The official newsletter of Unit Owners Association QLD MARCH 2011SEPTEMBER 2012

Become a Member Today Click to Join now www.uoaq.org.au

EST.1978

Choose Carefully

and the Tender Process

uoaq.org.auUnitNews September 20122

COMMUNITY LIVING SOLUTIONSReducing Costs & Increasing Value for Unit Owners

yourstratamanagement.com.au

PROUD SUPPORTER OF UOAQ

RESULTS ORIENTATEDWEB DESIGN & MARKETING{ }

www.stickybeakmedia.com.au

BrisbaneP 3220 0959 or www.uoaq.org.au and request to communicate to a particular person Sue Ekert, Bob Boundy, Elle Young, Paul Cassels.Published by Unit Owners Association QLD

Editor Paul Cassels

Gold CoastWayne Stevens, Greg Carroll, Roger Dearing

Art DirectionDan Hancock - P 3162 8823 E hi@danhancock.com.au

Web DevelopmentJohn Connole - P 0439 879 740 E john@stickybeakmedia.com.au

Help for MembersMembers of the UOAQ are welcome to contact committee members of the association for any help on any body corporate matter.

SponsorsWe appreciate the support of our sponsors to help us do the work we do. To become a sponsor of UOAQ, please contact Paul Cassels on 3220 0959

Unit Owners Assocation QLD6th Floor. 333 Adelaide St, Brisbane Q 4000E help@uoaq.org.au P 3220 0959uoaq.org.au

DisclaimerArticles contributed to this newsletter are published as a service to members and do not necessarily reflect the opinion or policy of this Association. To contact the committee of the UOAQ for assistance with a body corporate matter please e-mail help@uoaq.org.au

www.uoaq.org.au

Unit Owners Association QLD

yourstratamanagement.com.au

Coralie Mott (BA Dip Ed, Cert IV in BCM)Director and Body Corporate Manager

Suite 35, Level 6. “Northpoint”231 North Quay Brisbane QLD 4000Telephone 07 3211 4445Fax 07 3211 4410Mobile 0419 741 066Email coralie.mott@ctsm.com.auwww.ctsm.com.au

CTS Management

UOAQ - Become a Member Today!

I note the reticence of the BCCM suggesting that they are not able to assist much, as they are not involved in the drafting of the legislation.

From the Editor Paul Cassels

Strata Inspections and Reporting

Quality BuildingManagement Pty Ltd.Quality BuildingManagement Pty Ltd.

Branding and Identity danhancock.com.au

One item of discussion which may/should be within the realm of their responsibilities, specifically providing education to owners, deals with BC Committees indiscriminately supporting extensions to Caretakers’ contracts, which preclude the Carmel model from being adopted – tendering the Building

Management Contract (can only be done in the last year of the contract prior to expiry), and with NIL purchase value of a contract which leads to significant cost reductions in the building management contract, the impact on significantly reducing levies is denied to owners.

This comes about by the Caretaker’s jostling to have the committee filled by owners compliant to the wishes of the Caretaker, which can result in outcomes against the interests of owners, but very compliant friendly to the Caretaker. Under the Code of Conduct, BCC members have obligations to act in the best interests of owners, but no such obligation to act in the best interests of Caretakers. Given the significant education sheets produced, will the BCCM produce an education sheet on this issue, warning BCC Committees of their obligations in this matter?

SIGN UP TODAY. uoaq.org.au

Hartley’s Body CorporateManagement

uoaq.org.au September 2012 UnitNews 3

■ Financial Management ■ Agendas & Meetings ■ Administration of your Scheme ■ Maintenance ■ Dispute

Resolution ■ Compliance

Hartley’s Body Corporate Management

‘Looking after all your Body Corporate Needs’

If the caretaking and letting contracts for your complex are nearing the end of their term, it is a good time to consider your options before automatically extending the existing arrangements. Our company has arranged for the calling of tenders for a number of schemes of varying size and complexity in recent months. This has allowed the bodies corporate in each scheme to gain maximum benefit from arms length market competition. In three schemes (two in Brisbane and one in Sydney) the caretaking contracts were tendered. Two had existing caretaking contracts in place, and the offers received from competing tenderers were substantially less than the price paid under the previous contracts. We are currently involved in a third scheme on the Gold Coast where the contract has lapsed. The evidence (based on temporary fill-in contractors) is that the savings will be in line with the aforementioned schemes – that is around 35% - 40% less than is currently paid.

In each case, when asked for their preferred contract term, the committee members opted for three years. This effectively means that the contracts are non-saleable contracts for service. Bodies corporate are often surprised to learn that there are contractors interested in these types of contracts. Our experience is that there is no shortage of reputable caretaking contractors wanting to tender.

If your scheme has parallel letting and caretaking contracts in place, and you wish to continue with this arrangement, it may be possible to receive tenders that provide even greater savings for the body corporate. This can occur due to the reduction of costs that accrue from not having to finance the purchase of the letting and caretaking contracts, as is the case in a standard commercial transfer. In a competitive arms length tender, these savings will be represented as lower costs to the unit owners in both the letting and caretaking contract charges.

When is it appropriate for your body corporate to take advantage of its option to tender the caretaking contract , you will need to check your agreement, and if necessary, seek independent legal advice. Most of all, flag the contract renewal date. Automatically extending the existing contract is seldom a good idea. Reputable caretakers will always be happy to submit a tender for the ongoing provision of caretaking services. The difference is that in a free market competition, the body corporate stands to benefit by testing the true value of the services being provided.

It is our experience that many small schemes that were set up by developers to have a resident unit manager, do not need one. These include schemes where the majority of owners do not want the inconvenience of short-term tenants and/or schemes that have such a small number of duties, outside contractors can service their needs adequately. Once again, calling tenders for the provision of these individual services will have the effect of ensuring value for money is received by the body corporate.

Rum Contracts and the Tender Process

Written by: David Leary FAIQS AFAIM

David Leary FAIQS AFAIMLeary and Partners

E david@leary.com.au P 07 3858 8222

Quick News

uoaq.org.auUnitNews September 20124

Quick News

Smoking in Home Units

Written by: Gary Bugden*

* Gary Bugden OAM DUniv is an author and Brisbane lawyer who practices exclusively in body corporate law. E gary@mystrata.com W www.garybugden.com

A recent overseas court decision and an even more recent New South Wales survey have highlighted an increasing concern about the effects of smoking in home unit buildings.

An on-line survey undertaken recently on behalf of the NSW Government sought to identify the issues that most concern people who live in strata and community title complexes. Surprisingly, the issue of smoking in home units generated more comments than any other single topic in the survey.

The report to Government stated that the “overwhelming majority of correspondents strongly objected to being subjected to second hand smoke in strata buildings and demanded that smoking be banned from communal areas and open air balconies”. The Government is understood to be considering such a ban, although no commitment has been made in this regard.

During the course of that survey being undertaken, a battle was raging in British Columbia and Canada, before the Human Rights Tribunal. The applicants, who lived in a 39 unit complex, experienced second-hand smoke entering their unit as a result of other residents smoking tobacco and marijuana on the patios and decks below. They alleged that the condominium

corporation failed to accommodate their complaints adequately or appropriately because they refused to enforce existing by-laws or make a new non-smoking by-law.

The Tribunal found that the applicants were physically and psychologically vulnerable and that they were treated by the condominium corporation and its managers with “what can best be termed a patronizing or benign neglect for a period of almost three years”. The condominium corporation was held liable and ordered to pay damages.

Although this case was based on the human rights of the applicants, North American commentators agreed that there was potential for the condominium corporation to be held liable to the applicants on the grounds of “negligence”, because it failed to act to protect the unit owners. The legal system in British Columbia is based on English common law, as is the Australian system, and Australian Courts often consider Canadian decisions, particularly on questions of negligence.

Both of these recent events are timely reminders for bodies corporate to consider the health and wellbeing of unit residents when

it comes to the effects of tobacco smoking (and marijuana smoking, if that fits your building) on common property and unit balconies.

There is nothing in the standard (Schedule 4) Queensland by-laws that enables a body corporate to address the problems of cigarette smoking. Even by-law 6 which regulates behaviour likely to interfere with the peaceful enjoyment of a unit or common property is of no use – because it only applies to the behaviour of “invitees” and does not apply to the behaviour of owners or occupiers. Section 167 of the BCCM Act prohibits the use of a large amount of common property in a way that causes a nuisance or hazard, and it could be argued that smoking may in some circumstances fall within that prohibition.

However, it would be preferable for the body corporate to make a new by-law to deal specifically with the issue. Because by-laws can regulate the use and enjoyment of both common property and units there would be no problem with the introduction of a by-law that regulated or prohibited smoking on common property and on balconies or patios of units. There are various options as to the extent of restrictions that may be applied by such a by-law.

uoaq.org.au September 2012 UnitNews 5

uoaq.org.au

CTS Management

Proud Member of:Contact our o�ce for an Obligation Free Proposal

Suite 35, Level 6, "Northpoint", 231 North Quay Brisbane Qld 4000

Phone 07 3211 4445Fax 07 3211 4410Email info@ctsm.com.au

www.ctsm.com.au

“Performance Based” Management SolutionsOur Professional Body Corporate Management Service includes:

- Performance Based Management Fees- Maximising Returns on Surplus Funds with Cash Flow Management- Formulating Cost E�ective Budgets- Conducting E�cient Meetings- Management of Insurance Quotations & Claims- Extensive Industry Knowledge & Experience- Transparency & Accountability For All Owners

David Leary FAIQS AFAIMLeary and Partners

E david@leary.com.au P 07 3858 8222

Management Rights | Levy Collection | Dispute ResolutionCommunity Management Statements | Review of By-laws

Establishment of Schemes | Construction DefectsLot Entitlement Disputes | Exclusive Use

Conveyancing

BODY CORPORATE MATTERS?ENGAGE THE BODY CORPORATE LAWYERS

mail@herdlaw.com.auwww.herdlaw.com.au

T: 07 3393 0433 F: 07 3393 0533

Everything Covered?

QBSA ACT Licence No. 109408a0

inspections@qbma.com.au www.qbm.com.au

For Professional, Friendly assistance and quotes call

1300 880 466

Sinking Fund ForecastInsurance ValuationBuilders WarrantyCondition AssessmentsSafety Risk ReportsAsbestos ReportsFire Safety ReportsAnd much more

Strata Inspections and Reporting

Quality BuildingManagement Pty Ltd.Quality BuildingManagement Pty Ltd.

Caretaker Duties Valuations and Tenders

Are you a member of a body corporate and concerned about the level of remunera-tion paid to your resident unit manager?

Does your body corporate wish to call tenders for the caretaker duties?

Our company has prepared numerous valuations of Caretaker Duties for buildings from Port Douglas to Coolangatta. We have experience with large hotel style com-plexes of three hundred units right down to small boutique developments of less than fifty units for both valuations and a calling of tenders.

For a fixed fee quotation or to discuss these specialist valuation services call us on

1800 808 991 or email enquiries@leary.com.au

Leary & Partners

uoaq.org.auUnitNews September 20126

19 Lot BFP complex - 1 positive sample Company Asbestos

AuditRegister Management

PlanSamples Sample result Year 2

ReviewTotal Cost

Company who takes samples

$605 Included $179 1 sample @$40

Positive $512 $1336

Other company who do not take samples

$618 With Management Plan

$298 No samples taken

All must be assumed as positive

$618 $1534

19 Lot BFP complex - want samples to prove if materials on site contain asbestos

Company Asbestos Audit

Register Management Plan

Samples Sample result Year 2 Review

Total Cost

Company who takes samples

$605 Included $179 1 sample @$40

Positive $512 $1336

Other company who do not take samples - plus 3rd party contractor to take samples

$618

$250

With Management Plan

$298 No samples taken

1 sample @$40

All must be assumed as positive

$618 $1824

19 Lot BFP complex - 1 negative sample

Company Asbestos Audit

Register Management Plan

Samples Sample result Year 2 Review

Total

Cost

Company who takes samples

$605 Included Not required as sample was negative

1 sample @$40

Negative $0 $645

Other company who do not take samples

$618 With Management Plan

$298 No samples taken

All must be assumed as positive

$618 $1534

Cost comparison when maintenance works are to be undertaken.

19 Lot BFP complex - 1 negative sample

Company Asbestos Audit

Register Management Plan

Samples Sample result

Maintenance works on area contain assumed asbestos materials

Year 2 Review

Total Cost

Company who takes samples

$605 Included Not required as sample was negative

1 sample @$40

Negative $5250 (they know the material does not contain asbestos)

$0 $5895

Other company who do not take samples

$618 With Management Plan

$298 No samples taken

All must be assumed as positive

$7250(they must get an asbestos removalist as the material is assumed to contain asbestos)

$618 $8784

Presented by QBM

w qbm.com.aup 1300 880 466

The clear recommendation is to ensure that all complexes constructed prior to 2004 obtain an asbestos audit, and that samples are taken of all suspect materials.

Call QBM/AAI Now on 1300 880 466• Protect your health• Protect your investment• Save Money

Below are some direct price comparisons to highlight the cost implications of not testing suspect material for the presence of asbestos.

The clear recommendation is to ensure that all complexes constructed prior to 2004 obtain an asbestos audit, and that samples are taken of all suspect materials.

Quick News 2 Part Series - Continued this issue

ASBESTOS SAMPLING

uoaq.org.au September 2012 UnitNews 7

Feature StoryWritten by: Brent Deller

19 Lot BFP complex - 1 positive sample Company Asbestos

AuditRegister Management

PlanSamples Sample result Year 2

ReviewTotal Cost

Company who takes samples

$605 Included $179 1 sample @$40

Positive $512 $1336

Other company who do not take samples

$618 With Management Plan

$298 No samples taken

All must be assumed as positive

$618 $1534

19 Lot BFP complex - want samples to prove if materials on site contain asbestos

Company Asbestos Audit

Register Management Plan

Samples Sample result Year 2 Review

Total Cost

Company who takes samples

$605 Included $179 1 sample @$40

Positive $512 $1336

Other company who do not take samples - plus 3rd party contractor to take samples

$618

$250

With Management Plan

$298 No samples taken

1 sample @$40

All must be assumed as positive

$618 $1824

19 Lot BFP complex - 1 negative sample

Company Asbestos Audit

Register Management Plan

Samples Sample result Year 2 Review

Total

Cost

Company who takes samples

$605 Included Not required as sample was negative

1 sample @$40

Negative $0 $645

Other company who do not take samples

$618 With Management Plan

$298 No samples taken

All must be assumed as positive

$618 $1534

Cost comparison when maintenance works are to be undertaken.

19 Lot BFP complex - 1 negative sample

Company Asbestos Audit

Register Management Plan

Samples Sample result

Maintenance works on area contain assumed asbestos materials

Year 2 Review

Total Cost

Company who takes samples

$605 Included Not required as sample was negative

1 sample @$40

Negative $5250 (they know the material does not contain asbestos)

$0 $5895

Other company who do not take samples

$618 With Management Plan

$298 No samples taken

All must be assumed as positive

$7250(they must get an asbestos removalist as the material is assumed to contain asbestos)

$618 $8784

Spilling the Beans

Continued from Last IssueBRISBANE - GOLD COAST - REDCLIFFEWorking with

owners to createhappy, healthy

and harmonious communities.

enquiries@capitolbca.com.au

CLICK HERE For a Quote Today

CLICK HERE To learn about us

www.capitolbca.com.au 1300 55 10 19

1. Digital Timer – The time in which your coffee pours is critical when trying to achieve the prefect espresso and is a great indicator to diagnose any problems. The general target for a single shot of coffee is 25 to 30 seconds. If your coffee tastes bitter and weak, chances are that your shot has poured too fast. On the flip side, if your coffee tastes bitter and burnt, it’s likely that your extraction has poured too slow and burnt the coffee.2. Espresso Measure Glass – the amount of coffee that you extract is equally important as the time in which it pours. Going hand in hand with the digital timer, aim for 25-30mls of espresso to extract between 25 to 30 seconds. If you pour more than 30mls you will start to extract impurities from the coffee resulting in a bitter tasting espresso.3. Hand Tamper – after dosing the ground coffee into your group handle you need to tamp to compact the coffee. To do this correctly you will need the correct hand tamper. When selecting a hand tamper, be sure to select a tamper with the correct base size to fit your group handle; this can range from 48mm to 58mm in diameter. If you’re not sure what size hand tamper you need, just measure the diameter of the basket in your group handle.4. Milk Jug – To achieve perfect milk every time, a good ergonomic milk jug is a must. Things to look for when choosing a milk jug: • The shape of the spout. Is it pinched and long enough to smoothly pour the milk? • Is it made from 18:8 stainless steel or better? This quality of stainless steel will help maintain the temperature of the milk once heated and won’t taint the milk.

With these four essential barista tools, you will be well on your way to making excellent coffee every time! These barista tools plus much more can be found at www.baristatools.net

What barista tools do I need to make the perfect espresso or café latte?

25% of the perfect coffee is the equipment and this includes the barista tools that are used. Now there are hundreds of barista tools and coffee accessories out there but there are four that every barista should have.

Quick News

Who’s Eating your Pie..

Fire Control$4,842

Insurance $5,282

R & M - Lifts $5,282

BCMCharges $5,282

14%

13%

9%

8%8%7%

6%

35%

MinorExpenses

$4,190

Community Power $8,884

Building Services $9,590

Caretaker

$24,220

CONSUMER PROTECTION FOR UNIT OWNERS

Title Name of complex

Your Details. Join Today

Phone

Mobile

Email

Address

Total units in Complex

Postcode

Postcode

State

State

Name

Direct Deposit/EFT:Bank MACQUARIE BANK BSB 182-512Account 9 6135 3547 Name UNIT OWNERS ASSOCIATION OF QUEENSLAND INC

I enclose $60 $55 (If over 60 years and you live in a unit)

Standard Format Plan

Membership Details

Membership Type

Building Format Plan

Join Nowuoaq.org.au

EST.1978

Who’s Eating your Pie..

Fire Control$4,842

Insurance $5,282

R & M - Lifts $5,282

BCMCharges $5,282

14%

13%

9%

8%8%7%

6%

35%

MinorExpenses

$4,190

Community Power $8,884

Building Services $9,590

Caretaker

$24,220

help@uoaq.org.au (07) 3220 0959 Level 6 / 333 Adelaide Street Brisbane Q 4000 GPO Box 2359 Brisbane Q 4000

We would like to acknowledge our sponsors throughout 2012. We appreciate your continued support.

Hartley’s Body CorporateManagement

yourstratamanagement.com.au

Strata Inspections and Reporting

Quality BuildingManagement Pty Ltd.Quality BuildingManagement Pty Ltd.

CTS Management