Thursday, 27th June 2019

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Diana
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Last seen: 8 years 11 weeks ago
Joined: 26/10/2010

Hi All,

I have a query about the responsibilities of the Building Management Committee as opposed to the Executive Committee.

We have a Caretaker/Cleaner/Maintenance handyman who maintains all areas of common property.
Their invoices are paid out of our Building Management Committee fund.

My question si in relation to terminating his contract. He has a 1 month notice period built into his contract, but when you have a structure of a Residential/Commercial Strata Scheme and then a Building Management Committee who represents both, how do you make the decision to terminate a contractor and whose responsibility is it?

Is it the members of the BMC, or does it go to vote within the individual schemes?

Help is appreciated!

Cheers,
Diana

Daniel Russell ...
Daniel Russell - Chambers Russell Lawyers's picture
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Last seen: 4 years 51 weeks ago
Joined: 07/07/2010

Hi Diana,

It sounds like the contract is with the Building Management Committee. The Strata Management Statement should provide how decisions are made by the Building Management Committee, including the decision to terminate a contract. Keep in mind that a Building Management Committee is not a separate legal entity and only acts through its members, so the constituent owners corporations will most likely need to resolve certain matters and take certain actions in any event.

The terms of the Strata Management Statement may also provide for the rights or responsibilities of members in relation to engaging such contractors. There is also the possibility that there are in fact several contracts with one or more entities, that the contract was not properly made, or a variety of other potentially complicating circumstances.

If the caretaker is a resident caretaker in one of the strata schemes then there are numerous additional complications to consider (although I would be surprised to find a resident caretaker with a contract providing for termination on 1 month notice).

I would expect your managing agent would be able to clarify the situation. If not as always you can consider engaging a lawyer to assist.

Best regards,
Daniel Russell
Mills Oakley Lawyers
[email protected]

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Diana
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Last seen: 8 years 11 weeks ago
Joined: 26/10/2010

Hi Daniel,

Many thanks for your help.

Our Building Management Committee has an ABN and is registered as Entity Type - Strata-title, seperate to our Residential Fund.

Would this indicate we have registered it as a legal entity?

Cheers,
Diana

Daniel Russell ...
Daniel Russell - Chambers Russell Lawyers's picture
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Last seen: 4 years 51 weeks ago
Joined: 07/07/2010

No, an ABN is simply an administrative concept (largely to do with taxation) rather than a legal entity.

The possibility of creating a legal entity in relation to a Building Management Committee is purely speculative and certainly not within the intention of the legislation.

Best regards,
Daniel Russell
Mills Oakley Lawyers
[email protected]

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BurlFord
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Last seen: 1 year 22 weeks ago
Joined: 31/03/2016

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