South Bank Towers [2008] QBCCMCmr 30 (30 January 2008)

Last Updated: 22 February 2008

REFERENCE: 0059-2008

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	13224
Name of Scheme:	South Bank Towers
Address of Scheme:	149 Ryan Street West End QLD 4101

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

Body Corporate Committee for South Bank Towers

I hereby authorise the body corporate for South Bank Towers to spend the sum of $17,226 for the purposes of meeting the cost of urgent repairs to the passenger lift motor.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0059-2008

"South Bank Towers" CTS 13224

The Scheme

South Bank Towers is a 22 lot scheme regulated by the Body Corporate and Community Management Act 1997 (Act) and the Act’s Standard Module Regulation (Standard Module). The scheme is registered on a Building Format Plan, previously known as a Building Unit Plan.

Application
This application is by the body corporate seeking authorisation for emergency expenditure of $17,226 on lift repairs. The order is sought because the proposed expenditure is of an emergent nature, given that there is only one passenger lift within the 11 storey complex and the lift is currently inoperative.

Further, the applicant seeks relief from the requirement that at least 2 quotations be obtained for the following reasons:

(1) The emergent nature of the work makes it impracticable to obtain additional quotations;

(2) The body corporate has already entered into a comprehensive lift maintenance agreement which still has several years to run. If the body corporate were to engage another lift mechanic to replace the lift motor, there would be difficulties in establishing responsibility for repairs should the new motor contribute to future breakdowns;

(3) The body corporate has had the quotation reviewed by an independent consultant to ensure that the quoted price is reasonable for the proposed work.

On 29 January 2008 the body corporate committee resolved to engage Schindler Lifts to undertake repairs to the lift motor at a cost of $17,226 which was to be allocated from the sinking fund. On the same date, the committee resolved that an order be sought from an adjudicator authorising the above emergency expenditure in order to effect the repairs.

Decision

The scheme is registered on a Building Format Plan, and accordingly, maintenance and repairs to the lift area is generally the responsibility of the body corporate. While the Act limits committee spending on a particular project, it does recognise certain exceptions to this general rule. In this regard section 103 of the Standard Module Regulation provides as follows:

Spending by committee
(1) The committee may only carry out a proposal involving spending above the relevant limit for committee spending for the scheme if--
(a) the spending is specifically authorised by ordinary resolution of the body corporate; or
(b) the owners of all lots included in the scheme have given written consent; or

(c) an adjudicator is satisfied that the spending is required to meet an emergency and authorises it under an order made under the dispute resolution provisions; or
(d) the spending is necessary to comply with--

(i) a statutory order or notice given to the body corporate; or

(ii) the order of an adjudicator; or

(iii) the judgment or order of a court.
The matter for my consideration is whether, in the circumstances, it would be just and equitable to make an order declaring that the Body Corporate Committee is entitled to commit funds for the purpose of effecting emergency repairs to the only passenger lift within the 11 storey complex in order to make it operational.

In the circumstances, I believe it is appropriate for me to authorise emergency spending for the purposes of effecting emergency repairs to the lift and propose to order that the body corporate be authorised to spend $17,226 as emergency expenditure to meet the cost of urgent repairs to the lift.