One of your Property Manager’s principal roles should be to ensure your property complies with the various Government requirements, as they change over time.

And the current Essential Services Regulations are not something that you can simply ignore.

As you may (or may not) be aware, certain Legislative changes have occurred since 1993, which affect the majority of buildings in Victoria. And these changes relate to Essential Services requirements.

To help you in gaining a better appreciation of these revised requirements, you might find a little background would be useful:

On 1 December 1993, the Victorian Parliament passed a new Bill — being The Building Act 1994. It was developed by the Australian Uniform Building Regulations Co-ordinating Council, and replaced the Victorian Building Regulations (VBRs) 1983.

It has been subsequently amended; and with, certain Regulations.

The Regulations included a new concept of the owner assuming responsibility for maintaining each building’s “Essential Services”.

However, this goes much further than the previous maintenance requirements — by specifically requiring the nomination of essential fire, safety, air-conditioning and lift services; plus the ongoing level of performance for these services.

The new provisions also included the requirement for an annual reporting of the maintenance for buildings constructed (or altered) after 1 July 1994.

However, any building constructed before 1 July 1994 must also maintain its “Essential Services” to a standard, and service frequency, that ensures their performance.

The Implications are Quite Extensive

It may surprise you, but there are about 50 items included in the Act relating to “Essential Services”. All, or some, of these items will relate to Commercial buildings and Public venues.

An Occupancy Permit, issued after the 1 July 1994, must include a list of “Essential Services” items; and the specified level of performance.

Councils are empowered to issue on-the-spot fines for prescribed offenses against the regulations.

Current fines are 2 Penalty units ($200). The regulations also prescribe penalties for non-compliance of up to $1,000 for each breach of the regulations (For example: 20 fire doors not inspected = $20,000).

However, the biggest risk to you as a building owner is the failure of the equipment when it’s needed; as well as the legal implications that flow from any injury, or a loss of life.

The heavy penalties have been introduced to encourage owners to fulfil their legal obligations of maintaining the operational safety of all equipment and services within your building (to their original design specification) … ultimately, to safeguard the occupants.

Since introducing the Regulations, it has become clear to the Government that not all owners (or their managing agents) have bothered to take these mandatory requirements seriously.

But now, Councils are showing more interest in conducting detailed, on-site inspections. So, if you have not yet been caught and fined, you ought consider yourself fortunate.

The Current Legislation now has ‘More Teeth’

The most-recent changes to Essential Services Regulations now require (among other things) that the Annual Essential Services Report “signed by the owner” AND be prominently displayed in the building.

As you will appreciate, this now makes the Councils’ job of spot-checking buildings (and thereby fining owners) so much easier.

The purpose of this summary is to alert you to a serious, potential exposure you now have — something you may not have even been aware of. And, depending on the classification of your building, there are audits you will need to be conducting; plus different levels of detailed documentation you are required to maintain.

Action Steps You Can Take

These issues are something your Property Manager should have brought to your notice several years ago. And then, set about arranging the required quarterly and annual inspections.

If you find that you have not already been alerted to your new obligations … maybe you ought be considering whether your current Manager is the most appropriate for your property.

But at least you can make a start — by asking your Property Manager Questions 15, 16 & 17 listed on the previous page.