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I have a question about Strata Managers, can they refuse to get an extra quote from another insurance broker in addition to their preferred Insurance Broker ?If the answer is no they can’t, could you point me in the right direction to obtain the Strata Law that covers this subject.
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Hi,
This isn’t a reply but a query along similar lines, sort of.
Our Strata Manager is advising the S/C (on the recommendation of a contractor/tradie from a company that the S/M sourced) that we need an engineers report for work to be done. These reports costs thousands of dollars and although we have obtained reports before for other work (as in detecting internal leaks – that is not clearly visible) I’m not convinced we need them this time around.
This is due to the fact that the current work required is to leaking planter boxes that are causing calcification to surrounding foyer tiles and property entrance stairs. The building has a long standing history of failed membranes and poor waterproofing. I don’t profess to be an engineer or a builder. This work will be approx $50K. I believe the funds come from the Capital Works account, the admin fund is presently in deficit.
So do we technically need an engineers report?
And my second query is a Committee member is calling for three (3) quotes for the above job, (which I agree with) BUT this was not the case by the Committee or S/M who only provided one (1) quote for a Fire Audit??
This audit has produced one (1) quote to the tune of $45K. Two meetings were held regarding this sole quote with the Auditor present (threatening Council visits and all round doom) the S/M present and some S/C members whereby I raised my concerns – that were ignored. There was no notice sent to the O/C of the meetings. Since then I have requested more quotes, the S/M has failed to supply one. I was, and still am, the only Committee member, asking for another quote. The S/C want three quotes for the remedial work but haven’t insisted on three for the AFSS work?
And shouldn’t the O/C be voting on these matters – not just the S/C? Both jobs total about $95K.
So like Dazzle, how many quotes do we need?
Firstly if the Owners Corporation or the Committee say get more quotes then the manager is to get more quotes. The only issues are 1) is there time to get the quotes before the insurance must be renewed. 2) it needs to be a decision of the owners not one or two owners when the majority don’t want to.
For the fire audit question its a bit of the same, does the owners/committee want more then they get more. If not you may just have found yourself out voted.
A question with Fire is the dangers of not proceeding swiftly. If the council demand action then do it asap, fire orders get Very expensive to deal with and they could order the residents out if deemed unsafe. Also if there is a fire and the owners have not proceeded swiftly then you could be in big trouble. The insurer could walk away from any claim and the owners/committee facing legal action.
I know it sounds doom and gloom, but the possible ramifications could be huge.
The Bankstown unit fire is close to the worst case outcome.
Dazzle .the NSW Strata Scheme Management Act requires three quotes for insurance. The Strata “Manager” works for the Owners Corporation and Strata Committee so if there is a decision ( in the minutes) of a meeting to do what you wish, then unless it is in conflict with the Act, I believe the SM is obliged to do it. Perhaps you could speak to the Chair and/ or Secretary of your Owners Corporation and ask her/him/ them to arrange to have this issue placed on the agenda. It would be helpful if you wrote the motion to be put. See below for the part of the Act related to insurance quotes.
Strata Schemes Management Act 2015 No 50Current version for 1 July 2018 to date (accessed 24 October 2018 at 12:44)166 Strata managing agent to obtain insurance quotationsA strata managing agent must provide the owners corporation with not less than 3 quotations from different providers for each type of insurance proposed by the agent to the owners corporation or provide written reasons to the owners corporation if less than 3 quotations are provided.
Thanks for your response Faraway girl.
Are you aware if there is anywhere in the SSMA that refers to quotes in general and not just to insurance?
And wouldn’t the O/C (not just the S/C) have to vote on both the Fire quote and the remedial works quote?
@LawoftheLand said:
Thanks for your response Faraway girl.Are you aware if there is anywhere in the SSMA that refers to quotes in general and not just to insurance?
And wouldn’t the O/C (not just the S/C) have to vote on both the Fire quote and the remedial works quote?
Strata Schemes Management Act 2015 No 50Current version for 1 July 2018 to date (accessed 24 October 2018 at 23:43)102 Limits on spending by large strata schemes(1) An owners corporation for a large strata scheme must obtain at least 2 quotations in relation to proposed expenditure in respect of any one item or matter if the proposed expenditure will exceed the amount prescribed by the regulations for the purposes of this section.
Be aware that owners corps can and routinely do pass motions at their AGMs that lift restrictions on expenditure that would otherwise require approval at another general meeting.
You need to look for such a motion in the agenda or minutes of your last AGM.
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Thank you kindly again Faraway girl and Jimmy T. (Am pretty sure spmanager is actually my Strata Manager ! ????)