Major Works in a Body Corporate: How to Plan, Approve, and Manage Them

What Are Major Works?

Major works are significant capital expenditure projects on common property — typically the largest expenditure a body corporate makes in any year. Examples include:

Repainting the building exterior
Replacing or repairing the roof
Resurfacing the car park or driveway
Replacing major plant (lifts, pool equipment, HVAC systems)
Structural repairs
Façade remediation

Major works are funded from the sinking fund (for planned works anticipated in the forecast) or from a special levy (for unplanned or emergency works).

Planning: Start Early

The biggest mistake bodies corporate make with major works is leaving planning too late. A building that needs repainting in two years requires work now:

Commission a condition assessment to confirm the scope and timing
Update the sinking fund forecast if necessary
Ensure the sinking fund balance will be sufficient, or plan a supplementary levy contribution
Begin the specification and tender process well in advance

Major works that are rushed — because the condition deteriorated faster than expected or because the fund ran short — almost always cost more than planned works.

Do You Need a General Meeting?

If the cost of the major works exceeds the committee's approved spending limit, it must be approved at a general meeting — an ordinary resolution is usually sufficient for maintenance and repair works. Improvements to common property generally require a special resolution.

The committee should present:

A clear description of the works and why they are necessary
At least two or three independent quotes
The proposed funding source (sinking fund, special levy, or combination)
A programme showing when the works will take place and how disruption to residents will be managed

Selecting a Contractor

For major works, the selection process should be rigorous:

Prepare a detailed scope of works (use a building consultant for complex projects)
Invite at least three qualified, licensed contractors to quote
Evaluate quotes on value — experience, programme, warranty, and references — not just price
Check licence and insurance before awarding
Engage a building consultant to superintend the works on the body corporate's behalf for larger projects

Managing the Works

Once under way:

Communicate with all residents about timing, access requirements, and any disruptions
Conduct regular site inspections — or have your superintendent do so
Document the progress with photographs
Do not approve progress payments without inspecting the relevant stage of work
Retain a defects liability period — typically 12 months — during which the contractor must rectify any defects identified after practical completion

After the Works

Once major works are complete:

Update the sinking fund forecast to reflect the completed works and reset the maintenance cycle
File all documentation — contracts, payment records, warranties — in the body corporate's records
Report the outcome to owners at the next AGM

This article is general information only and does not constitute legal advice. For advice about major works planning and governance, consult a strata lawyer or building consultant.