Question: What is the extent of a caretaker’s authority in body corporate matters beyond their defined duties?
It appears increasingly common for owners to express dissatisfaction with the caretaker’s conduct.
While the management rights agreement outlines the specific caretaker duties, it is crucial to clearly define the scope of their general involvement in body corporate affairs.
What is the extent of a service contractor’s authority in body corporate matters beyond their defined duties? Do service contractors have the authority to determine body corporate policies or procedures?
Our caretaker is exceeding their defined role, seemingly attempting to manage the resort instead of operating as contracted support staff. They run the resort as their fiefdom. As a paid contractor (’employed help’), the service contractors may have input into discussions during committee meetings. Does this extend to the power to establish body corporate policy and procedures?
Although issuing breach notices is a potential course of action, the underlying issue seems to be a lack of understanding by the service contractor regarding the limitations of their role.
To help alleviate conflict, are there legal or industry guidelines that define the limited involvement of service contractors in setting body corporate policy and procedures?
Answer: The key is finding a solution that minimises time, cost and emotional toil.
Respectfully, we don’t think you are on the right track here.
When it comes to ‘policies and procedures’, there are two instruments defining that: the management agreement, and the legislation. There is next to no scope for any other party, committee included, to be setting ‘policies and procedures’ outside of that framework.
A service contractor is not a paid employee. They are engaged under contract, which is a very different thing. Referring to them as ’employed help’ is, we think, derogatory and does not help the situation. Nor does describing it as a ‘fiefdom’. Also, it is more than simply ‘having input’ into a committee meeting. The management rights holder is automatically, under legislation, a non-voting committee member.
Purchasing management rights in a strata scheme is a significant investment of funds, time and emotional commitment on the part of the purchaser, and it stands to reason that they would want to do everything they can to protect and enhance that investment. In that respect, they are virtually identical to a lot owner.
There is no standard contract, and we do agree that disputes arise between committees and service contractors over performance of duties. Then again, disputes arise in just about every walk of life and sector of industry, so this is not so unusual. The key is finding a solution for all concerned that minimises time, cost and emotional toil so that these disputes can be managed and even prevented in future.
This is general information only and not legal advice.
This post appears in the June 2025 edition of The QLD Strata Magazine.
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898