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NSW: Can owners choose their own builder or must they use the owners corporation’s contractor?

NSW strata information

Question: My bathroom is being repaired by the owners corporation. Their appointed builder does not return calls. What are my rights to select my own builder?

My bathroom waterproofing has deteriorated. The building manager has viewed the bathroom and agreed the owners corporation will cover the repairs, including removing tiles, new waterproofing and retiling.

The owners corporation’s recommended building company does not return correspondence. As such, I do not wish to use their services and I have found my own builder who has provided a similar quote.

The OC have since advised that for an owners corporation funded repair, I must use their suggested builder. What are my rights to select my own builder?

Answer: The Owners Corporation have the right to use a preferred tradesman that they have ensured are vetted, insured and licensed to complete the works.

No works should be completed to common property without approval from the Owners Corporation.

Although the contractor selected isn’t as responsive as you would wish them to be, the Owners Corporation and their agent (e.g. an appointed Building Manager) have the right to use a preferred tradesman that they have ensured are vetted, insured and licensed to complete the works. If you were to undertake the works without approval you would run the risk of not being able to recoup the cost of the work, as they would be completed without authority.

You might be able to negotiate using your preferred contractor or even undertaking a renovation of the bathroom and receive a payout to complete the works yourself (although that would require approval as a renovation of this nature always must) but it sounds like this avenue has been explored.

If you are not satisfied with the progress being made due to the selection of contractor, remind the Owners Corporation of the requirement under Section 106 (5) of the Strata Schemes Management Act 2015 which specifies “An owner of a lot in a strata scheme may recover from the owners corporation, as damages for breach of statutory duty, any reasonably foreseeable loss suffered by the owner as a result of a contravention of this section by the owners corporation.”. If you remain unsatisfied the correct avenue for you to take is through an application with NSW Fair Trading and if the desired outcome is not reached you have the right to make an application for an Order to NSW Civil and Administrative Tribunal.

This post appears in the November 2021 edition of The NSW Strata Magazine.

Robert Fothergill Strata Life E: Robert@thestratalife.com.au P: 02 9456 9917

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