Tip 37 – Spending – Watch the committees spending limit

Utilities contracts are subject to body corporate rules too. If the body corporate is going to commit to a supply contract then it needs to understand how much is being spent under that contract.  Even if the body corporate is engaging in “on supply” arrangements with owners, the body corporate is still buying the utility service first. Whether the body corporate successfully recovers 100% of what it resells or not the relevant spending limit for the supply contract is calculated with reference to the body corporate’s liability to the supplier.