Question: Can an owner authorise body corporate expenditure for maintenance on their lot without approval from other members? Is a single quote sufficient if the owner books the works before other members can respond?
Our building format plan strata scheme consists of four concrete tilt panel office/warehouses, with the body corporate run by all four owners.
One owner authorised repair works to a rusted section of box gutter that services only their lot, based on a single quote. The other three owners were not informed of the issue, nor were they given the opportunity to provide input on the contractor, or asked to approve the expenditure. The owner went ahead and booked the works before waiting for a response from the other members. Can the owner request reimbursement for the cost of this work?
Answer: The committee needs to make a decision about whether any reimbursement is reasonable.
If an owner undertakes works to the common property at their lot without reference to the body corporate, they can apply to the body corporate for reimbursement. The body corporate is not obliged to agree to the proposal.
The question doesn’t say which module you are operating under, and that may not affect the answer to a degree. Generally, repairs to the common property are approved by the committee of each scheme or at a general meeting if the expense is beyond the committee’s spending limit.
You say that there are four owners of the complex who all play a role in running it, so I will assume that they are the committee.
Standard procedure for repairs then would be for either the committee or the lot owner to get a quote for works, and then for the committee to approve it by majority opinion.
In this case, the owner has done the right thing by obtaining the quote and sending it to the other owners, but they have overreached by booking the works before waiting for a response.
The committee needs to make a decision about whether any reimbursement is reasonable.
There could be lots of different factors that affect reasonability here. Did the owner not understand the procedure, or have they done this kind of thing before? Was there a need to get a second quote, and would it have produced a better outcome if you had done so? Were there any emergency circumstances that required the work to be done quickly?
The committee should look at the facts, make a decision and advise the owner on that basis. In any decision, clearly outline the correct process so it can be followed the next time.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924