Ocean Plaza Apartments [2003] QBCCMCmr 49 (5 August 2003)

Last Updated: 17 May 2005

P J HANLYREFERENCE: 0455-2002

INTERIM ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	5879
Name of Scheme:	Ocean Plaza Apartments
Address of Scheme:	cnr Marine Parade & Warner Street COOLANGATTA QLD 4225

TAKE NOTICE that pursuant to an application made under the abovementioned Act by the Body Corporate FOR Ocean Plaza Apartments CTS 5879

I hereby order that the application for an interim order that pursuant to section 103(c) of the Standard Module regulation the adjudicator authorise spending in the amount of $29,640.60 for the replacement of the fire board in accordance with the quotation of Siemens dated 18 June 2002, is dismissed.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0455-2002

"Ocean Plaza Apartments" CMS 5879

The applicant, the Body Corporate for Ocean Plaza Apartments, has sought the following order of an adjudicator under the Body Corporate and Community Management Act 1997 (the Act), quote -

An order pursuant to section 103(c) of the Standard Module regulation that the adjudicator authorise spending in the amount of $29,640.60 for the replacement of the fire board in accordance with the quotation of Siemens dated 18 June 2002.

The applicant has also sought an interim order of an adjudicator in the same terms.

Section 225(1) of the Act provides that an adjudicator may make an interim order if satisfied, on reasonable grounds, that an interim order is necessary because of the nature or urgency of the circumstances to which the application relates. An adjudicator’s order may contain ancillary or consequential provisions the adjudicator considers necessary or appropriate (section 230(1)).

In the supporting grounds, the applicant states that on or about 1 April 2002 the fire board in the building was damaged by contract cleaners. The applicant further states that temporary repairs were undertaken, but the fire board now needs replacement, and it is concerned that the Queensland Fire and Rescue Authority may impose penalties or require the building to be vacated until the fire board is replaced.

Section 103(1)(c) of the Body Corporate and Community Management (Standard Module) Regulation 1997 (the Standard Module) provides that the committee may only carry out a proposal involving spending above the relevant limit for committee spending ($100 x the number of lots in the scheme-(114)- therefore $11,400.00) if an adjudicator is satisfied that the spending is required to meet an emergency and it authorises it under an order made under the dispute resolution provisions. However, section 103(3) of the Standard Module further provides that the section has effect subject to the requirements under Division 6 for spending that is above the limit for major spending ($200.00 x the number of lots in the scheme-(114)- therefore $22,800.00).

Section 104 of the Standard Module provides as follows:

Quotes for major spending

(1) This section applies if--

(a) a motion to be moved at a general meeting of the body corporate

proposes the carrying out of work or the acquisition of personal

property or services, including the engagement of a body

corporate manager or service contractor, but not including the

engagement of a service contractor who also is, or is to be, a

letting agent; and

(b) the cost of carrying the proposal into effect is more than the

relevant limit for major spending for the scheme.

(2) The lot owners must be given copies of at least 2 quotations for

carrying out the work or supplying the personal property or services.

(3) If the motion is proposed by the committee, the committee must

obtain the quotations.

(4) If the motion is not proposed by the committee, the person proposing

the motion must obtain the quotations and give them to the secretary.

(5) Copies of the quotations or, if voluminous, summaries of the

quotations and advice about where the complete documents may be

inspected, must accompany the notice of the meeting at which the motion

is to be considered.

If, for exceptional reasons, it is not practicable to obtain 2 quotations,

a single quotation must be obtained and must accompany the notice of

meeting.

Example--

If goods to be acquired by the body corporate are obtainable from only 1 source, a

quotation for supplying the goods must be obtained from the source and circulated with

the notice of meeting. The fact that goods with the necessary characteristics are only

obtainable from a single source would be an exceptional reason for not obtaining

2 quotations for the supply of the goods.

(7) Each quotation obtained under this section must be retained as an

attachment to the minutes of the meeting at which the quotation is

considered.

The quotes obtained by the committee are all in excess of the relevant limit for major spending in this scheme. Accordingly, because of the requirements of section 104(2), I am unable to make the order sought.

I note that the letter dated 3 April 2002 from the Centre Manager of Show Case Shopping Centre Coolangatta advised the resident managers that "Asset Fire Services have conducted a number of temporary measures to bridge these critical services however we believe it will be necessary to have the fire panel replaced due to the excess water damage caused by the contractor on 1^st April 2002."
In light of this information it is surprising that it took so long for the committee to take action, particularly when two quotes for replacement of the fire indicator panel were available by the end of April 2002.

In the circumstances, it is not intended to invite further submissions regarding this matter, or to make a further order, since this decision, though an interim one as sought by the applicant, is final in its determination of this matter. If the applicant considers that an appeal of this decision is warranted, then it should appeal the interim order.

2n