Section 130 Caretaking Remuneration Reviews
The statutory review most committees do not know they have.
The statutory review most committees do not know they have
Section 130 of the Body Corporate and Community Management Act 1997 gives a Queensland body corporate the right to request a review of its caretaking agreement within the first three years.
Either the body corporate or the service contractor can ask for it. The right exists regardless of what the agreement itself says, and it cannot be contracted out of.
That last point is worth sitting with. Committees frequently assume an agreement signed by the developer binds them entirely. On this particular question, it does not.
What the review can look at
The scope is specific. It considers whether the terms of the agreement, meaning the duties, and the remuneration payable under it, are fair, reasonable and appropriate.
Not whether the committee likes the caretaker. Not whether a cheaper option exists. Whether the duties and the money are appropriate to each other and to the scheme.
How it works in practice
An expert consultant inspects the scheme, reviews the agreement, and provides advice on those questions. If the finding is that the duties or the remuneration are not fair, reasonable or appropriate, the body corporate can request changes.
The contractor has to agree to those changes. Where they do not, the body corporate can apply to the Queensland Civil and Administrative Tribunal to determine whether the changes are in order.
Why the expert report matters so much here
The whole process turns on an independent assessment. A committee’s own view that it is paying too much carries no weight at QCAT. An expert report assessing duties against remuneration, grounded in an inspection of the actual scheme, is the thing the process is built around.
Which means the quality of that report largely determines the outcome.
What we assess
- The duties specified in the agreement, against what the scheme actually requires
- Time and resources genuinely needed to perform those duties
- Remuneration payable, assessed against the duties
- Whether the arrangement is fair, reasonable and appropriate
The three year window
The statutory right applies within the first three years. Newly established schemes coming out of developer control are the obvious candidates, and it is also the period when a committee is least likely to know the right exists.
If your scheme is inside that window and nobody has looked at the caretaking agreement, that is worth a conversation before the window closes.
Who we act for
Bodies corporate, committees and strata managers. We produce the independent assessment, in a form that stands up if the matter goes further than a negotiation.
Seymour Consultants has worked with Queensland bodies corporate since 2001.
Frequently asked questions
What if the caretaker refuses the changes?
The body corporate can apply to QCAT, which determines whether the proposed changes are in order.
Can we do this outside the first three years?
The section 130 statutory review applies within that window. Other avenues may exist depending on the agreement and the circumstances, which is worth discussing.
Is this the same as a caretaking performance review?
Related but different. A performance review looks at how the caretaker is doing. A section 130 review examines whether the duties and remuneration in the agreement are appropriate in the first place.
Do you also help find a new caretaker?
Yes, we undertake caretaker and building manager recruitment for bodies corporate.
Call 07 5573 4011 to discuss a section 130 review.
