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‘What if an accident did happen and a contractor did hurt themselves on the common property of your BUILDING. What would be your defence?’ The court will want to know what action the owners and more importantly the representing executive committee took to discharge their common law duty of care obligations and any obligations under the Occupational Health and Safety Acts. You will have to provide evidence to the courts to prove that the scheme ensured that the contractor was compliant prior to allowing them to attend the site and undertake the work. Unfortunately such injuries have occurred on common property and the lawyers in these cases listed the Owner’s Corporation, the Committee members and the manager as respondents. Needless to say we are talking five, six and sometimes seven figure sums of money in damages, particularly when a Body Corporate had little or no defence.

Strata and Company Title schemes are very different to domestic homes in this regard. They must ensure they provide: - a safe work place for contractors, and - that contractors who are engaged to work on common property are complaint. But what do we mean by a complaint contractor? The scheme must check, receive and maintain for 5 yrs, documents that prove the contractor has an appropriate OH&S training certificate, is licensed to undertake the work and is insured.

It is advised to find a capable management company that offers clients access to compliant contractors. They should utilise the best system and procedures and marrying these with the services of an economical third party compliance supplier.

How does a scheme ensure that the building is a safe work place? The scheme must check, review, action and keep current at all times a safe environment for all those using the common property including members of the public, visitors, tenants and owners. To ensure that there is appropriate, safe access into and out of the common property, and that the common property itself is safe. Meeting these obligations is simple, inexpensive and essential for peace of mind. Effective risk management allows an owners corporation to prove that they have to the best of their ability taken reasonable steps to protect people’s safety. They do this be obtaining an OH&S survey regularly.

Management companies should provide clients with a standard resolution at each Annual General Meeting to obtain an OH&S Report for the common property from an appropriate qualified third party supplier. By utilising this report the Committee can review and action all risk items.

Workplace injuries can bring action by Work Cover and the scheme can be fined up to $1million plus criminal personal liability (with 5 yrs goal terms) can be awarded to Committee members, managers and individuals. No scheme insurance policy covers such action. Individual actions can be also made by the contractor or their families. In addition image the bad press and the effect on your capital values.

 

Something to contribute? Click on the pencil. Last edited by mcameron@stratares.com.au - Strata Real Estate Services
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