Strata tip 67: Spending – For major spending, consider two motions

If you’ve just voted to accept a quotation and enter into a contract with the successful tenderer at a given price, what happens if there’s a contract variation?  In the worst case you’ll have to go back to the owners in general meeting to approve the variation.  One way to avoid this is to pass one resolution choosing between quotations and authorising entry into of the relevant contract.  Then, pass a second resolution which approves spending under that contract as quoted, plus a contingency of (say) 15%.  If you do it right, when there’s a proposed variation that does not exceed your contingency, the committee will be able to authorise the variation.