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Hi
We have an EGM coming up on 22nd May (NSW) and on the Agenda is a motion to accept a Remedial Company to carry out work on defects (none of which are structural according to an engineers report). Also on the Agenda is a motion that the contract for the remedial company be reviewed and approved by the Strata Committee.
As I am about to have a $15,000 levy initially imposed on me how can I vote if the terms of the contract are not disclosed to me prior to the EGM? I would like take it to a strata lawyer to review. I have asked the Secretary of the Strata Committee to email me the contract twice now but he has failed to do so.
Second, at a general information sharing evening of all owners on 3 May on this issue it was agreed by those present(8) I should get a quote from another remediation company . I called the company but they were only able to attend the premises last Wednesday. On Tuesday the Strata Manager emailed owners and stated the EGM would go ahead on the 22nd as requisitioned and said owners had to have their motions in by 9am Thursday morning or they would not be included on the Agenda. Of course this was impossible for me to achieve. The Strata Manager proposed the company that is on the Agenda.I have not received the quote yet but have been promised it by Wednesday this week. All too late to be included on the Agenda as an alternative quote. I feel as if the Strata Manager is orchestrating the desired outcome for his company and is not doing anything in the owners best interests. I have lost all faith in the Strata Committee as well as they seem to follow anything he says.
What can I do to delay until Owners can look at an alternative quote. The work is estimated to be around $185,000 and is considered non structural as reported by engineers.
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@swoo said:
What can I do to delay until Owners can look at an alternative quote. The work is estimated to be around $185,000 and is considered non structural as reported by engineers.Get a verbal quote from the alternative contractors then stand up at the meeting and propose an amendment to the strata manager’s motion that:
a) Other quotes be considered – including yours.
b) alternative means of financing the project be considered, such as strata loans, rather than everyone having to pay large amounts of money up front.Your problem is that everyone at the meeting has seen the agenda but not your alternative. So print up a very simple and non-abusive A4 or half-page that says something like the text below.
Hand that out to the other owners at the start of the meeting and then speak to it. Try to avoid allegations of corruption or preferential treatment – let your fellow owners come to any such conclusions themselves.
If you can find someone in the room prepared to support your case by asking relevant questions, so much the better.
Another meeting will cost about $500 tops to arrange. Your potential savings would have to be more than that to make this worthwhile.
If your alternative contractor can’t provide even a guesstimate before the meeting, I wouldn’t bother. That would portray a worrying lack of motivation to me.
Item XX on your agenda
As approved by the strata committee, I have received a quote from the highly reputable firm of [INSERT NAME] who will do the work for $xxx,xxx.
I also know there are ways of financing this work that will not involve huge one-off special levies which may cause hardship with some owners.
Please support the amendment I propose (below) so that we, the owners, can consider all options available to us and make an informed decision at a later date.
AMENDMENT:
I propose we consider an amendment to motion XX, that, before a final decision is made at a subsequent general meeting:
a) Other quotes be considered.
b) alternative means of financing the project be considered, such as strata loans, rather than everyone having to pay large amounts of money up front.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.
If the cost of the work has not been already been allowed for in the existing budget, then yes another general meeting will need to be called to determine how the work is to be paid for – in which case you should submit motions for alternate fund-raising methods to be considered. For example an increase in levy over several months rather than a one-off payment? Perhaps a strata loan?
In any case, if the work is approved and the majority of owners agree on how to fund the cost – yes you will have to contribute eventually – but there are laws and process that allow anyone to negotiate terms of ‘debt’ payments.
I doubt you can be forced into financial extremis by an owners corporation undertaking non-urgent works.
If this cost was imposed in a way unrealistic to your financial situation, then you could mediate your ‘debt’ payment terms and drag time out considerably. So it is in the best interests of all owners to agree to a sensible way of raising funds else others will have to pay more in the short-term whilst you and others take time to pay off ‘debt’.
By the way, I thought that only urgent work (ie. structural or that required to meet fire regulatory compliance or similar.) can be raised by ‘special levy’ with non-urgent work being approved at AGM.
You may have a legal argument against a ‘special levy’. Others on this forum may have more information on that.
Hi Swoo
The owners could consider a Lannock Strata Loan – this would avoid having to pay large amounts of money upfront but still allow everyone to get the benefit of the works being completed now. Please click on the banner ad at the top of the page to check out our website (www.lannock.com.au) or call us on 1300 85 15 85.
Regards
Paul Morton
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