Despite their normally cordial relationships, it seems the Owners Corporation Network (OCN), the number one advocacy for strata owners in NSW and Victoria, has issues with Strata Community Australia over aspects of the standard agreement (which SCA is apparently revising, in any case.)
This is how OCN suggests you alter the standard agreement with respect to Section 6.
Agent liability
In the standard agreement, the agent is excluded from all liability for any claim, liability or loss arising
directly or indirectly out of the services or additional services or arising from any cause of action
whatsoever except to the extent that the claim, liability or loss is caused or contributed to by the agent’s
breach of this agreement, breach of statutory duty, negligence, dishonesty or fraud and requires the
owners corporation to indemnify the agent against and loss.
If you think this is unreasonable then revise existing 6.2 to read (noting strike outs)
6.2 The agent is excluded from all liability for any claim, liability or loss arising directly or indirectly
out of the services or additional services or arising from any cause of action whatsoever except to the
extent that the claim, liability or loss is caused or contributed to by the agent’s wilful breach of this
agreement, breach of statutory duty, gross negligence, dishonesty or fraud. The owners corporation
agrees that it will at all times indemnify the agent against all actions, suits, proceedings, costs, claims,
expenses or demands which may arise in the course of or as a result of the agent’s management of
the scheme, including all legal expenses incurred by the agent in defence of or initiation of any legal
proceedings as well as any excess payable under the agent’s professional indemnity insurance;
(a) by third parties against the agent;
(b) by the owners corporation against the agent arising before, during or after this agreement.
If you are considering this substantial adjustment to the strata management agreement, have a chat with OCN first about how this might play. But bear in mind, if your Owners Corp isn’t happy with any contract, they don’t have to sign it.