The Building Manager’s Guide to Strata Finances

October 29, 2026

The Building Manager’s Guide to Strata Finances

How can Building Managers support better strata financial management?

Building Managers have a valuable role in helping a strata building run well today while preparing for the costs of tomorrow. By keeping track of building condition, identifying maintenance needs early and sharing clear information about costs and risks, they can help the Strata Manager and committee make more informed financial decisions.

You do not need to manage the scheme’s accounts to make a difference. Understanding the budget, maintaining good records and knowing when approval is needed can help prevent confusion, support better planning and give decision-makers a clearer picture of what the building needs.

Key facts for Building Managers

Understand the budget: Know which routine services and maintenance activities are planned for the building.
Plan ahead: Flag ageing equipment, recurring faults and future maintenance before they become urgent wherever possible.
Keep useful records: Maintain accurate maintenance histories, contractor quotes, approvals and details of completed work.
Know your authority: Confirm who can approve expenditure and when additional approval is required.
Communicate early: Give the Strata Manager and committee clear information about costs, risks and priorities.

1. What do Building Managers need to know about strata finances?

Strata finances help fund the operation, maintenance, repair and improvement of shared property and facilities. Depending on the building, costs might include cleaning, gardening, lift servicing, fire safety systems, common-area utilities, insurance and major building repairs.

The way these finances are managed depends on the state or territory, the scheme’s arrangements and the responsibilities set out in your contract. For example, Queensland bodies corporate generally operate separate administration and sinking funds under the relevant regulation module. The Queensland Government’s body corporate finance guidance explains the framework for Queensland schemes.

Building Managers are not automatically responsible for preparing budgets or maintaining the scheme’s formal accounts. However, understanding the financial information relevant to your role can make day-to-day decisions easier and help you give better recommendations.

Start by familiarising yourself with the documents and processes you are authorised to access, which may include:

The approved annual budget and maintenance allowances.
Contractor agreements and recurring service costs.
The building’s asset register and maintenance schedule.
Any capital works or long-term maintenance plan.
The process for obtaining quotes and approving expenditure.
Reporting arrangements between the Building Manager, Strata Manager and committee.

Access to financial information will vary between buildings and contracts. If you are unsure what you can access, ask the appropriate contact rather than assuming you have authority to view or share particular records.

2. What is the difference between operating costs and capital works?

Understanding the difference between routine operating expenses and major works can help you identify upcoming costs and provide more useful information for budget planning.

Operating costs are generally the regular expenses involved in running and maintaining a building. Examples include cleaning, gardening, routine servicing, common-area lighting and minor repairs.

Capital works generally involve significant repairs, renewals or replacements of major building components. Examples may include replacing lift equipment, undertaking substantial waterproofing, repainting the building exterior or replacing major mechanical systems.

The correct financial treatment depends on the work involved and the scheme’s accounting arrangements. In Queensland, for example, the Queensland Government’s guidance on body corporate budgets explains the distinction between expenditure funded from the administration and sinking funds.

Why does this matter? A routine maintenance task may be relatively predictable, while a major replacement project could require specialist advice, several quotes and years of financial planning. Identifying the likely scale and timing of the work helps the people responsible for the budget make informed decisions.

It is also important to remember that having money included in a budget does not automatically authorise expenditure. The correct approval process must still be followed.

3. How can Building Managers help with budget planning?

Building Managers see how a building performs in practice. You may notice that a pump is failing repeatedly, a lift is approaching the end of its useful life or a contractor’s costs are increasing. Sharing these observations can help the Strata Manager and committee develop a more realistic view of future costs.

Useful contributions include:

Identifying equipment that is ageing or approaching the end of its expected service life.
Recording recurring faults and repeat contractor call-outs.
Reviewing upcoming servicing, inspections and maintenance requirements.
Flagging contract renewals and known changes to service costs.
Reporting deferred maintenance and work that may need prioritising.
Providing supporting information for indicative cost estimates.

For example, reporting each lift fault as a separate incident may not show the full picture. A consolidated record showing the frequency of faults, repair costs, equipment downtime and contractor recommendations gives decision-makers a clearer basis for considering whether continued repairs or a larger project should be investigated.

The Queensland Government’s budget guidance also recommends using information such as contractor quotes and professional sinking fund forecasts when planning body corporate expenditure.

Your role is to provide factual information and operational recommendations—not to assume responsibility for setting the scheme’s budget unless that responsibility has specifically been assigned to you.

4. How can maintenance planning help manage building costs?

A reliable maintenance history can help the people responsible for a building identify emerging problems, plan upcoming work and make decisions before an issue becomes urgent.

Where a maintenance or capital works plan exists, make sure you understand how it relates to your responsibilities. The legal requirements vary by jurisdiction. For example:

In Queensland, body corporate financial planning includes a sinking fund, with requirements determined by the applicable regulation module. See the Queensland Government’s body corporate budget guidance.
In New South Wales, strata schemes have requirements relating to a 10-year capital works fund plan. See the NSW Government’s guidance on capital works fund plans.
In Victoria, certain owners corporations must prepare maintenance plans and establish maintenance funds. See Consumer Affairs Victoria’s maintenance plan guidance and maintenance fund guidance.

These requirements do not mean every Building Manager is responsible for preparing or maintaining the formal plan. Your role may instead be to provide information about the building’s condition, completed maintenance, recurring faults and expected replacement needs.

A useful maintenance record should capture:

The asset or building component being maintained.
The date and nature of each inspection, service or repair.
Any defects, faults or deterioration identified.
Work completed and the contractor involved.
The cost of the work, where available.
Recommendations, outstanding actions and suggested timeframes.

Preventative maintenance cannot eliminate unexpected costs, but it can help identify issues earlier and support more informed decisions about repair and replacement.

5. What should Building Managers consider when comparing contractor quotes?

A quote is more useful when decision-makers can understand exactly what is being proposed and compare it fairly with other options. Building Managers can help by checking the practical details and explaining any differences between proposals.

When reviewing quotes, consider:

Scope of work: Is the work clearly described, including what is and is not included?
Exclusions and extra costs: Are access requirements, call-out fees, materials, labour, GST and potential variations explained?
Qualifications and insurance: Is the contractor appropriately qualified, licensed and insured for the work?
Timing: When can the work be completed, and what disruption might it cause?
Warranty and ongoing servicing: What support or future maintenance may be required?
Suitability: Does the proposed solution address the underlying issue, or is it likely to be a temporary fix?
Total cost: Are the proposals genuinely comparable, including any ongoing costs?

The cheapest quote is not always the most appropriate option. Equally, a higher price should be supported by a clear explanation of the additional scope, quality or value being offered.

Where possible, provide a like-for-like comparison. If one contractor has quoted for a temporary repair and another for a full replacement, explain the difference rather than presenting the prices as directly comparable.

Follow the scheme’s procurement process and any applicable requirements for quotes, specialist assessments or approvals. Receiving a quote or identifying a preferred contractor does not mean the work is authorised to proceed.

6. Who can approve building expenditure?

Knowing where your authority begins and ends is one of the most important parts of financial awareness in building management.

The authority to approve expenditure depends on the applicable legislation, scheme rules, contractual arrangements, delegations and decisions made by the relevant body corporate, owners corporation or committee.

In Queensland, the Queensland Government explains that including an expense in a body corporate budget does not itself authorise spending. Spending must be authorised through the appropriate decision-making process, within the applicable spending limits.

Depending on your arrangement, you may be authorised to coordinate routine maintenance or arrange certain work within an agreed scope. Other work may require approval from the committee, Strata Manager or another authorised decision-maker.

Before committing the scheme to expenditure, confirm:

Whether the work falls within your delegated authority.
Whether an approved budget or spending allowance applies.
Whether quotes or additional approvals are required.
Who must authorise the work and how that approval should be recorded.
How urgent issues should be escalated.
Who needs to be notified if the scope or cost changes.

Keep written records of approvals and instructions. If a contractor identifies additional work after starting a job, seek the appropriate authorisation before agreeing to variations, unless an established emergency procedure or other lawful authority applies.

An approved budget, verbal discussion or contractor recommendation should not be treated as automatic permission to spend.

7. What should a Building Manager do when funds may be insufficient?

Sometimes you will identify work that needs attention before it is clear whether the scheme has sufficient funds or approval to proceed. The best next step is to document the issue, communicate its urgency and escalate it to the appropriate decision-makers.

For example, if waterproofing is deteriorating, you could arrange or recommend an appropriate inspection, document visible signs of damage, gather contractor recommendations and provide available quotes or estimates. The Strata Manager and committee can then consider the necessary approvals and funding options.

When reporting an issue, include:

The problem: What has been identified, and where?
The urgency: Is there an immediate safety, security or property-damage risk?
The likely consequences: What could happen if the issue is not addressed?
The options: Is further investigation required, or are different repair approaches available?
The cost information: What quotes or indicative estimates are available?
The action required: Who needs to make a decision, and by when?

If there is an immediate threat to people, property or essential building services, follow the building’s emergency procedures and escalate promptly. Do not delay urgent safety action simply because routine funding or approval arrangements are unclear. Follow established emergency delegations and applicable legal requirements, document actions and notify the appropriate contacts as soon as practicable.

Workplace safety duties also depend on the work being performed and the people involved. Safe Work Australia’s guidance on general duties under work health and safety laws explains that relevant duty holders must manage risks and consult, cooperate and coordinate with others where required. It is important not to assume that a contract transfers or removes a legal duty that applies to a particular person or organisation.

Where funds are insufficient, the relevant decision-makers can consider options such as reprioritising work, obtaining specialist advice or following the appropriate funding and approval process.

8. How should Building Managers report costs and maintenance risks?

Clear reporting helps the Strata Manager and committee understand what is happening at the building and decide what needs attention.

Rather than providing a list of disconnected maintenance requests, aim to identify patterns, priorities and potential financial implications. A useful report may include:

Completed maintenance and associated costs.
Outstanding work and its current approval status.
Recurring faults or repeated contractor visits.
Upcoming servicing and anticipated maintenance.
Assets that may need significant repair or replacement.
Quotes received and decisions still required.
Changes to project scope, timing or cost.
Risks associated with delaying particular work.

For example, a report showing that a pump has required three call-outs in six months, with invoices and contractor comments attached, gives decision-makers more context than a note simply stating that the pump needs attention.

Keep reports factual and distinguish confirmed costs from estimates. Clearly identify recommendations, assumptions and items that need further investigation.

Consistent reporting also creates a useful history of maintenance and expenditure, particularly when committee members, contractors or management arrangements change.

9. What financial information should Building Managers keep track of?

Building Managers should maintain accurate operational records in line with their contract, workplace procedures, privacy obligations and applicable legal requirements.

A practical record-keeping checklist includes:

Current maintenance schedules and inspection records.
Asset information, including age, condition and service history where available.
Contractor agreements, quotes and approved scopes of work.
Work orders, approvals and records of completed work.
Invoices or cost information relevant to your responsibilities.
Outstanding maintenance items and follow-up actions.
Reports on recurring faults, risks and anticipated replacements.
Relevant correspondence with contractors, the Strata Manager and committee.

In Queensland, for example, the Queensland Government’s guidance on body corporate bank accounts and statements outlines the formal accounting records and financial statements that a body corporate must maintain under the relevant requirements. A Building Manager’s operational records support this wider process, but they are not a substitute for the scheme’s formal financial accounts.

The aim is to make reliable information available to support financial decisions—not to duplicate the Strata Manager’s accounting responsibilities.

10. Frequently asked questions about Building Managers and strata finances

Can a Building Manager approve spending?

Only where the Building Manager has the appropriate authority under the relevant contract, delegation, scheme arrangements and applicable law. Confirm the approval process before committing the scheme to expenditure.

Should a Building Manager have access to the building’s budget?

Access depends on the scheme’s arrangements, your responsibilities and any applicable confidentiality requirements. Where appropriate, access to relevant budget and maintenance information can help you plan work and provide useful recommendations.

Can a Building Manager decide which contractor to use?

You may be asked to obtain quotes, assess operational suitability or recommend a contractor. The authority to select or engage a contractor depends on the applicable procurement process and delegated powers.

How can a Building Manager help reduce maintenance costs?

You can support better cost management by keeping accurate records, identifying recurring faults, reporting issues early, coordinating planned maintenance and providing clear information when quotes are assessed. These actions support informed decisions but cannot guarantee lower costs.

What should a Building Manager do if the committee delays necessary work?

Document the issue, explain the operational and safety implications, provide supporting information and escalate concerns through the appropriate channels. Immediate safety risks or emergencies should be handled under the building’s emergency procedures and applicable requirements.

What is the difference between a Building Manager and a Strata Manager?

A Building Manager generally focuses on the building’s day-to-day operation, physical condition, maintenance coordination and contractor activity, subject to their contract. A Strata Manager generally supports the scheme’s administrative, financial and governance functions within their appointment and authority. Responsibilities can overlap, so the specific arrangements should always be confirmed.

Better building decisions start with better information

Building Managers have valuable insight into how a building operates, where costs arise and which maintenance issues may need attention next. By keeping reliable records, identifying emerging risks and communicating clearly with the Strata Manager and committee, you can help support informed decisions and more effective long-term planning.

Understanding the financial side of building management does not mean taking over the scheme’s accounts or approval processes. It means providing the right information, at the right time, to help the people responsible for those decisions.

If you are unsure about your responsibilities, start by reviewing your contract, confirming your delegated authority and establishing a clear reporting process with your Strata Manager and committee.

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