Author: Lindsey

Acceptable Noise Levels in Strata Schemes

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Acceptable Noise Levels in Strata Schemes

Noise issues are one of the most common complaints in strata schemes.

Minimising noises that may disturb your neighbours is more than just courtesy, it is also enforced by specific time restrictions by your local council.

If you’re currently dealing with a noisy neighbour, rest assured that noise issues can be resolved and there are a number of resources and support bodies that you can turn to for assistance.

Time Restrictions

Knowing the time restrictions imposed by your local council is a key first step, should you encounter a noise issue in your strata scheme.

The following time restrictions are outlined by City of Sydney. While most local councils impose similar restrictions, be sure to check the website of your local council for the time restrictions specific to your local area.

Communication is key to health community living, if you have approved renovations, it is always good practice to inform your neighbours that you are planning to complete some noisy works between certain hours. By communicating this information it helps your neighbours plan there day to avoid such disturbances.

Resolving Noise Issues

City of Sydney recommends that you attempt to contact your neighbour (person or business) either in person or via mail to inform them of the issue and seek a resolution before taking formal steps to complain.

In most cases, noise issues are often quickly resolved if dealt with in a respectful and tactful manner.

However, in situations that have escalated, there are a number of avenues available to you, should you require outside support or mediation.

The Strata Schemes Management Act (2015) outlines a dispute resolution process for strata schemes in New South Wales. As per the legislation, each strata scheme must have a set of by-laws governing noise transmission.

The model by-law in New South Wales stipulates that “an owner or occupier must not make noise at any time within their lot or on common property that is likely to disturb peaceful enjoyment of another resident or anyone using common property”.

If attempts to resolve the noise issue have been unsuccessful, you can speak to the owners’ corporation or the residential tribunal.

If the matter remains unresolved, you can:

  1. Contact your local Community Justice Centre for free mediation services. To learn more, click here.
  2. Complete a 10-day noise diary and then seek formal action by City of Sydney (if your strata scheme falls under their jurisdiction)
  3. Apply for mediation through the NSW Department of Fair Trading. For more information, click here.

The NSW Environment Protection Authority offers a range of free resources regarding common noise complaints, including neighbours, alarms and motor vehicles.

You may also seek a noise abatement order under law through the NSW EPA website. To find out more, click here.

A Strata Committee: What It Can and Cannot Do

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According to the NSW Office of Fair Trading, a “strata committee represents owners or owners’ nominees. The committee is responsible for the day-to-day running of the strata scheme and is elected at each annual general meeting (AGM).”

But what can a strata committee do and more importantly, what can’t it do?

There are specific laws in the state of New South Wales governing the functions and duties of strata committees. Rather than trawl through the legislation, we’ve created this handy guide.

This guide is a quick reference tool to help you better understand the functions of a strata committee, the duties of committee officers, their responsibilities and their limitations.

The Strata Committee

A strata committee falls under the owners’ corporation and each committee member owes a duty of care and diligence when considering matters for the owner’s corporation as specified under Section 37 of the Strata Schemes Management Act 2015.

The owner’s corporation holds several powers over the strata committee, including:

  • Determining the number of elected strata committee members at each AGM
  • Dismissing some or all of its strata committee members
  • Employing a strata managing agent and/or building manager to fulfil some or all of the duties of an elected strata committee

Strata committees may range from 1-9 members. In a two-lot scheme, both lot owners must be committee members and in a large scheme, strata committees must have at least three members. Once elected, three office-bearer positions must be appointed. These are:

  • Chairperson
  • Secretary
  • Treasurer

An individual committee member may hold more than one office-bearer position. In the event an officer passes away, resigns or ceases to be a committee member, a new officer must be appointed to fill the role until the following AGM.

The Chairperson

The chairperson presides at both general meetings and strata committee meetings. While they are responsible for determining quorums and procedural matters, such as ruling a motion out of order, they do not have a casting vote.

The Secretary

The secretary is responsible for all the administrative and secretarial duties of the strata committee and owners’ corporation. Their core responsibilities include:

  • Managing the strata roll
  • Convening meetings for the strata committee and owners’ corporation
  • Providing notices of meetings
  • Providing minutes of meetings
  • Enabling inspections of accounts and other committee records
  • Giving information to an individual for the owners’ corporation under section 184
  • Answering all correspondence addressed to the owners’ corporation

The Treasurer

The treasurer is responsible for all the financial duties of the strata committee and owners’ corporation. Their core responsibilities include:

  • Sending levy notices
  • Receipting, banking and recording for any money paid to the owners’ corporation
  • Preparation of any strata information certificates under section 184
  • Maintaining all accounting records and preparation of financial statements

For more information about the roles and responsibilities of the strata committee, click here.

Limitations on Strata Committees

While strata committees represent the owners’ corporation, they don’t have the authority to make decisions on all matters. There are a number of restrictions on strata committees and these are in place to ensure all lot owners may vote on these matters at general meetings.

In New South Wales, strata committees cannot:

  • Improve or enhance common property (must be approved by special resolution)
  • Set levy contributions (must be approved by ordinary resolution)
  • Spend more than 10% above the budgeted amount for any item (unless approved prior by ordinary resolution)
  • Commence or obtain legal advice, unless the anticipated costs are less than $1,000 multiplied by total lots, or $12,500 (whichever is lesser)
  • Approve by-laws (must be approved by special resolution)
  • Terminate the strata manager (must be approved by ordinary resolution)
  • Obtain less than two quotes for any works exceeding $30,000 (for large strata schemes comprising more than 100 lots)

Embedded Networks: Know Your Rights

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Embedded Networks: Know Your Rights

Embedded networks are becoming increasingly common in strata developments. Understanding what they are, their benefits and their shortfalls is important for anyone who owns, lives in or manages a strata building.

According to Energy Australia, “embedded networks utilise traditional building infrastructure to deliver utility services to end users.”

Put simply, the electrical wiring in a multi-tenanted complex is configured to enable the owner of the building to sell energy to all tenants and owners.

The critical difference between embedded networks and authorised energy retailers is that most individuals who sell energy in embedded networks are exempt sellers who are not required to be authorised by the Australian Energy Regulator (AER).

However, they are required to hold a valid exemption from the AER and obliged to fulfil exemption conditions to remain compliant. All exempt sellers must provide you with a copy of their exemption conditions and explain their obligations to you.

Consumers of exempt sellers and consumers of authorised energy retailers both have rights and protections afforded by law. Knowing your rights under an embedded network arrangement is fundamental to gaining the full benefits of an embedded network.

Rights and Protections

Residential consumers, including tenants and owners, are entitled to a number of consumer protections, such as:

  • Flexible payment options should you experience financial difficulty
  • Clear and set timeframes for the receipt and payment of bills
  • Access to complaints handling arrangements
  • Energy charges do not exceed the standing offer prices of local area retailers
  • Clear and reasonable disconnection procedures

In addition, tenants may also have energy-related rights specified in their tenancy agreements.

Benefits of Embedded Networks

Embedded networks are attractive to developers because they offer a significant cost-saving, with advantages later inherited by the owners’ corporation.

Unlike the experience of standard customers, embedded networks can create a building-centric buying group, enabling energy to be purchased at bulk rates, passing a cost-saving onto the tenants and owners in a complex.

Embedded networks can also create potential income streams for owners’ corporations, which may assist with offsetting owners’ corporation fees or securing further discounts.

Due to the number of providers available, the power is largely in the hands of owners’ corporations when it comes time to renew or tender for a new provider.

Additionally, strata buildings that generate power, such as through solar panels, may be able to sell extra energy back to the grid.  

Limitations of Embedded Networks

Despite the benefits outlined above, embedded networks have been met with some criticism, prompting the NSW Government to introduce a number of reforms, with more expected in the future to continue safeguarding strata schemes.

By far, the most common criticism of embedded networks is the perception that tenants and owners have become captive customers who are disadvantaged in terms of price competitions and unable to access the same levels of consumer protections.

While consumers are not technically locked into one provider within an embedded network, there are some challenges to be aware of when making the switch, including:

  • Some authorised energy providers refuse to sell to consumers in embedded networks, so you may need to do your homework to identify the right energy provider for you
  • Changing providers often means installing a new meter and removing the old meter, which may have some associated costs
  • Before making the switch, familiarise yourself with your existing provider’s disconnection process and speak with your preferred provider so they can assist you

Solar Panels for Strata Schemes Supported by NSW Government

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Strata schemes seeking to install solar panels have had a major win with the NSW Government passing new amendments in Parliament in February that make it easier to install renewable energy in strata complexes.

The amendments mean strata schemes now need only a simple majority of 50% to pass instead of an often-prohibitive voting threshold of 75%.

The legislative change follows commitments made by the Berejiklian Government in 2019 to remove barriers preventing strata schemes from benefitting from sustainability-related infrastructure, including solar panels, battery storage and electric vehicle charging points.

Minister for Better Regulation and Innovation, Kevin Anderson said, “The reality is that apartment buildings have been held back when it comes to installing renewable energy, and that had to change.

“For too long, the high voting thresholds needed to approve these types of installations have made it far too hard for owners and tenants living in strata.

“Today, we’ve changed the law so that strata communities only need 50% of owners to agree to install clean energy infrastructure in their apartment buildings, making it drastically easier to make the switch.”

Next Steps for Strata Schemes

Now that the process has been simplified for strata schemes in New South Wales, determining the right renewable energy solution for your building is the next step.

There are many factors to consider, including the amount of space required for solar panels, the amount of remaining space available, and whether solar panels will be installed for communal or individual benefit within your building. 

The first step is to bring the matter forward as a motion at your next meeting, so all factors may be considered, and the appropriate option voted upon.

There are primarily two options for solar panel installation in strata complexes, including:

  • Install collectively – whereby communal solar panels are installed for the benefit of all owners and tenants in the complex
  • Install individually – whereby solar panel systems are installed and maintained by individual owners for their own benefit

In most cases, collective installation is a viable option for large strata schemes, cutting down the shared running costs of large buildings. For small strata schemes, installation and maintenance of individual solar panel systems may be a more appealing option.

If supported by the majority of owners, large strata schemes may also consider upgrading to a solar embedded network. To learn more about embedded networks, click here.

The Future for Greener Strata

The NSW Government has made it clear that they are now consulting with key stakeholders to identify and overcome any other barriers restricting the uptake of sustainability-related infrastructure in strata schemes.

Mr Anderson said, “Now that we’ve made it easier than ever to get approval to install sustainable infrastructure, we want to ensure there’s nothing else standing in the way.”

Strata schemes in New South Wales can be confident that more positive changes are on the way and a greener future for strata has the support of the NSW Government.

Fire Safety: Is Your Building Safe?

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Fire Safety: Is Your Building Safe?

With the arrival of Autumn, and Winter on the way, the use of heaters and other electrical items to warm homes increases, heightening the risk of building fires.

Fire regulations in New South Wales have changed recently, so now is the ideal time to ensure you’re familiar and up to date with the requirements for your building.

Accredited Practitioners

Since 2017, the New South Wales Government has introduced reforms through the Environmental Planning Assessment Regulation 2000 (the Regulation) to enhance fire safety standards for new and existing buildings.

New legislation passed in July 2020 stipulates that ‘accredited practitioners (fire safety) – formally referred to as ‘competent fire safety practitioners – are responsible for assessing a building’s fire safety standards, amongst other important changes.

According to the NSW Department of Planning, Industry and Environment, “an accredited practitioner (fire safety) is a person that undertakes certain specialist fire safety assessment functions required by the Regulation.”

The Fire Protection Accreditation Scheme (FPAS), approved in July 2020 and overseen by Australia’s peak body for fire protection (FPA Australia), is the first industry accreditation scheme to receive NSW Government approval.

Under this mandatory scheme, it’s stipulated that only FPAA-accredited practitioners (fire safety) perform the functions covered by the FPAA scheme, including:

  • Fire Systems Design
  • Fire Systems Certification
  • Inspect and Test (routine service)
  • Fire Safety Assessment

These individuals are also responsible for issuing Fire Safety Certificates for new buildings and Fire Safety Statements for existing buildings.

There are two types of Fire Safety Statements:

  • An Annual Fire Safety Statement must be issued each year and include all the essential fire safety measures that apply to a building, including exit systems.
  • A Supplementary Fire Safety Statement is issued at more regular intervals for any critical fire safety measures that apply to a building.

To assist you in selecting a suitably qualified FPAA-accredited practitioner (fire safety), the NSW Government has guides for Building Owners and Building Certifiers. For more information, click here.

Smoke Alarms

Installation and maintenance of smoke alarms is a vital part of fire safety. It’s critical all alarms are checked annually to ensure they’re functioning correctly in the event of a fire.

The Environmental Planning and Assessment Act 1979 and Environmental Planning and Assessment Regulation 2000 (Planning Laws) impose maintenance obligations on both owners’ corporations and lot owners, depending on the location of smoke alarm systems.

In simplified terms:

  • A smoke alarm located in common property areas of a building is considered common property and maintained by the owners’ corporation.
  • A smoke alarm located within a lot, which was installed by the owners’ corporation or developer, or wired to the building fire safety board, is considered common property and maintained by the owners’ corporation.
  • A smoke alarm located within a lot, which was installed by the lot owner or a previous lot owner, and is not wired to the building fire safety board is considered lot property and maintained by the lot owner.

Smoke Alarm Maintenance

Generally speaking, smoke alarms represent essential fire safety measures, requiring annual inspection and certification as part of the issuance of an Annual Fire Safety Statement by an accredited practitioner (fire safety) referenced above. 

Smoke alarms must be replaced within the period specified by the manufacturer. Most smoke alarms require replacement within 10 years of the date of manufacture.

Batteries must be replaced within the period specified by the manufacturer. This is typically every 12 months, with the exception of lithium batteries that may last longer.

Common Issues for Balconies

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While a balcony is a wonderful asset to have, when it’s located in a strata title development, there are certain issues you need to be aware of – what’s common and what’s not when it comes to balcony/deck degradation.

According to some building authorities, a well maintained (properly constructed) balcony should last 40-50 years without much issue.

Balcony structural elements have several components:

  • Balustrade, columns and railings
  • Surface tiles
  • Waterproof membrane
  • Airspace
  • Concrete slab, which may include:
  • the balcony ceiling
  • balcony doors, windows and walls
  • awnings or pergolas

Despite looking simple, balconies are complex and should be treated as such.

The Most Common Issues with Strata Titled Balconies:

Other than “well maintained” there are other underlying assumptions including:

  • The balcony was well designed in the first place with good drainage.
  • The balcony and all its components were well constructed.
  • Good quality and location appropriate materials were used in construction.

Water Leaks

The most common issue with body corporate balconies is, by far, water ingress.

Water leaks from a balcony can be into the lot or common property below or beside or into the subject lot.

Adequate drainage is the first issue that should be checked. An incorrect fall (resulting from poor design or construction) can funnel water directly into the lot or away from the appropriate drains.

Water pooling in also indicates poor draining.

Leaks to the lot below are, usually, indicators of a failure of the waterproof membrane.

There are lots of reasons membranes fail but poor workmanship accounts for up to 90% of failures. That can be everything from the slab being too wet to bond with the membrane, poor preparation of the surface, poor application of the membrane or subsequent tearing of the membrane when tiles are added or afterwards.

Leaks into the lot are more problematic since the failure may be the windows and doors rather than the balconies themselves. Or, as is often the case, the leaks have multiple causes.

If you have water ingress issues from your balcony have your own sliding doors checked first. If that proves not to be the cause of ingress, then report the matter to your strata manager.

If you have water ingress from the lot above or common property report straight to the strata manager.

Cracked or “Drummy” tiles

Tiles are laid over the waterproof membrane to which they bond providing protection for the membrane which itself stops water leaking into the lot below and protects the slab.

Sometimes expansion joints are inadequate, and the tiles push against each other as the slab moves. When that happens, the tiles can become de-bonded from the membrane and lift becoming “drummy”, named because of the hollow drumming sound they make with struck with something heavy.

Cracked tiles are, usually, the result of some sort of impact though it is possible that underlying issues can cause tiles to move and crack.

Cracked or lifted tiles need to be repaired as soon as possible. Movement of the tiles can tear the waterproof membrane. Even if the tiles come away cleanly it opens the way for water to penetrate to the membrane. It will have no way to drain away and can cause deterioration.

Repair of drummy or cracked tiles is lot owner responsibility.

If the cause of the problem comes from a structural issue such as concrete spalling the repair will be the OC responsibility.

Deterioration of the Balustrade or Fittings

Balustrades are made of all sorts of materials such as concrete, steel, wood, or glass. They are also fixed to the slab by either cementing in place or a complex arrangement of bolts.

All the materials are open to the elements and erosion or other deterioration will happen.

Regular maintenance is crucial. Concrete and steel balustrades should be painted regularly as painting seals the structure and prevents rust. Wooden balustrades, usually part of a wooden balcony, need to be treated regularly and inspected for evidence of wood rot and / or timber pests. Glass balustrades need to be cleaned and inspected regularly.

The most common balustrade issue is a breakdown of the connection to the slab. If bolts are used, they can rust weakening the structure.

When Balustrades No Longer Meet Australian Standards

Balustrades, like all building items, are subject to Australian Standards. Australian Standards are made more rigid, reasonably often, certainly more often than balcony balustrades are changed.

The changes to the Standards are not retroactive so if a non-compliant balustrade remains in good order then it’s a not an issue. The balustrade may be maintained, indefinitely.

There comes a point however when maintenance becomes a repair. Balustrades that are not compliant with Australian Standards may not be repaired.

It is common for a strata scheme with balustrade issues to find that replacement is their only option.

Concrete Cancer

Concrete cancer, or more correctly concrete spalling, is common in coastal areas.

For most buildings concrete cancer is a treatable problem.

Regular painting is crucial. The paint seals the concrete against moisture penetration. Painting goes hand in hand with inspection of the building and, if identified, repair of any spalling.

Balconies should be checked and painted regularly in concrete buildings as part of their regular maintenance.

Brick buildings by contrast do not need regular painting and balcony slabs are sometimes overlooked. The exposed concrete slab for the balcony should still be both inspected, painted and repaired if necessary.

If you’re unsure about any issues with your balcony, speak to your building or strata manager in the first instance.

Strata Law Review

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The NSW Government is undertaking a review of strata laws and wants community feedback on how the laws can be changed to better support people living or working in strata schemes.
 
The review focuses on the Strata Schemes Development Act 2015 and the Strata Schemes Management Act 2015
 
SCA (NSW) are compiling a comprehensive response on the Strata Law Review and we’re inviting members to provide feedback that we can assimilate into our response to better represent our member’s responses.
 
If you have a comment or concern about the law review, please don’t hesitate to get in touch with us via email president.nsw@strata.community by 12 March 2021.

In addition to the statutory review of the Strata Schemes Management Act 2015 and Strata Schemes Development Act 2015 a third survey has been added about the keeping of animals in strata. The additional survey is in response to a requirement introduced by the Strata Schemes Management Amendment (Sustainability Infrastructure) Act 2021, assented to on 24 February 2021.
 
The new provision requires the Minister to review the strata management laws as they relate to the keeping of animals in strata and to table a report in both Houses of Parliament by August 2021.   
 
The Act also changes the law in relation to animals in strata so that from later this year:

  • a by-law, or an owners corporation’s decision under a by-law, has no force or effect if it unreasonably prohibits the keeping of an animal on a lot.
  • keeping an animal on a lot is reasonable, unless it interferes with another occupant’s use or enjoyment of their lot, or the common property.
  • regulations may be developed outlining the circumstances where the keeping of an animal interferes with another occupant’s use or enjoyment of their lot, or the common property. 

Responses to the pets survey, in addition to responses related to pets provided as part of the broader review of the strata laws, will assist in the development of the regulations.
 
The additional survey is hosted on the NSW Governments’ Have Your Say website .

Pet Survey

Further information can be found on the Have Your Say website or be emailing stratareview@customerservice.nsw.gov.au

Updated Annual Fire Safety Statement Template

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From 1st March 2021, an updated AFSS template form (version 3.1) applies to all fire safety statements.

DOWNLOAD THE STATEMENT HERE

Providing Annual Fire Safety Statements have been being assessed in accordance with FPA Australia & SCA (NSW) guidance published in early 2020; changes to strata operations are likely limited to document version and terminology.

If your fire practitioner continued to sign as the agent or owner, some operational adjustment may be required.

Key changes:

1. NSW Government made a last minute alteration to naming of the fire safety practitioner’s. The names are, for all intents and purposes, interchangeable; however, only one is now to be used:
a. Version 3.0 required a Competent Fire Safety Practitioner or “CFSP”.
b. Version 3.1 requires an Accredited Practitioner (Fire Safety) or “APFS”.


2. Version 3.1 outlines in the notes who may (or may not) sign each section (summarised):
a. Section 7 – Person Issuing this Statement: “The person issuing this statement must not be an APFS who is listed in section 6 or their employer/ employee or direct associate.”
b. Section 8 – Annual Fire Safety Statement Declaration: “The person who issues the statement by completing section 8 or 9 must not be an APFS who was involved in assessment of the building for the purposes of this statement or their employer/ employee or direct associate.”


Further info:

In earlier SCA (NSW) presentations, some resistance to signing ‘owner’ or ‘agent’ sections was raised due to professional indemnity risk.

While individual, professional advice must be obtained; strata managers & their advisors should note that both version 3.0 & 3.1 of the AFSS require you state that “the essential fire safety measure……has been assessed by an accredited practitioner”.

This is distinctly different from earlier versions requiring you to state it was assessed by a “competent person” – for which there was no legal definition.

There is now a definition for an Accredited Practitioner (Fire Safety) and it is legislated by NSW Government with the list published here.

Each APFS must hold Professional Indemnity Insurance, sign a Code of Practice, and be on a pathway to qualified status. The risk to strata managers in signing they engaged an APFS should largely be limited to checking that individual is accredited for each category on the list.

Electronic Voting as Covid-19 Continues

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To combat issues surrounding Covid-19, many of you will know that electronic strata meetings and electronic voting have been adapted and regulated to reduce the risk of public transmission of the virus.

Voting does not have to be done in person. An owners corporation can vote on matters by:

  • teleconference, videoconferencing, email, or other electronic devices
  • pre-meeting electronic voting. This is a vote by email or other electronic means before the meeting. Both the owners corporation and strata committee can use this method of voting. An election cannot involve a pre-meeting electronic vote.

All strata schemes and community associations can now meet and vote electronically at general and committee meetings. Previously, strata schemes could only meet and vote electronically if the owners corporation or strata committee had adopted a resolution to allow it. Community schemes laws didn’t provide for electronic voting.

To ensure these owners aren’t excluded or disadvantaged, the scheme’s secretary must take reasonable steps to ensure all owners can participate in and vote at meetings.

This requirement applies to strata schemes that haven’t previously authorised electronic voting and to all community schemes. It doesn’t apply to strata schemes that have previously resolved to allow electronic voting. They are unaffected by these changes.

Electronic voting and meetings are new for all community schemes and required new laws ensuring:

  • community associations can vote by teleconference, videoconference, email or other electronic means
  • certain motions can be voted on before the meeting using pre-meeting electronic voting
  • schemes can hold elections electronically for committees.

At a minimum, the secretary should ensure the technology chosen:

  • is accessible to all lot owners.
  • does not incur unreasonable expenses for individual lot owners to use.
  • has easy to follow instructions readily available.

Committee secretaries should consider the size of the scheme and the type of owners when deciding how to ensure participation.

Are electronic meetings mandatory for all schemes?

No. The new laws simply provide schemes with the option to meet and vote validly by electronic means.

Some schemes may be able to continue holding meetings in person and paper ballots for voting, as long as they follow public health advice about physical distancing and hygiene.

The new laws also allow for meeting notices and other documents to be served by email, rather than hard copy, reducing points of contact.

To learn more, head to Fair Trading’s website where they address online meeting and voting in more detail, here.

Building Inspection Reports for Strata

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Building inspection reports are vital in identifying successful defect rectification processes. Defects have traditionally been diagnosed via a general defect or building inspection report. These styles of reports were not in-depth and usually created via visual and general observations; without getting into the granularity of the building.

As defect prevalence and complexity has skyrocketed, particularly in NSW, along with increasing legislative attention to suboptimal building work, this style of reporting is no longer enough to provide owners with a comprehensive snapshot of underlying issues.

Nowadays, inspection reports are a professional document providing independent and unbiased information on expected works and maintenance requirements on strata common areas and buildings. Your strata management inspection report will provide a detailed list of all maintenance issues, safety issues and structural issues, both internal and external and recommendations on works required.

These issues will generally be prioritised, and a schedule of works will be created.

The strata body corporate committee and strata manager will then be able to approach the original owner/developer/builder with an informed and itemised schedule of issues.

Inspecting a strata titled building requires a different set of criteria than inspecting a house. In addition to the physical condition of the unit, inspectors will examine the strata agreement itself and some of the more intangible attributes of the building in which the unit resides.

Strata inspections look at details such as:

  • The exterior of the building
  • The interior of the building
  • Whether the strata scheme complies with fire and asbestos rules
  • Waterproofing
  • Insurance for the building
  • Building reports
  • Whether or not the building is harmonious

If owners and the committee choose not to undertake the full scope of precision reporting due to cost limitations, at a minimum, committees should undertake precision reporting for the systems most likely to suffer from defects.

The systems most likely to suffer from defects are:

  • Structural
  • Mechanical and ventilation
  • Fire protection
  • Waterproofing

Once the committee and the collective of owners understand what the core issues are, the committee will then approach the original owner to start the negotiation process. This step is referred to as serving the defects on the original owner, developer, or builder.

Keep in mind, generally, owners and committees only have two-years to diagnose and start proceedings. There are circumstances where defects have longer statutory warranties, such as six years when they are classified as major. However, the definition of what constitutes a major defect is often contested and very narrow, leaving very few defects to fall into this category.

Message from David Chandler OAM, NSW Building Commissioner

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“Trustworthiness is not a rubber stamp, it manifests as a “feeling” at every level. When we have it we feel great. When it is lost we feel unwell. If people don’t “feel” the right emotions when working on, producing or receiving a project, we don’t get the right outcome. Building is fun, children know this, the shelves are full of building toys. We should be happy at work and happy in our buildings.”

We were really thrilled at this comment from Daniel Roberts following David Chandler’s recent blog posts and presentations about uniting the industry under a shared aspiration for “trustworthiness”.

As we near the end of the year it’s heartening that this sentiment is increasingly being felt from amongst all the fast moving elements of the reform program. We’ve seen two new pieces of legislation pass, a new program of OC Audits get underway, a raft of building closures, rectifications and successes, and much progress made to digitize the way government and industry and customers, do business. And yet amongst all this industriousness our overall goal of “trust” is ringing true as both a unifying force, and emotional aspiration.

Click below to watch David’s end of year video interview about the first year of Construct NSW.

“We’re not just here to spot the problems,” says David Chandler. “We’re here to inspire excellence and guide good practice. That’s how we’ll rebuild consumer confidence and get our industry firing on all cylinders. I want people to know what we expect and what to aim for. We all want to be proud of what is being achieved and I know our industry can be world-class”.

Progress on Inspections and OC Audits

Over 25 Audits have begun since the Residential Apartment Buildings (Compliance and Enforcement Powers) Act came into play on September 1st, covering sites in the Sydney Metro area, Western Sydney, the Newcastle region, Wollongong, and also northern NSW.

These site audits are revealing work of poor quality and a disappointing understanding of Australian Standards and the BCA. The Building Commissioner’s reform program has a strong focus on this and wants to lift Certifier standards quickly, to enable quality uplift across the entire construction industry.

Summary of the Six Pillar Reform since July 2020

  • Pillar 1: New RAB Act came into play. 23 OC audits underway since July resulting in 1 prohibition order and multiple rectification orders.
  • Pillar 2: Market soundings to establish interest in industry-led ratings products. Developing the market criteria that would support the offering of a voluntary DLI product
  • Pillar 3: 1,000+ enrolments in our first course “Understanding OC Audits” Next three courses go live before Christmas
  • Pillar 4: Model term sheets to apply the D&BP Act published on the Construct NSW website
  • Pillar 5: ePlanning Portal enhanced to support OC audits and strata bond lodgement, tender released to develop test versions of a building assurance solution. Significant improvements made to BRD’s internal systems through data consolidation and information sharing agreements
  • Pillar 6: Evidence gathering began with new Digital Capabilities survey with Western Sydney University and a strata building survey in partnership with Strata Communities Australia

 

Keep In Touch

To keep updated on the Construct NSW reform program, subscribe to the new Construct NSW e:newsletter. Click here to sign up.

Strata Manager’s Conduct, Duties & Responsibilities 

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SPONSOR ARTICLE

Question: Is there a dollar amount limit to the payment of an invoice that can be made by our Strata Manager on behalf of the owners corporation?

We understand that one of the duties of a Strata Manager is to process and pay invoices for work carried out on behalf of the Owners Corporation. However, is there any $ limit to the payment of an invoice that can be made by our Strata Manager on behalf of the owners corporation?

I recently noticed a paid invoice for $11,000 that was made by our Strata Management Company. As a member of the Strata/Exec Committee, I would like to have seen the invoice before it is paid.

I noticed on our portal that there is a tab for Invoice Approval, but I have never seen anything under that tab.

Answer: The duties of a strata manager come from their authority in their agency agreement with the owners corporation.

  • The duties of a strata manager come from their authority in their agency agreement with the owners corporation. See schedule 14of the PSBA
  • The limits on authority will be contained in the agency agreement;
  • Generally, a strata manager will be authorised to pay all invoices on behalf of an owners corporation, however there may be limits to that authority (until some other approval from the owners corporation is required);
  • The owners corporation will in most cases be able to set up an invoice approval process with the strata manager in which some or all of the invoices of the owners corporation are issued to certain people for approval prior to payment (generally one or more committee members – in most cases, just the treasurer) – there is generally a cost to the system given the additional work involved that comes from maintaining the system and dealing with invoice queries; and
  • The owner should simply query whether an invoice approval system can be established/what is the cost and otherwise what is the strata managers system for paying invoices (e.g. does the strata manager check each invoice or do they just go to accounts for payment).