#17242
Whale
Flatchatter

    Building Managers are usually responsible for managing the maintenance and repair of the common property, controlling the use of common property by tradespersons and overseeing their activities, and sometimes for the placement of tenants in the Building.

    As Building Managers cannot enforce by-laws or carry out funds-committing functions of the Owners Corporation (O/C) there should be no conflicts with the role of your Strata Manager provided your Owners Corporation has an agreed scope-of-work with the Owner concerned, and it makes sure that there are no conflicts or overlaps between that scope-of-work and those included in its Strata Management Agency Agreement.

    The fact that the Owner has experience in the role is good, but your Owners Corporation needs to ensure that he holds a Licence (in NSW); not Registration as may have been the case if he worked under the control of someone holding a Licence in his previous role.

    I’ve in the past been accused of “gold-plating” with regard to my approach to the O/Cs management of their Strata Plans, but as I’ve said before that’s just a euphemism for doing things properly, by the book and thereby avoiding later problems! 

    In that regard, the Owner would in addition to a Licence also need an ABN, may have to register for the GST, and may need liability insurance depending upon the nature of the Owners Corporation’s Building Insurance Policy.

    As for conflicts with the Owner being appointed as a Building Manager whilst at the same time holding a position on the Executive Committee (E/C), there should be none but I can see some issues, perhaps perceptional with that Owner holding the position of Treasurer.

    The issues of conflict may be perceptional, but your O/C could avoid those and my “gold-plating” if instead of appointing the Owner as a Building Manager they authorised him to do many of the same maintenance coordination / tradesperson supervision activities (but not tenancy activities) and perform his E/C role, and be the “nominated person” on the Strata Management Agency Agreement (i.e. the Strata Manager’s liaison/contact to coordinate acivities) and all for a combined “honorarium” paid under the provisions of S 25 of the (NSW) Strata Schemes Management Act.

    As you will see from your reading of that Section of the Act, any payment to the Owner has to be resolved at a General Meeting (as for the Building Manager), and it needs to be paid 12 monthly in arrears; in other words your O/C resolves to pay the Owner for the work that he’s done as E/C Treasurer and for addition building management type duties since the previous General Meeting, and so on each successive year for the same amount ($) or varied to account for greater/lesser responsibilities and activities actually peformed.