Strata Climate Change Research Update

Yesterday I showcased the progress of the NCCARF & Griffith University research on Strata Climate Change at the SCA National Convention.


And, the latest news is that there's an online survey that everyone can complete to help us understand what strata stakeholders think at this link - www.griffith.edu.au/climate-change-survey 

The presentation slides and key points follow.

And thanks CHU for giving me the opportunity to do this.


Francesco ...

Volunteer Strata Buildings Sought in Sydney

The City of Sydney wants you! If you're the right kind of start building to participate in their Smart Green Apartments Program.


The program wants to create more efficient and cost-effective buildings by focusing on energy/water efficiency and waste reduction and trying to improve base building performance, minimise environmental impacts and connect residents around greening initiatives.

So they are looking for 25 buildings to participate in a pilot programme and study.  It's free and your building will receive -

• A comprehensive Energy Saver audit, provided through the Office of Environment & Heritage’s Energy Saver program with costed recommendations and clear pay-back periods to increase the efficiency of your building.
• A Water Use Report providing recommendations for improving water efficiency
• A Waste and recycling assessment and upgrade

Part of the deal is that you should implement recommended improvements and provide ongoing information for monitoring purposes.

You can find out more here.  And, if you want to participate contact Julia Lipton, the Sustainability Engagement Coordinator at City of Sydney by email or on +612 9246 7826.

It's a great way to improve your building with the best advice and show others what and how to do it.

Francesco ...

 

Meet Your Perfect Strata Match

There's a new service for people in Australian strata buildings to meet their perfect match.  It won't find you a man or woman, but, rather the strata manager of your dreams. 


Strata Match launched last month and promises to 'take the stress out of changing your strata manager' by finding out what strata corporations want from their strata manager, sourcing compliant tenders from strata managers and assisting strata corporations to appoint the best match.  It's free to strata corporations which means the strata managers pay for the service if they get appointed.


I think it's likely to get a lot of interest from strata owners who have struggled to find and compare strata managers.  And, maybe also from strata managers who can now demonstrate (in a comparative way) why they are better than the alternative.


I'm particularly interested in one of the features of their website where you can rate your strata manager and the rating categories they ask about which are - 

• Return of phone calls 
• Response of emails 
• Provide accurate and timely financial reports & accounting
• Accuracy of levy notices
• Call meetings on time 
• Knowledge of the act & processes
• Continuity of staff
• On site inspection frequency
• Response to maintenance issues
• Value for money

They're all pretty basic things but will make for some interesting results.  How would your strata manager rate? 


So, if you're a strata corporation that needs a new strata manager, or a strata manager that wants to tender for business, why not contact Strata Match?


Could it be that Strata Match is the new Dexter.


Francesco ...

Another View of Strata Building Defects

My blog earlier this week about strata building defects (see More Strata Defects Exposed) prompted a lengthy email to me from Greg Ellevsen of ADCO Constructions who agreed for me to re-post it here. 


It's another view about the problem and well worth considering. 


Greg Ellevsen wrote: 
Hi Frank, 
Thanks for posting your blog article. Good points made all round and you clearly resonate the frustration felt by home unit owners. 
I have witnessed these frustrations in several buildings and in those cases the owners were right in what they were asking to be repaired under warranty. I have also been privy to other cases where an "expert" building consultant has prepared an enormous list of "defects" that amounts to a small percentage of valid warranty defect issues among a whole lot of other invalid ones. 
Reports of this kind are common and send a sometimes over alarming message to, and unduly raise the expectations of, owners and lawyers. This ends up being unhelpful to the process of resolution of defects when a lawyer has a mountain of issues to start with, many of which are whittled down in the fullness of time when the real issues are eventually filtered from the rest. 
Rather than limit the legal ground for lawyers to use for warranty claims, a more sensible approach to defect reporting by overzealous building consultants would help. There seem to be as many defect report formats as there are defect reporting building consultants. Standardization only comes into play if these progress to a Scotts Schedule for submission to the Tribunal.
I think it would also help if building consultants had to conform to a standardized form of report where the layout is the same from one to another and where valid warranty defects are also categorised and referenced against the relevent Australian Standard or BCA paragraph, it has breached. This would encourage the building consultant to be more precise in reporting and less sensational in the presentation of their findings to owners who eagerly hang on their every word.
So this brings me to compliance- Inspection and Certification. I perceive a HUGE misunderstanding among the general public and even the strata profession as to what used to happen (say pre 2005 or even pre 2000 Private Certifier introduction) and what is required now. Really, there ain't much difference! There is no point in anyone getting their rocks off over what seems to be perceived as a substandard job the current private certifier does compared to the former statutory role of local government council building inspectors. Sure there were private certifiers being corrupted in the initial few years however that was stamped out post 2005. My experience is that private certifiers do a more thorough job than council inspectors. One crucial point needs to be understood- a certifier does carry out a very small number of compliance inspections during a job, however- a certifier is NOT a quality control inspector. It is not their role and they shouldn't be expected to have had control of the quality of the work carried out. 
So what's wrong with the system? Far be it from me to claim to know all the answers but I'd like to contribute the following ideas; 
1) The builder carries the can for everyones mistakes and this has bred a culture of irresponsibility among some trade contractors. A builder is liable under the Home Building Act 1989 for all of the work in the building, however not one single trade subcontractor is!! If a subcontractor does the wrong thing, he can't be hunted down by statute of law by home owners through the Home Building Act. He has no statutory warranty to the home owner. He has no statutory warranty to the builder under the Home Building Act. Sure he might do part of the work, but he is not liable under the Home Building Act to have performed it properly. The only way a builder can draw a subcontractor back is through contract law, and that is usually limited by a defects liability period of one year. To do better than that a builder almost needs to be a lawyer himself. The bar needs to be raised such that every single trade contractor, whether builder or subcontractor, whether contracted to home owner, to developer or to builder, should be held accountable for the quality of their work by statute of law under the Home Building Act the same way that builders are held accountable now. So- a change to the law to accommodate that is required. 
2) Trade contractor continued education is very poor. Rules and standards and methods are changing all the time and they are not up to speed. Other than licensed builders and licensed pool builders, licensed trade contractors are not required to accrue CPD points to renew their license every year. When CPD's were introduced for builders (over 10 years ago I think), Fair Trading gave all other licenced contractors another year before they would be required to accrue CPD's. They later decided that it wasn't enough time so they extended it for another yer and then another. It is now seemingly not even on the agenda of Fair Trading at all. What a croc. All trade contractors should be forced to earn CPD's an update their knowledge before they are licenced every year. It can only help- a lot. 
3) The skills shortage we keep hearing about has led government to ease the way for people to qualify in a trade. No longer does one need to do an apprenticeship. Mostly exploited by older workers and new Australians, a trade qualification can now be earned by evidence of prior knowledge and experience and by filling skill gaps with some study. My view is that some of the people who are charged with the privellige of assessing prior knowledge and experience have themselves entered the industry and become licenced without doing an apprenticeship. Some of them are not skilled tradesmen themselves and yet they qualify others in their trade. The whole concept needs an overhaul as we are getting a saturation of reduced skills in trades in the building industry. 
That's it from me for now Frank. I wanted to post this as a comment in your message so others could read it but it is too long. 
I really enjoy reading your posts. 
Regards Greg 


Thanks Greg. 


Francesco ...

City Futures Strata Research Published

After 2 years of work and consultation with strata stakeholders all over NSW, the City Futures Research Centre at UNSW has published the result of its project Governing the Compact City.

The report can be accessed here and comprehensively documents the challenges faced in effective strata management and provides an evidence base to inform future reforms in this area.  

The project was supported and funded by the Australian Research Council, NSW Fair Trading, NSW Land & Property Information, the Owners Corporation Network, Macquarie Bank and Lannock Strata Finance.

It's a very important ingredient in working out what should (and shouldn't) be done for strata corporations, committees, owners and managers.  Over the next few months I'll be highlighting findings and issues from the report to add to the debate and discussion.

Well done Professor Bill Randolph and Dr Hazel Easthope.

Francesco ...

More Strata Defects Exposed

There's been a lot of discussion about building defects in strata buildings in NSW recently.

Last month the developers and NSW Minister said that it was a 'beat up' by the lawyers.  And, now the City Futures Research Centre has published some survey results that suggest that over 75% of strata buildings have experienced defects.

The latest information has been reported in this Sydney Morning Herald article and has surprised many.  But, it's no surprise to me having experienced these things first hand for more than 20 years.  

Whether it's a minor fault in the building or there's water leaks that make apartments uninhabitable, it seems that most new strata buildings have problems and the owners struggle to get their problems addressed.  And, without doing something I expect things will only get worse until every new building suffers from unresolved defects.  I'm not the only person who thinks this as this opinion piece in the Sydney Morning Herald also suggests.

I also think that things have now reached the point where it hardly matters whose fault it is and why it happens.  After all, if we're serious about putting people into high density buildings, we need to make them decent and liveable (and fix them when they are not).

That probably means ensuring the following things -

• That the design and details for new buildings have meet higher quality standards
• Better and more frequent scrutiny of building construction to ensure compliance
• Clearer accountability of builders and developer for defects
• Improved building handover mechanisms to force defect issues to be resolved 
• The creation of improved strata corporation (and owner) rights have to get defects fixed
• Home Building Insurance needs to be the fall back when the system fails

Lets see what happens next.


Francesco ...

Another Strata Survey about Climate Change

I've blogged about the NCCARF & Griffith University Strata Climate Change research before (see Strata Title in a World of Climate Change) which is progressing steadily.


And, now they're surveying strata stakeholders about climate change issues and awareness and possible changes to strata laws and operations.  The survey is open until 6 July and can be accessed here.  Plus there's the chance to win a prize if you participate.


So, why not spend 15 minutes answering the survey and help improve the research outcomes?


Francesco ...

Hurry Up & Get Your Stamp Duty Free Apartment Now!

I've already posted about the NSW incentive for buyers of new strata apartments (see NSW Stamp Duty Changes).  


But since the scheme finishes on 30 June, there's a real estate frenzy as sellers, agents and buyers try do last minute deals. This article in the Sydney Morning Herald highlights some of the hype that's going OM. And, after 2 years of flat (or falling) real estate sales and prices, any hype is good hype. 


And, since your can save up to $22,000 there are real benefits.


So, if you qualify and want to save some money why not buy a strata apartment now? Hell, why not buy a few?  That way you can join StrataLand and enjoy the pleasure strata ownership and living. 


 Francesco ...

Mobile Apps Enter StrataLand

I've wondered how long it would take for StrataLand to adopt the latest mobile technology and start implementing Apps for iPhone and Android devices.  And, it's finally starting to happen.


I've already posted about the Strata Community Australian Convention in Adelaide on 27-29 May 2012 (see A Big Australian Strata Gathering in SA) and that I'll be presenting an update on the NCCARF/Griffith University Research Project about the impacts of climate change on strata and community title buildings.


But, you probably didn't know there's also a Convention App!  You can download it here (even if you're not attending the Convention) and it's got some pretty neat features.  So, well done SCA.


I know that the SCA Convention App is not really about strata corporation operations but it's a start and the many strata stakeholders who see and use it at the Convention might develop a taste for the technology and think about how it could help them manage strata corporations and help owners and others participate in strata affairs.


So, maybe you should get the App and come to the Convention too.


Francesco ... 

Is NSW Strata Defective?

Over the last few weeks there's been a bit of press in Sydney about strata building defects and why they are a problem.  The articles have suggested that it's not the developer or builders fault but rather that it is 'ambulance chasing lawyers' who have escalated claims when the situation is not that bad.


I'd expect this from developers and builders.  After all, they are entitled to try to protect themselves in whatever ways they can legitimately get away with.  And, lawyers are a tough bunch that are unlikely to stop representing strata corporations or making defect claims because they get criticised.


But, when the NSW Minister for Fair Trading, the Honourable Anthony Roberts, says the same thing I start to get worried.  He was quoted in this SMH article as saying that lawyers can “find another ambulance to chase” and that “the banquet is over” which is pretty surprising.  


After all you don't have to speak to very many strata owners, committee members or managers to hear them speak about building defects and the challenges they have faced (or are facing) to get them fixed.  Far from being a 'beat up' by lawyers, building defects are very prevalent and a normal part of owning a strata apartment these days.


For example, in 2011 the City Futures Research Centre at UNSW identified that almost half the strata owners and committee members they surveyed reported experiencing building defects in their building and issued this Information Paper about Defects in Strata Schemes. That's a lot of defective buildings and a lot of problems for a lot of people that need fixing.


My worry is that if the NSW Minister responsible for strata buildings actually thinks there isn't a serious problem with apartment building quality and really believes its just litigation focused lawyers, he'll do things to limit legal actions for building defects rather than do things to ensure we get better buildings.  We've seen it happen before.


So, before you join the lawyer bashing bandwagon - remember the defects that lawyer may be litigating about might just be in your building and causing water to flood into your lounge room.


Francesco ...

Strata Tips & Traps for Tradespersons

This week I spoke at a seminar arranged by Advanced Community Management for the contractors who work for its strata corporation clients.  I spoke about the peculiarities  about working in strata buildings and was titled Strata Trades Traps & Tips (or things to watch out for when you're working for strata corporations).


It was a great opportunity to convert complex strata titling and legal processes into practical messages which also I'm sharing here.


Who’s Who in Strata - It's important to understand who your client is (and who it's not) since strata corporations are not real and operate through people like Office Bearers, Committee Members, Owners, Tenants, Strata Managers and Building Managers.  But not all those people have authority to organise work, vary work and authorise payment.  So, make sure the people you're dealing with can do what they say.


Common Property Ins & Outs - In strata corporations parts of the building are either common property or a lot (since there's nothing else).  In general terms the lots are the air space between the floor, ceiling and perimeter walls of the apartments, garages and storage areas and everything else is common property. So most of the building structure is common property and the strata corporation's responsibility.  But, there's also some oddities like structural cubic space and exclusive use areas and not everything is what it seems.  So, make sure you're working on common property and if in doubt ask someone who knows.


Watch out for Insurance - Strata corporations must insure things including the building (which covers more than just the common property).  So, often trades work may be done under an insurance claims with limits on covered work and charges and requiring insurer approval.  Since getting paid means following the rules make sure you and watch out for unexpected extras which significantly change the required work.


Managing Everyone Else's Risk - Many people are affected by activities in strata buildings like owners, residents, visitors, neighbours, managers, insurers, workers, etc.  And since trades activities in the building creates risks so, tradespeople need to manage things to reduce or eliminate those risks for themselves, strata corporations and others.  For instance, strata corporations are usually liable for damage in lots and to owners' property when they do work in the building.


Getting Paid (or Not) - Getting paid by strata corporations means correct paperwork.  Quotations need approval (strata corporation, manager and/or insurer) and larger jobs may need meeting approval.  And, invoices need to be be properly addresses to the strata corporation, comply with tax invoice requirements, sent promptly after completing work and explain any extra charges because many people see (and check) invoices.  So, get your paperwork right.


Missionaries for the Strata Manager - Strata Managers rely on tradespeople to handle building needs and strata corporations rely on strata managers for tradespeople. So, when things go wrong both look bad, tradespeople risk losing that work and future work and strata managers risk losing building management.  But, the opposite occurs when things are done well: so there's more work for the strata corporation and the strata manager.


Although these messages are strata focused, they're also just common sense.  So, why not avoid the strata traps by following these tips?

And, thanks to Advanced Community Management for the opportunity to share some more strata information. 


Francesco ...

Sydney Strata Owners Get Together

Sydney strata owners get another chance to get together next week, when the Owners Corporation Network holds its next General Meeting. 


It's an opportunity to learn more about what should (and shouldn't) happen in your strata building and share your views, experiences and concerns.  There'll also be a workshop on Work Health & Safety issues for residential strata buildings.

The meeting will be held on Saturday 19 May between 10.00 am and 12.00 noon at The Station, Jackson’s Landing, Bowman Street, Pyrmont (directly opposite Jones Street).


Francesco ...