Question: The committee will put up a motion to renew the body corporate manager’s contract. As the two year contract is for an amount greater than the spending limit, are two quotes required?
At our AGM, the committee are going to put up a motion to renew the body corporate manager’s contract, which expires in June 2024. The proposed two year contract is above the $10,000 committee spending limit. We advised the committee they need to provide two quotes for the motion. The body corporate manager told them this isn’t required. Who is correct? How can I stop or challenge this?
Answer: A proposal put forward by the body corporate at a general meeting that is over the major spending limit requires two quotations to be considered and circulated to owners.
A proposal put forward by the body corporate at general meeting which is in excess of the major spending limit requires two quotations to be considered and circulated to owners. In these circumstances, a single quote is only appropriate if it is not practicable to obtain two quotations.
It may be worthwhile asking the committee to explain the basis in which they believe a second quotation is not required. If their explanation does not provide a valid basis, and the motion is ultimately approved, it may be able to be challenged in the Commissioner’s Office.
This post appears in Strata News #644.
Todd Garsden Mahoneys E: tgarsden@mahoneys.com.au P: 07 3007 3753