When a prominent Sydney CBD high-rise was experiencing a range of challenges, all it took was a simple solution. Learn more about how BMA identified and resolved the problems.
Managing a mixed-use tower with a large number of owner-occupiers and residents can often present unique challenges. So, when World Tower Low Rise, a prominent and thriving Sydney CBD high-rise, began experiencing a variety of issues — including cost blow-outs in its facilities management, improper allocation of costs, a lack of budgeting for capital works, and overcrowding issues — BMA knew a simple but powerful solution was needed to resolve the issues: the creation of a Building Management Committee (BMC).
What a Building Management Committee Does
The BMC exists to regulate or manage the shared facilities and the shared costs of those facilities. They are established through the building’s Strata Management Statement (SMS), which provides regulations on the establishment of the committee and its duties, as well as guidelines for dispute management and fair and proper allocation of shared costs of facilities to lot owners. That’s why BMA knew a BMC was crucial for World Tower Low Rise.
“With almost 30 years’ experience managing multi-use high-rise buildings, we identify issues quickly and can recommend effective resolutions,” explains BMA’s Andrew Veron. “When we discovered the issues the World Tower Low Rise was experiencing, we recommended the creation of a BMC to the strata manager, who would act as a committee member. BMCs are vital for helping maintain cost-efficient buildings and giving owners and residents peace of mind.”
A Complex Building Over 84 Floors
Veron describes World Tower Low Rise as a “complex building”.
“It comprises private residential apartments, the hotel-style Meriton Suites, and office and retail spread over 84 floors. Being able to understand the complexities requires a higher level of administrative processes, and building knowledge is vital,” says Veron.
Given the complex nature of the building and the BMC’s focus on shared facilities, it was decided that BMA’s General Manager Ben Mees was the best person to attend BMC meetings as a representative for the strata management.
“Each committee member represents a different part of World Tower: BMA represents the Low Rise, a resident represents the Mid Rise, and Meriton represents their serviced apartments. Ben is highly suitable for the role of representative as he’s aware that each of the stratum — residential, retail and commercial — uses the shared facilities and common areas differently and has different facilities and associated costs,” explains Veron.
BMA’s Involvement in BMC Meetings
Before each meeting, Mees consults with World Tower’s building manager and receptionist to gain current information on the facilities and common areas.
“The team’s thorough knowledge of the building’s facilities and their condition, running costs and end-of-life proves vital in BMC meetings, as it assists the committee members with discussing and passing decisions on the management of shared facilities, including budget forecasting and planning, repairs and upgrades scheduling, and fair sharing of costs associated with these facilities,” Mees says. “Having a BMC has made an enormous difference to the effective running of the building.”
Expanding the BMC Solution to Other Managed Buildings: The Case of VSQ1 in Zetland
World Tower Low Rise isn’t the only building BMA has suggested a BMC for. It also identified the need for a BMC in another building it manages — VSQ1 in Zetland.
“It’s important to think outside the square and develop solutions to fit the unique requirements of the building, owners corporation and the owners and residents,” says Veron.
Frequently Asked Questions
What is a Building Management Committee (BMC)?
A BMC is a committee that regulates and manages the shared facilities of a building with multiple stratum lots — such as residential, commercial, retail and serviced apartments — and the fair allocation of the costs of those facilities. It’s established through the building’s Strata Management Statement, which sets out the committee’s duties and how disputes and cost-sharing are handled.
When does a building need a BMC?
Typically when a building contains multiple stratum parcels sharing facilities — mixed-use towers with residential, hotel, office and retail components are the classic case. Warning signs that shared facilities need better governance include facilities-management cost blow-outs, costs allocated unfairly across the parts of the building, and no budgeting for capital works.
Who sits on a BMC?
Representatives of each stratum in the building. At World Tower, for example, BMA represents the Low Rise, a resident represents the Mid Rise, and Meriton represents their serviced apartments. What matters is that each member understands how their part of the building uses the shared facilities — and what those facilities cost.
What difference does a BMC actually make?
It puts budget forecasting, repairs and upgrade scheduling, and fair cost-sharing for shared facilities in front of a committee with the knowledge to decide them properly — informed by people who know the facilities’ condition, running costs and end-of-life. At World Tower, it has made an enormous difference to the effective running of the building.
Is Your Mixed-Use Building Sharing Costs Fairly?
Building Management Australia is a Sydney building management firm — not a strata agent. Identifying governance gaps in complex buildings, supporting Building Management Committees with real knowledge of the facilities, and keeping shared costs fair and forecast is work we do in some of Sydney’s most complex towers, alongside your strata manager.
If your mixed-use building has cost blow-outs or unfair cost allocation, request a proposal at bmaus.com.au or email Andrew directly at andrew@bmaus.com.au.
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 andrew@bmaus.com.au or bmaus.com.au.
This article is general information only and is not legal advice. Building Management Committees and Strata Management Statements are legal structures governed by legislation and each building’s registered documents; owners corporations should obtain advice specific to their circumstances.
