Case Study: Increasing Body Corporate Major Spending Limit for a Specific Project

London Woolstore Apartments, Brisbane
Decision January 2025

Office of the Commissioner of Body Corporate and Community Management application number: 0341-2024

Background

The body corporate resolved to increase the relevant limits for committee and major spending, to allow for a project in removing combustible materials from the common property of the building.

With a new major spending limit in place, the committee considered a single quote, which fell below this limit, before engaging contractors to complete the works.

Part of the work resulted in a reduction of natural light in some lots, following which some affected lot owners lodged their application to rectify the works. The application considered whether the body corporate acted unreasonably, breached the code of conduct for committee members, or should have considered more than one quotation.

How did the adjudicator rule?

The adjudicator saw that the body corporate acted reasonably and was not satisfied that there were any contraventions to the Act or Accommodation Module by the body corporate. The application was dismissed.

What this means for you

This is one of the first decisions to directly consider whether a body corporate can increase the scheme’s major spending limit to allow for only one quote to be considered for a project.

The ruling provides that this is an allowed practice. The correct procedures were followed in increasing the major spending limit, and the works carried out were well below the new limit. The body corporate committee was therefore within its rights to progress the project without a second quotation consideration.

Further reading

• Austlii Listing
• Body Corporate Tips: Two quotations are required when above the Major Spending Limit