Is the committee responsible for implementing changes recommended in a remuneration and duties review to ensure the body corporate meets its maintenance obligations?
Our body corporate commissioned a remuneration and duties review by a suitably qualified professional. The review highlighted that the recommended duties differ from the current duties, including new responsibilities such as monitoring security systems and removing items that require ongoing maintenance.
Is the committee responsible for initiating these changes to ensure the body corporate continues to meet its legal obligations for maintaining common property? What are the options for either the committee or the caretaker if the remuneration range is outside the market range?
Unless you are starting from scratch, there is no open market.
I’m not sure what you mean when you say the remuneration range is out of market range.
Generally, if you've done a remuneration and duties review, the purpose is to give your scheme an idea of the requirements for the site and the cost for providing that. You could use that document for consultation and negotiation with your caretaker to determine if they would agree to a new contract at the established new cost.
If you can't reach an agreement, the current contract will remain in place until expiry. If the review suggests that the cost of providing caretaking services is less than the amount you are currently paying, that's fine. Still, there is no obligation for the caretaker to agree to a new contract and a lower salary. Equally, if the review suggested your scheme is paying less than it should for the contracted services, the body corporate is not obliged to negotiate a new contract. Unless you are starting from scratch, there is no open market – only the contract you have negotiated and the contract you could negotiate.
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Will Marquand joined the Tower team as a General Manager and Senior Strata manager in 2020. He has widespread experience across all forms of commercial, industrial and residential schemes. He believes in proactive, ethical strata management and hopes to provide Tower’s customers with the knowledge and support required to take their schemes forward into the next generation of body corporate management. Will has experience working across residential, commercial and industrial schemes. A former journalist and teacher, Will's excellent communication skills help Tower grow its expanding business. William is a regular contributor to LookUpStrata.
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