After completing a management review, we helped a Tier 1 Owners Corporation earn cost savings with their existing manager totalling $44,877 annually.
In October 2021, a committee member contacted us wanting to understand if the performance of their existing manager aligned with industry standards and how their management fees compared with what the market was paying.
- The Tier 1 Owners Corporation had been managed by a large Owners Corporation management company for five years and was Developer appointed.
- The level of service was inconsistent, and the committee wanted a comparison with how services provided compared to other management companies.
- The fees had increased every year since appointment due to the annual increase clause in the existing contract.
- The committee engaged The OCguide to undertake a full review of all the services currently being performed by the existing manager.
- Items reviewed included contractual terms and conditions, management fees, insurance, rules, keys & swipes, arrears management, owners corporation certificates, financial reports, maintenance plan, safety compliance, licenses & leases, building management services, routine maintenance, and utilities & equipment.
- The committee received a comprehensive report that summarised the information relating to the above services, how they were being managed by the existing manager, and how that compared to industry standards based on our experience. The report also included the results of a tender process for this Owners Corporation.
- A detailed list of actions for items we recommended investigating further to ensure alignment with legislation or improved performance or process, was provided for the committee to consider.
- The OCguide negotiated decreased fees with the existing manager with information learned from proposals submitted from competitors.
- The Owners Corporation executed a new 3-year agreement with the existing manager, providing a cost saving totalling $44,877 annually.
- The OCguide managed the tender processes from start to finish including preparing all paperwork, convening, and chairing meetings and assisting and educating committee members regarding their rights and obligations.
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