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Hi everyone
Just wondering if my expectations from a “good” strata manager are unrealistic. I put in a formal complaint to my SM’s company because of no response to emails and phone calls. During a phone call from my SM’s senior SM in which I expanded my complaint to include her inability to recognise when an invoice is for work on private and not common property, I was told that if the SM didn’t initiate the work then she’ll just pay any invoice that gets sent to her and she’s not responsible for whether or not the work should actually be paid for by the OC. I’m talking about work that’s obviously private like fixing a tap in someone’s sink (no longer can be a defect either). Would most people expect some level of scrutiny by the SM before paying an invoice on behalf of the owners or is that just too much to ask for? If it’s too much, how easy is it for corruption to occur then!
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The simple solution is to pass a motion at your strata committee that the strata manager should not pay any invoices unless they have been approved by the treasurer (or another registered office-bearer) of the strata committee. Anything that the strata manager pays without approval is on them.
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.
I thought this was going to be about SM or anyone actually checking that the work is done.
Paying any invoice is too good a deal to be missed – are people taking advantage of this amazing offer?
In the past I would have thought it to be very strange. However, i was told that there was no itemized quote or itemized invoice for a particular job “because it was not in our agreement with the contractor”.
…I expanded my complaint to include her inability to recognise when an invoice is for work on private and not common property, I was told that if the SM didn’t initiate the work then she’ll just pay any invoice that gets sent to her and she’s not responsible for whether or not the work should actually be paid for by the OC. I’m talking about work that’s obviously private like fixing a tap in someone’s sink (no longer can be a defect either).
That’s corrupt. Owners Corporation money should only be spent on maintaining / repairing common property. If the strata manager does not recognise the difference between common property and the lot, they are not fit for their job.
The simple solution is to pass a motion at your strata committee that the strata manager should not pay any invoices unless they have been approved by the treasurer (or another registered office-bearer) of the strata committee. Anything that the strata manager pays without approval is on them.
That is exactly what we did four years ago. My previous strata manager had a clause in their contract which allowed them to spend up to $500 on any repair without referring it to the owners corporation. They also wanted to spend above $500 if it was an “emergency”. I got tired of seeing jobs which cost $495 or $490. At other times they went over $500 because the lot owner deemed it an emergency. When the motion was passed, the strata manager terminated their contract with us. We lived happily ever after.
Who is sending the invoices through? It is the Committee Treasurer with an instruction to pay?
What is the delegated authority in the Agency Agreement?
As a strata manager I wouldn’t be paying random invoices sent in from owners however if I have an instruction from the Strata Committee then it’s my job to pay that invoice.
Some management software will allow for the Treasurer (or whomoever the committee appoints) to pay the invoices and remove the strata manager from the equation.
Who is sending the invoices through? It is the Committee Treasurer with an instruction to pay?
TYhat shouldn’t make any difference in the scenario outlined in the original post. A kitchen tap repair is not a common property issue and the sytrata manager must know this. Perhaps the person sending the invoice isn’t aware of this. Isn’t it the strata manager’s job to inform them, rather than just paying it?
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.
I don’t think a strata manager should be paying invoice just because a strata committee member sent it. If I sent you my dry cleaning bill would you pay it because I’m a strata committee member? The strata manager must have a justification for it. The strata manager ultimately answers to the Owners Corporation, not the strata committee.
That’s a pretty shaky argument – why would I send you my dry-cleaning bill in the first place? Strata Committees can and usually are given certain delegated powers by the owners corp to act on owners ‘ behalf. Those delegated powers can include approval of spending. The idea of a strata committee member sending invoices to the strata manager is a way of having checks on SM spending of OC funds. Dry cleaning only comes into it if one member of the committee chucks a glass of red at another, a la MAFS.
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.
I was responding to this statement from the original poster.
…I was told that if the SM didn’t initiate the work then she’ll just pay any invoice that gets sent to her and she’s not responsible for whether or not the work should actually be paid for by the OC. I’m talking about work that’s obviously private like fixing a tap in someone’s sink (no longer can be a defect either). Would most people expect some level of scrutiny by the SM before paying an invoice on behalf of the owners or is that just too much to ask for? If it’s too much, how easy is it for corruption to occur then!
Mitch had the example of a sink tap. I put forward a more extreme example of sending a dry cleaning bill.
The idea of a strata committee member sending invoices to the strata manager is a way of having checks on SM spending of OC funds.
I think we’re all agreed on this. Mitch is concerned that their strata manager is providing a bit too much customer service to some owners.
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