[kkw]

Hi all

This is a really interesting topic.  Our EC is also thinking about getting in an offsite building manager to assist with day-to-day maintenance and repair.

However, we’ve come across a bit of a conundrum.  

The building manager will have its own 3rd party contractors (and employees) that it uses in the course of performing its duties, and will issue work orders to those 3rd party contractors (with the approval of the EC / OC, of course).  

However, the NSW strata legislation (section 29A Strata Schemes Management Act 1996 and regulation 13 Strata Schemes Management Regulation 2010) states that the “entering into contracts relating to the maintenance of common property or the provision of services to the common property” may not be delegated to or conferred on any other person unless the person is a member of the EC or a strata managing agent.  (For legal eagles, see below for the full extract of the legislation).

Does this mean that a building manager isn’t supposed to be issuing work orders to contractors?

Am I looking to deeply into this – e.g. has the EC/OC already entered into a contract relating to maintenance of common property by engaging the building manager, so there is no further “delegation” issue as the building manager is just fulfilling its own duties to the OC?  Is the fact that EC/OC approval is provided for a work order mean that there is in fact no “delegation” to the building manager?

It would seem really strange if the building manager had to get the EC/OC or the strata manager to directly issue work orders to the building manager’s own contractors!  

Grateful for any insight on this!!

 

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Strata Schemes Management Act 1996 (NSW)

29A   Functions that may only be delegated to member of executive committee or strata managing agent

(1)  The following functions of an owners corporation, executive committee, chairperson, secretary or treasurer may not be delegated to or conferred on any other person unless the person is a member of the executive committee or a strata managing agent:

(a)  the preparation of estimates for the purposes of section 75,

(b)  the levying of contributions,

(c)  the receiving of, acknowledging of, banking of or accounting for money paid to the owners corporation,

(d)  having custody of any money paid to the owners corporation or making payments from any such money,

(e)  the taking out of insurance required or permitted by this Act,

(f)  the conduct of meetings of the owners corporation and handling of correspondence,

(g)  the maintenance of records required to be kept under this Act,

(h)  such other functions as may be prescribed by the regulations.

 

Strata Schemes Management Regulation 2010

13   Restriction on delegation of certain functions

For the purposes of section 29A (1) (h) of the Act, the following functions are prescribed:

(a)  arranging for inspections for the purposes of fire safety in accordance with section 65C of the Act,

(b)  ensuring that the owners corporation complies with any relevant requirements under the Occupational Health and Safety Act 2000,

(c)  entering into contracts relating to the maintenance of common property or the provision of services to the common property (other than contracts relating to a stratum parcel),

(d)  arranging for inspections of records and other documents under section 108 of the Act,

(e)  giving certificates under section 109 of the Act.

 

 

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