Spending limits

QLD
Committee & Governance
question
Lookupstrata community member

Does the major spending limit apply if gutter replacement works on multiple duplex buildings are staged over 6–12 months rather than approved as one project?

Our scheme has several ground-floor duplex buildings that share roofs and guttering. Some of the buildings now need new guttering. We want to carry out the work gradually over 6–12 months, prioritising which buildings need attention first, rather than replacing all guttering at once.

Do we need to obtain quotes for every building at the start and present them at an EGM, because the combined cost would exceed the major spending limit? Alternatively, can we treat each building separately, obtain quotes as needed, and approve them one at a time during committee meetings? We want to confirm whether the 'project' restriction applies in this situation.

answer
Frank Higginson
Frank Higginson Redchip Strata Law

It's hard to suggest that replacing all of the guttering isn't a single project.

I think it's hard to suggest that replacing all of the guttering isn't a single project, so practically, I would be thinking the way to do it would be to try to get quotes that cover all of the work over the staggered period and have one of those approved at the general meeting.

Alternatively, you could have the general meeting change the major spending limit for this particular project to a substantially higher amount to give the committee the flexibility to make decisions on a staggered basis as the priorities arose.

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