Topic: Work order costs cap exceeded

This topic has 3 replies, 2 voices, and was last updated 7 years, 7 months ago by .

Creator

Topic
20/01/2019 at 10:18 pm #12143 Reply | Quote
WRstrata
We are in the middle of a defects claim dispute with the developer regarding common property defects. The claim is being reviewed by NCAT.

A work order to obtain an expert report states “work not to exceed $$XXX”, based on initial estimates from the supplier. A report was provided to the Strata Manager (SM) and Strata Committee (SC) by the supplier, however, with a fee for three times this amount, and claiming an exorbitant number of hours related to the work.

Should the supplier of the report have contacted the Strata Manager/Committee asking if this amount was acceptable? What can the SC or SM do, now that a report has already been compiled?
Creator

Topic

Viewing 3 replies - 1 through 3 (of 3 total)

Author

Replies
20/01/2019 at 11:40 pm #31083 Reply
Jimmy-T
Keymaster
Did the committee or strata manager give any warning that there was a cap on the cost of the report?

If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.

Quote
27/01/2019 at 9:36 am #31127 Reply
WRstrata
The strata manager sent the supplier a work for for the job. In the job description on the work order it states “Please proceed with ___, with costs not to exceed $___ + GST”.

After the job was completed, the supplier states the cost of the job exceeded that stated in the work order, and requested the difference be paid.

Shouldn’t the suppliers contact the SC or SM to explain the reason for the excess cost, and ask us if we want to proceed further?

Quote
27/01/2019 at 11:26 am #31128 Reply
Jimmy-T
Keymaster
There may have been good reason why the supplier exceeded the cost approved, e.g. the need to do something on the fly, so to speak, to save other costs and hassles down the track.

The first thing you, your committee or strata manager should do is have a meeting or chat with the supplier to ask why they exceeded the cost cap.

If they don’t have a good reason, don’t pay the difference.

If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.

Quote
Author

Replies

Viewing 3 replies - 1 through 3 (of 3 total)

Reply To: Work order costs cap exceeded

PLEASE ... If your property is not in NSW, mention its location (state). Don't identify companies or individuals by name. Don't mention or promote your company or services. Keep acronyms and initials to a minimum. Please, don’t use “quote” unless there is a specific point to which you wish to refer, then highlight (define) that specific passage before you click on "quote". Otherwise just use reply. THANKS.