This article discusses what owners can do if their owners corporation hires contractors without quotes or proper certification.
Question: What can I do if our OC engages preferred contractors without quotes or proper certification?
I am a concerned non-committee owner. My owners corporation and committee are engaging contractors with whom they have had prior relationships instead of obtaining three quotes. They are also failing to ensure proper certification after the contractors complete the work. The contractors charge well above industry prices and are being paid in advance before the work starts. What can I do about this?
Answer: Both the OC and its committee must ensure that all actions are undertaken transparently, in compliance with legislative requirements, and in the best interests of all lot owners.
An OC is only permitted to exercise its functions and powers in accordance with the legal procedures prescribed under the Owners Corporation Act 2006 (OCA) and its associated regulations. Pursuant to section 4 of the Act, the OC’s core functions include managing and administering the common property, as well as repairing and maintaining any related chattels, fixtures, fittings, and services. While an OC may delegate some of its functions to the committee, the committee is similarly bound to act honestly, in good faith, and with due care and diligence when making decisions.
Both the OC and its committee must ensure that all actions are undertaken transparently, in compliance with legislative requirements, and in the best interests of all lot owners. Although the OCA does not impose a legal requirement to obtain multiple quotes when engaging contractors or suppliers, it is widely regarded as best practice to do so to promote transparency, support informed decision-making, and protect the financial interests of the owners corporation.
As a non-committee member, you have various avenues available to you if you suspect that the committee or the OC is failing to act properly, particularly in relation to financial management, procurement practices, or potential conflicts of interest.
- Access records. Pursuant to section 149 of the OCA, you are entitled to request access to the OC records, including contractor invoices and quotes.
- Write to the OC manager and raise your concerns, or follow the internal dispute resolution process.
- Convene a special general meeting under section 74 (if you have support from 25% lot entitlement for the OC). You may seek to dissolve the committee and vote in a new committee.
- Submit a motion to be included at the next general meeting, requiring the OC to adopt a procurement policy (i.e., a minimum of two or three quotes).
- If the OC fails to address your concerns and you believe they have acted against their statutory duties, you may lodge an application with VACT under section 162 of the Act.
It should be noted that members of a committee or sub-committee are not personally liable for anything done or omitted, if it is done in good faith.
Julia Moroz Bugden Allen E: julia@bagl.com.au P: 03 8582 8100
This post appears in the October 2025 edition of The VIC Strata Magazine.
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