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Topic
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We have some work that needs to be done (I’m in NSW) and one SC member has supplied a quote. The member did disclose that he is related to the service provider. When the SM checked the quote it was established the provider is a sole trader and is non-compliant for the works required – no contractors licence, no business or w/c insurance.
The response from the SM that there were ‘ways around this’ by working under the umbrella of a parent company.
My issue is that:
a) Sc is related to service provider
b) SM appears to be encouraging approval of this quote
c) Service provider only has an ABN – no trade qualifications in anything.
The work is around $25K, so it is quite substantial. I have provided a quote from an independent company who has been in the business for 47 years and is fully compliant yet there appears to be resistance to this. The work does not affect my lot but for this amount of money it should be done professionally. And yes I have raised my concerns to the SM to no avail.
It appears the other SC members don’t really care as the work doesn’t affect their lots either.
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If you are talking about work of the order of $25K then you should be getting several quotes. You should be insisting that the service provider has appropriate trade licensing and their own insurance. Ask for a copy of the certificate of currency.
For very minor jobs it can be hard to find a tradesperson willing to do the job and you can be glad to find just one. Then the SC might just have to make a judgement about whether the one quote is reasonable or not.
Section 260 of the Act covers bad decisions made by strata committee members “in good faith” (see below).
Conversely, you could argue, if members of the committee have been told that there is a problem with a contractor and something goes wrong and this results in additional cost to the owners corporation, then their “in good faith” protection is gone.
So, at the very least, insist that who voted for this and who voted against it is recorded.
If the committee member’s mate stuffs up and the building is damaged or someone is hurt, your strata insurers probably won’t cover the scheme for damages caused as a consequence of a conscious decision not to hire a registered and insured tradie.
But at least you and the other owners could take action to make sure that only the people who knowingly hired someone who was not registered or insured have to pay.
260 Personal liability
(1) A matter or thing done or omitted to be done by any of the following persons, or a person acting under the direction of any of those persons, does not, if the matter or thing was done or omitted to be done in good faith for the purpose of executing functions as such a person under this or any other Act, subject any of the following persons or person so acting personally to any action, liability, claim or demand:
(a) an officer of an owners corporation,
(b) a member of a strata committee.
(2) Any such liability of an officer of an owners corporation or a member of a strata committee attaches instead to the owners corporation.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.
Sorry, I don’t know about the possible added insurance requirement.
@LawoftheLand said:
… the SM states that if the quote is over $20K then the company/tradies must also have a HBCF insurance policy (formerly known as home owner’s warranty insurance) to do the job. From my understanding the cost of this policy is tacked onto the quote. Have you heard of this before?This is part of the NSW building insurance regulations. Have a look here and at the extract below.
Regarding whether or not their insurance premium is added to the quote – I really don’t know. But if it’s not in the quote you shouldn’t be expected to pay it.
When insurance must be provided
Insurance under the HBCF must be provided where the contract price is over $20,000, or if the contract price is not known, where the reasonable market cost of the labour and materials involved is over $20,000, by:
- a builder or tradesperson before taking any money (including a deposit) from a home owner (including an owner-builder) under a residential building contract and before starting any work under that contract
- a ‘spec’ builder before starting any residential building work on a property owned by the builder
- a developer before entering into a contract for the sale of a property on which a builder is doing or has done residential building work for the developer.
Where the contract price or the reasonable market cost of the labour and materials involved does not exceed $20,000, there is no legal requirement to obtain insurance under the HBCF.
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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