NSW: Q&A Is our strata manager responsible for payment verification of common property work?

This article is about the role of strata managers in payment verification and ensuring the quality of common property repairs.

Question: Is a strata manager responsible for payment verification and ensuring repairs are completed satisfactorily? Should owners be asked about the quality of work before the invoice is paid?

The owner corporation paid for my bathroom’s retile and waterproofing. The workmanship was poor. There was missing grout, misaligned tiles, lifting tiles, and water leaks under the shower screen. Within a week of the completion of the work, I notified the strata manager of my concerns, recommending they halt payment of the invoice until the contractor had returned to fix the issues.

The contractor had already been paid. The strata manager said they were not building managers, and it was not their responsibility to assess a job after completion. They pay invoices on presentation. It is not their practice to ask residents if they are happy with the job. They expect to be told of any issues by the owner.

The strata committee had asked the strata manager to confirm with the residents/owners before paying invoices.

The strata manager states they complied with the requirements of the legislation, and this is usual practice.

1. Are strata managers required to ensure repairs are correct or satisfactory?
2. Should owners be asked about the quality of work before the invoice is paid?

Answer: Appoint a committee member, often the treasurer, to participate in the payment verification process.

This scenario highlights an important aspect of strata management operations. The specific requirements for strata manager payment verification typically depend on the management agreement between the owners corporation and their appointed strata managing agent.

It’s important to understand that strata managing agents handle hundreds of payments weekly across numerous properties. While well-intentioned, implementing individual verification steps for each payment can significantly impact operational efficiency and potentially increase management costs for all owners.

An effective solution adopted by many owners corporations is to designate a committee member, often the treasurer, to participate in the payment verification process. This approach provides the desired oversight while maintaining operational efficiency and cost-effectiveness.

For owners corporations concerned about work quality and payment processes, reviewing their current management agreement and discussing verification procedures at their next committee meeting would be a practical first step. This allows for establishing clear protocols that work for all parties involved.

Tim Sara
Strata Choice
E: tsara@stratachoice.com.au
P: 1300 322 213

This post appears in the December 2024 edition of The NSW Strata Magazine.

Read next:

• NSW: Q&A How do we Deal with Strata Manager Complaints and Bullying?
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