Once you have decided that repairs are required, whether the items that needs to be repaired is common property or not and whether it really is a repair, renewal or replacement etc, the next major decision is to determine what approvals are required and to prioritise the repair works.

What approvals are required?

An owners corporation should always have a formal motion to conduct any type of repairs, but the form of motion can take many forms, indeed a file note is normally all that is required if repair works are authorised by a strata managing agent under delegated authority. It is important to note that a range of approvals will often be required in order to comply with all Acts and Regulations during the course of any works project, particularly a larger repair problem.

Generally speaking, the approvals required for most repair works projects are easy to arrange. An owners corporation could undertake most repairs (including for example complex repair works costing over $250,000) and all that would be required is an ordinary resolution which requires 51% of the vote. If sufficient funds are available, and appropriate delegations are in place, this could even be done entirely by the executive committee or even the strata managing agent.

Many owners are often concerned that the executive committee can make all decisions with respect to expensive works and that they have no say. This is the law. Put simply the Strata Schemes Management Act it is designed to make the process of carrying out repairs, replacement and renewal works as simple as possible. In essence, by way of explanation, the Strata Schemes Management Act places a low threshold on repair motions thus removing many barriers to getting maintenance works carried out.

On the other hand the Act places a fairly high test (i.e. requiring a special resolution) on private works involving common property, particularly where the works are visible or ‚concern‛ other apartments in the strata scheme.

For most strata schemes, the Strata Managing Agent will guide the repair process efficiently and effectively.

Bear in mind also that it is quite common that multi-stage approval will be required, for example a complex repair project requiring a DA might require the following approval stages:

• the discovery stage may require approvals to engage experts and other building consultants prior to any works being undertaken at the initial stage of works, this could be done under delegated authority by the Strata Managing Agent or else by the executive committee;
• when plans and specifications have been prepared, the consent or approval of the owners corporation is then required to lodge the DA with the local council, this only requires only an ordinary resolution and the seal of the owners corporation to lodge the forms with Council;
• when the owners corporation is ready to contract with a builder an ordinary resolution is required to seal a building contract, and sensibly evidence that all of the applicable insurance policies, plans, certificates and other approvals have been obtained should be sighted and minuted at the same time;
• if variations occur, or when payment is required, this also requires some form of approval, normally only an ordinary resolution.

Clearly the more complex the building works, the greater the number of approvals that will normally be required. For example if building works are undertaken which have simultaneous repairs, improvement and exclusive use works then a range of by-laws and resolutions might be required.

The Strata Managing Agent will guide the strata administration processes and Strata Renovations and the other professional advisers can advise on Council processes. However it is important to allow time for these approvals in the building process and to recognise that they are required.

Note also that repair works will often also require approval to finance the works. Finance approval is one of the few approvals that cannot be granted by the executive committee. A special levy and many of the commercially available strata finance loans currently require a general meeting of the owners corporation.

Priorities and other issues

Strata Renovations finds that it is often useful to think about the type of "repair" that is required. For example:

• cosmetic repairs (eg minor cracks)
• structural repairs (no risk of collapse)
• structural repairs (risk of collapse or risk of causing injury)
• risk to health and OH&S (eg mould etc)

All repairs are important and detract from the appearance and value of a property, but some require immediate and urgent attention, other repairs can be executed in accordance with the normal course of a maintenance program. Strata Renovations has used the following priorities:

• Urgent: Structural defects with potential to cause injury or death, Asbestos and other hazardous materials, Electrical or water hazard, Stop & repair termite damage etc
• High: Ventilation, mould, water penetration and damp, OH&S and general public safety, Water leaks in living space, Internal plumbing
• Moderate: Flood risk to habitable property (eg living room and bedrooms), Structural repairs with potential to cause damage to property, Area drainage, Removal of trees, Major cosmetic cracking,
• Low: Repairs (non-structural cracking etc), Cosmetic repairs, Cosmetic painting etc, excessive water in non habitable areas
• Not prioritised: TV reception, Broadband, Other amenity

Additionally it is important to consider if there are other reasons why repairs must be undertaken, some other considerations are as follows:

• Is the repair required for a legislative requirement (eg removal of asbestos etc)
• Are urgent repairs required following an application to the Tribunal
• Building maintenance to replace, repair and maintain common property
• Building renewal (which might be a borderline improvement) and similar expenses that might be of a capital nature
• Expenditure for works required for Fire & Safety reasons
• Urgent repairs or works required for OH&S reasons

Some things to look out for

What happens if approval is withheld for repairs?

Examples

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