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Are there official or unofficial guidelines or regulations addressing the case when a SC member wants to do work for the OC?
We have a SC member who wants to do work. In principle I have no problem with that. But he has offered no quote (just a price) and cannot confirm he is insured. That’s a big problem to me.
The majority of the SC voted to approve his hire. I alone voted against.
If there is a public liability claim as a result of his hire, who is on the hook?
The OC? All the SC members in their personal capacities? The SC members in their personal capacities but only if they approved the hire?
All views are welcome.
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What type of work is this strata committee member proposing to do? Gardening or cleaning? Plumbing or electrical? Other repairs? For relatively small monetary payments?
I tried twice to post a reply to JustAsking, but my post never appeared.
No idea what went wrong – but, as you can see, the lines of communication are open.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
You should treat the SC member just like any other contractor who does work for you. They should provide a detailed quote.
Check your insurance policy to see what public liability is available for people working on the property. Talk to the insurance broker (or strata manager) about it.
Read Part 3 of the Strata Schemes Management Act 2015 (NSW). It says that the strata committee cannot make a decision which requires a special resolution to be passed. (Section 36 3(a)). An example of such a decision is when the external appearance of the common property is to be changed. If the proposed work involves changing the external appearance of the common property, the owners corporation must decide on it.
The owners corporation can override the strata committee if it disagrees with the Strata Committee. See section 36 paragraph (2) of the Act.
You can go to NCAT for an urgent hearing to stop work being done on common property.
If he is an “employee” of the OC, it may have to provide workers comp cover; if he is a “volunteer” he may be covered by that section of OC insurance policy. There might also be an income tax liabilty?
If he is a contractor with an ABN, then the PL insurance should be his responsibilty, not the OC’s?
You’d have to wonder what they do consider to be “volunteers” then?
It seems very unethical, if not illegal, to sell a product with no apparent beneficiaries?
It might be worth considering that any work delegated to a “volunteer” is first formally approved by the OC and that they are capable and qualified if necessary to carry out the work. The OC is bound to comply with WHS rules.
My understanding of volunteer in the context of strata and insurance is say a lot owner who takes the bins out and in, for no pay. He is volunteering to do what could normally be a paid job.
Once a lot owner starts to be paid for a service, he is not a volunteer.
The next consideration is whether he is an employee or a contractor. There are entire websites devoted to debating this conundrum.
Not with standing whether the lot owner ( it could also be a tenant ) is a contractor or a volunteer, the committee needs to consider what risk there is in the task. Carrying bins out probably represents a low risk to generate a public liability claim. Changing lights when up a ladder is more risky, but could still be beneath the threshold where insurance could be demanded.
With the cost of tradesmen and handymen, and the difficulty in getting them, it’s worth the OC considering using such resources provided there is a cost saving to the OC.
Most of the readily available information on “volunteers” is along the lines of
Voluntary work includes any work performed by a member of the strata or any person volunteering on it’s behalf. It could be maintenance or renovation inside and outside of the building, or cleaning and gardening communal areas.
It’s common for owners or tenants to work on behalf of the strata company. But if one of these volunteers gets injured, the strata company may need to cover their income as per the PDS.
It seems your coverage may be selling you short. It might be worth looking at your policy to see the exact wording.
- This reply was modified 1 year ago by .
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