Andrew Terrell manages the Newcastle branch of Australia's most successful and respected strata agencies.
Bright & Duggan are the Australian leaders in fully integrated strata and facility management services, with sites from the Mornington Peninsula to Port Douglas.
With so much development in the Hunter, Port Stephens and Lake Macquarie region, Bright and Duggan are excited to now have on the ground presence in the Hunter region and a commitment to servicing the region and supporting it to create better communities. Our values are at the core of everything we do and we believe firmly in building partnerships based on transparency and trust.
Bright & Duggan and Cambridge Management Services bring together deep experience, market-leading technology and effective communication to enhance the way in which communities operate and as a result, achieve amazing outcomes. Founded 40 years ago in NSW and managing in excess of 60,000 lots, Bright & Duggan is proud to service buildings and communities of all shapes and sizes, from 2 lots to over 1000.
We understand that these communities are made up of people and not just bricks and mortar.
We welcome the opportunity for a conversation.
andrew.terrell@bright-duggan.com.au
A building manager is responsible for overseeing the day-to-day operations of a building or property. Some benefits of having a building manager include:
Maintenance and repairs: A building manager can ensure that the building is properly maintained and repairs are carried out in a timely manner. This can prevent minor issues from becoming major problems that can be costly to fix.
Safety and security: A building manager can help ensure the safety and security of the building and its occupants. This can include implementing security measures such as surveillance cameras, alarm systems, and access control systems.
Tenant satisfaction: A building manager can help ensure that tenants are satisfied with their living or working environment. This can include addressing concerns and complaints promptly, and ensuring that common areas are clean and well-maintained.
Cost savings: A building manager can help identify cost-saving opportunities by implementing energy-efficient measures and negotiating with vendors for better pricing on maintenance and repair services.
Compliance: A building manager can help ensure that the building is in compliance with all relevant regulations and codes, including building codes, fire safety regulations, and health and safety regulations.
Convenience: Having a building manager working for you on or off-site can provide convenience for tenants by allowing them to quickly and easily report issues or concerns, and have them addressed in a timely manner.
Overall, having a building manager can help ensure that the building is well-maintained, safe and secure, and that tenants are satisfied with their living or working environment.
A strata manager, also known as a property manager or body corporate manager, is a professional who is responsible for managing and overseeing the operations of a strata scheme or community title development. Here are some of the benefits of having a strata manager:
Expertise and Experience: Strata managers are experts in their field, and they have extensive knowledge of strata schemes, community titles, and other related laws and regulations. They have experience in managing common property, dealing with maintenance and repairs, and handling disputes and conflicts that may arise within the community.
Time-Saving: By hiring a strata manager, property owners can save time and effort in managing the property. Strata managers take care of all the administrative tasks related to the property, such as collecting fees, paying bills, and maintaining records. This allows property owners to focus on their other priorities.
Financial Management: Strata managers are responsible for managing the finances of the property. They create and manage budgets, collect fees and contributions, and ensure that all expenses are paid on time. They also keep accurate financial records and provide regular reports to the property owners.
Maintenance and Repairs: Strata managers oversee the maintenance and repairs of the common property. They ensure that all repairs are carried out promptly and efficiently, and they supervise any contractors that are hired to do the work.
Dispute Resolution: Strata managers are trained in conflict resolution and are experienced in dealing with disputes that may arise within the community. They can mediate between parties and help to find a mutually agreeable solution to any conflicts that arise.
Overall, a strata manager can provide valuable expertise, time-saving services, and effective management of the property’s finances, maintenance, and disputes.
Here are some of the key concerns to consider when installing electric vehicle (EV) charging infrastructure in strata buildings:
Cost: Installing charging infrastructure in strata buildings can be expensive, and the cost is often shared among residents. It is important to ensure that the cost is divided fairly among residents and that the installation is cost-effective.
Space: Strata buildings often have limited parking spaces, and it is important to ensure that there is enough space for the installation of charging stations without impeding access to parking spots.
Power availability: Strata buildings may not have the necessary electrical infrastructure to support the installation of charging stations, and it may be necessary to upgrade electrical systems to accommodate the additional load.
Legal and regulatory requirements: The installation of charging stations in strata buildings is subject to local regulations and building codes, and it is important to ensure that the installation complies with all relevant requirements.
Maintenance: Charging stations require regular maintenance, and it is important to ensure that maintenance responsibilities are clearly defined and that a maintenance schedule is in place.
User agreements: It is important to establish clear guidelines for the use of charging stations, including usage fees, scheduling, and etiquette.
Safety: Charging stations pose electrical safety risks, and it is important to ensure that charging stations are installed and maintained to meet industry safety standards.
In summary, when installing EV charging infrastructure in strata buildings, it is important to consider cost, space, power availability, legal and regulatory requirements, maintenance, user agreements, and safety.
A building manager is responsible for the day-to-day operation and maintenance of a building or complex. The benefits of having a building manager include:
Increased efficiency: A building manager can ensure that building systems and facilities are operating optimally, reducing downtime and maintenance costs.
Improved safety: A building manager is responsible for ensuring that safety and security measures are in place and properly enforced, helping to reduce the risk of accidents and incidents.
Enhanced aesthetics: A building manager can coordinate maintenance and improvements to the building’s exterior and common areas, helping to maintain or improve the appearance and value of the property.
Better communication: A building manager serves as a liaison between building residents and managers (owners corporation/strata manager), helping to ensure that concerns and requests are addressed in a timely and effective manner.
Reduced stress: A building manager can handle many of the day-to-day responsibilities of building management, freeing up time and reducing stress for building residents and owners.
Overall, the role of a building manager is to maintain the property, assisst in the management of its finances, and ensure the comfort and satisfaction of residents.
This guide has been prepared by Bright & Duggan to assist owners and occupiers, it is not advice, and should you have specific queries, these may be issued to your broker or insurer for their response.
‘SSMA’ – Strata Schemes Management Act 2015 and its successors
Owners corporation is responsible for insuring the ‘building’ under a damage policy (S160 SSMA), which is the structure and includes owners fixtures within the lot (e.g. kitchens, bathrooms, flooring, etc). S161 of the SSMA deals with the further specific requirements for strata policies.
The owners corporation should routinely have the building valued for insurance purposes to ensure that the building sum insured is appropriate.
The owners corporation is typically responsible for any deductible/excess payment, however there is situations where a claim arises to only lot property (e.g. kitchen cabinetry) at the fault of the occupant (e.g. conducting renovations) and the owners corporation may look to recover the excess from the responsible party (per OFT advice). The by-laws for a scheme may also give rise to responsible parties paying excess in the event of certain claims (e.g., flexible hoses).
Where a broker is involved for the owners corporation they will generally lodge and manage the claim with the insurer and also advocate for the owners corporation,
All owners are benefitted under an insurance policy and have a right to lodge claims directly with the insurer, however claims will generally be managed by the strata manager, with the broker.
Owners should expect claims to be handled promptly, however in the event of large or complex claims, there is often time involved for quoting and assessment as these become large projects. There is cover within the building policy for loss of rent/alternate accommodation if a property is uninhabitable.
Insurance claims should be avoided wherever possible – claims will generally increase the cost of a policy and types of a particular claim (e.g., water damage) may increase deductible amounts under the policy. Insurers may also go off risk if policies exceed loss ratios. Just because a potential claim is notified does not require the owners corporation to proceed with a claim – it may choose to withdraw a claim (as it does not want to lodge a claim or repairs don’t meet excess).
Insurers do not cover defective works (e.g., balcony waterproof membrane), it will however generally respond to resultant damage arising from defective works.
We find it increasingly difficult to place cover for buildings with defects or extensive claim history and/or complexities (multi member BMC with high sum insured).
Event
Event Occurs (refer Product Disclosure Statement of particular policy – from the CHU residential policy, defined as:
means any partial or total accidental physical loss of, or destruction of property from any sudden and accidental cause not otherwise excluded by this Policy.
Common claims:
Water damage
Accidental
Impact damage
Malicious damage
Fire damage
Storm damage
Claims may be denied if they are not appropriately notified.
Notification
As soon as becoming reasonably aware of a claim, the owner/occupant/building manager/strata manager should inform the insurer (directly or via the broker).
The owners corporation should mitigate further loss (e.g. arranging dryers in the event that water has flooded flooring/slab).
Claim Assessment
Depending on the nature and scale of an insurance claim, the insurer may require:
Involvement of an internal or independent insurance assessor.
Multiple quotes for repairs
Involvement of a panel builder/trade
Claim Completion
An insurance claim is finalised once funds are repaid for repairs or repairs are carried out directly at the cost of the insurer. In the event that a claim is denied, insurers have internal appeal panels and the Australian Financial Complaints Authority (AFCA) can assist.
Owners’ obligations
Check for risk
Inspect flexible hoses
Turn off water to property if away for extended period
Do not leave cooking appliances on if away from property
Notify early
Advise the insurer/broker/strata manager as soon as practically possible in the event of a possible claim
Access/evidence
Ensure to provide access to the property if required as part of any claim
Keep maintenance records on file (owners corporation or owner if lot property)
Always provide up to date contact details to the owners corporation
What is Condensation? Condensation is commonly experienced in apartments buildings particularly in colder months of the year. It can occur in any type of building including precast cladding systems. It is caused when humidified air comes into contact with cold surfaces such as windows, doors, walls and ceilings and the air chills and water vapour is extracted from the humidified air and remains as condensation on the cold surface.
Condensation will not occur if the humidified air is removed and replaced with dry air. Typical causes that can increase the likelihood of humidified air include space heaters, steam cooking, dish washing, clothes dryers, showers, and damp clothes left indoors.
Signs of High Humidity Levels / Condensation Fogging and water droplets (condensation) appear on windows.
Moisture and mould appear on cold surfaces such as windows, doors, walls, and ceilings.
There is an increased instance of static electricity within your apartment
Tips to Prevent Condensation Reduce indoor humidity by providing sufficient ventilation. Windows should be opened during the day whenever possible, and it is highly recommended to open windows and doors whenever possible. If condensation does appear, wipe the surface dry immediately. Dry damp clothes thoroughly before storing. Allow sunlight to filter into your home whenever possible. Operate exhaust fans for 5 minutes after using showers or clothes dryers. Even when steam may appear to be removed, moisture is still likely to remain and humidify the air. Operate kitchen rangehoods while oven, cooktop, dishwashers and microwave ovens are in operation. Some condensation may also be controlled by using air conditioning units refer to air conditioning user manuals contained within your handover documentation Use of a window vacuum (purchase from Kmart, Bunnings etc)
Strata Corporations are self-funded entities and at this time there is no government relief funding available for them to assist in the management and cashflow of their funds.
A Strata Corporations has a statutory duty to repair and maintain its common property in a good and structurally sound condition, which includes cleaning of common areas, maintain adequate insurance policy and provision of essential services (i.e. lifts, security, electricity, gas, and water).
To ensure a Strata Corporations is able to meet its financial obligations, Owners are still required to pay their levied contributions, as approved at a General Meeting.
In some instances, the Strata Corporations can review ways to reduce their expenditure during these times of uncertainty and to assist cashflow requirements.
It is suggested that any non-urgent sinking/capital works should be placed on hold and consideration be given to temporarily cutting the sinking/capital works levy if owners require levy relief (further noting that this will not be possible unless a scheme has adequate savings, and if any works are able to be placed on hold). We recommend that the Strata Corporations undertakes a revision of their Capital Works Fund Plan, to defer all non-essential works for another 2-3-year period. This will provide for an opportunity to catch up, as well as maintain their legal requirements under the Act.
Generally review your contracts, as sometimes a contract is on a rollover, and if the service is non-essential, it may be able to be suspended or services limited if possible.
A breakdown of services considered essential and non-essential for a Strata Corporations is noted as follows (note: other services may be available to the building).
Item
Notes
Action
Strata Management base fee
Contractual cost – no saving to be made, noting that we have an increased workload relating to COVID-19, additional costs incurred which are not recoverable and pressure on parts of our revenue
n/a
Strata – Additional Services
These are costs that are effectively optional for an owners corporation/body corporate
Committee consider undertaking the work themselves (e.g. running committee meetings themselves, preparing agendas/minutes) Lesser costs for meeting Put off non-urgent works
Taxation
Statutory Requirement – unchanged
n/a
Legal Costs
Unless a legal matter is ongoing, these may be able to be delayed (e.g. tribunal action for a breach of by-law) Note that defect statutory timeframes still need to be complied with
Consider whether matter important enough (or possible) to pursue legally and whether there is a requirement/obligation to do so
Disbursements
Must be incurred when owner has only provided a mailing address in relation to levies/statutory notices (e.g. agendas/minutes), as well as operating costs under the Agreement
Owners/agents should provide email addresses to reduce disbursement costs and otherwise discuss with their manager how these costs might be reduced
Software
n/a contractual cost
n/a
Insurance
Required
As always, broker should be working to ensure owners get the best deal. Payment installment or premium funding may be options.
Building Management
Contractual cost
Building Managers are now busier as a result of COVID-19 and are considered an essential service provider. Services delivery may be delivered by alternative means to ensure social distancing. Critical to scheme and resident management.
Security/Concierge
Generally contractual in nature
This should be reviewed case by case.
Cleaning
Essential service – may increase due to extra cleaning required
Cleaners are now busier as a result of COVID-19
Gardening/Landscaping
Possible to reduce cost but ensuring that gardening/landscaping doesn’t get out of hand
Residents could consider undertaking the work themselves, but ensure you notify the insurer of the type of work being undertaken, in order to maintain liability coverage under Voluntary Workers Policy
Fire Maintenance
Essential service
n/a
Fire Monitoring
Essential service
n/a
Fire Repairs
Essential service
n/a
Lift Maintenance
Essential service
n/a
Lift Telephone(s)
Essential service
n/a
Air-Conditioning
Essential service
n/a
Pumps/Irrigation/On-site detention
Essential service
n/a
Access Control System
Essential service
n/a
CCTV
Essential service
n/a
Electrical
Essential service
n/a
Exhaust/Ventilation
Essential service
n/a
Garage Doors
Essential service
n/a
Garbage Compactor
Essential service
n/a
Gym Equipment
Gym should be closed
Costs to maintain equipment/utilities in relation to gym offset
Hot Water Equipment
Essential service
n/a
Locks/Keys
Essential service
n/a
Pest/Vermin Control
Possible to reduce costs by decreasing the amount of sprays completed; not applicable to termite sprays due to warranty
review
Pool (Servicing/Chemicals)
Pool should be closed Nb – Councils still require compliance and chemical/maintenance costs cannot be fully eliminated.
Costs to maintain equipment / utilities (heating/lighting) / chemicals in relation to pool offset
Plumbing and Drainage
Essential service
n/a
Window/Facade Cleaning
Able to reduce cost
Reduce the amount of window/facade cleaning visits NB – if cleaning is required under warranty, ensure that it occurs as normal
Electricity
Essential service
n/a
Water
Essential service
n/a
Gas
Essential service
n/a
Rubbish Removal
Essential service
n/a
Carpet Cleaning
Possible to reduce costs by decreasing number of cleans
Review needs
General Repairs & Maintenance that could pose OH&S (i.e. broken tiles)
In the Lake Macquarie, Newcastle and Hunter area, I constantly hear differences of opinion between owners, committee members, service providers, strata managers and building managers as to what a strata managers role is when there is also a building manager contracted by the owners corporation.
Owners need to be better aware of what they are paying for and whether they are potentially paying for it twice (e.g. building manager should be issuing work orders as part of their fee, however, they ask the strata manager to issue work orders and they charge a fee to do so).
Furthermore, the understanding of what a building manager can and should be doing has changed greatly over the past decade – whereas once they were a cleaner with a tool belt (e.g. caretaker), they are very much now the professional onsite interface between residents, contractors and the strata manager.
We often educate potential and new clients as to who should be doing what. The Strata Schemes Management Act is somewhat vague on the role of a Building Manager and it’s defined as below:
Noting the above, the scope of what is in the agreement between the owners corporation and building manager is what is important here, however, it’s now better understood what the role of a professional building manager entails:
Administration with strata committee – e.g. approvals
– Issuing work orders – Contractor management (sourcing, insurance, SWMS, Site induction) – Monthly/routine reporting – Arrange quotes for committee review for routine and ad-hoc maintenance
Defects
Advisory/escalationManagement via committee/OC
-Processing / administration of in-unit and common property defects with builder – Escalation of common property defects to strata manager/strata committee where not addressed by builder
Moving
Collect bond if applicable
– Establish process for moving of goods over common property – Manage bookings/lift covers – Inspect common property for any damage
Software / Communications
Use of software for announcements if requiredInvolvement in Whatsapp committee groupIssue communications from owners corporation/strata committeeDeal with owner/committee queries in relation to owners corporation
– Management of Buildinglink or other system – resident database, announcements, – Management internal communications – e.g. Whatsapp cleaning group, committee group – Place signage on site as required – Dealing with all resident queries – e.g. metering, by-laws, approvals
We have now entered an unprecedented period for the 21st century with the onset of Covid 19 virus and the measures which need to be taken to control the spread of it.
Businesses across Australia and the world are all affected in one way or another – there’s very few that will be able to thrive in the circumstances due to the effect on our workplaces, clients, and staff.
The response in Australia is increasingly drastic and we need to adequately prepare for a difficult period over the next few months as services and facilities are shutdown or become increasingly stressed. We are blessed with one of the worlds leading health systems, however, we need to act with caution and be ready to give our support to the most vulnerable within our society.
Bright & Duggan and Cambridge Management Services have introduced a policy of having all frontline strata management staff work from home and ceasing face to face meetings – I applaud our Executive Management Team in reaching this decision as quickly as it did. The update is available on the front page of our website – https://www.bright-duggan.com.au/ . We have different policies for Building managers and other staff within the business – these are being continually updated.
Strata and building management business are very much affected by the fact that we have workforces that have a lot of external meetings, have a number of visitors to our offices, that we provide a variety of onsite services at buildings and have large numbers of office-bound administration staff. That said, we are able to offer a great number of our services remotely.
Some strata and facility businesses have the ability to enable their workforces to work from home (which wholly depends on the staff member having the technology to do so); it’s very difficult to offer building management services offsite when the contract requires onsite services.
We manage people’s homes (and in some cases workplaces, where we manage commercial schemes) and thus have very serious obligations to the occupants to show leadership during this time and do whatever we can to assist authorities in mitigating risks.
What should we all do as soon as possible:
Give staff the ability to work from home where possible and ensure that we are aware of the workplace that staff are working from – employers still have work health safety obligations where their staff work from home;
Support your staff with whatever circumstances are put on them (sickness, schools/childcare services ceasing for a period);
Cease face to face meetings and adopt alternate means of meetings provided for under legislation – this may include meeting via proxies, phone/video conferencing, online or paper voting papers, etc;
Take practical steps at your buildings to reduce the risk of infection – additional cleaning, signage, etc.
Some of the potential issues we need to overcome
Continuing compliance with strata legislation which can become difficult without being able to conduct certain meetings, arrange onsite inspections, etc;
Annual inspections – particularly annual fire safety statements;
Defect timelines and the potential inability to do defect inspections/commence proceedings;
Contractor attendance – what happens if electricians, plumbers, etc won’t attend site?;
Waste management (we presume that council and private collections will continue as normal – if they didn’t it would be bedlam) – we may have to deal with much-increased levels of waste in the event that buildings have all occupants at home for long periods;
Residents needing help and assistance throughout any period of enforced isolation;
Conflicting and complex legal obligations;
Owners/occupants coming under financial stress – non-payment of levies; and
Continuing to facilitate strata searches, collection of keys, etc.
One of the great opportunities we have here is to change the way we operate our businesses (with a move to electronic meetings) and provide help and support to people that need it most.
It’s not business as usual but we need to make sure this is the best business we can do.
The rooftop at GWH Aero Apartments all decked out for a birthday party.
When we are involved from the early stages of a development (planning phases into registration/settlement and occupation), we have a role and responsibility in helping that community find its feet and activating the space that we manage. This is somewhat the case when we have the strata management of that community (i.e. a role largely offsite and administration based), versus when we are the building/facility manager – a role which is a daily/weekly in-person interface with the owners.
The view of Broadmeadow Racecourse from the rooftop at GWH Centrale Apartments Broadmeadow.
Modern design principles for apartments and community schemes (at least in Australia) give drive to the creation of a community and giving a building identity. This may include features (e.g. vertical garden, civic art), exclusive common areas (rooftop entertainment areas, gardens), naming the building or facilities (gyms, pools, treatment rooms, BBQ areas, concierge, valet, etc.) and nearby or inhouse retail offerings. Activated communities are safer, more secure and more enjoyable to reside in.
‘nook’ letterboxes – the colour coded theme continues throughout the building and helps make it a unique boutique development for the area.
Unless all of the above is well-considered, facilities may end up poorly utilised and not add value to the community. On the flip-side, beautiful common areas can be an extension of lot living space, allowing room for entertainment, recreation and community activities. These spaces end up being the ‘jewel’ in the crown of a specific development.
Playground and BBQ area with a view at Thirdis beautiful ‘Westend’ development, proudly managed by Cambridge Management Services
We have a wealth of examples of these ‘activated communities’ within our portfolio and in time, we will have great data as to how this drives improved sales values, rental yields and resident happiness.
Views from the Aero rooftop – always changing courtesy of the working harbour
Regardless of facilities, we think that all communities have the ability to take advantage of the density and the ‘just add water’ community that this provides.
Resort facilities at Abian Brisbane by Sunland – we are the Building Manager and concierge at this stunning developmentMulti-purpose common room at Pier on Waterfront by Mirvac
We are about to settle on some new developments in the Newcastle region and as part of this, are planning the events we will be undertaking with the residents. In addition to this, we will be suggesting a program of activities to the strata committee that they should consider throughout the year.
These are some of the things we are thinking about doing – in Newcastle we are blessed with generous shared spaces at buildings that lend themselves to these types of activity):
Street parties with surrounding buildings – food vans, music, etc.
BBQs (doesn’t get easier or simpler)
Gardening/plants in smaller spaces and common areas with a horticulturalist
Cooking demonstrations (just need to get Harris Farm to sponsor this one!)
