Investigative Journalism and Learning Hub - BCS Strata Management refused to sign tender declarations in SP52948 on 24 November 2014

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From: SP52948 owner
To: Russell Young BCS Strata Management, Greg Freeman Pica Group
Subject: SP52948 Tender Declarations by Strata Agency and EC Members for AGM 2014
Date: 24/11/14, 8:20 pm

Hello,

This is the last initiative for the AGM 2014. Enough preparatory work was done.

There are so many wrong things with Motions 1 - 22 and it will be every owner's duty to rectify them in accordance with laws.

Motion for "ratification" will have to be declared out of order by whoever is Chairperson because basic understanding of what ratification means was breached (refer to enclosed document).

Out of order will apply to number of other Motions.

As any transparent tender should have proper declarations, here is one that is missing for BCS to sign and present to owners corporation by Wednesday AGM 2014.

The formal Declaration of similar kind will be enforced upon each member of the current Executive Committee.

The enclosed files show a story about how Strata Manager's contract was renewed without any tender for 14 years. As of AGM 2004 (documented in the Minutes) on 6 October 2004, managing fee was $26,500.00 per annum (plus GST and management expenses) and new Agreement had to be signed between SP52948 and Raine & Horne Strata Sydney (now BCS). That never happened and to this day the only Agreement dated 26 May 1999 is VALID. Schedule of Charges that have been approved and published to owners happened once since that time at AGM on 5 October 2000 (flat fee of $1.80 per lot per month). Many other changes are, in spite of all research and checks, UNVERIFIED, UNDECLARED TO OWNERS, and hence UNAUTHORISED.

There was also special private deal between Mr. Greg Freeman and single EC member in 2011. The EC member even claimed to all owners in his address for AGM 2011 that he had "negotiated" decrease in Strata Management contract for two years. That did not happen.

A few owners approached me and asked why all this work.

I gave them simple and concise answer:

The realisation that due to poor management, bad business practices, lack of proper planning, and lack of duty of care, each SP52948 owner is paying, on average, around $1,000.00 for levies above what is reasonable. That is $1,000.00 per year that should be in each owner's pocket over the last 12 years. To make things worse, some huge major repairs and works must happen in next several years and I do not want that owners get hit by special levies.

Each owner should ask themselves: when did they see Sinking Fund plan with full schedule of major repairs and improvements over the last 14 years? And where exactly did their money go for regular maintenance?

Australian Standard Code of Tendering (AS 4120-19941) constitutes a statement of ethics that underpins best-practice tendering procedures and obligates all parties who adopt it to refuse to condone unethical behaviour by others in the industry.

The Australian Standard Code of Tendering is based on the following principles:

tendering at all levels in any industry shall be conducted honestly and in a manner that is fair to all parties involved;

parties shall comply with all legislative obligations, including those required by trade practices and consumer affairs legislation;

the conditions of tendering shall be the same for each tenderer;

parties shall not engage in practices such as collusion on tenders, inflation of prices to compensate unsuccessful Tenderers, secret commissions or any other such improper arrangements;

the Principal and tenderers shall be prepared to attest to their probity, by statutory declaration and other reasonable means;

tender documents shall specify the Principal's requirements as clearly and precisely as possible and when documents are altered,

sufficient time shall be allowed for all tenderers to review and revise their tenders;

the Principal shall specify what information in the tender documents is required to be treated by tenderers as confidential.

any party with a conflict of interest shall immediately disclose that conflict of interest.