Tip 27 – Spending – Multiple projects rule

Committee and body corporate spending limits exist for good policy reasons. For example, to trigger the need to obtain at least two quotations or to ensure that owners have their say on non-routine or extraordinary expenditure.  Breaking down one expense into smaller components so that you don’t have to go to a general meeting is a no no.  It can also have serious consequences for the body corporate, if for example the committee engages building contractors to do work across multiple quotes and an owner then (successfully) challenges the committee’s decisions.  If multiple expenditures form part of one project then you must put them all together and get them approved together in the proper way.