2015 SCA Inside Strata June

JUNE 2015 | Maintenance

SCA National Convention PAGE 17

• Maintenance makes better tenants PAGE 14 • Concrete cancer PAGE 38 • Improving client relationships PAGE 42

Exclusively Strata, it’s our policy.

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contents Reports President’s Report CEO’s Report

SCA National Convention

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SPECIAL FEATURES Maintenance Repair, replace or upgrade Maintenance makes better tenants Concrete cancer Improving client relationships More than a pretty face Using the Internet as a business tool

8 14 38 42 44 45

Chief Executive Officer Kim Henshaw Ph: 02 9492 8252 E: kim.henshaw@stratacommunity.org.au SCA National Office Level 1, Suites 101 & 102 845 Pacific Highway Chatswood, NSW 2067

Lifestyle.

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ABN: 57 074 729 007 Contact: PO Box 824 Surfers Paradise QLD 4217 Phone: 1800 222 757 Fax: 1800 063 151 Email: publications@crowtherblayne.com.au Website: www.crowtherblayne.com.au Editor: Samantha Regan Production Controller: Yvonne Okseniuk National Sales and Marketing Manager: Trish Riley Sales Team: Andra Muller, Liam Daly, Peter Bunn and Trish Riley Studio Manager: Byron Bailey Design Team: Andrew Crabb and Michelle Triana Printed By: Newstyle Print

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REPORTS president’s report

First of all I would like to thank our team of Kim Henshaw,Claudia Montiel, Katherine Mason, Erin Gillin, and Luke Spickler at SCA to have combined so well to produce great results for our body.

The Board has set some tough objectives to achieve major outcomes by endorsing the task of becoming a true National Body with Chapters which fully represent our sector spanning Managers, Suppliers of Services and Owners. This by definition would then allow us to achieve economies of scale, cost savings, a stronger financial position which could then be redirected into providing further services and benefits to members.

There is no doubt that our organisation depends upon sponsorship to function, and we are very grateful to all our sponsors who have and will continue to support us. We are endeavouring to standardise our sponsorship packages so there is complete transparency, and to enable sponsors to direct the locality which will provide the most benefit for their brand. There is no shortage of new sponsors knocking on our door and we will continue to be rigorous in agreeing on new sponsorship arrangements if they are not in the best interests of our members.

The National Board has also endorsed the establishment of a National Council consistent with our Constitution comprising State Presidents or nominee to ensure State and territory interests are protected as well as improving the communication flow between the Board, the various sub committees and the membership. It would meet at least four times a year either by teleconference or face to face.

Education and training have been boosted with the SCA A100 “Introduction to Strata” course and the government endorsed redrafting of our Cert 4 in Property Operations.

Our National PR campaign has now been implemented and a number of media placements have already been achieved.

Lastly the National Board looks forward to seeing you at the National Conference in Canberra, and thanks go to Erin Gillin and the Events Committee for ensuring the event will be of benefit and a huge success for us all.

We are in a strong financial position at present and our modelling shows that our financial position will only improve if all states become chapters and when we standardise both membership categories and the way Chapters are charged for belonging to our body. So far this year Kim Henshaw and I have met with members of the NSW WA and Qld Boards to discuss and gain endorsement of the Chapter Model.

Next month we will meet with the Victorian Board with the same objective and we are very encouraged about each State’s positivity about working together to get the best solution for SCA.

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Erik Adriaanse FCPA National President Strata Community Australia

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REPORTS ceo’s report

This quote from the great 18th Century literary figure Samuel Johnson aptly describes two of SCA’s guiding principles; 1. ensuring that our industry is provided with appropriate training and 2. promoting the highest levels of ethical behaviour.

Of the two, integrity is something that we, as an industry association, can promote but not control. Whether it happens or not is in the hands of each individual. The provision of knowledge, on the other hand, is something we can have a tangible effect upon and it is that I would like to talk about today.

Over the last 18 months or so SCA has been working in the background on two important educational initiatives designed to provide a knowledge pathway for people in our industry. The first of these is the generation of an entry-level training course for new participants in the strata sector. Secondly we have been lobbying the Federal Government to establish a project to re-draft the Certificate IV in Property Operations so that it is more relevant to our sector. I am pleased to say that both of those initiatives are now coming to fruition.

comprise stakeholders from each of the three “streams”, those being Real Estate Agents, Stock & Station Agents and Strata Managers. SCA has been recognised by both CPSISC and the Federal department as the peak body for the sector and is the only stakeholder from Australia’s strata industry to have been invited to participate in the project. It is anticipated that the framework will be completed by June 30th 2015 and the qualification itself finished by the end of the year for deployment to the field in early 2016. That the qualification will now be specific to our sector is thanks in no small part to the efforts of all members of SCA’s Education Advisory Committee and particularly its Chair, Mike Hurley.

Thank you all for your tireless work to improve the standard of education in our industry.

SCA recognises that continuing education is a cornerstone of improved outcomes for all industry participants. We will continue to lobby the Government for extension of the training pathway to include a Diploma and, hopefully, a Degree qualification in the future.

See you all in Canberra at the 2015 SCA National Convention – 31st May to 2nd June.

SCA’s A100 “Introduction to Strata” course is, as the name implies, an entry-level program designed for people new to the strata world. It is based on the M100 course developed by the CAI in the USA and which is in use in many parts of the world today. SCA’s Education Advisory Committee has overseen a 12-month project to contextualise the course for Australian conditions and conduct a number of trials of the customised product. Those trials were not without learnings but have nonetheless been judged by participants as successful and worthwhile.

Final formatting and proof reading of the course material is now well underway and the official launch of this initiative will be at the 2015 SCA Convention in Canberra.

Our second item of good news on the education front is that the Federal Department of Education & Training has (finally!) approved a project to re-draft the Certificate IV in Property Operations. The project will be led by our Industry Skills Council (CPSISC) and the steering committee will

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Kim Henshaw Chief Executive Officer Strata Community Australia

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REPORTS maintenance

Repair, Replace or Upgrade?

BODIES CORPORATE ARE CONSTANTLY TOLD THEY HAVE A STRICT OBLIGATION TO MAINTAIN AND REPAIR THE COMMON PROPERTY BUT ARE GENERALLY LEFT TO THEIR OWN DEVICES ABOUT WHAT THAT MEANS IN THE REAL WORLD; IN OTHER WORDS WHAT IS A BODY CORPORATE ACTUALLY MEANT TO DO?

The decisions required to be made are frequently complex, expensive to implement and often involve trial and error. Experts also tend to have differing opinions on the type and extent of work required to fix any given problem.

While it is well beyond the scope and ability of this article to comprehensively cover all the issues that face bodies corporate, we review a number of common issues that arise in the area of general maintenance.

Whether repairs can be deferred?

Bodies corporate have a statutory duty to maintain and keep in state of serviceable repair the common property. The duty is generally a strict one meaning that a body corporate is deemed to have breached it statutory duty as soon as the common property falls into disrepair.

The strict nature of the duty requires bodies corporate to act as quickly as possible to rectify a defect as soon as it is known. This means necessary repairs cannot be delayed without being in breach of the strict duty imposed upon bodies corporate.

In addition, it is a standard condition of strata insurance policies that bodies corporate are required to maintain the common property to ensure continued cover for unexpected loss or damage to the common property. In this regard, it is possible for a claim to be denied if there has been a failure to maintain the common property, including when the failure to maintain the common property is only part of the reason for the loss or damage.

As is the case with taking preventative measures, the answer to this issue normally cannot be given in the abstract but in the facts of any particular situation. The factors that come into play are also similar.

However, where the common property has reached a state that it is no longer able to be effective repaired (for example a waterproof membrane has ceased being effective), then there is an obligation to replace the affected common property.

Is it possible to upgrade rather than simply repair or replace?

Generally speaking, there is no obligation on a body corporate to upgrade as oppose to repair and maintain the common property in its original state.

However, it often makes sense from a practical and economic perspective to upgrade the common property when a part of it is required to be replaced to achieve some “future proofing”.

In these circumstances, care must be taken that if the upgrade materially changes the common property that statutory requirements are met, for example the adding to or altering common property is approved by the appropriate resolution at a general meeting.

Failing to comply with any statutory requirements means the upgrade may not lawfully be part of the common property with a potential consequence being a body corporate may be ordered to remove the addition or alteration not being covered under the strata insurance policy.

Is anything more required than fixing defects as they arise?

What happens if an owner alters the common property without approval?

Bodies corporate are required to do more than simply wait for something in the common property to fail before acting. There is a positive duty to take preventative measures to ensure the common property does not fall into disrepair.

At first blush, it is tempting to ignore changes made by an owner to common property rather than spend the money either by regularising the change (e.g. a by-law) or taking legal action to obtain an order that the owner reinstate the common property.

Thea meaning of “preventative measures” cannot be determined in the abstract but only in the facts of any particular case. Common considerations determining whether a preventative measure is required include (without being exhaustive): ww the importance of the common property being maintained, ww the probability of the failure if the common property is not maintained, ww the cost of the preventative measure as compared to consequences if the common property were to fail, and ww the knowledge of the body corporate, especially what expert advice has been obtained or received by the body corporate.

The problem becomes that if appropriate action is not taken by a body corporate it may eventually become responsible for the unauthorised change to the common property by virtue of the inaction.

Generally speaking, some kind of regular system of inspection is required.

In such situations, the body corporate may end up responsible for the cost of reinstating the common property that has been altered as well as any damage caused to other parts of the common property, even though it did not authorise the change in the first place.

Accordingly, preventing or taking action against unauthorised alterations to the common property should be seen as part of the maintenance of the common property so as to avoid future cost and responsibility on bodies corporate.

When to replace rather than repair?

This issue is complicated as it involves decisions about how much money to spend that could otherwise be used by owners for other needs. Additionally, decisions not to replace can mean putting the burden of greater repair or replacement costs as well as disruption on future owners.

This article was kindly supplied by Peter Ton, Partner, Insurance and Litigation Grace Lawyers

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Common Property vs Personal Property To avoid confusion as to which items are insurable as part of the building or are defined as common area contents under the policy issued by CHU, we advise the following applies.

Building

Common area contents

The building refers to all buildings and underground services erected upon the building block forming the Strata Plan, including fencing.

Furthermore the items below are also considered part of the building:

The following items should be insured as common area contents.

baths

hand basins

shower screens

toilets

sinks

stoves

ducted air

built-in cupboards

doors

windows

fixed tiling

The items below within common areas are also part of the building: Paintwork Wallpapering Public light fittings Under legislation in NSW and ACT paint is excluded within the unit.

However CHU does offer optional paint cover if required.

• Carpets, floating floors, other temporary wall, floor and ceiling coverings within hallways and lobbies • Pot plants, mirrors, and other decorations within common areas • Appliances such as washing machines and dryers owned by the Body Corporate and used by all unit owners and housed in common laundries • Any barbeque equipment, gardening equipment and garden or indoor furniture owned by the Body Corporate

Personal contents*

• Carpets, floating floors (fastened to the subfloor), other temporary wall, floor and ceiling coverings • Light fittings • curtains, blinds • personal equipment and valuables • furniture • Household appliances such as dishwashers, refrigerators, washing machines and dryers • In NSW and ACT it also includes the paint and wall paper within a unit • In Queensland it also includes mobile or fixed air-conditioning units that service an individual lot/unit We strongly recommend that lot owners take out insurance over these items.

Insurance on these items is the responsibility of the unit owner and not part of the Strata Insurance Plan. Personal contents include the following items that are found within the lot/unit area:

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MAINTENANCE

maintenance makes better tenants

Maintenance Makes Better Tenants

Maintenance. The word sets owner's corporations teeth on edge and can be a headache for building managers. Has my building been maintained properly? How much maintenance is enough? What do I do if my building hasn't been maintained well? Are we spending enough on regular maintenance?

These and many other questions are asked throughout multi-residential complexes every day. And yet none of this should be a concern.

Thorough and timely planning can take much of the stress out of ongoing maintenance.

These material and construction decisions are made commonly without recourse to building managers or owners, who will deal with the results for many years, and the impacts must be dealt with efficiently and successfully. Maintenance scheduling can relieve some of the burden of these decisions and should be a part of the development, commissioning and management of any building.

So what is required to develop and implement a successful maintenance schedule?

There are two approaches to developing a maintenance schedule.

Every building, regardless of size, shape or use, should be maintained to a minimum standard. No building materials will last forever (although the Roman's did a good job with their early concrete!).

Modern buildings include a confusing mix of materials - some of which are carefully designed and manufactured for high quality and longevity, and some of which are positioned in the market by (low) cost. And building methods have a large part of play in the long term performance of any building.

Witness the 'concrete cancer' of the 1970's - 80's where poor concrete mixtures allowed moisture into the internal steel reinforcing over time, which would eventually rust and expand, forcing the concrete covering to break off or 'spall'. A common example now is the oft-seen rust stains down the face of a balcony or facade where a poor quality steel fixing of some kind has been used, which over time deteriorates resulting in the unsightly streaks down the building.

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The first and most effective is where the maintenance schedule is developed at the start of a building's life. The developer/owner/ architect/consultant creates a maintenance schedule as part of the overall building development process and the implementation of that schedule begins immediately the building is commissioned and occupied. The schedule directs what actions are required when, to ensure the long-term performance of the building as a successful home to its residents.

The second, and much more common, occurs well after the start of a building's life. A building may not be well maintained and at some point an event occurs which results in the recognition of the need for more comprehensive and regular maintenance. At this point, the required steps are as follows.

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maintenance makes better tenants

Step 1.

Step 4.

Review

Scope

An experienced consultant (e.g. an architect) is engaged to undertake a status review of the building. This review essentially requires a detailed site inspection (this is where the value of an experienced consultant comes in - always review the experience of your chosen consultant before engagement). The time taken for this review will depend on the size and complexity of the building. For example, a 10 unit multi-storey block can be reviewed in approximately 2 days by a single consultant.

This review would generally be a visual process only (non-invasive), however some issues may require further detailed investigation, including an invasive review (this requires some form of damage incurred as part of the investigative process. For instance a hole may need to be punched in a wall or a floor covering pulled up).

Step 2.

A detailed scope of works is prepared (again, expert input will be required here) and used for the purposes of securing contractors (perhaps by tender) to undertake the various aspects of maintenance work required.

The scope should detail all works required, and include reference to standards, regulations etc. Considerations should include (but not be limited to) expense, timing, disruption, common versus private areas, safety, access. Finding a builder can be difficult at the best of times and a clear scope of works required at the property is critical to ensure that a number of builders can assess and price the work.

Step 5.

Report

Action

The review process should result in a detailed written report outlining all the areas requiring maintenance. The report should also include recommendations as to actions required to repair/improve each area in question. Of additional value is a guide as to the seriousness of each item/issue (Archicentre use a traffic light system for simplicity and clarity – green, issue can wait, amber, issue needs attention, red, issue needs immediate action). Such a guide can be invaluable for assisting decision makers in their processes, and particularly to support expenditure management.

Using the scope, prices are then sought from suitable tradespeople, or a single builder. If the repair works are complex and require the involvement of several trades-people, then a single, registered builder to oversee and supervise the works is often a recommended approach.

In our experience, some reports have simply identified the root cause of a building problem and recommended action to repair the problem.

Others have been far more complex, requiring forensic examination of the building by a range of independent experts in order to establish a comprehensive repair program.

Step 3.

Successful coordination of the building works is also paramount. Works may be taking place on both common areas and private areas and involve some measure of disruption to the occupation and use of the building. Consultation with all involved parties is essential.

Throughout all these stages, there is one common and essential ingredient ‌ Communication

Consideration

The owner’s corporation or similar body should now have enough information to assess and recommend actions to begin the maintenance process. Your chosen consultant should always be available to assist in this process, at a minimum by presenting the report and answering questions. There may be a need for further work, or detailed assessment of particular issues or problems (leaking balconies are a classic case).

A useful process here is to create a priority list of actions/requirements/ timing to allow for measured approach to works and expenditure (the traffic light system noted above is invaluable for this process).

Communication between all parties is essential to ensure the review and report process is comprehensive and detailed, to ensure that the right people and expertise are involved, and to ensure that ultimately the owners corporation (or similar), building manger and other key parties have complete ownership, accountability and comfort with the requirements and recommended approach to what can be an expensive and time consuming task.

Maintenance is key to a building's longevity and performance. However a timely and informed approach is also key to everyone's peace of mind and comfort, and ultimately assisting to make the building more than a pile of building materials or a headache, but a successful home to its residents.

This article was kindly supplied by Cameron Frazer General Manager, Archicentre

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NATIONAL CONVENTION 31 MAY - 2 JUNE 2015

LEADING THE NATION

SCA NATIONAL CONVENTION FEATURE 31 May - 2 June 2015 HURRY, REGISTRATION CLOSES 22 MAY

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SCA NATIONAL CONVENTION 2015 CONFERENCE PROGRAM

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NATIONAL CONVENTION 31 MAY - 2 JUNE 2015

LEADING THE NATION

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SPEAKERS Conference - Day one Tony Wilson MC

Kathrine Dyer NBN Co. Broadband Update

Kim Henshaw Strata Community Australia Leading Edge Member Services

Joe Dennis NBN Co. Broadband Update

Bernard Salt KPMG

Peter Williams Deloitte

Strata’s Golden Future (Keynote)

Digital Disruption

Dr Simon Longstaff St James Ethics Centre

Eric Adriaanse Strata Community Australia

Making Ethics Pay

General Discussion

Colin Grace Grace Lawyers Making Ethics Pay

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SPEAKERS Conference - Day two Tony Wilson MC

Anthony Howard Confidere Group Leadership Today Group Discussion

Senator Birmingham Australian Liberal Party The Future of VET (Keynote)

Rebecca McGrath

OZ Minerals, Incitec Pivot, CSR, Goodman Group

Leadership Today Group Discussion

Jason Starr-Thomas CHU

Sam Coupland Benchmarking Australia

Risk Management - Best Practice

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Daniel Borin StrataMax Tomorrow’s Technology Today

Robin Mellon Green Building Council of Australia Sustainability in Vertical Cities

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Exclusively Strata, it’s our policy.

Strata Insurance Specialist Call us today 1300 361 263 or visit www.chu.com.au J5356

WELCOME COCKTAIL PARTY

SUNDAY, 31 MAY 2015 The highly anticipated first networking function of the SCA National Convention, the Welcome Cocktail Party is always a memorable event.

This must attend cocktail party provides you with the opportunity to network with colleagues, make new acquaintances, meet the exhibitors whilst enjoying fine food and beverages in a relaxed environment.

Held in the state-of-the-art and internationally renown National Convention Centre Canberra, we’ll start the convention in style.

Proudly sponsored by CHU The SCA National Convention is founded on bringing the best of the industry together.

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Celebrate and innovate

Join us to celebrate our 30 year anniversary of strata banking at the SCA National convention.

Don’t miss our special guest speaker, Peter Williams, global thought leader and digital innovation expert, on Monday 1 June, 2.15pm at the Royal Theatre.

We are also proudly sponsoring the Back to the 80s Gala Dinner at Parliament House. Prizes will be awarded on the night for best dressed.

We look forward to celebrating with you.

This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL & Australian Credit Licence 237502 (‘Macquarie’) for general information purposes only. This information does not constitute advice. Before acting on this information, you must consider its appropriateness having regard to your own objectives, financial situation and needs. You should obtain financial, legal and taxation advice before making any decision regarding this information.

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gala dinner You are invited to join us as we turn back time at the social highlight of the year, the SCA National Convention Gala Dinner.

Held at the iconic Parliament House on 1 June, enjoy an exclusive performance by the leading Australian rock band, The Black Sorrows. Network with SCA members from across the country and meet our Panel of Industry Leaders.

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1980’s dress code convention@stratacommunity.org.au

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PARTNER ACTIVITIES

NEW to 2015 The Convention Partner Activities Monday, 1 June There is no better way to experience Canberra than by gliding across Lake Burley Griffin in the comfort of the MV Southern Cross. Over an enjoyable afternoon dining in style, we will relax and enjoy the picturesque shoreline as we experience a different side of Canberra.

Proudly sponsored by Longitude Insurance.

Tuesday, 2 June Food and wine lovers unite, indulging their passion at what is sure to be a sensational afternoon.

The Canberra Gourmet Safari will see partners enjoying an exclusive wine tasting, led by a local Canberra expert. Followed by a delicious range of contemporary Australian dishes using traditionally smoked local produce will be served.

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REACHING NEW HEIGHTS IN STRATA INSURANCE QUS and AIG have partnered together to deliver superior value and stronger support to strata insurance brokers.

This new partnership with AIG enables QUS to provide even stronger support to the Australian broker market, through an increase in risk capacity and location appetite.

For more information on our new product enhancements or for full details regarding this switch, visit www.qus.com.au.

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In Australia, products and services are written or provided by AIG Australia Limited ABN 93 004 727 753 AFSL 381 686. Not all products and services are available in all jurisdictions and are subject to actual policy language and underwriter discretion.

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CLOSING COCKTAIL PARTY

The Closing Cocktail Party We Remember Them Strata Community Australia invites you to join us at a cocktail party to celebrate the closing of the SCA National Convention 2015. Proudly sponsored by Programmed Property Services, you’ll network with other industry professionals and exhibitors, in a beautiful and relaxed environment.

This year’s 3 day Convention offers an unprecedented amount of value with an additional evening (new to 2015). Network with industry members at our Closing Cocktail Party: We Remember Them.

Held at the Australian War Memorial to commemorate 100 years since WWI, we hear from Dr Brendan Nelson, the Director of our iconic venue before we watch a WWI film that explores the qualities of courage, mateship and sacrifice; which continue to resonate for our sense of national identity.

“Here is their spirit, in the heart of the land they loved; and here we guard the record which they themselves made”

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GENERAL INFORMATION

We look forward to welcoming you at the SCA National Convention ‘leading the nation.’ The convention is the perfect place for you to meet industry professionals and suppliers, as you learn from speakers who are leaders in their respective fields.

Registration Register for the SCA National Convention today, as places are strictly limited.

Exclusive discounts are available for groups of 5 or more people. Partners are welcome to attend and can enjoy all social engagements, including the Partner Activities (new to 2015). Register today by simply visiting our Registration Website Register: https://ccconferences.eventsair.com/sca2015/registration/Site/Register

Contact For further details, please click on the convention logo on the Strata Community Australia website. Alternatively, contact SCA National at: Email: convention@stratacommunity.org.au

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MAINTENANCE

concrete cancer

Concrete Cancer – What is it and what does it mean?

CONCRETE CANCER IS A TERM YOU’LL OFTEN HEAR IN THE BUILDING INDUSTRY. AND, JUST AS CANCER IS SOMETHING YOU DON’T WANT TO DISCOVER IN YOURSELF, NEITHER DO YOU WANT TO FIND IT IN YOUR CONCRETE. SO WHAT IS IT, AND WHAT DOES IT MEAN?

Just like cancer in humans, cancer in concrete starts out as an invisible disease. By the time it starts to display symptoms and you actually find out about it, it’s been present and growing for a long time.

However, human cancer and concrete cancer share another feature in common: If you find it and treat it early, you’ll have a much better chance of success.

Ironically, despite the name, concrete cancer isn’t actually a problem with the concrete. Rather, it’s a problem with the steel reinforcement that is encased within the concrete. Concrete slabs, beams, and columns all work and support load by combining concrete and steel in composite action. Steel reinforcement is to concrete what a skeleton is to a human body – it’s the strong element that helps support loads and gives strength.

Unfortunately, steel rusts. It is prone to corrosion. When pouring a concrete member (such as a slab), it’s critical that the steel reinforcing bars are encased in the concrete with sufficient cover around them to protect the steel from the elements. Concrete is actually permeable, and so moisture and airborne salts (particularly near the ocean) can penetrate the concrete surface and permeate down to the encased steel. Once the moisture reaches the encased steel (particularly if the moisture contains salts), you have a recipe for corrosion.

In this extreme case, the entire soffit of this external stair flight has broken off as the steel bars expanded Engineers work to prevent concrete cancer initiating by designing the concrete appropriately for the surrounding environment and its respective exposure condition. For example, a concrete slab that is wholly enclosed in a building out in Sydney’s west (say, Penrith) will be subject to a very different environmental condition than a slab that is external, exposed to the elements, and within a few hundred metres of breaking surf in Sydney’s east. So it’s horses for courses. As such, the Australian design code for concrete, AS3600, gives strict requirements as to the concrete strength that needs to be specified, and the amount of cover that has to be provided to the steel reinforcement – all depending on the environment. Areas in aggressive environments (such as suburbs by the sea) require a stronger grade of concrete, and require that the steel reinforcement is placed further within the slab, so as to increase the protective cover of concrete around the bars. Conversely, concrete in benign areas can afford to be of a weaker grade, and the bars don’t need as much protective cover of concrete to surround them.

The main bars in this downturn beam are displaying advanced stages of corrosion Once the steel starts to rust, it expands and deforms. The expanding steel can often break or blow out the concrete, causing pieces of the concrete slab to fall away. This is referred to as “spalling”. Naturally, this then increases the steel’s exposure, and the problem is exacerbated. Whilst the problem may initially appear to be an aesthetic or cosmetic concern, the reality is more sinister. The steel bars resist the tension forces in the concrete, and the cross-sectional area of each reinforcing bar works hard to resist the load it has to carry. As the steel rusts away, the effective cross-sectional area of the bar reduces, until – eventually – there is not enough steel remaining intact to resist the forces. At that point, the slab (or beam or column or stair, etc) is now greatly weakened and at risk of sudden failure or collapse.

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This balcony in the Sydney suburb of Drummoyne was in urgent need of remediation, as the corroding bars had caused major damage to the concrete edge beam

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MAINTENANCE

concrete cancer

Unfortunately, this awareness of the durability of concrete and the risk of corrosion is something that was less well understood by the construction industry in decades gone by. Builders were notorious for placing the bars with inadequate cover, and engineers probably weren’t particularly vigilant at picking this up at the time of the prepour inspection. As such, apartment buildings and other concrete structures constructed in the 1950’s and 1960’s (even into the 70’s and 80’s) were typically built with very little cover to the reinforcement, and thus the steel started to corrode over time. There are literally hundreds, if not thousands, of apartment buildings all over Sydney with concrete cancer in varying degrees of progress. It’s an issue that keeps the Remedial division of Partridge incredibly busy.

protective coatings to act as a barrier. Once all the affected steel bars have been adequately coated, the concrete can then be repaired with a suitable repair mortar product. Providing the repair process is carried out thoroughly and appropriately, you can have confidence that the concrete will then continue to perform satisfactorily and do its job in the years to come.

These days, builders or building specifiers (such as engineers or architects) occasionally take additional steps to further reduce the risk of concrete cancer occurring further down the track. This is good practice in areas that are particularly high-risk (such as beach-side suburbs) or with buildings that feature exposed concrete facades.

One of the most commonly adopted practices today is to add a waterproofing admixture to the concrete at the time of batching and pouring. There are two main products on the market – Caltite & Xypex. These two products work in different ways and utilise different technology, but both serve to ensure that moisture and salts don’t penetrate through the concrete matrix and reach the steel. Another – albeit more expensive solution – is to galvanise all of the reinforcement. Galvanising effectively adds a protective coating to the steel, so that it is resistant to moisture and chemical attack.

The reinforcement in this slab in Sydney’s northern beaches was so badly corroded that the entire concrete slab had to be broken back to carry out the repairs. Note the bars that have corroded to the point of total deterioration.

So how can you detect if your building has concrete cancer? One of the first tell-tale signs is the presence of ferrous stains on the surface of the concrete. If the steel is rusting within the concrete, rusty water can bleed off the steel towards the surface, leaving brown-tinged stains on the surface. If the corrosion has advanced to the point where the steel is expanding, it will then typically start to cause the concrete to burst or break off (referred to as spalling concrete). You can see examples of this in the accompanying photos, particularly the one below:

Another example where the bottom bars in a beam have corroded to the point where they’ve blown off the entire underside of the concrete.

Just like cancer in humans, when it comes to concrete cancer, prevention is the best cure. But, should you own a building that is already exhibiting signs, the best course of action is to act quickly and treat the problem. At present, Partridge looks after about 50 to 75 buildings every year that are showing signs of concrete cancer. Our Remedial division carries out inspections and prepares reports on concrete cancer in buildings, and even sets out the repair methodologies and oversees and project manages the repair process. If you’ve got suspicions about your building, or you’d like further information on this, please don’t hesitate to contact our Remedial division.

In this example (in the Sydney suburb of Randwick you can see the concrete spalling in more isolated patches under the stairs.

Remember, concrete cancer is really just rusting of steel reinforcement. So, once it’s detected, all you need to do is treat and repair the steel. Whilst that sounds easy enough, the reality is that it is a very slow, tedious, time-consuming, and expensive process. It requires that the concrete be broken back and removed around the reinforcement, so as to fully expose each affected bar. A typical repair procedure is to wire-brush the bars to remove all traces of rust and to take them back to bare, shiny metal. The next step is to thoroughly coat the steelwork with a protective epoxy coating. Clearly, we can’t push the bar “further back” to improve its coverage, so we instead rely on

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This article was kindly supplied by Andrew Derbidge, Principal – Partridge Structural

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MAINTENANCE

improving client relationships

When looking to improve client relationships, consider your funding options around building maintenance

As a strata manager, you know how important it is to provide the right amount and type of support to your committees when they are contemplating preventative or defensive capital works to their strata scheme. It’s your opportunity to improve client engagement and retention.

SIL is straight forward, as all it takes is a resolution by the strata plan to borrow the funds.

Before commencing any building work, it is worthwhile communicating to your committees about the various options available to them to fund capital works. Ease of access to finances will ensure that strata improvements are carried out with minimal delays.

Once it has been approved, the funds will be provided to the strata plan quickly, ensuring works can get started promptly with the preferred contractor and to stretch the payments out over a longer period.

A SIL can cover multiple works at once to improve cost efficiencies and minimise disruption to residents. Additionally, repayments can be added to regular strata levies which could mean avoiding higher costs in the future.

Deciding on the funding option that best suits a scheme’s needs is often impacted by a number of factors, including how fast the scheme needs the money, the breadth of capital works required to be funded over the next few years, cash reserves and whether the scheme wants to contribute in one lump sum or over a period of time.

You can find out how much could potentially be borrowed for maintenance and repairs by using our online loan repayment calculator, which will give you an estimate of the cost of the loan over the desired timeframe. It can be accessed at macquarie.com.au/strataloans

Outlined below are a number of options that will help you tick one or more of these boxes.

We’ve seen the value SILs have offered to owners who were looking to do major renovations, large scale capital works to enhance the value of a building, unbudgeted emergency repairs or upgrades like new balustrades or window locks.

Sinking fund The first option to consider is a sinking fund. Within the sinking fund there is an emergency supply established to cover anticipated and potentially unforeseen expenses, such as maintenance and repairs. However, depending on the extent of the maintenance work, the emergency fund may not always have sufficient money to cover the necessary expense or any additional requirements, such as council imposed fire orders, which can lead to further delays and increased costs.

So when the time comes that one of the buildings you manage needs maintenance, ensure you and the strata plan understand all the available funding options so you can make a decision that is in the best interests of everyone involved.

Special levies Another option is a one-off special levy to raise the funds. This option could create immediate cash flow problems for owners, some of whom may have no way to access large sums of money. This means it can be unfeasible for many as they need to raise the extra cash required.

Finance through a supplier or contractor Financing with the supplier or contractor completing the maintenance or repair work is also another option. It means work can start immediately and owners can make smaller payments over a longer period of time. However, not all suppliers and contractors offer financing so this does limit the supplier options which could lead to owners paying a higher rate for their services and limit the timing of when the repairs will take place.

Borrow the funds A further option for maintenance funding is for the strata plan to apply to borrow the money from a financial institution, such as through a Macquarie Strata Improvement Loan (SIL). Applying for a

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This article was kindly supplied by Cameron McMillan, National Head of Strata – Macquarie Business Banking This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL & Australian Credit Licence 237502 for general information purposes only, without taking into account any potential investors’ personal objectives, financial situation or needs. Before acting on this information, you must consider its appropriateness having regard to your own objectives, financial situation and needs. You should obtain independent financial, legal and taxation advice before making any decision regarding this information. Credit approval criteria apply. 0215 Macquarie Bank Limited ABN 46 008 583 542

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MAINTENANCE

paint maintenance

More than a pretty face

IF YOU’VE EVER DEALT WITH A PAINTING COMPANY FOR LARGER SCALE WORKS, YOU’VE NO DOUBT HEARD THEM TALK ABOUT PAINT MAINTENANCE PROGRAMS. SO, WHAT EXACTLY IS PAINT MAINTENANCE, AND WHY IS IT A VITAL ASPECT OF ANY BUILDING MAINTENANCE SCHEDULE? For most people, their initial thought of a paint coating’s purpose is to beautify and enhance the appearance of their property. Paint can not only modernise a building, it can also create different tones and moods. A paint coating’s purpose extends well beyond appearances though, and equally serves the purpose of forming a protective coating over the item being painted.

So then, what is the advantage of having an annual paint maintenance program?

By having the painter undertake an annual inspection of your property and the paint coating applied; many serious building defects can be quickly identified and rectified. During a routine inspection, the painter will not only touch up areas where paint is peeling or may have been damaged, but also will identify the cause of the failure by certain characteristics that the paint coating is producing. For example, blistering paint can be an indication of water being trapped behind the paint, thus suggesting that there could be a water proofing issue in either the wall or ceiling. Cracking in the substrate may also suggest movement in the structure and could be a minor repair if identified earlier rather than later.

As part of a routine Maintenance inspection, the painter should present the property manager with a detailed report of their findings, as well as what remedial work was carried out. This report, whilst not an engineer’s report, can offer some insight into the general health of the building. It should draw attention as to whether any found faults have occurred prematurely, as part of the building’s general aging process, or caused by wear & tear.

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In addition to visual inspections, the types of products used in the initial works and on-going maintenance, will also determine the longevity of the coating and the item it is trying to protect. Typically, a painter that understands the function and purpose of various products, will only use decorative coatings where significant overall protection of the substrate is not required. Various other products that should be used as a means to protect the structure include the use of texture coatings. This type of coating creates a membrane type barrier, which helps limit water ingress and ultimately, minimises the likelihood of water damage to the substrate. Another advantage to using a texture coating is it can assist to prevent Concrete decay by limiting carbonation through vehicle exhaust fumes. This is paramount in areas where vehicle fumes may not dissipate in a timely manner, such as underground carparks with no ventilation.

One of the more common types and visually noticeable signs of building decay would be rust on steel surfaces. If not treated early, rust can cause irreversible damage to the substrate and therefore should be actioned promptly. Initial signs of rust can be treated early and a protective layer placed over the area to prevent further decay.

The general list of identifiable warning signs to building deterioration is too broad to be placed within an article, but is able to be identified and reported on as part of the general painting maintenance routine; which should always be personalised for each unique building type and surrounding structures.

Paint is more than just a means to beautify your property; it also serves to protect and ultimately, save you countless dollars through preventative maintenance.

This article was kindly supplied by Ben Dirschka, Sales Manager – Leisuretex Painting Contractors

using the internet as a business tool TECHNOLOGY

Using the Internet as a Business Tool in Strata Management

Strata Managers, like managers in any Australian business sector, need to be very aware of internet usage and how it is changing the landscape of how the average Australian is using it – especially in regard to carrying out financial transactions.

The Australian Bureau of Statistics tells us that by the end of 2011, there were 10.9 million internet subscribers in Australia – household subscriptions accounted for 80% of this total. In short, internet usage is now heavily engrained within our society.

Of the 13 million people plus who accessed the internet at home in 2010-11, the top activity, predictably, was emailing (915); the second accessing news, research and general browsing (87%); and the third was paying bills online or online banking (64%).

How exactly can strata managers benefit from the internet and new related technologies? There is no doubt that administrative time can be greatly reduced using online services that encourage self-service by lot owners. Owners will also appreciate the convenience of accessing documents or reports like financial statements, insurance schedules, and minutes of committee meetings online, at any time they like – even via their mobile devices.

One of our larger clients recently promoted these types of online services and had an overwhelming response within the first month. A total of 729 reports and documents were downloaded which represented about 7% of their total lots under management. Assuming that each request has been made by phone or email this would have equated to almost a full week of effort to fulfil. And that doesn’t account for the savings made in postage costs.

Strata managers can also build loyalty and appreciation of their services by featuring photos and news specific to their strata plans. Strata living is very much about community living – so a strata plan specific page on your owners portal could carry photos and details of the committee members, carry its own ‘News Bulletin’, welcome new residents, as well as communicating your brand values and commitment to service. When residents login they can be addressed by name, personalising and better cementing your relationship with clients.

Our figures also show that almost 60% or all owners make their levy payments over the internet – everyone recognises that convenience is one of the major factors influencing this. Having an owners portal that not only gives the current outstanding balance owed by the owner but also enables a quick on quick payment is a major plus.

Moral of the story? The landscape is shifting and we as an industry need to rise to the challenge. Our owners and committee members demands continue to increase and it is vital that we can meet these demands in an efficient and effective manner. These types of technologies are here right now to enable your business to not only meet these challenges but to create a competitive edge.

Visit www.stratamax.com to learn how you can take advantage of technology in your business.

This article was kindly supplied by Janette Comish – Stratamax june 2015

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LIFESTYLE

health

Foods high in sugar, fat exposed in supermarket aisle AWARD-WINNING ‘FOODSWITCH’ APP ADDS NEW USERREQUESTED FEATURES AND HEALTH STAR RATING Products high in sugar and saturated fat are being uncovered by Australian consumers and switched for healthier choices in the supermarket aisle, thanks to today’s release of additional features of the internationally acclaimed FoodSwitch app.

The free health app, developed by The George Institute for Global Health and Bupa Australia, makes it even easier for shoppers to switch to healthier options among packaged foods, with three new features: SugarSwitch:

EnergySwitch:

FatSwitch:

Lists products with less total sugar than the scanned item Suggests foods with lower kilojoules to help manage energy intake Lists products with a lower amount of saturated fat, helping tackle high cholesterol

Users can also choose to use the Health Star Rating label format, along with the ‘traffic light’ colour labelling system, to get easy-tounderstand nutritional information about their favourite foods. Health Star Rating was endorsed by the Australian government in June 2014 and is already appearing on many major food companies’ products in supermarkets. The higher the star rating, the healthier the product.

Professor Bruce Neal of The George Institute and The University of Sydney said the new features of FoodSwitch give Australians more ways to make healthier food choices, and with added Health Star Rating labelling people can confidently make choices based on the industry standard.

“FoodSwitch places the power in the hands of the consumer. What people buy at the checkout drives what the food industry provides.

By showing Australians what’s in their food we can all push industry towards developing and marketing more nutritious products,” said Professor Neal.

“Poor diet is the leading cause of ill health in Australia, a precursor to the big killers like heart disease, stroke and diabetes,” added Professor Neal. “The introduction of the Health Star Rating system is a significant milestone in the fight against this problem and like FoodSwitch helps people to take control of their health.”

Alan Kirkland, CHOICE CEO, explains that Health Star Ratings are a great tool for consumers to make healthier food choices at glance.

“In absence of the Health Star Rating on many products yet, the FoodSwitch app allows you to easily compare the healthiness of packaged foods within any product category via a mobile device."

Dr Rob Grenfell, National Medical Director, Bupa Australia and New Zealand agreed the addition of the new features and the Health Star Rating viewing mode empowers even more Australians with the right information to make healthier choices.

“Nutrition is complex, and if we expect Australians to get the healthy balance right, we need to give them the tools and information to do so.

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“FoodSwitch can help consumers make informed decisions about what they eat based on clear, easily accessible facts, and with more options to tailor choices to suit different health needs.”

The FoodSwitch app has been downloaded more than 500,000 times since its 2012 launch. The database that powers the app has grown almost five-fold in that time, in part thanks to the enthusiastic response from users who have sent in more than 400,000 photos of items not previously in the database.

The updated iOS app can be downloaded from the App Store. Users can also access FoodSwitch technology online at the new FoodSwitch (foodswitch.com.au) website. An Android update with the same expansion of features will follow next month.

heart 2 heart LIFESTYLE

Bupa and Cricket Australia call on Australians to take heart health to heart NEW CAMPAIGN LAUNCHES TO HELP ADDRESS THE NATION’S SINGLE LEADING CAUSE OF DEATH – HEART DISEASE

A new Bupa study* has found that the majority of Australians are unaware of key risk factors of Australia’s single biggest killer of men and women: heart disease.

“Take the 60 second heart age check, and have a chat about it with friends, family and colleagues. Heart disease may be preventable if you take action to improve your health.

More than 65 percent of those surveyed did not know their total cholesterol level and 1 in 2 people (51%) admitted they did not know their blood pressure numbers; high cholesterol and high blood pressure are two key risk factors for heart disease.

“The best way to reduce your risk of heart disease is to quit smoking, aim to do 2.5 to 5 hours of moderate-intensity exercise a week, and keep an eye on your blood pressure, cholesterol and weight.”

To raise awareness of the risk factors of heart disease, and encourage Australians to take steps towards improving their heart health, Bupa, with the help of Cricket Australia, has today launched the Heart-to-Heart campaign, calling on the community to complete a free 60 second online heart age check.

The heart age check estimates a person’s heart age based on responses to a series of health questions, compares the result with their actual age, and provides information to help them improve their heart health.

Cricket Australia, through its partnership with Bupa as its official health and care partner, has got behind the campaign to raise awareness of heart disease in Australia and encourage people to do the heart age check, share their results and get friends and family members to do the same.

The Bupa survey, completed by 1004 Australians, also found: Almost 1 in 3 of those surveyed indicated they had been diagnosed with, or experienced, health complications linked to heart disease.

64% of respondents said they knew a family or friend with one or more risk factors for heart disease. Of this group, 38% were very concerned for their health and wellbeing.

Australians aged 35-44 years were most concerned about improving their health to reduce the burden on their family (30%), followed closely by 25-34 year olds (27%).

Weight loss (22%) and exercise (27%) were the most common lifestyle changes that people reported using to help improve their heart health.

To take the 60 second heart age check, please visit www. bupaheartage.com.au and to join the conversation, share your heart age results via Facebook or Twitter using #heart2heart

Players Michael Clarke, Peter Siddle, Brad Haddin, Meg Lanning, Alyssa Healy and Erin Osborne all feature in the Heart-to-Heart campaign. The players’ heart age results are also featured on the campaign website.

Dr Rob Grenfell, National Medical Director Bupa Australia and New Zealand, said the heart age check is a quick and easy way for people to take the first step towards understanding their own risk factors for heart disease, and to educating family and friends.

“Heart disease kills one Australian every 26 minutes. It’s the nation’s single biggest killer of both men and women, and about 90 per cent of adult Australians have at least one risk factori,” said Dr Grenfell.

This article was kindly supplied by the Bupa Health Foundation *Bupa Heart Survey conducted by Pure Profile. 1004 respondents aged 21 years and over, weighted by gender and state.

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STATE new south wales

NSW

President's message ANOTHER NEW MINISTER FOR FAIR TRADING, EVENTS GALORE AND AN EDUCATION REFRESH – THINGS ARE HAPPENING HERE IN NSW. The 2015 State Election is behind us and as predicted we have another Minister for Fair Trading except now the Fair Trading name has been replaced with Innovation and Better Regulation. Our new Minister, Victor Dominello, MP, represents the seat of Ryde which is an area close to the city with a large number of high rise apartment blocks spanning its boundaries.

By the time this column reaches you it is anticipated that SCA (NSW) representatives will have met with the new Minister and pressed upon him the need to introduce the long anticipated Strata Law Reform Bill into NSW Parliament. SCA (NSW) is keen to see this entire review, including the Community Title laws, debated and enacted so that we can move on to a new era of strata.

It is disappointing that we have now had three Ministers in 12 months and we are hoping that the NSW Government will finally take notice of the strata sector, after all it is one of the fastest growing sectors in NSW, and address its varied needs. City Futures has previously indicated that by 2035, two thirds of all new housing in NSW will be high rise so it is essential that we get the management processes more streamlined

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and efficient and to do this requires, in part, that we are supported by good legislation.

As part of our aim to be leading professionals in the strata sector, SCA (NSW) is offering expanded education opportunities. Last time we told you about our new training provider and now I am pleased to be able to tell you about new online delivery of the Certificate of Registration (COR) and Continuing Professional Development (CPD). We have been listening to you, our members, and heard that there is a strong need for flexible delivery of our education offerings.

No matter where you are in NSW you can now complete your CPD at a time and place convenient to you. I am sure this will please a lot of people who can’t attend face-to-face courses delivery. We will however still be offering our CPD roadshows all over the state and in fact increasing these if the demand is enough to do so. People learn in different ways and we are doing our best to accommodate all our members’ needs.

For our Principals Retreat this year we considered what was a good use of their time as well as an opportunity to learn in a terrific environment.

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STATE new south wales

This year we took the program to the NSW Far North Coast where 25 strata principals gathered at Salt Resort at Kingscliff in late March to focus on building long-term business and personal success. We are pleased to be able to provide these opportunities and appreciate your continued support in doing so.

I am also pleased that once again we will be celebrating the best in the business with the 2015 Whitbread Strata Community Awards only a month away as you read this. It was a unique opportunity last year for BCS to win one award and I hope that many more of you were encouraged to put yourselves forward for an award. It took BCS as few tries but the process really helped us focus on who we were and what we had achieved as a team. Good luck to all the entrants.

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Until next time …

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victoria STATE

VIC

State of the State ww SCA (Vic) in partnership with Consumer Affairs Victoria has agreed with the Victorian Law Foundation to be an Event Partner and host an event as part Law Week 2015 [11-17 May 2015], in order to promote strata to the public. This CBD event, a public information session, is to be held 5.00-6.30pm on Tuesday 12 May 2015 and will feature expert speakers such as Consumer Affairs Victoria, a strata manager, strata lawyer, and strata insurer. So, make sure you let your owner clients know about this event. The registration form is on our web site. ww Four new member only resources have been added to the scores of Practice Guidelines: • Repairs & Maintenance – FAQs: Tree Roots • Asbestos – FAQs • Internal Dispute Resolution – Practice Guideline • Internal Dispute Resolution – FAQs

ww

ww

ww ww A recent media article regarding short-term letting & AirBnb cited SCA (Vic) comments. This followed on from SCA (Vic) being appointed to the government panel reviewing the regulation of short-term letting. ww Ethics are the hallmark of a profession, imposing obligations more exacting than any imposed by law and incapable of adequate enforcement by legal process. The SCA (Vic) Code of Professional Conduct notes that the recognition attached to being a member of SCA (Vic) depends on the reputation of its members. Each member must maintain the high standard of ethical behaviour and professional conduct required by SCA (Vic). One specific part, Clause 5, of the Code deals with secret commissions. It says that members must not directly or indirectly pay or accept an undeclared commission in any form. Also, if you’re one of the 93%

ww

ww

of members that use the SCA (Vic) Contract of Appointment, this is reinforced contractually.

NT leads the pack of Australian jurisdictions. It’s the first to have made strata law reforms that allow termination to be done with less than 100% unanimous agreement. If >15yrs & >10lots, then can pull it down with 80%-95% majority; down from current 100%. The Act has passed and commenced 1 Jan 2015. Everywhere else in Australia, including Victoria, still require a 100% unanimous decision to terminate a strata scheme.

Melbourne will get its own game of Monopoly to be launched in October. Traditional tokens and names will be booted in favour of the icons of Melbourne such as a tram, a Sherrin football or a cup of coffee. Nominations for the 22 place locations have opened on a Monopoly Melbourne Facebook page. Get your nominations in for any iconic strata related locations!

Listed companies share strata managers AGM pain. Strata managers are only too aware that there is a common lack of interest by owners, with hardly any of them turning up for AGMs. There may be some solace in knowing that this apathy is not unique to strata.

In 2013, Australia’s top 300 publicly listed companies drew just 0.13 per cent of their security holders to their annual general meetings (AGMs). The top 50 companies attracted a tiny 0.08 per cent.

Attendance has been in decline for many years.

Council recently considered members feedback and decided to focus in 2015 on these 6 priorities: Advocacy, Brand Recognition, Ethics, Revenue Pressures, Technology, & Education.

Ensure you register for the 2015 CHU SCA (Vic) Symposium, which is all about Meetings, to be held 21 Aug 2015. And make sure you nominate for the 2015 SCA (Vic) Awards for Excellence – your industry, your awards. The information kit has all the details. june 2015

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STATE victoria

AWOTE – the “proxy” for fee increases 2.7% The basis for strata managers increasing their fees over time is contained in our Contract of Appointment in the section Review of Fees [Clause 2.4]. It is based on AWOTE, which is the index for full-time adult ordinary time earnings.

AWOTE means the number as published by the Australian Government Statistician for the trend estimate, of private and public sectors, of all persons in Australia, for full-time ordinary time earnings, for the previous year [Publication 6302.0].

This measure recognises that strata management businesses are labour intensive, with salaries the single biggest expense contributing over half the total business expenses.

This latest biannual [half yearly] published number is for the year to November 2014 [though it was only published in February 2015].

2015 EVENTS CALENDAR Major Events in Victoria

Full Day(s)

Symposium and Awards for Excellence

Melbourne Park

21 August

Principals Retreat

Hamilton Island

22 – 25 October

Education Seminars 12 June

Principals Business Development Workshop

9:00am-5:00pm

10 July

Managing a Crisis in a Strata Property

3:00pm-5:00pm

18 Sep

Business Writing Excellence

9:00am-5:00pm

20 Nov

Strata Insurance & Claims Trends Update

3:00pm-5:00pm

11 Dec

VCAT – Do’s and Don’ts

1:00pm-5:00pm

All education seminars to be held at the Manningham, 1 Thompsons Road, Bulleen (unless advised otherwise)

Round Table Discussions (RTD) 3 July

CBD

8:30am-10:30am

27 Nov

West

9:30am-11:30am

RTDs are free open forums (limited to 40 attendees) Venues vary per event, refer website for full particulars

Special Interest Groups (SIG)

VIC SPONSORS

Rising Star Chapter

4 Aug

3:30pm-5:00pm

Niche Market Managements (ie RV, Chalet, MPE, Company Share)

30 June

3:30pm-5:00pm

Women in Strata

10 Nov

8:30am-10:30am

SIG discussions will be held at different venues, please refer to website for full particulars

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queensland STATE

QLD

President's message SCA (Qld)’s Board of Directors is a hands-on board that thrives in engaging with members and delivering key services that no one else in the sector does. Since our re-branding to Strata Community Australia in 2011, we have actively worked on our media presence, government liaison and we have set a focus on servicing members with quality education. Monthly education seminars provide our core training with the highlight being our annual conference. In 2015 we wanted to create a conference that focussed on quality, where every session is valuable. Our committee went through the process of reviewing all member feedback from the last two years and came up with a fantastic program that attracted a staggering 52% of our body corporate management companies and 65% of our strata services corporate members. In total, more than 220 members travelled to the Gold Coast to see a program that - according to our post-Conference surveys and anecdotal comments - has been very valuable to members. The SCA events committee truly fulfilled its purpose by designing a worthwhile program. The board takes the increase in delegate numbers as a strong mandate to continue this level of content depth into the future. We are embarking on a significant change to CPD requirements and structure of our offerings that will assist members in making training a firm part of their work life.

Body Corporate Commissioner change and we have actively communicated with both the new Commissioner and the new AttorneyGeneral to ensure our successful relationship is ongoing. Over the next couple of months we are anticipating an announcement regarding the continuation of the Property Law Review by the new Attorney-General Yvette D’Ath. We have requested a meeting with the Attorney and the new Premier Annastasia Palaszczuk to ensure a focus on the property sector, described as a pillar of the Queensland economy, is maintained.

To reinforce our positions on the Body Corporate Governance Options Paper, we recently developed a joint submission with the Stakeholder Umbrella Group, consisting of representatives from SCA (Qld), ARAMA Qld and the Owners Corporation Network Qld. Going forward, this group of strata managers and service providers, resident managers and owners endeavours to represent the sector together. We are of the firm belief that the more parallels we can form on our views of the needed actions in the strata sector, the more successful the outcome will be for consumers.

Simon Barnard SCA (Qld) President

Already, SCA (Qld) is being seen as the education provider for strata managers in Queensland. Over the past year we have seen the personnel at the Department of Justice and the Office of the

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STATE queensland

Annual Conference KISSed More than 220 strata managers and service providers upskilled and networked at the recent Strata Community Australia (Qld) Annual Conference at Surfers Paradise. Over two days, delegates chose to see almost 20 educational sessions and enjoyed a cocktail party and dinner. Olympic performance psychologist Dr Phil Jauncey, business coach Fiona Michel and property expert Malcom Riley inspired the hard working crowd to learn to balance and work smarter in a sector that grows at a rapid 4% year on year in Queensland.

The Conference themed “KISS - Keep it smart, strata” provided an energetic platform to exchange ideas and discuss challenges that face all stakeholders. SCA (Qld) invited the Commissioner for Body Corporate and Community Management, Chris Irons, Trevor Rawnsley from the Australian Resident Accommodation Manager’s Association, Garry Maynard from the Owners Corporation Network, Simon Barnard from SCA (Qld) and Kim Henshaw from SCA Ltd to debate the sector’s changes and new players. The Conference stimulated debates that will be taken up again later this year with a view for the Board to incorporate some of the feedback in its new strategic plan.

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queensland STATE

SCA (Qld) calls on Treasurer to help North Queensland Following the recent cyclones over North Queensland, SCA (Qld) has written to the Treasurer the Hon Curtis Pitt to reinitiate the conversations about damage to strata schemes in the Far North. Queensland consumers are burdened with high insurance premiums and once nature has ripped through schemes, many owners are still faced with enormous damage bills. SCA (Qld) is asking the Treasurer to provide funds in the May budget to assist in cyclone proofing strata title schemes. For cyclone Marcia in February, it is estimated over 1,500 buildings and homes were damaged across the state leaving approximately 100 families homeless.

SCA (Qld) has in the past called on the Federal and State Government to refrain from increases in Stamp Duty or GST as the cost to strata title owners is twentyfold in North Queensland in comparison to other Queensland regions.

Inspection, replacement and maintenance are the big recommendations our members consistently receive. Many strata title owners can’t afford to keep up with building care when the cyclones are coming at nearly monthly intervals over the season. It is unrealistic to expect a 100% cyclone proof building, but SCA (Qld) has implored the government to tip in $15million in this year’s budget to get the ball rolling. These funds would be used as grants to the most severely impacted areas. Many smaller schemes where there are only half a dozen owners cannot afford retroproofing for cyclones. They depend on some assistance or they will be paying over and over again. SCA (Qld)’s support for the north will continue until there is a better balance of reasonable insurance premiums and adequate damage recovery.

The stakeholder umbrella group The leading non-profit organisations in the strata sector in Queensland SCA (Qld), the Australian Resident Accommodation Managers’ Association and the Owners Corporation Network have recently formed a stakeholder umbrella group. Collectively, the three nonprofit industry groups represent more than 378,000 unit owners living or investing in strata units, almost 100 body corporate management firms and approximately 3,000 management rights buildings.

The group collaboratively represents common interests and has consulted one another regarding the Queensland Government’s Body Corporate Governance issues Options Paper to compare views and collaboratively put forward a unified view.

EVENTS CALENDAR Major Events in Queensland May 5

Masterclass: New Developments, Brisbane

May 5

Masterclass: New Developments, Brisbane

May 7

Strata Starter, Sunshine Coast [One day entry level qualification course]

May 14

Masterclass: New Developments, Gold Coast

May 21

Get up to Speed – Best of Last 6 months, Cairns

May 22

Get up to Speed – Best of Last 6 months, Townsville

June 9

Masterclass: Principal Body Corporate (PBC) and Building Management Statements (BMS), Brisbane

June 30

Strata Starter, Brisbane [One day entry level qualification course]

August 7

Golf Day, Brisbane Golf Club, Yeerongpilly

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STATE western australia

WA

President's message A few weeks ago Suellen asked me to call a woman at the Cat Haven.

At first I thought there must have been some mistake: something lost in translation? Perhaps they had the wrong number and were after the Siamese Cat Association (SCA)? I must admit that it was far from obvious to me that SCA(WA) would have anything to offer the Cat Haven, and the possibilities of partnership seemed remote.

A fifteen minute call later, and the Cat Haven is quoting SCA(WA) in its newsletter issued to its thousands of supporters in relation to keeping pets in apartments. I have a greater understanding of the impact of lease terms and by-laws on animal welfare. Common ground emerges and it’s covered with opportunity.

For our Association there is more potential in creating and nurturing partnerships than we can hope to fully harness. But we’re seeing more and more benefits over time. Through publications like the Cat Haven’s we gain public exposure and knowledge to drive policy and influence change.

SCA(WA) Council recently spent a Friday afternoon revisiting the Association’s strategic plan to decide what are the immediate areas of focus. The afternoon was jam packed with energy and enthusiasm, and collaboration with other bodies was a key theme. Council recognises that to build capacity we need to strengthen existing alliances and create new ones. I am pleased to say that work is well underway in this very direction. We have gained the support of both REIWA and the Law Society of WA for our position on the STAR Reforms. Both REIWA and the Law Society have issued media releases complimenting our own with the consistent message that we need a system of licensing for strata managers. We are working with SCA’s national office on the new membership management system and public relations.

But these relationships need not only be about work. Council is also keen to combine with other professional associations for entertainment and socialising too. I hope our members get behind these initiatives and have some fun in the process. Stay tuned!

Rachel Cosentino President SCA (WA) Inc

April members MANAGEMENT BUSINESS MEMBERS Empire Estate Agents – Jamie Horner Kevin Green Real Estate – Beverley Anderson Mark Hay Real Estate – Anneka Geddes

BUSINESS MEMBERS Centrewest Insurance Brokers – Rick Post Valuations WA – Chad O’Reilly Chubb Insurance – Cecilia Benitez Longitude Insurance – Jon Greenwood WBP Property Group – Brendan Aylmore

MANAGEMENT MEMBERS Caitlin Dethridge – John Dethridge Strata Services Emily Harris - Chambers Franklyn Strata Management Eliabeth Rock – Exclusive Strata Management Belinda Pfister - Exclusive Strata Management Jasmine Abraham - Exclusive Strata Management Jan Christie - Southern Strata Services Marianne Williamson – PRD Nationwide Broome Tiffany Brown-Neaves – i.fresh strata management Barry Bird – Platinum Strata Management Debbie Morley – Bellcourt Strata Management Natasha Nel - Bellcourt Strata Management Raymond Lampard – MMJ Real Estate Diane Fountain – Chambers Franklyn Strata Management

OWNER MEMBERS Ann Gillett David Michael Dian-Mae Paris Prudence Lane Susan Hancock Aurelio Caruso Eva Vavakis Fleur Gowland Glynis Kenny Nathie Laberge Sukumar Banala

PERSONAL MEMBER Natalie James – CHU Strata Insurance

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tasmania STATE

TAS

President's message SCA TASMANIAN REPORT All manager members have reported a very busy past 6 months with continuing enquiry and conversion of self-managed and in-active strata’s, largely driven by bank-led insurance requirements.

This growth was identified at our 2013 Tasmanian symposium and the strategies set at that time remain important to further growth of our market.

Manager members meet in Hobart this month to plan the theme and speakers for our upcoming 2015 State Symposium on 30th October this year – we hope that a number of you will make the trip across the ditch to see first-hand the opportunities facing Tasmania.

To encourage you we will be arranging post Symposium visits to the Tamar Valley wineries and a number of restaurants that showcase Tasmania’s coming of age in Wine and Food tourism.

I will be available at the Canberra National event to meet with anyone planning the trip and needing assistance.

Sponsors are most welcome and a range of opportunities still available.

Contact me on 03 6332 9300 or info@stratatas.com.au.

Michael Steele SCA Tasmanian President

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STATE south australia

SA

SCA South Australia report As we leave the first quarter of the year behind us, the SA chapter has taken the opportunity to throw the “New Guy” into the deep end and have him write an article on behalf of the SA Chapter.

My name Is Joshua Baldwin and it is an honour to be able to be on a team with such a diverse identity that is pioneering the Strata & Community way of life in South Australia.

This year we will be involved in the advancement of the industry as a whole, while also providing members with opportunities to learn, participate and professionally develop. As unique as the industry is in each state, South Australia has, as you would know, changed amended and improved their legislation relating to strata and community management. To complement these changes, the South Australian Chapter has the delight of presenting an “Industry Approved” management agreement.Tim Graham, from HWL Ebsworth Lawyers has been working closely with the South Australian Chapter to complete and provide this outstanding document. The first event for South Australia this year will be a presentation and discussion around this

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document. This will be a members-only event and the Management Agreement document will be for the exclusive use of SCA members.

The South Australian chapter is looking forward to this year providing further exciting events for our members and further to this we are always open to hearing your ideas as to what events you would like to attend.

Joshua Baldwin SCA (SA) Chapter Executive

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Crowther Blayne is an Australian leader in business-to-business online and print publications for a variety of industries worldwide. Crowther Blayne publications provide businesses with the broadest possible audience and target the most relevant decision-makers. By providing a platform of the highest quality, products and services are presented in the best possible light to the marketplace. If you have a specific enquiry about our services, or simply want to get in touch, please contact: Trish Riley | Business Development Manager | P: 1800 222 757 | trish@crowtherblayne.com.au | crowtherblayne.com.au