This QLD Lot Owner is questioning the way in which their Body Corporate is gaining approval for a hail damaged roof repair. Thank you, Amanda Hoy, Strata Vote for providing a response.
Question: Strata Roof Repair – Does the Body Corporate need 2 quotes and is the motion out of order?
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Our `Body Corporate has called an EGM and submitted the following resolution:
“ORDINARY RESOLUTION – Additional Roof Repairs
Submitted by Committee
It is resolved by Ordinary Resolution that approval be granted to the Committee to spend up to an amount of $50,000 to cover the shortfall on the roof hail damage roof repair not covered by the insurance claim and that such funds be deducted from the Sinking Fund.”
The Body Corporate has not provided owners with copies of quotes and the motion does not specify a specific amount.
I have three questions in relation to this resolution:
- In that amount specified is above major spending limit by quite a large amount, is the Body Corporate required to provide owners with copies of the 2 quotes for the roof repair?
- If resolution is passed without quotes being published, is motion out of order?
- In that a specific amount is not specified, is motion out of order?
Answer: The Committee will still have to follow the usual approval steps
The purpose of this motion is to increase the Committee’s spending limit for this particular project. A motion like this is normally proposed when the works are required prior to the next General Meeting and the Committee do not want to incur the cost of an additional General Meeting, or the works are urgent and cannot wait the 21 days that is the required notice period for a General Meeting.
The Committee will still have to follow the usual approval steps that they would go through to approve works that are within their spending limit – ie obtaining quotations, voting to accept a quotation and sending the minutes to all owners with the approved quotation.
The advantages of approving the quotation at Committee level are that, once the quotes have been received, the Committee can vote on which quotation to accept and proceed with the works after 7 days. If the motion to approve a quotation was to go to a General Meeting it would require 21 days notice, and then if a quorum is not present the meeting would be adjourned for a further 7 days. Depending on the extent of the roof damage, these delays could result in further damage.
The down side of course is that all owners will not have a say in which quotation is accepted.
If your Committee holds in person meetings, you are entitled to attend the meeting as an owner to observe the discussions in relation to the works by providing 24 hours written notice.
If the above motion is passed and the Committee does approve the works and you are not happy with the decision, you can give a notice of opposition. This would need to be signed by at least one half of the lots included in the scheme and given to the secretary within 7 days of you receiving the minutes approving the quotation.
Depending on the dynamics of your Committee, you may be able to offer to assist the Committee in obtaining the quotations and liaising with contractors which will keep you more involved in the process. Most Committee’s that I have worked with are happy to have any additional help and support.
If you are not happy for the Committee to approve the works, and would prefer the quotations to go back to a General Meeting, then you should vote no to the motion.
This post appears in Strata News #117.
P: 1300 WE VOTE (1300 93 86 83)
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
Are you interested in more about body corporate approval for repairs or information particular to QLD legislation? Visit our FactSheet: Strata Committee Concerns OR FactSheet: Strata Legislation Queensland