Construction Costs: Your Quarterly Update – September 2018

Construction Costs: Your Quarterly Update – September 2018

Each year, your body corporate must insure the whole building, including the owners’ lots, for the full replacement cost. An independent valuation must be obtained stating the full replacement cost of the building, at least every five years. The question is, how do you determine the ‘full replacement cost’ in the intervening years? It is…
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Debt Recovery: The Queensland Court of Appeal Speaks

Debt Recovery: The Queensland Court of Appeal Speaks

Last year, a  District Court judge ruled that the usual 6-year limitation period under s.10 of the Limitation of Actions Act 1974 (Qld) does not apply in the face of the specific “2-years and 2-month” rule set out in s.145(2) of the Standard Module.  (see also s.143(2) AM) Refer:  BC for Mount Saint John Industrial…
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Sinking Fund Contingencies – Allowed or Not?

Sinking Fund Contingencies – Allowed or Not?

Newsflash #36 and The Duporth Riverside [2017] QBCCMCmr 177 The UOAQ published Newsflash #36 in February 2018, alerting members to a 2017 adjudication order that a body corporate’s annual Sinking Fund Budget cannot include provision for unexplained contingencies. Put simply, a budget is not a lolly jar. It can only “…include specific items of expected expenditure…
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Spending and Payment Rules of Bodies Corporate

Spending and Payment Rules of Bodies Corporate

22.2: Liability to Pay v Actual Payment:  A Golden Rule for Each Liability to Pay: arises when a body corporate contracts with either a supplier of goods or a service provider. Actual Payment: transfer of body corporate monies to the supplier, or provider, upon receipt of the invoice.  The rules for ‘liability to pay’ are…
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Construction Costs are Rising,  Ignore Them at Your Peril

Construction Costs are Rising, Ignore Them at Your Peril

Strata insurance is compulsory, expensive, and contains many risks. One of the big risks involves the Building Sum Insured (BSI).  Getting it right is not easy… getting it wrong can cost you lots of money. This applies to both over-insurance (premiums too high), and under-insurance (cover too low). Over-Insurance can be expensive Much has been…
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Contingency Planning in Sinking Fund Forecasts

Contingency Planning in Sinking Fund Forecasts

22.1: Sinking Fund Analysis [SFA] & Contingency Forecasting We’ve Always Done It This Way It is a long-standing practice for valuers and quantity surveyors to include provision for ‘contingencies’ in their 10-year Sinking Fund Analysis Forecasts [SFAF].  It is included in each year of their forecast, generally about 10% of the averaged contributions over the…
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