It takes a number of people to keep a strata scheme community operating smoothly and efficiently. From cleaners to plumbers, pool maintenance experts and security guards, owners corporations often hire a range of different service contractors to take care of a variety of jobs within a strata community.
You can’t just hire any person at any time, however, and the ACT government has rules governing service contractors that owners corps should be aware of.
How long can a service contract be?
Service contracts cannot be entered into for longer than three years and roll over after three years is not allowed.
Ending a service contract
Service contracts are binding for the determined period, but owners corporations can end a term in cases of:
- A remedial breach
- The contractor becomes bankrupt
- The contractor is convicted of an offence punishable by one year’s imprisonment in the ACT
To protect members’ money, owners corporations must end a service contract if:
- A service contractor is absent – without permission – for 14 consecutive days or for 28 days in a 12 month period.
- The contractor is unable to carry out their contract due to a physical or mental incapacity.