Surf Sound [2006] QBCCMCmr 199 (24 April 2006)

Last Updated: 19 December 2006

REFERENCE: 0169-2006

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	14546
Name of Scheme:	Surf Sound
Address of Scheme:	67 Nerang Street NERANG QLD 4211

TAKE NOTICE that pursuant to an application made under the abovementioned Act by

Kalglen Pty Ltd, the Owner(s) of lot 1, 2 and 6

I hereby order that the body corporate is authorised to engage Exact Plumbing Services Pty Ltd to alter stormwater drainage to comply with local council requirements, pursuant to a quotation of $15,559 dated 11 April 2006 and also to perform a complete sewer renewal at a cost of $3,619 pursuant to a quotation dated 13 April 2006 should that sewer renewal be reasonably necessary. I further order that the body corporate is alternatively authorised to engage Sidney & Co Plumbing Contractors to alter stormwater drainage to comply with local council requirements, pursuant to a quotation of $17,469 dated 23 January 2006, including replacement of sewer DT tops. I further order that Conrad Beal (administrator) of The Body Corporate Headquarters, PO Box 7393, Gold Coast MC, Bundall 9726 is authorised to engage either of the above contractors on behalf of the body corporate and supervise the performance of the work. The administrator is authorised to raise a special levy from owners sufficient to cover the cost of the work and the administrator’s reasonable expenses of supervising the work at his usual hourly rate.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0169-2006

"Surf Sound" CTS 14546

Application

Surf Sound Community Titles Scheme (Surf Sound) is a 5 lot scheme under the Body Corporate and Community Management Act (Act) and the Act’s Standard Module Regulation (Standard Module). The scheme is designed for residential purposes and lot boundaries are designated under a building units plan (now known as a building format plan).

A previous application was lodged by a temporary administrator on 17 March 2006 seeking approval of a special levy to pay for urgent stormwater plumbing work to comply with local council requirements.^[1] I made an order authorising the engagement of Exact Plumbing Services Pty Ltd pursuant to a quotation of $14,940 dated 30 March 2006. However, owners have since discussed a different scope of works with storm water to be taken out to the road at the front of the scheme. The present application is by Kalglen Pty Ltd, owner of lots 1, 2 and 6 (applicant) against the body corporate (respondent). The applicant seeks appointment of Sidney & Co Plumbing Contractors pursuant to a quotation of $17,469 dated 23 January 2006. An alternative quotation is from Exact Plumbing Services Pty Ltd pursuant to a quotation of $15,559 dated 11 April 2006. An additional quotation by this company is to perform a complete sewer renewal at a cost of $3,619 pursuant to a quotation dated 13 April 2006.

Submissions

The applicant makes submissions to the effect that:

•	John Sidney of Sidney & Co Plumbing Contractors considers that it will be necessary to replace the area of sewerage that is still ceramic and replace it with PVC pipes;
•	Both plumbers are now giving quotations for the same scope of works if the contingency of $3,619 from Exact Plumbing Services Pty Ltd is included; and
•	The quotation from John Sidney should be selected as he has quoted correctly from the beginning and is $1,709 cheaper in price.

Other owners have made submissions to the effect that they prefer the quotation of Exact Plumbing Services Pty Ltd and that the quotation from Sidney & Co Plumbing Contractors only refers to replacement of the sewer disconnect trap rather than a new sewerage line as quoted by Exact Plumbing Services Pty Ltd.

Decision

Applicable legislation

An adjudicator must make an order that is just and equitable in the circumstances to resolve a dispute (Act, 276). In particular, the legislation contemplates that an adjudicator can authorise body corporate spending as emergency expenditure (Standard Module, 103).

Stormwater plumbing work

I am satisfied that urgent plumbing work is required at Surf Sound to meet with local council requirements and that it is appropriate for me to authorise emergency expenditure in this regard.

It is not clear on the face of the quotation from Sidney & Co Plumbing Contractors that the quotation includes a complete replacement of the sewerage line rather than just a replacement of the DT traps. If this quotation does indeed include a complete replacement of the sewerage line and if the complete replacement is in fact necessary then this quotation will be cheaper. On the other hand, if either a new sewerage line is not necessary or is not included in the Sidney & Co Plumbing Contractors quotation then the quotation from Exact Plumbing Services Pty Ltd will be cheaper.
In any event, both quotations appear roughly comparable and acceptance of either quotation would appear to satisfy the local council requirements that necessitate the emergency expenditure. In the particular circumstances of Surf Sound, I have recently appointed an administrator.^[2] It seems appropriate that I authorise the acceptance of either quotation and authorise the administrator to contact both plumbers, clarify exactly what work will be performed and when it will be able to be performed, and select the quotation that is most beneficial in the circumstances for the body corporate.

I note that a submission was also made to the effect that one of the owners was arranging a plumber to give a quotation on an illegal quick fix repair and an order was sought to prevent that owner performing any illegal plumbing works. However, there is no evidence that satisfies me that any illegal plumbing work is proposed and I will therefore not make any order to this effect.

Order

For these reasons, I make the order above.

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^[1] Surf Sound, Application 0194-2006.
^[2] Surf Sound, Application 0240-2006.