Appointment of a Building Manager

Building Managers are usually responsible for managing the maintenance and repair of the common property, controlling the use of common property by tradespersons and overseeing their activities, and sometimes for the placement of tenants in the Building.

As Building Managers cannot enforce by-laws or carry out funds-committing functions of the Owners Corporation (O/C) there should be no conflicts with the role of your Strata Manager provided your Owners Corporation has an agreed scope-of-work with the Owner concerned, and it makes sure that there are no conflicts or overlaps between that scope-of-work and those included in its Strata Management Agency Agreement.

The fact that the Owner has experience in the role is good, but your Owners Corporation needs to ensure that he holds a Licence (in NSW); not Registration as may have been the case if he worked under the control of someone holding a Licence in his previous role.

I’ve in the past been accused of “gold-plating” with regard to my approach to the O/Cs management of their Strata Plans, but as I’ve said before that’s just a euphemism for doing things properly, by the book and thereby avoiding later problems! 

In that regard, the Owner would in addition to a Licence also need an ABN, may have to register for the GST, and may need liability insurance depending upon the nature of the Owners Corporation’s Building Insurance Policy.

As for conflicts with the Owner being appointed as a Building Manager whilst at the same time holding a position on the Executive Committee (E/C), there should be none but I can see some issues, perhaps perceptional with that Owner holding the position of Treasurer.

The issues of conflict may be perceptional, but your O/C could avoid those and my “gold-plating” if instead of appointing the Owner as a Building Manager they authorised him to do many of the same maintenance coordination / tradesperson supervision activities (but not tenancy activities) and perform his E/C role, and be the “nominated person” on the Strata Management Agency Agreement (i.e. the Strata Manager’s liaison/contact to coordinate acivities) and all for a combined “honorarium” paid under the provisions of S 25 of the (NSW) Strata Schemes Management Act.

As you will see from your reading of that Section of the Act, any payment to the Owner has to be resolved at a General Meeting (as for the Building Manager), and it needs to be paid 12 monthly in arrears; in other words your O/C resolves to pay the Owner for the work that he’s done as E/C Treasurer and for addition building management type duties since the previous General Meeting, and so on each successive year for the same amount ($) or varied to account for greater/lesser responsibilities and activities actually peformed.

regarding the appointment of a  new building manager I am familiar with tenders being sort and owners approval at a general meeting. Recently a AGM was held with no agenda item to replace the current building manager. One month later a new building manager appeared with increased hours and obviously at an increased rate.

Is this correct procedure? Advice appreciated thanks

Thanks Whale for your advice always clear and concise. Thats exactly my reading and it amongst a number of other discrepancies will be taken to the next AGM!

just – based upon your previous posts I’m concluding that a new building manager has been appointed (i.e. to replace a previous one), and that’s been done without an enabling resolution of the Owners Corporation at the recent Annual General Meeting (AGM).

It’s too late now, but a Motion submitted by you for the Agenda of that recent AGM would have been a better means to raise and discuss the matter than was correspondence to the Executive Committee Meeting that you say was ignored.

I’m a little confused by the Strata Manager’s reported comment that “their firm would never permit this to occur” – where if I assume “this” is a reference to the new appointment and to the resultant increase in expenditure, then you may have an ally there (?).

Anyway back to your question, as there was no resolution taken at the AGM you can’t seek Orders to invalidate it, so your only course of action in my opinion is to apply for Mediation of the dispute involving the new appointment etc by the NSW Dept. of Fair Trading and depending upon how that goes, proceed to Adjudication in the NSW Civil & Administrative Tribunal (NCAT).

A final query…. what if anything did the original Building Manager have to say about the termination or transfer of their Agreement?

Whale, I brought up the appointment during the motion of budget approval at the AGM.. Expenditure without approval please explain.. I also asked for EC to ratify the appointment and expected they would have it as a motion on the AGM. Difficult when the EC refuse to answer correspondence. Too late when the notice arrives .

The previous BM vanished. I arrived home one day to see mr clipboard onsite. The appointment was never minuted. There are some problems with the new BM .. Increased hours,  double the expenditure we approved initially, controlling attitude, commencement work hours (0600)outside of the law… Nothing that can’t be fixed though.

the strata manager was quite dismissive of any comments particularly at the GM.. Virtually instructed owners ( newbies mostly) on how to vote.. ” my recommendation is… Etc etc… 

I did write to the strata manager several times regarding the number of irregularities.. Including sealing of a number of pool gates. Great to come home and think you had lost your mind.. ” why can I open the gate? ” lol. 

yes, I’m mindful of the consequences Jimmy. The good news is we removed the three office bearers. I’ve met with the new EC now and they understand in moving forward and restoring good will another GM needs to occur and I feel encouraged that they are keen for available  education  sessions so this travesty will not continue.

We will also get another legal firm ! 

cant thank flatchatforum enough!

I regret to report ive taken my eye of the ball recently. Our AGM notice has a motion ” to extend the BM agreement for two years. ” as this appointment was not approved at a GM surely this motion is invalid, and we need to go back to obtainging tenders and the EGM to approve this? 

Would you be kind enough to state the exact wording/ section of the act re agreement as i cant find it.

thanks very much 

Im sorry but still confused…. are you saying that the motion to extend the current BM that was not approved at a general meeting is valid or not?

it was the EC who appointed this Company not the OC at a GM.

my point is that the OC did not approve this expenditure or contract therefore extending a contract is surely not valid? How can OC extend a contract that was never approved? 

Is your comment saying we have to accept this current one but next time it has to be approved st a GM

thanks and apologise for my confusion 

I have just been advised by the SM  that  as the caretaker (building manager) doesn’t have a office on site  (40a) then the EC can appoint him

If he has an office onsite then (40B) applies ?

Can this be true?

AGM tonight