Long Term Maintenance Plan

DO I HAVE A LEGAL OBLIGATION TO GET AN LTMP?

Yes, It’s the law – Section 116 of the Unit Titles Act 2010 requires you to have in place a regularly updated LTMP budgeting at least the next ten (10) years of building maintenance costs.

HOW OFTEN SHOULD I UPDATE MY LTMP?

By law you must upgrade your LTMP a minimum of every 3 years.  However many buildings are choosing update every 2 years to keep up to date with ever changing building, plant and equipment costs.

NOTE: Recent studies show that construction costs can rise annually by 7.2% – independent bodies like interest.co.nz show that there is an undersupply in many trade areas keeping upwards pressure on costs.

WHAT ELSE IS IMPORTANT ABOUT UPDATES?

Avoid stressful special levies & ensuring current owners pay for their use of the building asset = a fairer user pays system that doesn’t penalise new owners..

UNDER FUNDED LTMP’S = LOWER VALUATIONS!

Below market sales prices are a reality for under-funded buildings. Savvy buyers negotiate using this.

WHAT’S INCLUDED IN MY LTMP?

Under s30 of the Unit Title Regulations, maintenance plans must cover common property, building elements & infrastructure. (The BC may decide to add or remove LTMP items by ordinary resolution.) The focus of a quality LTMPs is larger non-recurrent costs.

CAN I ELIMINATE FUTURE LITIGATION RISKS?

Yes. Avoid future legal hassles; there have been recent cases where new owners have taken previous owners/committee members to task for not fully budgeting for maintenance costs often after large special levies have had to be struck.

SHOULD I USE THE MOST EXPENSIVE PROVIDER?

Not necessarily. Find a quality value for money provider you trust. Quality reports have all the information you need without unnecessary page filling information that adds little value for you

Safety Report

WHAT’S YOUR DUTY OF CARE?

Under common law and the Occupiers’ Liability Act 1962, a body corporate owes a duty of care to owners, tenants, visitors and contractors. The duty is to take steps to minimise the risk of injury on the property. In the past, thanks to New Zealand’s no-fault accident compensation scheme, litigation was relatively rare. Now, statutory penalties have substantially increased the risk for bodies corporate.

Examples of common duty of care risks:

  • building elements that affect safety and did not meet applicable building codes at the time of construction; and
  • cracked, broken or unrepaired surfaces;
  • low bulkheads and other head injury hazards;
  • missing signage in driveways, walkways and car parks;
  • uneven surfaces (e.g., cracks, gaps, potholes);
  • unexpected elevation changes;
  • missing or loose handrails on stairs;
  • steps, staircases and/or handrails that do not comply with the relevant building codes;
  • debris or obstructions on walking paths;
  • cleaning and/or pool chemical storage that does not meet HAZMAT legislation

WHY IS THERE NEW LEGISLATION?

In response to the Pike River mine tragedy, the New Zealand government passed the Health and Safety at Work Act 2015. The legislation is based upon the Australian Work Health and Safety Acts, New Zealand now has now seen a (similar to Austalia) reduction workplace deaths of 16%.. Solutions in Engineering have been working with the New Zealand legislation since its inception, and thoroughly understand the compliance framework and your real obligations.

WHY DO BODIES CORPORATE NEED TO COMPLY?

A PCBU (Person Conducting a Business or Undertaking) is the umbrella term for bodies that must comply with the Act. While stand-alone residential houses are exempt, residential Bodies Corporate have obligations in respect of the common property. When work is undertaken on the common property, or occupiers work from home or undertake a home business, the BC must comply with the Act and associated regulations. The legislation clearly applies.

WHAT’S MY OBLIGATION?

You are obliged under Section 36 of the recently updated Act to ensure, so far as reasonably practicable, the health and safety of all workers and persons on the property. This requires Bodies Corporate to be aware of, proactive and take a broad view of compliance. It is not sufficient to assume that because no injury has occurred, everyone safe.

WHAT ARE THE PENALTIES?

Your Body Corporate can be fined up to $600,000 and/or individuals can be sentenced to 5 years jail. In other words you risk hefty fines under the Health and Safety at Work Act 2015 if you don’t comply with your obligations. These fines don’t include potential litigation costs that would have to be paid as a result of an accident stemming from your failure to uphold your duty of care.

HOW CAN I EASILY MEET MY OBLIGATIONS?

You can act NOW! Compliance means being proactive about your safety obligations, and that involves identifying and rectifying hazards on the property. You should engage a suitably qualified and experienced company to conduct the following steps based on the new legislation:

Step1.              Inspect the common property and provide a report that clearly identifies any breaches of compliance;

Step 2.             Assess the risks that may result from those hazards;

Step 3.             Decide on the control measures to prevent, or minimise the level of risks present and future;

Step 4.             Monitor and review the effectiveness of these measures annually.

BENEFITS OF A SOLUTIONS IN ENGINEERING SAFETY REPORT:

  • Clearly identified hazards with accompanying digital photographs illustrating their locations;
  • Assesses risks that may result because of the hazards;
  • Assists you in deciding control measures to prevent, or minimise the level of risks present and future;
  • Provide a basic introduction to the important elements of Work Health and Safety and Risk Management;
  • Provide telephone support if you require it;
  • Provide information that is the essential basics for engaging and managing contractors for use on common property.

HOW DO I STAY COMPLIANT IN A CHANGING COMPLIANCE LANDSCAPE?

Hazards constantly change – new cracks form, paths and pavers subside, moss grows on driveways, law court decisions set new duty of care precedents, handrails loosen, occupiers store items in unsafe locations, chemical storage locks are forgotten and the 60,000 pages of applicable legislation constantly change. Under duty of care and the Work Health and Safety at Work Act 2015 the common property should be regularly monitored and reviewed to meet your obligations.

Meeting your safety obligations is easy with good quality, professional help. Solutions in Engineering Annual Safety Reports will take the compliance monkey off your back.

Asbestos Survey

DOES MY BUILDING NEED TO COMPLY?

It depends on when your building was constructed. If it was constructed before 1 Jan 2000 then you are obliged to comply.

WASN’T ASBESTOS OUTLAWED DECADES AGO?

Even today, aware as we are of the dangers Asbestos, Asbestos containing products are still being used. How? In many countries (Canada and China for instance) using asbestos in manufactured products is still allowed. Recently fibrous cement board and tiles imported and used in NZ and Australia were found to contain asbestos. Thankfully today this is relatively rare.

WHAT ARE THE PENALTIES IF I DON’T COMPLY?

A $500,000 fine is the maximum penalty for non-compliance under the Health and Safety at Work Act 2015. This fine does not include the further potential risks of civil litigation and its associated costs.

DOSE MY RESIDENTIAL BUILDINGS NEED TO COMPLY?

Yes. The New Zealand Guideline for Management and Removal of Asbestos states that “all owners, except for owner-occupier private homes” must ensure that controls are in place for asbestos. Further, the Health and Safety at Work Act 2015 states that all places in which have employees (This includes contractor, subcontractors, and volunteers who are regularly on common property) must comply.

WHAT IS THE DIFFERENCE BETWEEN RAW ASBESTOS AND ACM?

Raw asbestos is made of naturally occurring long and thin fibrous crystals found in rocks and soil. Each fiber is composed of many microscopic ‘fibrils’ that can be released into the atmosphere by abrasion and other processes. Whereas ACM (Asbestos Containing Material) is any material that contains more than one percent asbestos.

WHERE WAS ASBESTOS USED?

Asbestos was commonly used in residential and commercial constructions as it was cheap, abundant, fire resistant, a great insulator

and therefore desirable as a building material. Some examples are;

  • Asbestos Cement Sheeting in bathrooms, exterior walls, and under roof overhangs
  • Vermiculite ceilings – sprayed on/rough finish
  • Sprayed on fireproofing
  • Hot water pipe insulation
  • Switchboard backing boards
  • Fire door internal filling
  • Roofing sheeting like Super 66
  • Gaskets in sewerage and storm water pipes
  • Ceiling and floor tiles backing and glue
  • Wall and ceiling plaster
  • Transite shingles and more

WHAT IF NO ASBESTOS IS FOUND?

If you have a survey completed and no asbestos is present then simply file your report away and relax. Congratulations you have met your obligations. You are not required to obtain a management plan or register.

WHO OWES A DUTY IN REGARD TO ASBESTOS?

The new legislation builds on existing legal framework with regards to asbestos. Those who may be liable include:

  • The owner of the premises;
  • A person, who has, under any contract or lease, an obligation to maintain or repair the premises;
  • A person who is occupying the premises;
  • A person who is able to make decisions and changes to the structure and use of the workplace;
  • A person with management control over the workplace, for example, a property management group or agent.
    • A person, who has, under any contract or lease, an obligation to maintain or repair the premises;
    • A person who is occupying the premises;
    • A person who is able to make decisions and changes to the structure and use of the workplace;
    • A person with management control over the workplace, for example, a property management group or agent.

YOUR RECOMMENDED IMPLEMENTATION PLAN

Step 1 – Get Surveys completed

  • Identify competent survey company, like Solutions in Engineering
  • Order surveys for all buildings completed prior to 2000
  • It is strongly suggested you preorder the required onsite Asbestos register and management plan in the case where asbestos is found. (This makes compliance seamless and saves you money if asbestos is found. It all gets done at once.)

Step 2 – Implement Survey Recommendations

  • Keep all asbestos documentation onsite
  • Ensure contractors are aware of asbestos documentation