We were approached by an owner due to concerns for their Strata Plan which is part of a BMC. It was evident that the Strata Plan had not been making contributions to the BMC for over 12 months and making it dysfunctional. There were disputes over the expenses which led to insufficient funds to pay for the upcoming insurance renewal. It is a complex situation where there were a number of key stakeholders with little understanding on how the BMC worked.
We immediately raised a levy to avoid the building being uninsured. All the disputed invoices were carefully reviewed for the cost allocation as per the Strata Management Statement(SMS). In total 124 invoices were presented to us and we made calls to each contractor directly to seek further clarification of the expenses paid. In the end, we determined that $125,485 worth of invoices should be a BMC expense in accordance with the SMS.
Meetings were held with each stakeholder, where we put forward our proposal that $125,485 should be reimbursed to the Strata Plan. We explained our view of SMS. At the end of the meeting, all members voted in favor of the proposal. A great win for the Strata Plan and the BMC.
