Repairs should be the simplest thing in the world to arrange for any apartment, but some people and owners corporations find it very difficult.
There are two types of repairs, the difference is important:
- repairs to an apartment (ie the owners property) when the owner must pay for the repairs; and
- repairs to common property (ie the property of the owners corporation) when the owners corporation must pay for the repairs.
The way that these two types of repairs are managed is completely different.
Strata Renovations has listed the main considerations and steps in the repair process. These are not necessarily consecutive, but if you follow or at least consider all of them it will normally assist you greatly. The steps are listed below.
1Check that it is a repair. What is a repair? To put it simply a repair is anything required to repair or maintain property. But it is important to note that a repair is not an improvement, renovation or an extension. In a strata context, works may become an improvement when common property is impacted (even at the point of connection), an extension involves changing usable areas (even an area of air space) and a renovation is when repairs, improvements and extensions all happen at the same time (this is a Strata Renovations definition).
2Determine who has to pay. There are normally only two options, either the owner of an apartment, or the owners corporation. The rules for who owns what can be complex, and often require legal or specialist advice from a strata managing agent. Strata Renovations has summarised the rules for apartment repairs here are for common property repairs here.
3Specify the repair works that are required. In some cases this may require assistance from building professionals. Strata Renovations has provided a comprehensive guide here which covers many of the main points of engaging a professional to manage this process. Of course most repair jobs are fairly small and do not need professional help or assistance. It is perfectly proper for a strata managing agent, or an owner to draft a simple specification of what is required and then obtain a few quotes from builders or tradesmen. For very simple quotes you may accept the quote provided by the tradesperson. For larger projects the NATSPEC system is usually preferred. For works that require Council permission, a Specification may be required by either Council or the Private Certifier.
4Strata administration. This includes drafting motions, convening and holding meetings, getting the necessary approvals from the owners corporation or a delegated decision maker. Strata renovations has summarised the necessary administrative strata processes here with respect to how to get the proper approvals for repairs.
5Council permissions. Owners are often surprised that "repairs" will often require permission from the local council of one form or another. Some works do not require any form of permission, many repair works can be undertaken as "exempt" development, but often it is necessary to submit a Development Application (DA) for repair works. Strata Renovations has summarised many of the common requirements on this site.
6Obtain quotes or tender for the works. The process of obtaining quotes can a simple or time-consuming and complicated process. The approach taken should reflect the complexity of the works and the size of the project. Simple repair works will often only require simple quotes. These might follow from a simple telephone call to tradesmen. Larger project might require an "engineers" specification and tender package or similar. As a "rule of thumb", any structural project or projects over $250,000 should be professionally specified and tendered. This will normally take the form of a NATSPEC specification and associated tender document. If a specification has been prepared, the tender process will then be easier. Generally speaking the more complicated the tender process the longer the process will take, and the more that it will cost in administration. This site provides a vast amount of information to guide this process. If in doubt, seek professional advice.
7Contract with a builder or tradesman. When you have quotes and the necessary approvals have been gained, proper management requires some form of contract with a builder or tradesman. There are of course a vast number of ways that you can contract with a builder or tradesman. There are many commercially available contracts which can be used. If nothing else there should always be a simple letter or written instruction. This site provides a vast amount of information to guide this process. If in doubt, seek professional advice.
8Arrange access, issue notice and supervise the building works. When all of the paperwork and administration has been done, doing the actual repair work or construction is often the easy but. However complexities often arise, particularly for large schemes. It is important to issue proper notice to all owner's and tenants. Occasionally access needs to be arranged, and notice provided etc. Access can be a nightmare if other owners refuse to give permission to enter their apartment so that repair works can be undertaken. Remember also to ensure that all building works have some form of supervision. And on completion, someone must ensure that the works have been carried out properly.
9Check completion, certificates and authorise payment. Finally, after the works are complete, check that the works are complete. For simple works this can be as simple as a member of the executive committee checking that the job has been done. For major repair projects a Private Certifier may be required. If it is required to provide certificates for the works, ensure that they are obtained before payment is authorised and made.
The following pages provide more details around each of these steps in the repair process.