This article discusses how strata schemes handle contractor damage to common property, including responsibilities, liability, and obtaining independent advice.
Question: What responsibility does strata management have if their contractors damage common property?
Our building is one of eight grouped apartment buildings. The same strata management company manages our building and five of the others.
As part of obtaining our current insurance policy, a building report found that contractors engaged by strata management have damaged our roof by walking on unsupported areas. The report also identified damage to the roof hatch, which appears to have been caused by a contractor’s ladder. This damage allowed rainwater into the roof space, causing ceiling damage. The contractors also left unsightly marks and a mess behind, which affect the building’s appearance and residents’ enjoyment.
When we raised this with strata management, they said they are not trained to access the rooftop, cannot provide constant supervision, and instead talk to contractors before the work starts. What obligations does strata management have to prevent or detect contractor damage, and to ensure contractors are competent and properly supervised?
As we cannot determine which contractor caused the damage, is the strata management company responsible for repair costs, either directly or because they failed to engage suitable contractors or provide adequate oversight?
Finally, how can the strata corporation obtain independent professional advice about these issues if that advice may go against the interests of the management company, especially when strata management controls access to the strata corporation’s finances?
Answer: The repair costs usually fall to the strata scheme as a whole if they cannot determine which contractor was at fault.
Please note that the council of owners, who are appointed at each Annual General Meeting, manage the strata scheme. While the strata manager may obtain quotes and issue work orders, the decision regarding which contractor to engage rests solely with the council of owners.
In relation to the issues raised:
1. Contractor Damage & Management’s Role
The strata manager’s function is administrative. They may coordinate access, obtain quotes and relay instructions, but they are not generally required or trained to provide technical oversight or physical supervision of contractors. Their obligation is to act on the lawful instructions of the council of owners and to engage contractors as directed.
2. Responsibility for the damage
As the engagement of contractors is ultimately a decision of the council of owners, the responsibility for contractor performance generally lies with the contractor themselves and, operationally, with the council that authorised the engagement. Where you cannot identify the specific contractor, recovery from an individual contractor may not be possible.
The strata manager is not typically liable for workmanship issues or contractor-caused damage unless:
- they acted outside their authority,
- engaged a contractor contrary to the council’s instructions, or
- were negligent in a way that directly caused loss.
If none of these apply, the repair costs usually fall to the strata scheme as a whole if they cannot determine which contractor was at fault.
3. Obtaining Independent Professional Advice
The strata company (through the council of owners) is entitled to seek independent legal, accounting or other professional advice at any time. The fact that the strata manager handles administrative finances does not restrict the council from directing them to arrange payment for such advice or from authorising payment directly from the strata account.
If the matter concerns potential liability or conflict involving the management company itself, the council of owners can:
- instruct the strata manager to facilitate payment for an independent adviser, or
- if a conflict is perceived, have a council member act as the authorised representative to engage the adviser directly, with costs charged to the strata fund.
Jamie Horner
Empire Estate Agents
E: JHorner@empireestateagents.com
P: (08) 9262 0400
This post appears in Strata News #771.
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Read next:
- WA: Q&A Balancing equity in common property improvements
- WA: Q&A Common Property and Strata Repairs – Who is responsible?
- WA: Q&A Contributing to Common Property in Your Strata Building
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