Question: Our Body Corporate Management contract states that the contract amount is subject to increases. This may either be a rate % or CPI increase every 12 months. How does this work?
Answer: The increase will be either by a certain percentage or CPI – whichever is higher.
Where body corporate contracts apply an automatic increase, it is usually with the notation that it raises either by a certain percentage or CPI – whichever is higher. You can confirm this with your company and they may be happy to negotiate with you if appropriate.
If you only have a twelve month contract it is worth noting that this clause doesn’t apply. The contract is for twelve months and at the end of it new terms can be negotiated and agreed. They may be in line with the clause but not necessarily.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924