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Owners Corporation Challenges Resolved

Cladding rectification project on Swanston Street Melbourne

Cladding Replacement

Location: Swanston Street, Melbourne

Problem: A building was facing a significant issue with its cladding. The Owners Corporation (OC) was confronted with the challenge of addressing this problem themselves. Adding to their concerns, the council had issued a building notice for the property, setting a strict timeframe for rectification works to be completed.

To tackle the cladding issue effectively, the OC embarked on a structured approach:

Building consultant involvement: Following the issuance of the building notice, the OC engaged a building consultant (BC) to provide expert guidance and oversee the assessment and remediation process.
 
Comprehensive cladding review: The BC conducted a detailed review of the building, identifying the type, quantity, and specific locations of the non‑compliant cladding.
 
Engaging fire engineers: Recognising the critical importance of fire safety, the BC brought in fire engineers to review the findings and develop an appropriate performance‑based solution.
 
Tender process: The OC, through the BC, prepared a scope of works and initiated a tender process and invited qualified suppliers to quote on the scope for the cladding replacement.
 
Due diligence: The OC carried out thorough due‑diligence process on all tender submissions to ensure compliance, technical merit, value, and suitability.
 
Outcome:
After careful evaluation, the OC selected the most suitable supplier to complete the cladding replacement works, resolving the issue in the best interests of the Owners Corporation.
 

This case study demonstrates how a systematic, expert‑guided approach—combining detailed assessment, professional input, and rigorous due diligence—enabled the successful resolution of a complex cladding problem.

Building defects

Location: Port Melbourne, Melbourne

Problem: The management of a building in Port Melbourne faced a critical issue as the property was rapidly approaching the end of its 10-year warranty period. It was imperative to address any latent defects in the building that might have arisen during this time.
  

To effectively manage the building defects issue, a well-structured approach was taken:

Specialist building defects inspection: Recognising the urgency of the situation, advice was provided to the committee to engage a specialist building defects inspector. This inspector meticulously assessed the building and drafted a comprehensive report outlining all latent defects and a cost estimate for its rectification.

Identification of significant defects: The inspector’s report revealed some significant defects in the building, pointing to potential issues that would require immediate attention.

Committee guidance: The committee sought and was provided with legal advice on how to proceed. The solicitor guided the committee in arranging a special resolution, which would enable them to take legal action against the builder responsible for the defects.

Legal action initiation: The defects report was then forwarded through the appropriate legal channels to the builder, preserving the OC’s rights prior to the 10-year limitation period and a demand for the commencement of the rectification of the defects.

Outcome:
Through careful negotiation with the builder, the Owners Corporation (OC) was able to secure a favourable outcome.

This case study illustrates how proactive measures, including engaging specialists early on, seeking legal advice and pursuing legal action, when necessary, can lead to the successful resolution of building defects.

Lift Replacement

Location: Southbank, Melbourne

Problem: The Owners Corporation of a high-rise residential building with passenger lifts that were approaching the end of their practical service life. While the lifts were still operational, recurring faults, increasing downtime, and difficulty sourcing replacement parts signalled rising operational and safety risks.

The key challenges faced by the Owners Corporation included:
Ensuring resident safety and reliability of a critical building service
Avoiding unexpected special levies or financial shocks to lot owners
Making informed decisions without waiting for lift failure or emergency replacement
Managing competing capital works priorities within long-term financial constraints
Rather than reacting to breakdowns or obsolescence, the Owners Corporation recognised the need for structured, evidence-based planning well in advance of the lift replacement.
 
Solution
The Owners Corporation adopted a disciplined, governance-driven approach aligned with its approved Maintenance Plan.
Planned Capital Provisioning – from the outset, the Maintenance Plan identified lift replacement as a major capital works item. The Owners Corporation progressively accumulated funds through annual budgets, ensuring lift replacement funding was built up gradually over time rather than deferred.
Independent Lift Consultant Engagement – Over the seven years leading up to replacement, the Owners Corporation engaged an independent lift consultant to prepare lifecycle feasibility reports every three years.
These reports assessed, mechanical and electrical condition, compliance with current safety standards, reliability and fault trends, remaining service life and refurbishment versus replacement options. This ensured decisions were informed by specialist advice rather than assumptions or contractor pressure.
Periodic Review and Forward Programming – Each feasibility report was reviewed by the committee and incorporated into updated Maintenance Plan forecasts. As lift condition and risk profiles evolved, anticipated replacement timing and cost estimates were refined accordingly.
Informed Decision-Making at the Right Time – When the feasibility reports clearly indicated that continued refurbishment would no longer represent value for money, the Owners Corporation was already financially prepared. Replacement was scheduled proactively, avoiding emergency procurement or reactive decision-making.
Structured Procurement and Project Oversight -With adequate lead time, the Owners Corporation was able to, prepare clear tender documentation, compare multiple lift replacement proposals on scope, safety, warranty, and lifecycle cost, engage the lift consultant to assist with technical evaluation, tendering and contract administration.
 
Outcome
The complete lift upgrade was delivered successfully with minimal disruption and strong financial outcomes, key results included:
No special levies required, as funds had been accumulated in advance.
Improved lift reliability, safety, and ride quality for residents.
Compliance with current standards and reduced long-term maintenance risk.
Predictable project delivery rather than emergency replacement.
Increased owner confidence in the committee’s long-term planning and decision-making.
Most importantly, the Owners Corporation demonstrated best-practice governance—balancing financial stewardship with proactive asset management—resulting in a well-timed upgrade that protected both resident amenity and owner value. Through structured planning and disciplined execution, the Owners Corporation transformed a high-risk asset replacement into a controlled, well-managed project.

EV Charging Infrastructure

Location: St Kilda Road, Melbourne

Problem: As electric vehicle ownership increases, An Owners Corporation was facing growing pressure from lot owners requesting permission to install individual EV chargers in the basement car park.

The challenges were clear:
The building’s existing electrical infrastructure was not designed for multiple high‑load chargers.
Ad‑hoc installations risked overloading common property systems, voiding warranties, and creating safety concerns.
Questions arose around fair access, cost recovery, ongoing maintenance, and who would be responsible if faults impacted common property.
Committee members were concerned about setting precedents that could disadvantage future owners or lead to inequitable outcomes.
Without a coordinated approach, the Owners Corporation risked inconsistent decisions, disputes between owners, and long‑term compliance and cost issues.
 
Solution
An independent electrical consultant was engaged to assess, test, and load‑model the building’s electrical infrastructure, providing clarity on current capacity, constraints, and future options.
Worked with the committee to implement a centralised EV backbone charging solution within the car park.
Instead of approving individual installations, the Owners Corporation adopted a structured, future‑proof approach that:
Established a shared electrical backbone as common property, designed to support staged EV charger connections over time.
Allowed individual lot owners to connect chargers in the future without major electrical upgrades or repeat works.
Ensured charging capacity could be managed and expanded fairly, without disadvantaging early or future adopters.
Clearly defined responsibility boundaries between common property infrastructure and lot owner equipment.
 
Outcome
The Owners Corporation now has:
A scalable EV charging framework that supports current and future demand.
Reduced risk of electrical overloads and uncoordinated works.
Clear rules, processes, and cost allocation for lot owners.
Improved property appeal and long‑term asset value.

Balcony Waterproofing

Location: Southbank, Melbourne

Problem: An Owners Corporation in Southbank began experiencing ongoing water ingress issues from apartment balconies. Over time, the original waterproofing membranes beneath the tiled balconies had deteriorated due to age and exposure.

The challenges were clear:
Ongoing water ingress from balconies due to aged and deteriorated waterproofing membranes beneath tiled surfaces.
Uncertainty around the root cause, extent of damage, and correct rectification method without independent expert advice.
Questions regarding ownership and maintenance responsibility for balcony membranes under the plan of subdivision and the Owners Corporations Act 2006 (Vic).
The balconies were private lots, meaning the Owners Corporation could not lawfully carry out works without appropriate owner authorisation.
Significant concern about access coordination, disruption, cost management, and fairness across all affected apartments.
Without a coordinated and legally compliant approach, the Owners Corporation risked disputes, inconsistent repairs, non‑compliance with the Act, and escalating long‑term costs.
 
Solution
An independent building consultant was engaged to inspect affected balconies, assess membrane failure, and prepare a detailed report confirming the cause and recommended rectification approach.
Based on the findings, the committee tendered and engaged independent project management services to oversee a holistic solution rather than ad‑hoc repairs.
Specialist strata legal advice was obtained to:
Confirm that the balconies were private property
Advise that a Special Resolution was required under the Owners Corporations Act 2006 (Vic) to authorise the Owners Corporation to access lots and carry out works on behalf of owners.
Town‑hall style information sessions were held for all lot owners to clearly explain:
The membrane issue and risks of inaction
The proposed rectification process
Access requirements and anticipated disruption
Costs, funding approach, and expected outcomes
Following a successful Special Resolution, works commenced under a structured framework that:
Applied a consistent repair methodology across all balconies
Used a detailed apartment‑by‑apartment schedule prepared by the Project Manager
Clearly set out access windows, duration of works, and sequencing for each lot
Established clear responsibility boundaries between private lots and Owners Corporation oversight
Throughout the project:
The PM managed site works, contractor performance, and quality control
Regular updates were issued to residents
Worked to administer governance, communications, and financial controls
Contractor payments were processed only following PM approval and sign‑off, ensuring accountability and risk management
 
Outcome
The Owners Corporation now has:
Fully rectified balcony membranes delivered through a lawful, transparent, and coordinated process.
Reduced risk of future water ingress and asset deterioration.
Clear documentation demonstrating compliance with the Owners Corporations Act 2006 (Vic).
Improved owner confidence through strong communication and fair treatment.
A well‑managed project outcome that balanced legal compliance, building integrity, and resident impact.

Insurance Commissions

Location: Boronia and Port Melbourne, Victoria

Problem: Building insurance is one of the largest recurring costs in an Owners Corporation’s budget, yet commissions can sit inside the premium without committees seeing how much of what they pay is cover and how much is commission. In both of these buildings, the existing insurance arrangements included a commission, and the Owners Corporations wanted to know whether they were getting genuine value for money.

The challenges were clear:
A commission built into the premium means less of what the Owners Corporation pays goes towards the cover itself.
Committees often can’t see the split between cover, commission and fees, which makes it hard to judge value for money.
Insurance is a significant annual cost to every lot owner, so poor value compounds year after year.
Committees need to demonstrate that decisions on major expenses are made in the best interests of all owners.

Solution
Each Owners Corporation took a transparent, independent approach to its insurance:
Commission identified and removed – The commission component of the premium was identified and removed entirely, so the Owners Corporation pays for the cover and a clearly disclosed broker fee only.
Independent broker tender – Rather than simply renewing the existing arrangement, the insurance was tendered through an independent insurance broker to test the market on price, cover and terms.
Broker fee negotiation – where possible we try to further negotiate the broker fee.
Clear reporting to the committee – Results were presented in plain terms, so the committee could see exactly what changed and why.

Outcome
Boronia: The Owners Corporation saved $8,741.98, achieved by removing the commission entirely and tendering through an independent insurance broker.

Port Melbourne: The Owners Corporation saved $5,870.85, a 20% reduction in the insurance premium. This was achieved by removing the commission entirely and negotiating the broker fee.

In both cases, the saving was passed directly back to the Owners Corporation.

The Owners Corporations now have:
Full visibility of what they pay for insurance and why.
Lower premiums with no reduction in the quality of advice they receive.
Confidence that their insurance recommendations are independent.
A documented, repeatable process for future renewals.

Our position on commissions:
We do not accept commissions, kickbacks or referral incentives from any contractor or supplier. We hold no ownership interest in, and have no affiliation with, any supplier company. Our operations are entirely independent.

In practice, this means that when we recommend a contractor to your committee, that recommendation is based on capability, price and suitability for your building, and nothing else. Every dollar of value we negotiate stays with the Owners Corporation.

What these cases have in common

Each of these situations involved complexity, competing interests and significant financial or legal risk. In every case the outcome was shaped by the same fundamentals — independent advice, proper process, transparent communication and governance that protected the Owners Corporation and its lot owners.

That is the standard we bring to every building we manage.

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Facing a complex issue in your building? Total OCS can help.