In late 2024, a newly formed Committee representing a 60-lot commercial Owners Corporation in Melbourne’s South East initiated a review of its management arrangements. Facing major capital works alongside concerns about governance and financial transparency, the group sought a management partner to provide guidance during this critical period.
Challenges at hand
Against this backdrop, there were three pressing issues that needed to be addressed:
- Capital works: Major piazza and façade renewal projects, valued at approximately $1.4–$1.5 million, were underway. Transitioning management during this period required careful coordination.
- Governance limitations: Delegated powers had been restricted, and interim AGM resolutions created uncertainty, limiting effective decision-making.
- Financial transparency: Complex fee structures and hidden costs in the budget undermined confidence in financial reporting and planning.
The Committee required a structured process to benchmark management providers, restore governance, and secure value for the Owners Corporation.
How we addressed the challenges
With guidance from Strata Management Consultants, a structured review was implemented to address governance, finances, and long-term planning with clarity and accountability.
The process was structured around:
- Comprehensive review: Analysed budgets, levies, and disbursements to expose inefficiencies and identify cost drivers.
- Governance support: Reinstated Committee powers and addressed restrictions that limited accountability.
- Competitive tender: Invited multiple qualified firms, including the incumbent, and collated submissions into a clear comparative framework.
- Committee engagement: Facilitated interviews with shortlisted firms, focusing on governance practices, service delivery, and project capacity.
- Capital works alignment: Coordinated tendering with the delivery of major works to ensure seamless transition to new management.
Together, these measures provided the clarity and structure needed to deliver a successful transition.
Securing stability and confidence
The process led to the appointment of a new management company on a three-year term commencing September 2025.
This transition delivered:
- Transparent fees: Secured a fixed annual fee inclusive of disbursements, eliminating uncertainty and providing predictable cost management.
- Enhanced service commitments: Established 12 Committee meetings annually under the new contract, with administrative support included.
- Restored governance: Reinstated full powers, enabling decisive oversight of management performance.
- Capital works confidence: Confirmed the new manager’s proven capacity to oversee major projects and long-term maintenance planning.
These outcomes provided the Owners Corporation with renewed confidence, stronger financial oversight, and assurance that major capital projects were being supported by capable management.
Need help changing your manager?
This Committee showed that even during complex capital works and governance challenges, the right process can deliver stability and trusted management.
If your Owners Corporation is facing similar pressures, Strata Management Consultants can guide you through a structured transition that protects long-term value and restores confidence in management.
📞 Call us on +61 1300 917 848 or visit us here to begin the conversation.
