee that you extract is equally important as the time in which it pours. Going hand in hand with the digital timer, aim for 25-30mls of espresso to extract between 25 to 30 seconds. If you pour more than 30mls you will start to extract impurities from the coffee resulting in a bitter tasting espresso.

4. Milk Jug – To achieve perfect milk every time, a good ergonomic milk jug is a must. Things to look for when choosing a milk jug: • The shape of the spout. Is it pinched and long enough to smoothly pour the milk? • Is it made from 18:8 stainless steel or better? This quality of stainless steel will help maintain the temperature of the milk once heated and won’t taint the milk.

With these four essential barista tools, you will be well on your way to making excellent coffee every time! These barista tools plus much more can be found at www.baristatools.net

BRISBANE - GOLD COAST - REDCLIFFE Continued from Last Issue Working with owners to create happy, healthy and harmonious communities.

CLICK HERE For a Quote Today

enquiries@capitolbca.com.au uoaq.org.au

www.capitolbca.com.au

CLICK HERE To learn about us

1300 55 10 19

September 2012 UnitNews

7


CONSUMER PROTECTION FOR Quick News

UNIT OWNERS

Who’s Eating your Pie.. Who’s Eating your Pie.. err k a 0 e rerett4a,k,22220 a C Ca$$224

Community Power $8,884

35%

35%

Minor Expenses $4,190 Fire Control $4,842 Minor

Expenses $4,190

14% 14% 13%

9% 6% 7% 8% 8% 6%

Community Power $8,884

9%

BCM Charges $5,282

R & M - Lifts $5,282

BCM Charges $5,282

We would like to acknowledge our sponsors throughout 2012. We appreciate your continued support.

Your Details. Join Today Title

Membership Details I enclose

Name of complex

Name Phone

Total units in Complex

Mobile Email Address Postcode Postcode

State

Hartley’s Body Corporate Management

R & M - Lifts $5,282

Insurance $5,282

help@uoaq.org.au (07) 3220 0959 Level 6 / 333 Adelaide Street Brisbane Q 4000 GPO Box 2359 Brisbane Q 4000

Management Pty Ltd.

yourstratamanagement.com.au

7% 8% 8%

Insurance $5,282

CTS Management

Quality Building Strata Inspections and Reporting

13%

Fire Control $4,842

Building Services $9,590

Building Services $9,590

State

$60

$55 (If over 60 years and you live in a unit)

Membership Type Building Format Plan

Standard Format Plan

Direct Deposit/EFT: Bank MACQUARIE BANK BSB 182-512 Account 9 6135 3547 Name UNIT OWNERS ASSOCIATION OF QUEENSLAND INC

Join Now

uoaq.org.au

EST.

1978

Unit News Online - UOAQ SEPTEMBER  

The official magazine of Unit Owners Association Queensland

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