“What is the Process for Changing Body Corporate Management?” is a common question asked by body corporate management Committees. The process has many elements, but it needn’t be overwhelming for Committees.
So, for those planning on going through this process for the first time, we will discuss the procedure further to help you understand it better. Let’s start!
Changing Body Corporate Management Process
1. Afford Current Body Corporate Management Company Reasonable Opportunity to Rectify Their Shortcomings.
Unless the current management company has fundamentally let you down, we think it’s only fair to give them due notice of their shortcomings and allow them a chance to retain your business.
Having said that, if the issues can’t be resolved or the trust and relationship are beyond repair, then by all means, seriously consider changing strata management companies.
Body corporate management companies look after one of your largest assets – professional service, the right advice, and sound management are all integral.
2. Speak to the Committee, or the Owners where there is no Committee.
Body corporate operates much like a democracy. The Committee is elected to represent owners and the organisation. They are tasked with making decisions regarding the running of the Committee.
Changing the management company often requires a majority of the Committee or, in some instances, a majority of the owners.
3. Obtain a Copy of the Current Contract of Appointment.
It’s always prudent to understand your current contractual obligations (if any) to your incumbent strata management company.
The contract of appointment (or management agreement) is a good place to start. Ensure the contract has been signed by the company and properly executed.
We help Committees with general reviews and conversations about the contract of appointment. Should the matter be more complex, or you require further advice, we can suggest two or three body corporate lawyers we have experience with.
4. Identify What the Committee Expects and What the Building Needs.
Both the physical building and the body corporate require management services. They will drive and dictate what is needed (or who is needed) to properly and professionally strata manage the building and body corporate (and more often than not, owners).
5. Prepare Scope or Request for Tender and Choose Very Carefully.
There’s a marked difference between quotes and tenders. Canvassing your strata options online or by calling and getting quotes may not necessarily lead to the best outcomes.
Furthermore, many body corporate management companies will often give you a quote (all too willingly) with a management fee that looks low. However, if you scrutinise their management contract, it may contain many hidden and additional charges.
A detailed scoping document or tender request will clearly outline the terms of engagement for potential management companies. This ensures consistent responses and pricing specific to your building and body corporate.
Planning to Change Your Body Corporate Management?
At Change Body Corporate, we’ve done the hard work for you. With years of experience and dedication to the industry, we’ve curated a list of top-tier body corporate managers. We share your commitment to finding the best fit for your community.
