In the old days, a body corporate would receive a deed of assignment and it almost become a rubber stamp process by issuing a “vote outside a committee meeting” (VOC) for the bodies corporate approval. Other bodies corporate would meet the proposed managers for an interview at a Committee meeting and run through a series of questions with them which were often a generic list. Then an approval was given while the solicitors attended to the legalities.
As we know, that “a body corporate cannot unreasonably withhold consent to the assignment of a management rights agreement” and “a body corporate cannot impose any terms or conditions on the assignment” but what exactly does that mean?
Basically, there is always some risk in any assignment process. It is like hiring a new contractor, or an employee for your company. An interview process can be conducted thoroughly with someone able to articulate well, and answer the questions suitably, but when it comes to undertaking the duties, they do not perform as anticipated. They may have been trained or briefed on what to expect, and/or be the type of person who has the charisma to wing it! Unfortunately, for bodies corporate they cannot, give the, “You’re fired!!! Apprentice Style”. They are more likely to have a manager which has a +10-year agreement which is very difficult to terminate. What is the solution?
The interview process is an excellent opportunity to conduct due diligence. A skills assessment should be undertaken to see if the incoming manager can undertake the duties in their agreement. Furthermore, an understanding of building maintenance is required. The management rights lifestyle traditionally attracts persons from a variety of industries. While skills may be transferable, there is a constant need to upskill assignees to an accepted industry standard. The implications for not operating at an effective standard not only relate to building maintenance but also general safety of persons inside the building, especially in terms of emergency management. Should a serious incident or failure occur, it could be regarded as gross negligence, and theoretically, even go back to the original assignment approval for the manager.
What is required? An independent consultant that understands the maintenance requirements, Caretaking Agreement and associated duties. At Seymour Consultants we continually refine the process by introducing series of tests to benchmark competency. Our unique scoring system allows bodies corporate to be better informed, limit liability and to make calculated decisions or recommendations.
If you have any questions or wish to speak to us about this service, please contact us.