This week, in my quest for simpler strata laws in Australia, I’m calling for the repeal of all laws that require two quotes for major items of expenditure.
This requirement encourages price shopping and discounting. This is not consistent with modern principles of good governance.
This provision also impedes strata managers and committees from working with trusted advisors.
Owners make major procurement decisions at general meetings. They cannot appreciate the added value of these relationships when undertaking important work.
Strata committees and managers are responsible for good decision making – let them do their job and recommend to the owners their preferred contractor for the big jobs.
What do you say - scrap it or save it?
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
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