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.
- 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- The existing Contract of Appointment included outdated legislation that disallowed the committee to resolve a termination decision.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.
- 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.
|Previous Manager||New manager|
|Annual % increase||5%||0%|