Flat Chat Strata Forum The Professionals Current Page

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  • #12143

    We are in the middle of a defects claim dispute with the developer regarding common property defects. The claim is being reviewed by NCAT.

    A work order to obtain an expert report states “work not to exceed $$XXX”, based on initial estimates from the supplier. A report was provided to the Strata Manager (SM) and Strata Committee (SC) by the supplier, however, with a fee for three times this amount, and claiming an exorbitant number of hours related to the work.

    Should the supplier of the report have contacted the Strata Manager/Committee asking if this amount was acceptable? What can the SC or SM do, now that a report has already been compiled?

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  • #31083
    Jimmy-T
    Keymaster

      Did the committee or strata manager give any warning that there was a cap on the cost of the report?

      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.
      #31127

      The strata manager sent the supplier a work for for the job. In the job description on the work order it states “Please proceed with ___, with costs not to exceed $___ + GST”.

      After the job was completed, the supplier states the cost of the job exceeded that stated in the work order, and requested the difference be paid. 

      Shouldn’t the suppliers contact the SC or SM to explain the reason for the excess cost, and ask us if we want to proceed further?

      #31128
      Jimmy-T
      Keymaster

        There may have been good reason why the supplier exceeded the cost approved, e.g. the need to do something on the fly, so to speak, to save other costs and hassles down the track.

        The first thing you, your committee or strata manager should do is have a meeting or chat with the supplier to ask why they exceeded the cost cap.  

        If they don’t have a good reason, don’t pay the difference.

        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.
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