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  • #8574

    I live in a block of 64 units built in the 1970’s so maintenance of the building is an ongoing issue.  We have recently completed replacing the tiles and balustrades on all the balconies.  Nine months later, and not without its problems, the EC are feeling relieved to have this work competed as it required a huge amount of time and effort.  During the works being carried out, the idea of appointing a building manager was mooted (by me).  The reason for this being that one of our EC members works as a professional building manager for a large commercial strata building in the city and a lot of the time he was left to sort out problems with the contractors as none of the other members, including myself, felt we had the necessary skills and knowledge to do so.  I felt this was unfair but unavoidable.  I feel he carried an extra load simply because of his experience and knowledge.

    He is now retiring and has expressed an interest in taking on the role of Building Manager part-time if the role was created.  At our request he has given us a proposal listing duties, working hours, rates of pay etc.  Can anyone see a conflict of interest with this person being on the EC?  He is also our treasurer and does a terrific job.  What sort of things should we look out for in having a building manager appointed?  I see from previous posts that we would need to look at the roles of our Strata Manager and the Building Manager.   I would welcome any advice on this.


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  • #17246

    Thanks, this has been very helpful.


    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.

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