Compass Strata had the pleasure of attending Strata Community Insurance's 2024 Autumn Forum where keynote speaker Dr Nicole Johnston shared her research findings on Building Care Action in Ageing Strata Properties: Facilitating Better Outcomes.
Dr. Johnston is the Founder and Director of Strata Knowledge, and former lecturer at Deakin and Griffith Universities. She leads impactful projects, advises governments, and chairs international forums on strata and community title law and governance, driving progress in areas like building defects and developer governance.
The Purpose and Method of Research
The research aimed to uncover the underlying factors that influence building care actions in strata properties. By evaluating records from 31 strata schemes across New South Wales, Victoria, and Queensland, Dr. Johnston and her team analysed over 18,000 pages of documents from schemes built between 1938 and 2013. With scheme sizes ranging from 6 to 310 lots, and a mix of older and newer buildings, the study provided a robust overview of the current state of Building Care.
Key Findings
One of the primary findings was the critical role of committee and owners' corporation (OC) participation. Schemes with low participation and high disengagement often faced significant building neglect. In contrast, schemes that demonstrated proactive building care typically had skilled members, such as experienced strata managers or architects, and were generally larger in size.
Maintenance and repairs emerged as a common challenge. The most frequent issues included water-related problems, painting, fire safety, plumbing, windows and doors, lifts, roofs, balconies, façades, and electrical switchboards. Unfortunately, most schemes adopted a reactive approach, dealing with problems as they arose rather than implementing a wholistic, preventative maintenance strategy. This patchwork approach often led to prolonged delays for complex remedial works, sometimes extending from 3 to 10 years, and resulted in multiple issues occurring simultaneously.
Decision-making within OCs also proved problematic. Many lacked awareness of their building's condition and frequently deferred necessary works. Financial planning for repairs and maintenance was often inadequate, with confusion surrounding responsibilities for private lot and common property. Although all schemes had a sinking or capital works plan, these were primarily used for budgeting rather than proactive maintenance planning. Over a third of the schemes had balances lower than forecasted, and updates to these plans were rare.
The expertise difference between strata managers was clearly evident. Well-drafted minutes and detailed reports were often missing, leading to confusion and poorly documented decisions. Additionally, contracting and oversight were inconsistent, with building works contracts rarely reviewed by lawyers.
Compliance was another area of concern. Many schemes consistently defeated or deferred compliance motions due to financial constraints. Furthermore, historical repair and maintenance information was not well-collated, making it difficult to trace past decisions and actions.
Addressing Shortcomings in Building Care and Financial Planning
The research findings underscore significant shortcomings in current trends and practices regarding building care initiatives and financial planning within Owners Corporations. These inadequacies pose considerable challenges, potentially impeding the effective maintenance and upkeep of buildings.
In light of these findings, the expertise and experience offered by Compass Strata emerge as invaluable assets. With decades of experience managing building maintenance and financial planning for communities of all shapes and sizes, Compass Strata is uniquely positioned to address these challenges effectively. By leveraging our wealth of experience, owners can benefit from tailored solutions that optimise building care initiatives and ensure sound financial planning practices. Ultimately, partnering with Compass Strata offers a pathway to improved building maintenance outcomes and enhanced financial sustainability for strata communities.
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