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We have both a Strata Manager and a Building Manager for our largish block. Recently we had a contract with one of our providers expire and it rolled over. The EC was unaware at the time that it was due to expire. Should either the Strata Manager or the Building Manager have let the EC know the situation? Thank you.
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As a common courtesy you would think that they should but unless it specifically says so in their contract, they are not obliged to do so and they’d have to be pretty sure of their position to inform the EC that they can be sacked in three months when their contract runs out.
In fact, I would put a clause in every strata management contract that says the SM has to inform the EC in writing that the contract is about to expire or the roll-over clause doesn’t count.
But this is a very good reminder to everyone to do a contract audit to establish when when all your service contracts run out and under what conditions they can be terminated or renewed.
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@HarbourView said:
Thank you. It is very frustrating as it was a 10 year maintenance contract and it would appear to have rolled over for another 10 years! I would have thought that maybe the SM or Building Manager would have flagged this for us.
Now that you have narrowed this down to a maintenance contract, things have changed in my view. All large schemes must get two quotes and it seems very strange that such a contract (10 years maintenance) would be signed off by the BM or SM, the one’s I know would not put themselves into this position, if for no other reason then to avoid any accusations of taking bribes or at the very least giving works to friends. Don’t get me wrong I am all for building trusted and professional relationships with service providers, but at all times there must be transparency. Yes the OC should always complete a value Analysis on all quotes and those that have existing contractors/services providers retending that they are reviewed on their past performance and contribution (it never should be on a matter of price alone).
Further it should never be lost on the OC or the Executive Committee that the SM and BM is your employee not visa versa, it is always heathy to question. If the Executive have any issues regarding this issue get some legal advice, if required the lawyer can get the contract reviewed by an Building Consultancy firm with the required expertise to form a view on whether the fees and charges are reasonable and in line with current industry costings.
Hope this is of some assistance.
Chris Mo’ane AIAMA, MASBC-CPC
GMD Integrated Consultancy Group