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Dear Lady Penelope.
Since my last post (below) the SC have agreed to remove the storm water pipe in our unit (there was no easement put in place) however since we queried the five month time limit on renovations the SC have had their solicitor revise the clauses in the by-law and have upped the bond from $10,000 to $50,000 and the penalty from $1,000 per week to a maximum of $5,000 per week. The bond was previously for the purpose of repairing common property, cleaning etc but now has been dramatically increased just to cover inconvenience! The wording of the new clause is:
If the works are not completed within the timeframe determined in accordance with clause 18.8(q), the owners corporation may draw on the bond: at a rate (such rate to be determined by the strata committee, acting reasonably) of up to $5,000 per week for each week, or part thereof that completion of the works exceeds the timeframe determined in accordance with clause 18.8(q); and the amount of the bond to be drawn on under paragraph (a) will be determined by the strata committee as a pre-estimate of the damage sustained or likely to be sustained by the owners corporation, owners and occupiers having regard to the inconvenience, loss of amenity and interruption to the orderly functioning of the strata scheme caused by the continuation of the works beyond the stated time for completion.
18.8 (q) ensure that, subject to any extension of time required by reason of any supervening event or circumstance beyond your reasonable control, the works are completed within three (3) months of their commencement or such other period of time not exceeding five (5) months from their commencement as is determined by resolution of the strata committee, acting reasonably.
We have had both architect and builder advise the SC that they cannot complete the high quality refurbishment within the 5 months. The refurbishment is a total stripout and bespoke rebuild over 254sqm and there are many restrictions on access to the building (hours, small lift etc).
Do you think the new changes to the by-laws could be challenged at NCAT and is the draw down on the bond still a fine that will require NCAT to adjudicate? Should it be challenged before commencement of the work?