Here’s a question most committees never think to ask: who does our building manager actually answer to? If the answer is ‘the same company that does our strata management’, you may have quietly given up one of the most valuable protections an owners corporation has — an independent set of eyes on how your money is spent. After thirty years doing only building management, I’ve seen what that independence is worth, and what its absence costs.
The Bundled Model, and Why It’s So Common
A number of firms in the Sydney market offer strata management and building management together, under one corporate group. The pitch is convenience: one point of contact, one relationship, one invoice. For a busy committee, that can sound like exactly what you want.
And to be fair, it can work smoothly day to day. The problem isn’t the convenience — it’s what the convenience quietly costs you in oversight. To see why, it helps to remember what each role is actually for.
The Two Roles Are Meant to Check Each Other
The strata manager administers the owners corporation’s money: budgets, levies, paying invoices, keeping the financial records. The building manager runs the building and, critically, is the person who scrutinises what the building spends — obtaining competing contractor quotes, questioning invoices, pushing back on pricing, and reporting honestly to the committee on whether the money is being well spent.
In a healthy structure, those two roles form a natural check on one another. The building manager queries a contractor’s price; the strata manager processes only what’s properly approved; the committee sees both sides. Each role keeps the other honest — which is exactly the safeguard you lose when both answer to the same employer.
Where the Conflict Actually Bites
It’s a well-recognised issue in the industry that the same firm performing both roles loses that layer of cross-checking. Here’s where it shows up in practice:
- Contractor pricing. If the group has preferred contractors — or owns related service businesses — who inside that group is genuinely motivated to test whether you’re getting the best price? Independent scrutiny of quotes is hard when everyone reports to the same management.
- Fee transparency. A building manager whose job partly involves keeping costs honest is poorly placed to question the fees and charges of the strata side of their own business.
- Performance review. When the committee is unhappy with one part of the service, raising it with the other part — inside the same company — rarely produces the candid, arm’s-length response you’d get from a genuinely separate provider.
- Contract renewals. Bundled arrangements can make it harder to change one provider without disrupting the other, which reduces the natural pressure that the ability to switch normally creates.
None of this requires anyone to act in bad faith. The point is structural: even with good people, a structure that removes independent oversight tends, over time, to cost owners money.
“But Isn’t One Company Simpler?”
It’s a fair question, and the honest answer is: a little. One invoice and one phone number is marginally more convenient. But weigh that against what independence buys you — a building manager whose only loyalty is to the building, free to obtain competitive quotes, question any spend, and give the committee unfiltered advice. For most buildings, the small loss of convenience is a price well worth paying for a genuine second set of eyes on the money.
Coordination between two separate providers is also a solved problem. A good independent building manager works alongside whichever strata manager you’ve appointed every day of the week — it’s entirely normal, and it keeps both parties sharper.
What Independence Looks Like in Practice
An independent building manager:
- Has no corporate relationship with your strata manager, and no incentive to protect their fees or processes.
- Obtains genuinely competitive contractor quotes and shows the committee the comparison.
- Passes contractor rebates and commissions back to the owners corporation rather than retaining them.
- Reports to the committee plainly — including when something on the administrative side needs questioning.
- Can be retained or replaced on its own merits, without entangling your strata arrangements.
How to Tell If Your Current Setup Is Independent
Three quick checks. First, are your building manager and strata manager the same company, or part of the same group or brand family? Second, when major works are quoted, do you see competing quotes — or always the same contractor? Third, if you raised a concern about contractor pricing, is there anyone in the structure whose job is genuinely to be on your side of that question? If the answers leave you uneasy, it’s worth a closer look.
Where BMA Stands
Building Management Australia is independent by design. We are a building management firm — not a strata agent — and we do not provide strata management services. We work alongside whichever strata manager your owners corporation has appointed, and our only loyalty is to your building. When we review a contractor’s quote, question an invoice or flag a compliance gap, there’s no competing interest pulling the other way. That independence isn’t a marketing line for us — it’s the whole reason the firm is structured the way it is.
Frequently Asked Questions
Is it legal for one company to be both strata and building manager?
Yes — it’s permitted, and a number of firms do it. The issue isn’t legality; it’s the loss of independent oversight on spending and performance. Many committees prefer to keep the two roles with separate providers precisely so that each can hold the other to account.
Doesn’t using two companies cost more?
Not necessarily, and often the opposite. Independent scrutiny of contractor pricing and competitive quoting tends to save owners more than any small efficiency a bundled arrangement offers. The headline convenience of one invoice can quietly cost more than two well-chosen, independent providers.
How do we move to an independent building manager?
If your current arrangement is bundled, start by reading your agreements to understand the notice periods for each role. You can usually change your building manager independently of your strata manager. A good incoming building manager will guide you through the handover so the transition is clean.
Does an independent building manager work well with our strata manager?
Yes — that’s the normal arrangement and it works every day across Sydney. The building manager handles the building; the strata manager handles the administration; the two coordinate. Independence improves that relationship rather than complicating it, because each party stays accountable.
Want an Independent Building Manager on Your Side?
Building Management Australia is a Sydney building management firm — not a strata agent. We work alongside your strata manager, with no competing loyalty, to manage your building, scrutinise its spending and report to your committee straight. If you’d like an independent view on whether your current arrangement is working for your owners corporation, 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.