This article discusses how committees should reasonably compare contractors and decide on a body corporate cheapest quote without being obligated to choose it.
Question: How should the committee decide between quotes when one lot owner insists on using a more expensive preferred contractor?
We have obtained multiple quotes for work in our scheme, and one lot owner is pushing for the most expensive contractor because that is their preferred choice. They want the committee to prioritise their preferred contractor rather than accept a lower-priced quote for similar work.
How should the committee approach quote approval in this situation? Shouldn’t we choose the cheapest quote? How can we manage situations where a lot owner wants their preferred (but more expensive) contractor to get the job?
Answer: Owners can advocate for the quote or contractor of their choice.
There is no obligation on a body corporate to pick the cheapest quote (or the most expensive one either). It’s about what is reasonable in the circumstances. There might be circumstances where a more expensive quote is warranted because the work better suits the body corporate’s needs than the cheaper one. Owners can advocate for the quote or contractor of their choice, and they aren’t obliged to agree with your preference (and of course, you aren’t obliged to agree with theirs).
In an ideal world, both you and the other owner would clearly state why you preferred the contractor or the quote you prefer. That discussion should be had before the vote, and you might want to involve other owners. Then it goes to a vote, and, like in any democracy, the numbers will win the day. You can dispute the outcome at that point, although we think you’d need a stronger point to dispute than simply that the quote is more expensive than you’d like.
Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898
This post appears in Strata News #772.
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