How we saved a Tier 1 Owners Corporation $76,000 in annual fees
In July 2022, a committee member contacted us about how their OC had failed in past attempts to terminate their existing manager.
Background
- The Tier 1 Owners Corporation had been managed by a large Owners Corporation management company.
- The existing Contract of Appointment included outdated legislation that disallowed the committee to resolve a termination decision.
- A delegation of authority was inadvertently resolved at the AGM that included wording that disallowed the committee to resolve a termination decision.
- It was the manager’s view that termination decisions should only be made by lot owners at an AGM.
Outcome
- The committee engaged The OCguide to navigate the challenges to restore their rightful powers, including convening a Special General Meeting to resolve restoration of the committee’s powers to resolve termination and appointment decisions.
- The OCguide managed a tender process to appoint both a new Owners Corporation Manager and Facility Manager to the Owners Corporation.
- The OCguide developed a customised request for tender pack, and then provided the committee with a comprehensive report comparing proposals offered by five reputable managers for consideration.
- The Owners Corporation appointed a new manager with a cost saving totalling $78,000 annually, including a large range of additional services included at no cost.
- The Owners Corporation renewed the facility manager contract with better pricing and improved terms and conditions, including new KPI’s.
- 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.
Cost Comparison
| Previous Manager | New manager | |
| Management Fees | $130,000 | $72,000 |
| Disbursement | $18,000 | $0 |
| Annual % increase | 5% | 0% |