Undertaking a Building Managers role is no small task, especially with the expectation that they are on call 24/7. Average salaries for a BM are up wards of $84K, so if what he is asking for is less, you and the other owners might be getting a great bargain and potentially saving costs by nipping problems in the bud. By way of an example, our strata block was paying an electricians call out fee every time it rained and the garage lights went out. Until I realised it was just a matter of flipping the appropriate switch in the meter room. There’s plenty of opportunities to save money if you have good reliable people on site.
Payment for services either as an employee or a contractor probably should be negotiated up front, so everyone knows what to expect. If the person keeps a log of their duties, takes pics and keeps a record of hours spent fulfilling tasks then they are accountable. Having someone verify these might be a good idea, but does anyone check on the tasks of other contractors?
Getting an ABN is easy and should be no impediment.
Employing the person is also do-able. Our strata manager recently made enquires with I-care (formerly Work cover) re:Workers Compensation Insurance and was advised that Owners Corporations are considered ‘exempt employers’ if the amount of remuneration is less than $7,500. If your building manager qualifies they are able to make a claim if injured with the payment of a $175 admin fee. See more details here
https://www.icare.nsw.gov.au/employers/who-needs-workers-insurance/who-needs-a-policy
With regards to assurances, presumably your building has public liability insurance which could be extended to cover this amazing human who is doing all this great work. The coverage is only to stop him/her being from being sued by a third party in the event of damage or injury.
Our building insurance which is the biggest yearly expense also covers volunteers, committee members, and complete randoms who don’t even have any business being at the building, so why not extend the insurance policy you already pay for rather than making him get his own public liability policy? He may still want to take out additional personal accident insurance but that should be his choice.
I am currently wrangling with a similar issue. For many years I worked voluntarily in the common area gardens to keep the weeds at bay, until I moved out a year ago. On a recent inspection with other committee members, the neglected state of the gardens was discussed. I offered to undertake the task for a reasonable rate, much less than they would pay if they got someone else. I will mention at this stage that I am a skilled and qualified horticulturist, weed control specialist and garden designer, this is my profession. I care about the state of the building and grounds so I’m willing to take the two hour round trip once a month to help bring the garden beds back to a manageable standard. If I attend every month, my yearly fee will be a fraction of the $7,500 limit set by icare for the Strata Plan to be an ‘exempt employer’.
In addition, my Landlords Insurance policy also includes public liability for up to $20 Million. This covers the whole site not just inside the unit, and when I rang the insurer to discuss my circumstances I was told that I would be covered since I have been delegated “responsible” for the gardens.
Interesting enough as a committee member I am covered for all sorts of things including making bad decisions and fraud, but not for pulling weeds apparently!? I figure between the Building Insurance and my Landlords policy this is more than enough and asking me to get my own public liability policy is over the top and unnecessary especially given the low level of risk associated with the task. Your building manger may be a different story if he is using powered tools or working at height. But really I hope common sense prevails.
I whole heartedly agree with Jimmy that committee members should undertake relevant training, and this should be completed prior to voting oneself onto the committee… a dispicable practice that I have never witnessed on other management committees. In fact why not also make reporting compulsory? I asked for a summary at our last AGM, of what the committee had achieved during their tenure and got some very defensive reactions since the short answer would have been “nothing”.
Why not improve accountability and throw in a few KPI’s to get the right people onto strata committees. People that are motivated and can make a difference instead of relying on amateurs who have no idea how to manage a multi million dollar asset, let alone understand the principles of democratic decision making. An allowance similar to a elected local government councillor, not enough to live on but enough to compensate for the endless hours of reading, research, meeting trades on site, emailing, comparing quotes etc, etc…
What do you think?