Procurement Duties and Responsibilities:
- must take reasonable steps to ensure that any goods or services are procured at competitive prices and terms;
- must not to exert pressure to influence the outcome of a vote; and
- must, before a Contract is entered into, give written notice to the chairperson disclosing the commission, payment or other benefit the Manager is entitled to receive a commission, payment or other benefit.
Further, the Manager must, upon request, provide the Owners Corporation’s financial statements of bank records. Records within 3 years, must be provided immediately and other records, as soon as practicable.
The manager may need to consider sourcing multiple quotations for repair & maintenance as required and depending on the costs and the nature of the service, the manager may provide recommendation on other reasonable factors (e.g. previous quotes by the same contractors for the same type of job, knowledge of reasonable pricing having regard to experiences in engaging contractors for other Owners Corporations).
Discloser of any Supplier Relationship, Commission, Payment or benefit received:
Disclose any beneficial relationship, commission, payment or other benefit that the manager is entitled to receive from the supplier whom a contract is proposed to be entered into for the supply of goods or services to an Owners Corporation.
- Example of ‘beneficial relationship’ is where the Supplier is:
- the Manager;
- an associate (including director, employee family relation, representative) of the Manager;
- a corporation/firm which the Manager/associate is a member;
- a corporation which the Manager/associate can exercise control; and
- an executive officer, trustee, beneficiary.
Example of ‘Commission or Benefit’ is with respect of insurance contracts, the Manager must disclosure the percentage of the commission rather than the actual amount.
The above Duties and Disclosure obligation must be given in the Manager’s report to be resolved and adopted at each Annual General Meeting.
Find out more at https://www.legislation.vic.gov.au/as-made/acts/owners-corporations-and-other-acts-amendment-act-2021
