Engaging Contractors in a Body Corporate: What the Committee Needs to Know

Why Getting This Right Matters

Contractor engagement is one of the most common areas where body corporate committees make costly mistakes — paying too much, engaging unlicensed trades, accepting inadequate insurance, or failing to get proper quotes. The consequences range from wasted levy money to unrecoverable loss if work is defective or someone is injured.

Following a consistent process protects the scheme and its owners.

Step 1: Define the Scope Clearly

Before approaching any contractor, the committee should have a clear written description of the work required:

What is to be done
Where (specifically which parts of common property)
To what standard
By what deadline
Any access requirements or constraints

For complex or technical work, engage a building consultant, engineer, or architect to prepare a scope of works specification before inviting quotes. Vague scopes produce incomparable quotes and disputes about what was agreed.

Step 2: Check Licence and Insurance First

Before inviting a contractor to quote:

Licence: Verify the contractor holds a current licence appropriate for the work. Electrical, plumbing, building, and pest control work all require Queensland licences. Check on the QBCC website (for building trades) or the relevant licensing body.

Public liability insurance: Ask for a certificate of currency. Minimum $10 million is standard for commercial contractors — $20 million for higher-risk work.

Workers compensation: If the contractor has employees, verify workers compensation cover.

Do not engage a contractor who cannot provide current evidence of appropriate licence and insurance. The risk is entirely yours if something goes wrong.

Step 3: Get Multiple Quotes

For any significant expenditure, obtain at least two to three independent quotes. All quotes must be for the same scope of work — comparing quotes based on different scopes is meaningless.

For expenditure that exceeds the committee's spending limit, multiple quotes are essential before bringing the matter to a general meeting for owner approval.

Step 4: Evaluate on Value, Not Just Price

The cheapest quote is not always the best value. Consider:

Does the contractor's experience include similar body corporate projects?
Can they provide references from comparable schemes?
Is the programme realistic and does it minimise disruption to residents?
Is the scope fully covered in the quote, or are there exclusions?
What is the warranty offered on the work?

A slightly higher price from a well-credentialed contractor with good references is almost always better value than the cheapest price from an unknown.

Step 5: Document the Decision

Record in the committee meeting minutes:

What quotes were received and from whom
The basis for the decision (not just "accepted the cheapest quote")
Any conflicts of interest disclosed
The committee member who signed the authority to proceed

This record protects the committee if the expenditure is later questioned by owners.

Ongoing Monitoring

Once a contractor is engaged:

Issue a written purchase order or contract confirming the scope, price, and timeline
Inspect the work before approving payment
Retain a percentage of the contract amount until defects identified at practical completion are rectified

This article is general information only and does not constitute legal advice. For advice about contractor engagement or body corporate governance, consult a strata lawyer or the Office of the Commissioner for Body Corporate and Community Management.