Major Spending Limit

As one Queensland Body Corporate recently experienced, the term of a contract can be highly significant when considering a motion for a contractor engagement.  The Queensland BCCM Commissioner passed down a decision which highlights the necessity for owners to be wary and knowledgeable about their rights.  Northcliffe’s Body Corporate manager breached the requirements … in relation to proposed spending beyond the Major Spending Limit.  For those unversed in Body Corporate legalities, the “Major Spending Limit” is used to determine the number of quotes required when considering a motion at a general meeting.  Calculated by multiplying the number of lots by $1,100 or set at $10,000 for 10 or more lots, exceeding it requires two alternatives to be given.  Whilst the quote that the Northcliffe Body Corporate Manager provided was under the spending limit for a one year contract, the AGM motion proposed a three year contract.  Over the three year period, the contract exceeded the major spending limit.  By law he was required to provide
at least one other quote.  By not doing so he robbed the Body Corporate of their options, and potentially their money.

You can read the full case here.