Protecting your investment and adding value to your community What - - PowerPoint PPT Presentation

Protecting your investment and adding value to your community

What do we mean by building compliance?

“the building satisfying the legislative and

• ther mandated requirements for safe and

lawful occupation” We usually think of matters impacting in our safety and the breaches of the Building Code

What types of building compliance?

• Statutory obligations:

– Strata Schemes Management Act 1996 – Environmental Planning and Assessment Act 1979 – Local Government Act 1993 – Work Health and Safety Act 2011 (Cth)

What types of building compliance?

• General legal obligations:

– Duty of care (negligence) – Occupier’s liability

Statutory obligations

• Environmental Planning and Assessment Act

1979 and regulations:

– Conditions of Development Consent – Conditions run with the land

• enforceable by Councils against Owner of the land
• Council Orders (also Local Government Act 1993)

– Essential Fire Safety Measures (Philip Chun)

Statutory obligations (continued)

• Strata Schemes Management Act 1996

– Section 62 obligations. Thoo’s Case:

“…common property fixtures or fittings must be renewed

• r replaced under s 62(2) only when they are no longer
• perating effectively or have fallen into disrepair to the

point where their renewal or replacement is called for as they can no longer be kept in a state of good and serviceable repair pursuant to s 62(1).”

Statutory obligations (continued)

• Strata Schemes Management Amendment Act

2015:

– Section 106 – Duty in relation to maintenance and repair (replaces section 62) – Section 115 – Initial Maintenance Schedule – Section 118 – Window safety devices

Statutory obligations (continued)

• Council Orders

– Broad powers of Council to issue orders – May be required to pay all or any reasonable costs incurred by the Council (Compliance Cost Notice) (some limitations apply) – Culture of compliance v real safety culture

Statutory obligations (continued)

• Work Health and Safety Act 2011 (Cth)
• Will apply if:

(a) Mixed residential and commercial premises. (b) Owners Corporation engages any worker as an “employee”

Statutory obligations (continued)

• Duties under the WHS Act include:
• must ensure, so far as is reasonably

practicable, that the health and safety of other persons is not put at risk from work carried out as part of the conduct of the business or undertaking.

General law obligation

• Common law duty of care
• Now being relied upon following Thoo’s Case

in respect of former section 62 claims

• Occupier liability of an Owners Corporation

no different to an ordinary occupier’s liability

• Ridis’ Case – Require a system of inspection

and monitoring but not “expert” assessment

Building compliance – importance

• Safety of occupants and visitors/damage to

property

Examples: – Fire Safety: Not all occupants and visitors are the same – Amenity: Access and egress; services and equipment

Building compliance – importance

• Insurance issues

– Duty of disclosure – new insurance and renewal. If breach duty, Insurer may refuse to pay or reduce payment – Duty is to disclose every matter that is known to you being a matter relevant to decision of Insurer to accept risk and terms. Reasonable person test

Annual Fire Safety Statements

• Lessons to be learnt from the Bankstown Fire

Inquest:

– For owners:

• No complacency
• Engage the relevant “qualified” people to assist

Annual Fire Safety Statements

– For Strata Managers:

• Document all steps taken
• Check delegation under Management Agreement
• Keep the Committee informed. Include on agenda

Emergencies and legal issues

• Safety first! Protection of life and property
• Duty to mitigate the loss and avoid further

loss

• Notify the Insurer – emergency repair costs

may be covered

• Engage licensed contractors – comply with

requirement of the Home Building Act 1989

Emergencies and legal issues (continued)

• If you have a Strata Managing Agent, check

your Agreement to see what functions are delegated and what limitations are imposed. Is it enough?

QUESTIONS