When a body corporate or owners corporation committee starts looking at managers, the first decision is whether to ask for proposals or run a formal tender. Both are valid. They suit different schemes, different decisions, and different risk appetites. This guide explains the difference and gives you a clear way to choose.
What is a strata management proposal?
A proposal is an informal sales document a manager prepares for your scheme based on the basic facts you give them: building type, lot count, suburb, current management situation. It is what most committees ask for when they are scoping the market or quietly comparing options. A proposal usually includes a fee quote, a summary of services, the manager's key people, and a few references.
Proposals are quick. A manager can turn one around in two business days. Three managers responding to the same brief gives you a fair side-by-side picture of the market without committing your committee to a formal selection process.
What is a strata management tender?
A tender is a structured request that asks managers to bid for your scheme's contract under a written scope, a fixed deadline, and clear evaluation criteria. The committee documents what they want, sets weighted criteria for how responses will be judged, and may include custom questions for the responding managers.
Tenders are slower (typically 6 to 10 weeks end to end) but the trade-off is a much cleaner apples-to-apples comparison. Every manager is responding to the same brief, scored against the same criteria, with the same documentation. The decision is defensible if a dissatisfied owner ever raises a dispute.
Side-by-side comparison
| Element | Proposal | Tender |
|---|---|---|
| Format | Informal sales document | Formal structured response |
| Turnaround | 2 business days | 2 to 3 weeks per response |
| Total process time | 1 to 2 weeks | 6 to 10 weeks |
| Scope of services | Manager describes their standard offering | Committee defines exactly what is required |
| Evaluation criteria | Committee judges informally | Pre-agreed weighted criteria |
| Custom questions | Rare | Common |
| Owner-facing documentation | Light | Heavy |
| Best for | Scoping options, market check | End-of-term renewals, AGM mandates, formal selection |
When proposals are the right choice
Use proposals when:
- The committee is scoping the market without a firm decision to switch
- Your current contract still has time to run and you are gathering options
- You want a quick read on whether your fees are competitive
- The scheme is small (under about 30 lots) and a heavy tender process is overkill
- You don't need owner approval to change managers
- You trust your committee's informal judgement and don't need a paper trail
When a tender is the right choice
Use a tender when:
- Your current contract is at end of term and the committee has resolved to test the market
- The AGM has passed a motion to tender the management contract
- The scheme is mid-size or large (40+ lots) where the documentation effort is justified
- The committee has had service issues and wants a clean reset with documented selection
- Owner sentiment is divided and you need a transparent, defensible process
- You expect significant transition (data migration, contractor reset) and want a written transition plan
- The scheme's by-laws or current contract require owner approval to change managers
Can you do both?
Yes, and many committees do, in stages. Start with proposals to scope the market and shortlist managers you might want to engage with. If you are then ready to commit to a formal selection process, issue a tender to your shortlist. The proposal stage tells you who is in the market and roughly where the fees sit. The tender stage gives you the documented head-to-head.
A simple decision framework
Ask three questions:
- Have you committed to switch managers (or to formally test the market)? If yes, lean tender. If no, proposals.
- Does your committee or owners need a documented decision trail? If yes, tender. If informal committee judgement is fine, proposals.
- Is the scheme size and complexity worth the effort? Under 30 lots usually proposals; 40+ lots usually tender; in between, depends on the situation.
If two of the three answers point one way, that is your answer.
Both are free through Body Corporate Gold Coast
There is no cost or obligation when you submit either request through our partner network. We invite up to three established and trusted local managers (QLD or NSW) to respond. You choose who you want to talk to, or no one if none are right.
Get Free Proposals
Informal review, 2 business days, ideal for scoping the market.
This guide is general information only and not legal, financial, or insurance advice. For advice on a specific scheme or situation, consult a qualified strata professional or lawyer.
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