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An agreement from the owners corporation to owners or occupants to supply amenities, such as, electric vehicle charging infrastructure, telecommunication services, window cleaning, garbage disposal and recycling services.
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Posted 28 September 2015
Category: Strata, Management Agreements
Lifts and escalator refurbishments and upgrades are amongst the largest items of expenditure that owners in strata schemes commission. Yet such works are excluded from the consumer protection provisions of the Home Building Act (NSW) 1989. This requires strata managers and executive committees to be particularly vigilant to protect the owners’ interests when entering into lift contracts. Because such work is inevitably expensive it is tempting to be lured into false ‘upfront’ economies at the risk of incurring more serious costs later on.
It should be considered essential for the owners to engage a qualified and reputable lift consultant independent of the contractor. That consultant should not only ensure the specification for the works meet the owners’ requirements, but monitor the adequacy of the works in progress and advise the owners on any technical issues that may arise. The consultant should also liaise closely with the strata manager to ensure that the building can continue to function during the works with minimum inconvenience to the occupants.
Most lift contractors will seek to impose their own standard terms and conditions into any contract. Even the most seemingly benign clauses in these contracts can be drafted in a prejudicial way, and they require attentive review. . Amongst the types of provisions that commonly require attention are:
Lift maintenance contracts give rise to a different set of issues. The types of provisions that require special consideration include:
There are two basic types of maintenance contracts, comprehensive and non-comprehensive. Comprehensive contracts are intended to cover the cost of any replacement parts that become necessary during the maintenance period. Usually the owners are best advised by an independent lift consultant as to which type of contract is preferable in each case. Where a non-comprehensive contract is chosen it is advisable for the owners to ask the consultant to provide a contingency estimate for the additional cost that may be incurred during the maintenance period.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.