Insurance has always been one of the more complex areas for many Committees.

In the current climate, that complexity is becoming harder to manage, with rising costs adding further pressure to already challenging decisions.

That was the situation for a Committee in South Yarra.

A change in their insurance outlook prompted a closer look. It quickly raised a question: was their current management structure still fit for purpose?

They needed clarity on what was in place, what risks they were carrying and what needed to change. We worked with the Committee to help them navigate that.

What did a sudden insurance increase reveal about this South Yarra building’s management?

From the first call, it was clear the insurance increase had uncovered a lack of structure, oversight and clear accountability in how the building was being managed.

This became evident in several key areas:

Insurance pressure without a clear response plan

The Committee was facing a significant shift in their insurance position:

premium projected to increase from around $29,000 to nearly $60,000
$25,000 excess applied to water-related claims
concerns tied to a prior window incident and insurer requirements

In the current environment, where insurers are becoming more cautious and pricing is less predictable, these types of increases are becoming more common.

What stood out in this case was not just the increase itself, but the absence of a clear response.

There was no structured guidance from the incumbent manager, Engine, on how to manage the renewal, reduce exposure or plan ahead.

For the Committee, this made budgeting difficult and decisions harder to justify.

An expired agreement limiting accountability

At the same time, a key governance issue had been left unaddressed for years. The Contract of Appointment with the incumbent manager, Engine, had expired, with no formal renewal or renegotiation put in place.

As a result, the building had continued operating on a month-to-month arrangement, without a clearly defined framework guiding the management relationship.

This created uncertainty around roles, expectations and performance.

Without a current agreement in place, the Committee had limited ability to:

hold the manager accountable
define service standards
or question how key matters, including insurance, were being handled

As financial pressure increased, this lack of structure made it harder to respond with clarity.

Ongoing building issues adding to cost uncertainty

Alongside these challenges, the building was also dealing with active operational matters:

water leak issues requiring attention
a fob access system upgrade nearing completion
general maintenance items needing coordination

Individually, these are manageable. But without clear oversight and follow-through, they began to add pressure to both time and budget.

The Committee was left managing multiple moving parts without a clear system to track progress or prioritise spending.

How we supported the Committee to reach full alignment and transition to a new strata manager

Once the issues were clearly identified, the priority was to align the Committee quickly and guide them through a structured transition.

Early alignment and momentum towards a decision

From the initial enquiry, we worked closely with the Chair to engage the broader Committee and bring everyone into the process.

Support built quickly across the group, moving from initial interest to full participation in discussions.

This early alignment meant the Committee could focus on the key issues without revisiting the same concerns, allowing decisions to progress more efficiently.

As discussions developed, the Committee moved from recognising the issues to making a clear decision to proceed.

This momentum was reflected in a consistent level of agreement across members, supported by a structured process that gave them clarity at each step.

Structured tender and evaluation process

With alignment in place, we managed a formal tender process on behalf of the Committee.

This included:

identifying suitable strata management firms based on the building’s needs
coordinating proposal submissions and timelines
guiding the Committee through a structured comparison
supporting discussions to ensure decisions were based on capability and fit

This gave the Committee a clear basis for comparison, rather than relying on assumptions or incomplete information.

Managing the transition and formal requirements

Once a preferred manager was selected, we supported the Committee through the final stages of the transition.

The final steps included:

a unanimous decision was reached to appoint the new manager on a 2-year agreement
Committee ballot documentation was prepared
the termination notice to the incumbent manager was issued
contract documentation was coordinated for execution

Each step was handled carefully to ensure the process remained compliant and clearly documented.

The results the Committee achieved after the transition

After the transition, the Committee had clearer visibility over decisions and stronger control over how the building was being managed.

Full alignment at key decision points

The Committee achieved:

clearer communication across all members
stronger alignment on the direction of the building

This level of consistency reduced delays and made it easier to progress important decisions.

A defined management structure moving forward

By securing a 2-year agreement with the new manager, the Committee now has:

clearly defined expectations and accountability
a more stable and formalised management arrangement
better support for day-to-day and strategic decision-making

This provided a clearer framework for how the building would be managed going forward.

Better positioned to manage ongoing cost pressures

Most importantly, the Committee is now in a stronger position to:

respond to rising insurance costs
plan budgets with greater clarity
manage risk in a less predictable environment

This has made it easier to approach financial decisions with a clearer understanding of both short-term and longer-term impacts.

Feeling the pressure of rising costs in your building?

With insurance and other expenses increasing, Committees don’t have the same margin for error. If your current management setup isn’t giving you clarity or control, it may be adding to the problem.

Making sure your management structure is supporting the Committee, not adding to the pressure, can make a significant difference.

We help Committees step back, assess where things stand and take the next steps with the right management in place. Get in touch with us to discuss your building and next steps.