Question: We are experiencing problems with by-law enforcement. How can our committee set clear service standards for the body corporate manager?
How can a committee move from passively relying on a body corporate manager (BCM) to actively overseeing their performance against the management contract, particularly for by-law enforcement?
After a delay in addressing a recurring noise breach, we found the manager was filtering correspondence and not escalating the severity of the issue or the evidence provided to the committee. Are there standard service-level templates or benchmarks for body corporate managers, such as mandatory 48-hour acknowledgement and a requirement to table all formal resident complaints to the board at the next committee meeting?
Can a committee implement a correspondence and action log as a standing agenda item to ensure the manager does not gate-keep resident issues, and what is the best way for a committee to educate inexperienced members about their responsibility to oversee the manager’s performance, including their role in advising on the by-law contravention process?
Answer: A body corporate manager is not a decision-maker. They don’t enforce by-laws. The committee does.
You’ve raised several intriguing issues here.
First and foremost, let’s establish some basics: a BCM is not a decision-maker. They don’t enforce by-laws – the committee does.
Next, we need to remember that a BCM is engaged under a contract. That contract, like any contract, outlines the terms and conditions, including the services provided and the remuneration for them. In our experience, many people assume a BCM should do something when, in fact, their contract doesn’t provide for it at all, or does so for a fee. There is no prescribed BCM contract in Qld. NSW is moving towards prescribing a standard BCM contract – something we personally think is no bad idea, and if you want to take that issue further, then you need to be speaking with your local MP.
It’s perfectly fine to shop around for different BCMs to find the one that is going to give you what you want. BCMs in Qld are not regulated, so the way they carry out their roles – and the prices they charge – vary greatly. Having a clear idea in your mind about the services you want and don’t want is the starting point. To be honest, we’re not sure about the ‘mandatory 48-hour’ idea. Remember that most BCMs have extensive portfolios, and getting them to respond within a ‘mandatory’ timeframe will be a challenge. You might find yourself paying for the privilege. On the idea of tabling all resident complaints, you need to be asking yourself what that will achieve, because there’s no obligation under Qld strata legislation to acknowledge or investigate complaints. In other words, we’re not sure you should be expecting something that even the law does not require.
The interaction between a body corporate and its BCM is probably the most fundamental relationship of all in strata. Like any relationship, it takes work, it has ups and downs, and sometimes, it just doesn’t work out. Both parties need to be very clear and very specific about inclusions and exclusions. Feasibly, you can ask for anything of a BCM, so long as you’re prepared to accept it’s a negotiation, rather than an imposition.
Finally, you ask about education for a Board (by which we assume you mean the committee – we suggest starting to use the correct terms). At the risk of prompting Qld vs NSW rivalry, NSW is implementing mandatory training for committees, and we definitely think that should happen in Qld as well. Happily, while we’re waiting for that to hopefully happen, the Commissioner’s Office in Qld already offers committee training. They offer free, extensive and informative online training. Crucially, the training is useful for anyone in strata, not just a committee member, because it covers a variety of issues, and you can be sure that it is the source of truth (after all, they are the government agency with the express role to provide that service). More information is available here: Online body corporate training .
You sound like you’re a committee that is embarking on a bit of a strata journey. Kudos to you for asking the questions about it and seeking out informed answers. Rest assured, there will be missteps along the way, and you will encounter challenges. That is, for better or worse, the nature of strata. Methodical, structured processes and a pragmatic outlook are key to surviving and then thriving on the journey.
This is general information only and not legal advice.
This post appears in Strata News #786.
Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898
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