Why Self-Managing a Building Can Create Serious Risks for Committees and Volunteers

Many strata committee members volunteer their time with the best intentions.

They care about their building, want to reduce costs, and often believe they can perform some building management functions themselves rather than engaging an independent professional.

Sometimes this works.

Sometimes it becomes very expensive.

At PerformanceFM, one of the most common risks we see is a well-meaning committee member stepping into the role of building manager, maintenance coordinator, compliance manager, project manager, or technical advisor without fully understanding the responsibilities they have assumed.

The individual may be an accountant, lawyer, teacher, office administrator, engineer, business owner, or retiree. They may be highly competent and successful in their own profession.

However, managing a building is a specialist discipline in its own right.

Modern residential and commercial buildings are complex assets. They contain electrical systems, fire systems, lifts, mechanical services, waterproofing systems, access control systems, essential services, compliance obligations, contractors, residents, visitors, and significant financial responsibilities.

The challenge is not necessarily what you know.

The challenge is often what you do not know.

Building Management Is More Than Organising Contractors

Many committee members believe building management simply involves obtaining quotes, issuing a work order, and waiting for the contractor to complete the job.

In reality, engaging a contractor is often the easiest part of the process.

Professional building management involves establishing and maintaining a framework that protects the Owners Corporation, residents, visitors, contractors, and the committee itself.

Before a contractor even commences work, a number of questions should be asked:

• Does the contractor hold the appropriate trade licence?
• Is the licence current and valid for the specific work being performed?
• Does the contractor hold adequate Public Liability Insurance?
• Does the contractor require Professional Indemnity Insurance?
• Is the insurance current and does it specifically cover the activities being undertaken?
• Are subcontractors also covered?

For example, a fire services contractor providing compliance advice may require Professional Indemnity Insurance, whereas an electrician performing maintenance work may not. Understanding these distinctions is part of effective contractor management.

The documentation requirements do not stop there.

A professional building management process may also require:

• Current Safe Work Method Statements (SWMS)
• Site-specific risk assessments
• Job Safety Analysis (JSA) documentation
• Evidence of worker competency and qualifications
• High-risk work licences where applicable
• Elevated Work Platform (EWP) licences
• Working With Children Checks where required
• Site inductions
• Daily pre-start meetings
• Toolbox talks
• Emergency procedures
• Traffic management plans
• Public exclusion zones and safety barriers
• Permit-to-work systems

Importantly, these documents are not simply collected and filed away.

They need to be reviewed, assessed, monitored, and managed throughout the duration of the work.

Many volunteers are surprised to learn that if a serious incident occurs on site, investigators may request evidence that these controls were in place and actively managed.

Questions may include:

• Was the contractor appropriately qualified?
• Were the required insurances held?
• Were workers inducted onto the site?
• Were Safe Work Method Statements reviewed?
• Were hazards identified and controlled?
• Was public safety adequately considered?
• Were contractor activities properly supervised?

The challenge for many volunteer committee members is that they may not know what documentation should exist, let alone whether it is adequate.

This is not a criticism of the individual.

An accountant is not expected to understand electrical safety legislation.

A teacher is not expected to understand fire compliance obligations.

A retired business owner is not expected to understand contractor management systems.

Yet many volunteer committee members unknowingly assume responsibility for these matters when they take on building management functions.

The Day Everything Changes Is the Day After an Incident

Nobody asks for the SWMS, induction records, insurance certificates, toolbox talks, contractor licences, traffic management plans, or risk assessments while everything is running smoothly.

These documents become critically important after something goes wrong.

Examples include:

• A contractor falls from a ladder.
• A resident trips over contractor equipment.
• A vehicle accident occurs in the basement car park.
• A worker receives an electric shock.
• A fire occurs.
• A roof leak causes significant water damage.
• A waterproofing failure affects multiple lots.
• A lift incident results in injury.
• A contractor damages common property.

This is when insurers, lawyers, investigators, SafeWork inspectors, and loss adjusters start asking questions.

The focus quickly moves from the incident itself to how the work was managed.

What documentation existed?

What procedures were followed?

What controls were implemented?

Who approved the work?

Who was responsible?

Unfortunately, this is often when a volunteer committee member discovers they have assumed far more responsibility than they realised.

The Problem Is Often What Gets Ignored

In many disputes we review, the problem was not that somebody intentionally did the wrong thing.

The problem was that important warnings were ignored or misunderstood.

Examples include:

• Fire contractors identifying defects that were never actioned.
• Roof contractors reporting water ingress that was left unresolved.
• Electricians identifying safety concerns that were not escalated.
• Waterproofing contractors warning of structural deterioration.
• Lift contractors reporting reliability issues.
• Mechanical contractors highlighting equipment approaching end of life.
• Engineers identifying risks that were deferred because funding was unavailable.

Often these warnings arrive in reports, quotations, maintenance recommendations, emails, or meeting minutes.

An experienced building manager understands the significance of these notices and knows when further action is required.

An inexperienced volunteer may not.

The result is that small problems are allowed to develop into major failures.

Insurance May Not Protect You the Way You Think

Many volunteers assume insurance will automatically protect them.

Unfortunately, insurance is not always straightforward.

Questions that may arise after an incident include:

• Was the individual acting within their authority?
• Were recommendations from qualified professionals ignored?
• Was reasonable care exercised?
• Were contractor management processes followed?
• Were statutory obligations met?
• Was adequate supervision provided?
• Were foreseeable risks identified and managed?

These questions often only emerge after a major failure, injury, water damage event, fire incident, or legal claim.

By then, it is too late.

While every situation is different, committee members should understand that insurance is not a substitute for competent building management.

The Financial Consequences Can Be Significant

When building management goes wrong, the consequences are often much larger than the original maintenance cost.

Common outcomes include:

• Special levies
• Legal disputes
• Insurance excesses
• Increased insurance premiums
• Building defects claims
• Emergency repairs
• Compliance notices
• Regulatory investigations
• Loss of property value
• Contractor disputes
• Resident dissatisfaction

What may have started as an attempt to save a few thousand dollars can ultimately cost tens or even hundreds of thousands of dollars.

Why Qualified Professionals Matter

There is a reason legislation often requires appropriately qualified professionals for specialist building functions.

For example, the Strata Schemes Management Regulation 2016 provides for the appointment of suitably qualified building inspectors through authorised professional associations.

The principle is simple.

Buildings are complex assets.

Some functions require specialist knowledge, training, experience, and professional accountability.

If legislation recognises that specialist building inspections should be performed by appropriately qualified individuals, it raises an important question.

Should volunteer committee members be assuming responsibility for complex building management functions that involve contractor management, compliance obligations, safety systems, risk management, and significant financial decisions?

The answer is not that committee members should be excluded.

The answer is that they should be supported by appropriately qualified professionals.

Experience Is Really About Risk Management

Many people assume the role of a building manager is simply to organise contractors.

In reality, the role is primarily about risk management.

An experienced building manager can often identify:

• Compliance risks
• Insurance exposures
• Contractor performance issues
• Emerging asset failures
• Budget risks
• Capital expenditure requirements
• Safety concerns
• Documentation deficiencies

before they become expensive emergencies.

The value is not simply coordinating contractors.

The value is recognising risk before it becomes a problem.

Engaged Committees Achieve the Best Outcomes

There is nothing wrong with committee members taking an active interest in their building.

In fact, engaged committees often achieve the best outcomes.

The most successful strata schemes are usually those where committee members remain involved in decision-making while relying on experienced professionals to manage technical, compliance, maintenance, and operational risks.

The committee governs.

The professionals execute.

This allows committee members to focus on strategic decisions without exposing themselves to unnecessary operational risk.

Conclusion

Most volunteer committee members step forward because they genuinely want to help their building.

Their intentions are admirable.

However, building management involves far more than obtaining quotes and organising contractors.

It requires an understanding of risk management, contractor compliance, insurance, workplace safety, documentation, maintenance strategy, statutory obligations, and building operations.

The risks associated with getting these matters wrong can be significant for both the Owners Corporation and the individuals involved.

A qualified building manager does more than coordinate maintenance.

They provide a framework that protects the building, the owners, the committee, and the long-term value of the asset.

At PerformanceFM, we help Owners Corporations, strata committees, and property owners navigate technical, compliance, maintenance, and operational risks before they become costly problems.