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I’m new to strata, and apologies for any questions that may seem stupid. These questions relate to managing a small complex, less than a dozen lots.
1. Does a strata agent need to get several quotes before effecting repairs on the common property, and do these quotes need to be submitted to the EC for approval?
2. Similarly for insurance cover. Does the manager need to get quotes and submit these to the EC?
Basically, can a strata manager pay for something without getting quotes, and without submitting these quotes to the owners for consideration?
If there are problems with common property, something is broken/not fixed, and an owner notifies the strata agent, does the agent have to report this to the executive committee?
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@bette said:These questions relate to managing a small complex, less than a dozen lots.
Most of the answers relate to whether or not the Strata Manager has been given delegated powers to act on behalf of the Executive Committee.
1. Does a strata agent need to get several quotes before effecting repairs on the common property, and do these quotes need to be submitted to the EC for approval?
As you are in a ‘not large’ scheme of less than 100 lots, ther is no legal necessity to get more than one quote but the scheme may have its own by-laws (or resolutions passed at an AGM) stipulating how and when tenders are called. Also, it depends on whether or not the SM has delegated powers.
2. Similarly for insurance cover. Does the manager need to get quotes and submit these to the EC?
Insurance agreements have to be approved by the Owners Corporation (or the EC acting on its behalf). The SM in a small scheme usually only presents a preferred option but there’s nothing to stop the EC shopping around for a better deal.
Basically, can a strata manager pay for something without getting quotes, and without submitting these quotes to the owners for consideration?
Only if they have delegated powers to act on the EC’s behalf.
If there are problems with common property, something is broken/not fixed, and an owner notifies the strata agent, does the agent have to report this to the executive committee?
There’s no legal obligation that I can think of (although I may be wrong) unless that is stipulated in their contract. However, you’d have to think a strata manager wasn’t doing his or her job if they were told of a problem but neglected to pass this on to the EC.
Just as a general note, it would probably help everyone – strata managers included – if we could all adjust out brains and stop thinking of strata managers as if they were the appointed bosses of strata plans. They are contracted service providers and apart from a very few legal obligations they can only do what their contracts oblige them to do and for which they are paid.
A good strata manager will try to keep everyone informed and, indeed, educated. But there is a limit to what they can do off their own bat and there’s usually a cost if you wnat them to do more than their contract stipulates.
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