Foamrest Gardens [2011] QBCCMCmr 109 (14 March 2011)

Last Updated: 17 June 2011

REFERENCE: 0248-2011

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	11817
Name of Scheme:	Foamcrest Gardens
Address of Scheme:	11 Cotton Tree Parade COTTON TREE QLD 4558

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

the body corporate

I hereby authorise the committee of the body corporate for Foamcrest Gardens to spend $3,993 to replace the burst water pipe that is the subject of this application.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0248-2011

“Foamcrest Gardens” CTS 11817

Introduction

Foamcrest Gardens is a 9 unit scheme located at Cotton Tree on the Sunshine Coast. The committee for Foamcrest Gardens have lodged this application seeking emergency expenditure authorisation to replace a leaking water pipe within the floor slab of unit 9.

I will need to decide whether to authorise this expenditure with reference to section 243A of in the Body Corporate and Community Management Act (Act) and section 151 in the Act’s Standard Module Regulation (Standard Module).

Analysis

This is an application for emergency expenditure. The Commissioner has therefore immediately referred it to an adjudicator rather than taking the time to give all owners a copy of the application and an opportunity to make submissions on the application (Act, 243A).

The leaking water pipe is located in the slab forming the boundary between unit 9 and unit 6 below. It is therefore common property utility infrastructure that must be maintained by the body corporate (Act 20, Standard Module 159(1)). The body corporate has a statutory duty to act reasonably in performing its functions, including administering the common property and body corporate assets for the benefit of owners (Act, 94). Failure to replace this water pipe within a reasonable timeframe will result in the body corporate contravening its statutory duty.

The committee has attached a copy of a quotation for replacement of the leaking pipe at a cost of $3,993. I have no reason to doubt that the work described is reasonably necessary to address the problem. I also accept that the lack of water results in heath and safety issues and that authorisation for emergency expenditure is justified.

I will therefore authorise the committee to expend the amount requested.

Conclusion

The committee for Foamcrest Gardens have obtained a quotation for installing new pipe work to replace the burst pipe located in the concrete slab. I am satisfied I should approve the emergency expenditure sought to allow the committee to immediately accept this quotation.

Due to the urgency of the circumstances it has not been appropriate for the Commissioner to provide notice of this application to all owners and allow a period of time for those owners to make their own written submissions regarding the application. However, the amount of emergency spending required is not substantially above the normal committee spending limit and it seems appropriate the committee immediately arrange for repair even without notifying all owners.