Investigative Journalism and Learning Hub - Waratah Strata Management Silent About Missing Warranties and Unexplained Costs of $92,950.00 for SP52948 Townhouses During Major Upgrades on 3 February 2021

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From: SP52948 owner
To: Robert Crosbie Waratah Strata Management
CC: Stuart Greene Waratah Strata Management
Subject: FAILED MAINTENANCE AND DUBIOUS EXPENSES: SP52948 Unexplained costs of around $92,950.00 for townhouses during major upgrades in the complex
Date: 3/2/21, 9:02 pm

Good evening,

We have around $92,950.00 (including GST) for alleged townhouse repairs and upgrades in 2017/2018 and so far all efforts to get strata manager and committee to answer valid questions have been met with silence. That is a significant amount of common funds that need to be fully justified and verified by invoices and proof of works.

Based on visual and other checks, and all available strata files, it is easy to confirm the following:

a) Townhouses have not been fully refurbished and updated for 24 years. Only patchwork was done at irregular intervals.

b) There is no evidence of any significant work being done on townhouses (including roofs) during alleged major upgrades in the complex in 2017/2018:

c) BCS Strata Management and Waratah Strata Management failed to disclose to owners that the full contract with Townview Australia Pty Ltd was in amount of $630,846.00 (including GST).
Waratah Strata Management failed to disclose to owners the following breakdown of expenses for the painting project that they were aware of as early as 3 March 2017:

Block A: $117,700.00 (including GST)
Block B: $117,700.00 (including GST)
Block C: $117,700.00 (including GST)
Block D: $117,700.00 (including GST)
Various Structures: $66,000.00 (including GST)
Townhouses: $92,950.00 (including GST)

Total cost: $629,750.00 (including GST).

Motion 3 in the Minutes of EC meeting held on 20 July 2017 shows that around half of the project cost having been paid to date. Allegedly three quotes from RJ Bird Services to carry out remedial repairs required prior to painting were accepted at a total cost of $27,580.00. No details of the "remedial repairs", and no evidence or statements about multiple quotes being sought from different providers were provided to any owner.

Motion 3 in the Minutes of EC meeting held on 28 September 2017 shows that the painting project was complete and all accounts had been paid except the 5% retention amounts totaling $28,187.00 + GST.

No details of the total costs, warranties, and other details were provided to owners.

Agenda for the AGM 2017 sent to owners contained information that the total costs for the painting project were $646,200.00 plus GST (totaling $710.820.000).

Waratah Strata Management listed total costs in the Agenda for AGM 2017 on page 25 (Capital Works Fund) as $610.357,26 (plus GST). If one adds figure of $28,187.00 (retention amount of 5% as per Motion 3 in Minutes of EC meeting held on 28 September 2017), it totals $638,544.00 (plus GST).

Since 2018, lot of extra work has done because the major upgrades were poor, incomplete, unprofessionally done, and at extra costs to owners. Garden beds are just one of good examples.

Please provide full evidence of the scope of work, warranties, including evidence for townhouses. Otherwise, we have around $92,950.00 (including GST) which are missing in owners corporation funds, or was spent elsewhere without owners corporation knowledge or approval.

Regards,