Understanding Building Management Contracts in NSW
Building management contracts in New South Wales (NSW) have undergone major transformation over the past few decades. Once loosely defined and often weighted in favour of developers or long-term managers, these contracts have evolved to better protect the interests of strata owners and align with modern residential and commercial property expectations.
Building Management Australia (BMA) has been at the forefront of this transition, offering compliant, transparent, and professional building management services across Sydney and greater NSW.
A Brief History of Building Management Agreements
Prior to the mid-1990s, building management contracts were rarely seen in Sydney. When they did appear, they borrowed heavily from Queensland’s management rights model, which suited short-term holiday letting but clashed with Sydney’s urban apartment living. Under this model, building managers often had exclusive control over common areas—like lobbies and front desks—creating conflicts with owners corporations and reducing transparency.
Over time, these arrangements became controversial, particularly when developers sold management rights prior to the first Annual General Meeting (AGM)—a practice now banned under NSW legislation due to its potential for conflicts of interest and secret commissions.
Legislative Changes: A Focus on Accountability and Owner Control
Major reform came with the introduction of the Strata Schemes Management Act 2015 (NSW), which set clearer limits on the terms and authority of building managers and caretakers. Specifically:
- Section 66 limits building management contracts to a maximum of 10 years, with any renewal requiring approval from the owners corporation via an ordinary resolution.
- Developers are prohibited from selling or assigning building management rights before the first AGM.
- All appointments must be made with owner consent, ensuring greater transparency and democratic control.
- At BMA Building Management Australia, all our building management contracts are compliant with current legislation and structured to give strata committees clarity, control, and flexibility.
Common Building Management Contract Terms Today
Today, most building management contracts in NSW are 2–3 years in duration and structured to avoid exclusive control of core operations. At BMA, we believe in working as partners—not gatekeepers—for owners corporations and strata managers.
Our contracts clearly outline scope, deliverables, escalation procedures, and performance metrics. This transparency reduces disputes and enhances service delivery across residential, commercial, and mixed-use strata buildings.
Types of Building Management Services Offered by BMA
The building management sector has grown more complex and responsive to diverse property needs. At BMA Building Management Australia, we provide tailored service models, including:
- Full-time onsite building management
- Part-time or hybrid onsite/remote services
- Fully remote building management, using digital technology for monitoring and coordination
- Our comprehensive range of services includes:
- Concierge and reception services
- Cleaning (general, detailed, and high-frequency)
- Gardening and landscape maintenance
- Pool care and compliance
- Preventative maintenance and minor repairs
- Contractor coordination and site supervision
- Valet and vehicle access management
In larger communities and vertical villages, our team may include 30+ staff working across departments to ensure smooth, efficient operations.
Why Choose Building Management Australia (BMA)?
BMA is committed to delivering professional building management in NSW that balances operational excellence with transparency, compliance, and owner collaboration. We help strata committees reduce overheads, streamline communication, and protect the long-term value of their assets.
Contact BMA Today
If you’re reviewing your current building management contract, facing challenges with outdated arrangements, or simply want to explore better service delivery, reach out to Building Management Australia (BMA). Our team is ready to provide a tailored management plan that supports your building’s specific needs.
