The River Gallery Apartments [2009] QBCCMCmr 326 (28 August 2009)

Number of Scheme:	28856
Name of Scheme:	The River Gallery Apartments
Address of Scheme:	6 Merthyr Road NEW FARM QLD 4005

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

I hereby order that the Body Corporate for The River Gallery Apartments is authorised under paragraph 151(1)(c) of the Body Corporate and Community Management (Standard Module) Regulation 2008 to expend a sum of money above its relevant limit for committee spending by accepting the quotation from Gasworks Industrial Pty. Ltd. dated 19 August 2009 for $39,846.07 plus the cost of any additional ancillary work not included in the quotation.

The River Gallery Apartments is a community titles scheme governed by the Body Corporate and Community Management Act 1997 (the Act) and the Body Corporate and Community Management (Standard Module) Regulation 2008 (Standard Module). It is registered on a Building Format Plan of subdivision and consists of 100 lots in two blocks.

Owing to failing hot water units in “A” block, the body corporate committee is seeking authorisation under section 243A of the Act to incur expenditure above the relevant limit for committee spending in order to replace and relocate the existing hot water plant.

At present there are 5 hot water systems providing hot water to more than 100 occupants of the 48 apartments and 4 townhouses in “A” block. Of the 5 hot water systems, 3 have now failed and the body corporate has been advised that the 2 remaining hot water systems are likely to fail at any time without warning . Once the remaining 2 units fail, more than 100 occupants will be without hot water for a minimum of 5 business days while repairs are undertaken. It has also come to light that the units are currently installed in a manner that does not comply with current Australian Standards. As a result the hot water systems will need to be relocated with 4 new exhaust flues fitted.

A quotation has been obtained from Gasworks Industrial Pty. Ltd. in the amount of $39,846.07 for works which include installation of 4 x Bosch “32” commercial hot water units, 4 x pumps, 4 x flues, gas line and water lines in a new location.

While the building manager has attempted to obtain a quotation from another contractor, a quotation has not been forthcoming because that contractor is unable to provide a solution and quotation within the required timeframe. The applicant states that inquiries with other suppliers have met with a similar response.

Section 276(1) of the Act provides that an adjudicator may make an order that is just and equitable in the circumstances (including a declaratory order) to resolve a dispute, in the context of a community titles scheme, about-

(a) a claimed or anticipated contravention of the Act or the community management statement; or

(b) the exercise of rights or powers, or the performance of duties, under the Act or the community management statement; or

(i) the engagement of a person as a body corporate manager or service contractor for a community titles scheme; or

(ii) the authorisation of a person as a letting agent for a community titles scheme.

An order may require a person to act, or prohibit a person from acting, in a way stated in the order (section 276(2)). An adjudicator's order may contain ancillary and consequential provisions the adjudicator considers necessary or appropriate (section 284(1)).

Section 243A of the Act provides for the referral of a matter to dispute resolution officer in emergency in the following terms:

(1) This section applies if the commissioner reasonably considers—
(a) an application should be immediately referred to a dispute resolution officer because it relates to emergency circumstances; and
Example of emergency circumstances—
a burst water pipe the repair or replacement cost of which exceeds the body corporate committee’s expenditure limit under the regulation module applying to the scheme

(2) The commissioner may immediately refer the application to a dispute resolution officer without giving written notice as mentioned in section 243(1).

The body corporate is seeking authorisation of emergency expenditure to replace failing hot water systems that service more than 100 people living in the 48 apartments and 4 townhouses located in “A” block. I note that 3 of the 5 hot water systems have now failed and the body corporate has been advised that the 2 remaining hot water systems are likely to fail at any time owing to the increased loads placed on those remaining systems. I also note that unless measures are taken to replace the current plant before it fails completely, more than 100 occupants will be without hot water for a minimum of 5 business days while the work is undertaken.

The body corporate has sought this authorisation for emergency expenditure because the proposed cost of $39,846.07, exceeds the relevant limit for committee spending for the scheme. The body corporate also advises that other contractors have not been able to provide quotations and/ or organise the work within the required timeframe.

Under paragraph 151(1)(c) of the Standard Module Regulation I am empowered to make such an order.

Maintenance of common property including utility infrastructure is a body corporate responsibility by virtue of section 159 of the Standard Module Regulation and in the circumstances I consider that it is appropriate to authorise emergency expenditure to have the existing hot water plant replaced and relocated.

The purpose of paragraph 151(1)(c) of the Standard Module Regulation is to authorise emergency expenditure in circumstances where proposed work must be carried out as a matter of urgency. Clearly, when the failure to undertake repairs is likely to leave more than 100 people with a source of hot water, urgent intervention is required.

that the Body Corporate for The River Gallery Apartments Hills is authorised under paragraph 151(1)(c) of the Body Corporate and Community Management (Standard Module) Regulation 2008 to expend a sum of money above its relevant limit for committee spending by accepting the quotation from Gasworks Industrial Pty. Ltd. dated 19 August 2009 for $39,846.07 plus the cost of any additional ancillary work not included in the quotation.

Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders

The River Gallery Apartments [2009] QBCCMCmr 326 (28 August 2009)