What is a Building Management Statement?
A building management statement (abbreviated to ‘BMS’) (or strata management statement (‘SMS’) in New South Wales, where involving one or more strata schemes) are similar to Community Management Statements (‘CMS’), but pertain to developments which have a number of mixed uses that share common facilities.
Whilst the concept of a BMS may be similar to a CMS (in the sense that it sets out a series of rules relating to the governance structure and management of the complex or buildings forming part of the development), they are regulated by different legislation and operate in quite different ways as a result.
A BMS acts like a contract between the various members and difficult issues about the correct jurisdiction for enforcement can arise where any dispute resolution clauses within the BMS are unclear. Disputes will frequently arise between the various members of a building management group (‘BMG’) as the lack of prescriptive rules relating to these arrangements mean that discrepancies and inadequacies in the terms of the BMS cannot be resolved by reference to legislation.
As the needs of the different members within a BMG are likely to be vastly different (e.g. commercial and residential lots) inequities, or perceived inequities, frequently arise which require resolution. Often, resolution amongst the members is difficult as decisions often require unanimous consent, or there is otherwise a ‘deadlock’ between the members.
At Small Myers Hughes, our lawyers have a great deal of experience in the operation of BMS’s and BMG’s. We understand how to approach disputes which arise between members of a BMG, helping to ensure that effective and enforceable dispute resolution procedures are adopted to efficiently resolve disputes.