This article discusses whether standard or “off-the-shelf” QLD service contractor contracts exist, how binding these agreements are once signed, and when their terms can be challenged or changed.
Question: Is there a current “off the shelf” service contractor contract, and where would I find it?
I’m seeking clarification on current “standard” service contractor contracts to see how much they may have changed since 2004. Once a contract is signed, is it binding? Does this mean that both parties are required to abide by the specified terms, and no changes can be made unless signed by both parties in writing? If the service contractor may not have realised the implications of some clauses, does this mean they are invalid unless new legislation has been introduced that has to be complied with? Is there a current “off the shelf” service contractor contract and where would I find it?
Answer: There is no off-the-shelf, standard service contract under Queensland strata legislation.
A good question! In short, no. There is no off-the-shelf, standard service contract under Queensland strata legislation. Indeed, contracts can vary considerably, given the nature of the service and the scheme. There are relatively basic contracts and service contracts with considerable detail and appendices outlining very specific descriptions of duties to be performed.
You sound like you are describing a very common situation. Namely, one party (in this case, the management rights holder) questions the operation of the contract, and the other party (in this case, presumably the committee, or an owner) takes a different view. There is considerable incentive for parties to try and resolve these situations expeditiously and informally, because the alternative is a very long, expensive and stressful legal proceeding, likely in QCAT, for both parties. Working on an informal resolution, with a focus on communications and relationship building, to management rights disputes is something we do a lot, in case you are wondering.
Intriguingly, NSW has very recently amended its strata legislation to allow the regulator (Fair Trading) to prescribe contracts for both strata and building managers. In other words, legislating for an off-the-shelf contract that the government would draft. Qld has not done similar, and nor the Qld government has not said they would do similar. Might it be something, though, that gets a run in Qld? We wouldn’t count it out…
This is general information only and not legal advice.
This post appears in Strata News #735.
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898