New South Wales Consolidated Acts

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CONVEYANCING ACT 1919 - SCHEDULE 8A

SCHEDULE 8A – Building management statements

(Section 196E)

1 Form of building management statement

A building management statement must include any information required by the regulations and must not be inconsistent with--

(a) any conditions, imposed before the registration of the statement, on a development consent relating to the building to which the statement relates or its site, or
(b) this or any other Act or any other law.

2 Matters that must be included

(1) A building management statement must provide for--
(a) the establishment and composition of a building management committee and its office bearers, and
(b) the functions of that committee and those office bearers in managing the building and its site, and
(c) the settlement of disputes, or the rectification of complaints, concerning the management of the building or its site, whether by requiring reference of disputes or complaints to any person (with the consent of the person) for a recommendation or decision or otherwise, and
(d) the obtaining of a damage policy for the building in accordance with clause 3, and
(e) the obtaining of other insurance in accordance with clause 4, and
(e1) the fair allocation of the costs of shared expenses relating to parts of the building, and
(e2) a review process to ensure that the allocation of those costs remains fair with any such review taking place as soon as practicable after any change in the shared facilities or services (including any change in the use of those shared facilities or services), with at least one such review occurring every 5 years even if no such change has occurred, and
(f) the manner in which notices and other documents may be served on the committee.
(1A) A building management statement must include details of the method used to apportion the costs of shared expenses referred to in subclause (1)(e1).
(2) Each owner of a part of the building or its site must be a member of the building management committee.
(3) Despite subclause (2), any such owner may be excluded from membership, but only with the written consent of the owner.
(4) A corporation that is a member of a building management committee may be represented for the purposes of the committee by a person appointed by, or selected in accordance with, a resolution made by the corporation.
(5) A person who has been so appointed or selected and whose term of office as such a representative has not expired or been terminated by the corporation is, while representing the corporation for those purposes, taken to be the corporation.

3 Damage policy

(1) In this clause, a
"damage policy" for a building means a contract of insurance providing for the matters referred to in this clause in the event of the building being destroyed or damaged by fire, lightning or explosion, or any other occurrence specified in the policy.
(2) A damage policy is to provide for the rebuilding of the building, or the replacement of the building by a similar building, in the event of its destruction so that the rebuilt or replacement building is no less extensive than the original building and is in a condition no worse than the original building was in when new.
(3) A damage policy is to provide for the repair of damage to, or the restoration of the damaged part of, the building in the event of its being damaged but not destroyed, so that the repaired or restored part is no less extensive than the original part and is in a condition no worse than the original part was in when new.
(4) A damage policy is to provide for the payment of expenses incurred in the removal of debris.
(5) A damage policy is to provide for the remuneration of architects and other persons whose services are necessary as an incident to the rebuilding, replacement, repair or restoration.
(6) A damage policy may provide that, instead of the work and the payments being carried out or made on the occurrence of any of the events specified in subclause (1), the liability of the insurer is, on the occurrence of any such event, limited to an amount specified in the policy that is not less than an amount calculated by adding together the following amounts--
(a) the estimated cost, as at the date of commencement of the damage policy, of the rebuilding or replacement of the building in accordance with subclause (2),
(b) the estimated cost, as at the date of commencement of the damage policy, of removing debris from the site of the building in the event of the building's being destroyed by an occurrence specified in the policy,
(c) the fees (estimated as at the date of commencement of the damage policy) payable to architects and other professional persons employed in the course of the rebuilding or replacement referred to in paragraph (a),
(d) the estimated amount by which expenditure referred to in the preceding paragraphs may increase during the period of 18 months following the date of commencement of the damage policy.

4 Other insurance

Other insurance to be taken out is insurance--

(a) in respect of any occurrence against which the building management committee is required by law to insure, including any insurance required by the Workers Compensation Act 1987 and the Workplace Injury Management and Workers Compensation Act 1998 to be taken out, and
(b) in respect of damage to property, death or bodily injury for which the building management committee could become liable in damages, and
(c) against the possibility of the owners becoming jointly liable by reason of a claim arising in respect of any other occurrence against which the building management committee decides to insure, and
(d) against any damages for which the building management committee could become liable by reason that, without fee or reward or any expectation of fee or reward, a person acting on behalf of the committee does work in the building or on its site.

5 Other matters

(1) A building management statement may include provisions regulating (or providing for the regulation of) any one or more of the following--
(a) the location, control, management, use and maintenance of any part of the building or its site that is a means of access,
(b) the storage and collection of garbage on and from the various parts of the building,
(c) meetings of the building management committee,
(d) the keeping of records of proceedings of the committee.
(2) A building management statement may include particulars relating to any one or more of the following--
(a) safety and security measures,
(b) the appointment of a managing agent,
(c) the control of unacceptable noise levels,
(d) prohibiting or regulating trading activities,
(e) service contracts,
(f) an architectural code to preserve the appearance of the building.
(3) This clause does not limit the matters that may be included in a building management statement.
(4) A building management statement may incorporate plans and other instruments as part of the statement.

6 Implied provisions

Each building management statement is taken to include the following provisions, except to the extent that it provides otherwise--

(a) The building management committee must meet at least once each year.
(b) At least 7 days' notice of a meeting must be served on each person who is a member of the committee.
(c) The quorum for a meeting of the committee is a majority of the members.
(d) The decision of a majority of the members present and voting at a meeting of the committee is the decision of the committee.



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