Strata - Remedial Work Cost Doubled!

xdivino on 21/10/2019 - 21:35

So, currently have a Strata remediation works project at my apartment, 2-3 level building about 20ish units.
Project is for balcony and concrete cancer etc.
So we got a consultant to write up the scope and all seemed well, i'd bought the place knowing it would eventually be needed and budgeted about 30k-40k for it when buying (negotiated the price off the back of this.)
Turns out to be mid 60s.. hmm ok.. not great but seemed comprehensive enough that it shouldn't blow out…

we've now discovered more and more works etc so now we're being told we need to find anouther 60-70 per unit..

What type of review should/can we get involved with this.. like 2nd opinion etc.
half the work's done, kinda, and the other half is just more and more problematic and more costs expected.

Home & Garden

Comments

  • wordplay on 21/10/2019 - 21:51
    +3

    unfortunately its only going to get worse. they will keep finding things and continue the works. body corporates/stratas are these guys bread and butter, cash cows that never run dry.
    I feel sorry for apartment owners.

    • xdivino on 22/10/2019 - 00:46

      Feels like that
      Had faith it was all in good faith but doesn’t seem that way anymore

  • activ8newbs on 21/10/2019 - 21:52

    How much of a sinking fund balance does the strata have?

    I guess that would be a valid question…?

    Also, do you mean that each apartment owner is expected to fork out an additional $60-$70k on top of the original $60k? That doesn't sound right…

    Sorry for your situation. Who's the builder?

    • dcep on 22/10/2019 - 11:51

      How much of a sinking fund balance does the strata have?

      Doesn't matter. It'll be negative after the forecast on repair expense, hence the special levy imposed.

      I guess that would be a valid question…?

      No.

      Also, do you mean that each apartment owner is expected to fork out an additional $60-$70k on top of the original $60k? That doesn't sound right…

      Sounds absolutely right. It's concrete cancer.
      The steel inside concrete rusted and expanded till the concrete cracked open.
      Not an easy fix. Either fix it or let the building crumbles to ground.

      Sorry for your situation. Who's the builder?

      Doesn't matter.
      20 units small fries builder and concrete cancer that takes decades to develop?
      Builder probably dead or gone.

  • hawkeye on 21/10/2019 - 22:30
    +1

    So we got a consultant to write up the scope

    Get an engineer specifically specialized in that field it will cost you but probably save in the long run. They'll make it easy to understand make recommendations rectification solutions to a structural soundness advise on where the problem originated from and make recommendations to prevent further damage.

    What did the consultant builder say? Keep digging and make me some money? palm it of to the cerfifier

  • CyberMurning on 21/10/2019 - 23:06

    which apartment?

  • tsunamisurfer on 21/10/2019 - 23:19

    So its a matter of more works required or the same amount of work required but costing double?

    • xdivino on 22/10/2019 - 00:49

      More work as more uncovered
      I.e problem is more problems that though of.

      There basically a level of under scope that I’m p.o.ed if it were smaller bits and extra work fine but to be so far off the initial sizing of the job that costs are 100%… it’s like cmon

  • FoxJump on 22/10/2019 - 06:43
    +1

    I've had same experience with concrete cancer. One guy said hand wavey 30k another guy said slightly more detailed 25k. Went with 25k.

    Nektminit, 25k guy wants more money because omg balconies gonna fall off. Extra 40k later we're out of money and they still want an extra 60k which we don't have.

  • Seraphin7 on 22/10/2019 - 09:30
    +4

    Unfortunately remedial work is a bit open ended. This stems from both the problem emerging as the work progresses (genuinely) and operators effectively underquoting by only going with what they "know", but fully expecting there to be more issue emerge as they go. The scenario you are in sucks, but it's a relatively common for this type of situation.

  • brendanm on 22/10/2019 - 11:20

    The joys of apartments.

    • dcep on 22/10/2019 - 12:01
      +1

      The joy of steel in concrete.

      Who would have thought steel would rust eventually, maybe engineer ?

      Yet they use it in every building.

      Council spent hundreds of millions fixing concrete cancer in City Hall.

      Gold coast beach-side high-rise apartments are full of cancers after 30 years.

  • HighAndDry on 22/10/2019 - 12:39

    we've now discovered more and more works etc so now we're being told we need to find anouther 60-70 per unit..

    As others have said, remediation commonly involves finding more issues as work is done just because only then do they go deeper into the structure.

    You can get another engineer to take a look but that would be another potentially $15-20k for that report.

  • lechuck123 on 23/10/2019 - 10:59

    This sounds eerily similar to my apartment. We've just started collecting the Special levy at about $40K each (approx 20 apartments, 2-3 stories high). Work is for Facade and balcony concrete repair.

    Work is due to start work next year, but I could almost bet they're going to find more issue and need more money.

    • xdivino on 23/10/2019 - 11:04

      I'd bet money on it based on my experience. Another day another issue found. We're looking at a total spend per apartment at close to $150k now.
      Could probably knock down and rebuild for that kind of money it feels like.

  • SnoozeAndLose on 23/10/2019 - 11:06

    This is normal because when they work on the affected area the problem is worse than what they estimated.

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