Building Management Contracts in NSW

Building management contracts in New South Wales 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 68 caps building management agreements at a maximum of 10 years, counting any option to renew — and under reforms passed in 2026, that maximum is being reduced to three years for new agreements, with existing agreements keeping the 10-year cap.
• 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 — a market practice the new three-year statutory cap now formalises. 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.

Frequently Asked Questions

How long can a building management contract run in NSW?

Agreements to date have been capped at 10 years under section 68 of the Strata Schemes Management Act 2015, counting any renewal option. Reforms passed in 2026 reduce that maximum to three years for new agreements, with agreements entered before the change keeping the 10-year cap. In practice, most modern contracts already run two to three years — check the current position with your strata lawyer before signing.

Can a developer appoint the building manager before the first AGM?

No — developers are prohibited from selling or assigning building management rights before the first AGM. The rule exists because pre-AGM deals were a well-known source of conflicts of interest and secret commissions, locking new owners into arrangements they never chose.

What should a good building management contract include?

A clear scope and deliverables, defined escalation procedures, performance metrics, and no exclusive control over the building’s core operations. If a contract can’t tell the committee exactly what it’s buying and how performance will be measured, that’s a warning sign in itself.

We’re stuck in an old long-term agreement — what are our options?

Start by having the agreement reviewed: its term, notice provisions and any renewal options determine what’s possible and when. Some older arrangements have special protections, so legal advice is worth the cost before acting. From there, the path is usually planning the transition properly rather than fighting the clock.

This article is general information only and is not legal advice. Contract term limits and related provisions are changing under reforms passed in 2026, and transitional rules apply; owners corporations should confirm the current law with NSW Fair Trading or a strata lawyer before entering or terminating a building management agreement.