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  • #68484
    philjohnk
    Flatchatter

      I live in a Neighbourhood Association and after a number of years and a ruling from NCAT I have reached an agreement with the Committee on a Dividing Fence which the Committee has agreed to pay 50% of the costs of repair. I was then expected to arrange the repair, it’s a brick fence so it wasn’t simple requiring demolition and then bricklaying.

      I also paid 10% deposit directly to the builder to make sure the work was done and I didn’t want to start the lengthy process again. I told the strata manager I was doing this and that when the job was finished I would pay the builder  the balance of the 50% with the expectation that the Strata Management company would pay the other 50% to the builder from the appropriate bank account.  The strata manager then tells me the Committee expects me to pay the whole amount to the builder and they would reimburse me!

      Is this a common occurrence? I don’t want to get into a situation with the builder where he is not paid simply because of the Committee’s attitude.  The issue had festered for sometime before being resolved and frankly I don’t see any reason for the Committee’s attitude. Except I don’t trust them not to find something wrong with the job and then not pay me.  If that happens I’m off to NCAT.

      Clearly the whole amount wouldn’t be paid unless both parties are happy with the result.  Any comments?

      • This topic was modified 1 year, 5 months ago by .
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    • #68499
      TrulEConcerned
      Flatchatter

        I had smaller matter with a strata where I was to pay a contractor (first a deposit and in the fullness of time, the balance) and would be reimbursed an agreed amount by the committee when presenting my invoice.
        This process is common. Contractors often don’t want to deal with more than one party. Having both you and the committee pull the strings 24/7 would likely frustrate a contract.

        Your aim must be to lock in the committee before work commences. One day, trotting off to NCAT may result in your victory, but it could be a year or more before that happens. What you need to ensure – long before work starts and ideally before you put any money down – are specifics you can put in front of a Member of NCAT or a Judge in a Local Court and bind the committee.

        You mention you “told” the strata manager etc. I assume in writing because if it was verbal, in time you’ll see that isn’t worth a hill of beans. A few things come to  mind, summarised below.

        Do you have written acknowledgement from the committee

?

        1. Confirming what is the reason for and scope of the job?

        2. Stating that you can choose the contractor?

        3. As to the quantum of the cost of the job which the committee is prepared to pay?

        4. That the committee will pay you 50% of the contractor’s (contractors) invoices for the job?

        5. That you will keep the committee, via its representative informed as to the progress on the fence. In order to do that, the committee is obliged – before the works begin –  to give you the contact details of their representative (name, phone and email);

        6. That before the works begin the committee will give the builder (with a copy to you) any rules, by laws etc it has in place or wishes to assign to the works, so the builder knows, for example, what hours of work are authorised, whether he can traverse common property with his equipment or rubbish, where he can park etc;

        7. That payment pursuant to item 4 is to be made to you or your representative on presentation of invoice, or interest will be charged at commercial rates until payment has been received;

        8. That before the job is completed, that the committee’s representative will attend the site and bring to you and the contractor(s) attention any concern the committee has, if any, with the works;

        9. Notwithstanding any concern or issue that may arise (see item 8 above), the committee undertakes to fulfill its payment obligations as per item 7 above. The committee should take up its concerns , if any, with the contractor directly (whilst keeping you fully informed).

        The above are a few thoughts that came to my mind. I, from my experience as an owner and not as a legal scholar,  would urge not proceed without confirmation similar to the above or you could well end up on the hook for all the cost.

        My comments offered above, like comments provided by other members of this website are personal opinions based on individual experience. The above is not and the all other comments offered are not and do not claim to be legal advice. Folk who are faced with major strata issues should seek legal advice from those experienced in strata matters, such as the firms sponsoring this website.
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