April 15, 2016 admin

THE BUILDING MANAGEMENT COMMITTEE

The Challenge

The licensee has had experience with a Building Management Committee (BMC) consisting of four lots. Three of the lots are associated with the original developer and the other is a strata scheme built by the original developer.

It is noted that the original developer was not in the business of property development.

The challenge being that previous to the licensees involvement, the site had been managed by another strata managing agent and the BMC had not been established.

The issues raised were appropriate contributions had not been raised for shared facilities, the strata scheme had been paying for the majority of the costs and the insurance was undertaken by a broker that did not specialise in BMC’s, nor was the allocation of the insurance appropriately attributed to the 4 BMC members.

The Strategy

It was important to understand why the BMC was established. Trips to the BMC site and a review of the Strata Management Statement allowed the licensee to start piecing the puzzle together.

A review of the all accounts paid for the previous 2 years allowed the licensee to establish whether the correct entity had paid the invoices.

The BMC was also valued for insurance purposes and the insurance was tendered for an appropriate BMC policy.

The BMC shared facility percentages were also reviewed with associated members to ensure accuracy.

The Result

Members of the BMC meet officially and ran through a detailed agenda that cleared up any defective work. The meeting set the ground work for the coming years. A meaningful budget was adopted and where required, adjustments of expenses were granted to members.

The BMC is now appropriately established and its members and representatives understand how the Strata Management Statement operates and why there is a need for it.

The BMC has a good working relationship with all members. BMC correspondence is active and meetings are attended by all members regularly.

A co-operative approach has seen even the most difficult of issue raised, resolved quickly and at a minimum of cost to the BMC members.