Three proposals land on the committee table, each with a different number at the bottom, and the temptation is to compare those numbers and be done. Resist it. The bottom-line figure is the least reliable way to choose a building manager, because each proposal is usually pricing a different scope. After thirty years on the other side of these documents, here are the ten questions that actually separate a good proposal from a costly one — with what a strong answer sounds like, and the red flags to watch for.
Put every proposer through the same ten questions. How they answer tells you far more than their headline price.
1. Exactly how many hours on site, and when?
What a good answer sounds like: Specific, written hours — e.g. ‘on site Monday to Friday, 7am to 3pm, with a named manager’ — and a clear description of the after-hours arrangement.
Red flag: Vague language like ‘full-time’ or ‘as required’ with no actual hours committed in writing. You can’t hold a proposer to ‘as required’.
2. What’s in the base fee, and what’s charged as an extra?
What a good answer sounds like: A fully itemised fee, with a clear line between what’s included and what’s billed separately (after-hours call-outs, special projects, capital works oversight, extra meetings).
Red flag: A single all-in number with no breakdown — or an attractive base fee with a long, vague list of potential extras that could balloon the real cost.
3. How do you obtain and review contractor quotes?
What a good answer sounds like: A described process: multiple competitive quotes for significant works, with the comparison shown to the committee and a reasoned recommendation.
Red flag: ‘We have our preferred contractors’ with no mention of competitive quoting. Preferred-contractor-only arrangements are where overpaying hides.
4. Do you retain any contractor commissions or rebates?
What a good answer sounds like: A straight ‘no’ — or full disclosure of any commissions, with them passed back to the owners corporation. Transparency here is everything.
Red flag: An evasive or unclear answer. Retained commissions create an incentive to choose contractors who pay the manager, not the ones who serve the building best.
5. What’s your after-hours and emergency arrangement — and what triggers it?
What a good answer sounds like: A documented response standard: who answers, how quickly, and what counts as an emergency. Ideally a real person, not just a voicemail.
Red flag: No defined arrangement, or ‘call the office in the morning’. When a lift fails or a pipe bursts on a Sunday, that’s not good enough.
6. How, and how often, will you report to the committee?
What a good answer sounds like: A regular written report — typically monthly — covering completed works, spend, open items and what’s coming up, in a format you can actually scrutinise.
Red flag: Reporting only at the AGM, or ‘we’ll keep you posted’. Lost visibility is where waste accumulates unnoticed.
7. Are you independent of our strata manager?
What a good answer sounds like: Clear independence — no corporate relationship with your strata manager — so the building manager can scrutinise spending and advise the committee without a competing interest.
Red flag: The building manager and strata manager are the same firm or group, with no acknowledgement of the conflict that creates. You lose your independent check on the money.
8. Can you provide references from buildings like ours?
What a good answer sounds like: Three references, offered readily, from buildings of similar size, age and complexity — that you can actually call.
Red flag: Reluctance to provide references, or references from buildings nothing like yours. A capable manager is proud of their track record.
9. What systems do you use to manage the building?
What a good answer sounds like: Concrete tools — maintenance scheduling, asset registers, compliance tracking, reporting platforms — that show the building is run on systems, not memory.
Red flag: ‘It’s all handled’ with no detail. Buildings run on one person’s memory fall apart the moment that person leaves.
10. What does leaving look like — notice period and handover obligations?
What a good answer sounds like: A reasonable notice period and a clear commitment to a full, documented handover if you ever part ways. A confident manager isn’t afraid of the exit clause.
Red flag: A long lock-in, punitive termination terms, or vagueness about handover obligations. Never sign a building management agreement without understanding how to leave it.
Putting It Together
Score each proposer across all ten questions rather than on price alone. A proposal that’s a little dearer but answers every question with specifics, transparency and confidence will almost always cost the building less over time than a cheaper one built on vague inclusions and preferred-contractor arrangements. The questions a proposer welcomes — and the ones they dodge — are the real proposal.
Frequently Asked Questions
Should we just choose the cheapest proposal?
Rarely. The cheapest proposal usually prices the narrowest scope — fewer hours, less after-hours cover, looser contractor management. The cost that was cut doesn’t disappear; it resurfaces later, often larger. Compare scope and answers, not just the bottom line.
How many proposals should we get?
Three is the practical sweet spot — enough to compare meaningfully without overwhelming the committee. Put all three through the same ten questions against the same scope brief so you’re comparing like with like.
What’s the single most revealing question?
Question 4, on contractor commissions and rebates, and question 7, on independence. Together they tell you whose interest the building manager is really serving — yours, or their own and their contractors’.
Can we re-use these questions for our current building manager?
Absolutely. Running your existing arrangement through the same ten questions is one of the simplest ways to find out whether you’re still getting value — or whether it’s time to test the market.
Get a Proposal Built to Answer All Ten
Building Management Australia is an independent Sydney building management firm — not a strata agent. Every proposal we write is built to answer exactly these questions: itemised hours and fees, a transparent competitive-quoting process, no retained commissions, a defined after-hours standard, clear monthly reporting, and full independence from your strata manager. Request a proposal at bmaus.com.au or email Andrew directly at [email protected].
About the Author
Andrew Veron is the founder of Building Management Australia (BMA), an independent Sydney building management firm established in 1995. BMA is a building management company — not a strata agent — providing on-site and visiting building management, facilities management, concierge, cleaning and valet services to residential, commercial and mixed-use properties. Over the past 30 years, Andrew and the BMA team have managed buildings across the Eastern Suburbs, North Sydney, Inner Sydney, Parramatta and the Sydney CBD, with assets currently valued in excess of $3 billion under management. Because BMA is independent of any strata management firm, committees receive unbiased advice and transparent contractor relationships. Reach Andrew at [email protected] or bmaus.com.au.