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River dispute
We have a river running through our complex and the banks are washing away from the rain. One bank collapsed very close to one of the buildings and the trustees took urgent action to fix this as a temporary measure. Shortly after the raising of a special levy for painting another one was raised to cater for the correction of the river banks based on a quote received of R1.5 million. We have a number of engineeers in our complex who called a Special General Meeting as they believe it will only cost in the region of R250 000. Trustees did previously ask owners for guidance on the river and none was forthcoming at that stage. At the SGM majority support was given to the current trustees and it was agreed that the special levy would continue and quotes would be obtained. At the recent poorly attended AGM 4 quotes were produced all around R1 million. There was another outcry from one engineer who said we were being ripped off and that he could arrange to have it done for R200 000. What do you recommend as the way forward as none of the trustees are engineers and they obviously want to select the correct quote. As the rainy season is imminent in Jhb they are also concerned about the time issue. Owners are confused because they are not engineers and want to make the right decision and would like to listen to our owner engineers who presumably will have our/their best interests at heart. Do we arrange another SGM to consult with all owners?
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RE: River dispute
Hi Ann,
There is obviosly a lot of money at stake here. I recommend that you employ the services of an independent engineer to give his assessment and recomendation of how to fix the problem....Show More
Then, invite tenders based on his specifications. Only invite those contractors who have a proven record, and will be around in the future to correct any mistakes. Some engineers also act as project managers and supervise the work to ensure that it is carried out in accordance with the specifications.
RE: RE: River dispute
We did employ the services of an independant engineer who has assessed the quotes and recommended the quote we should go for but our dilemma is that our owner engineers are telling us that we are being ripped off. Who do we belive?
RE: River dispute
This does not seem to be a procedural problem, rather a matter of good judgement based on professional opinion and a reputable contractor to have the river banks stabilised.
The contractor should work according to design, which in turn calls for a specialist (engineer) to become involved.
You already obtained a second round of quotes, reducing the initial quote by one third.
Go sit down with your owner engineers, require from them an analysis of the design and quotes and ascertain that their lower estimate is justified.
RE: River dispute
Hi
Your owner/engineer who can " arrange to have it done for R200 000", does he have an interest in the contracting firm who will do the work, can he vouch for his quality of work, can he provide references of other similar contracts completed SUCCESSFULLY? These are questions which should be asked. If he is a trustee he would be bound by the provisions of ยง40 and PMR 23 (both available in the Library section). It does not mean if the other quotes, especially if there are a few, are much higher than his "arranged" quote are rip-offs. I would rather question the one which is so much lower as there could be major omissions and low quality materials used. You should also try to negotiate a better deal with the others.
RE: RE: River dispute
You said at the SGM majority supported the trustees and that the AGM was poorly attend - assumed a quorum?
In addition to what has been raised so far, the trustees were duly elected and empowered to act (PMR 26 & 28, if restrictions do not apply).
The trustees need not pay attention to an owner-engineer's opinion, provided they make sure the work carries a warrantee.
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