Question: Our strata company has a process for organising repairs to common property. Without notice, an owner organised repairs and requested the strata company contribute to the invoice. Should the company refuse to pay?
Our strata complex has a priority list to repair and maintain the common property. We organise repair quotes, and the council of owners picks a suitable contractor to complete the work.
One of the council of owners members decided to hire a contractor to do work, and they are asking the strata company to pay a portion of the invoice.
The owner submitted to the strata company an unpaid invoice for the full amount and a quote for the full work, including a section of the scope of works to be paid by the strata company.
If the owner hasn’t followed the correct procedure, is the strata company obliged to pay?
Answer: If the owner did organise works that were not approved, the strata company may not be liable for payment.
In regards to decision-making by the council of owners, it first needs to be as per the approved works and budget from the last Annual General Meeting. If the item is not an emergency, the owner should follow the process of noting the quotation to the council of owners and await a majority approval.
If the owner did organise works that were not approved, the strata company may not be liable for payment. The council of owners would need to decide if the works completed were required at the scheme and if the cost was reasonable and, therefore, if they want to make payment or negotiate a payment amount. If payment is not made, it is imperative to view the contractor’s terms and ensure the account has not been made in the name of the strata scheme.
This post appears in the June 2024 edition of The WA Strata Magazine.
Jamie Horner
Empire Estate Agents
E: JHorner@empireestateagents.com
P: (08) 9262 0400
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