When contractors drive outcomes rather than your committee, costs spiral and quality drops. Jobs expand beyond scope. Invoices arrive without warning. Nobody seems to own the result. A structured approach to contractor management changes that, and it does not require the committee to become experts in every trade. It requires the committee to control three things: what was agreed, who answers for it, and what gets checked before money moves.
Define scope before work starts
Every job should have a clear scope agreed in advance: what is being done, to what standard, and at what cost. When the scope is vague, contractors fill the gaps, and the committee pays for the filling. At JKFM we put a defined scope in place before any works commence, so everyone knows what to expect.
A scope does not need to be a forty page contract. For most building jobs, one page answering the following covers it.
A scope of works checklist
- What: the works described in plain terms, including the exact location. "Repaint level 3 corridor walls and ceiling" beats "painting works".
- Materials and standard: what is being used and what finish or performance is expected.
- Inclusions and exclusions: does the price cover making good, waste removal, protection of surrounding surfaces? Exclusions in writing now beat variations later.
- Price and GST status: a fixed figure where possible, stated as GST inclusive or exclusive so nobody discovers a ten per cent surprise.
- Timeframe: start date, expected duration, and working hours that suit residents.
- Access: who lets the contractor in, and what notice residents get.
- Variations: any change to scope or price gets approved in writing before the work happens, with a named person who can approve it.
- Sign off: who inspects the finished work and confirms completion.
- Paperwork: current insurance and licence details before starting, and warranties or certificates on completion.
If a contractor resists putting these on paper, that tells you something useful before you have spent a dollar.
Red flags when reviewing quotes and invoices
None of these prove a problem. Each one earns a question before approval.
- A one line quote. "Supply and install: $8,400" with no breakdown gives you nothing to compare against other quotes or against the invoice.
- Do and charge with no cap. Hourly rates without an estimated total hand the contractor a blank cheque.
- Provisional sums with no ceiling. "Allowance for repairs as found" is sometimes legitimate. Uncapped, it is where budgets go to die.
- An invoice above the quote with no approved variation. The gap needs a paper explanation, not a verbal one.
- Vague invoice descriptions. "Maintenance works" across three invoices could mean anything. Ask for dates, locations and tasks.
- No GST clarity. Confirm whether quoted figures include GST before comparing quotes, because one contractor quoting exclusive can look cheaper than one quoting inclusive.
- Missing detail that should be automatic: job address, date of works, ABN, and a reference to the original quote.
One point of accountability
Committees should not be chasing multiple trades for updates. A single point of contact, whether that is your facilities manager or a nominated lead, coordinates access, progress and sign off. That person answers to the committee for outcomes. When something stalls, the committee makes one call, and the person on the other end cannot point sideways.
Quality checks before sign off
Work is not complete until someone has inspected and approved it. A final walkthrough, documented completion, and retention of certificates protect the owners corporation. If something is not right, agree rectification before final payment is released, where the contract allows. Payment milestones are one of the strongest levers a committee holds, and releasing them early without inspection gives that leverage away. Photos of the completed work and the signed docket then go into the building's records, where they support the audit trail your insurer or auditor may one day ask for.
Structure the review cadence
Accountability is not a one off document. It is a rhythm.
- Monthly: the committee sees a report listing works completed, works in progress, and invoices paid, each traceable to an approved scope. Anything unrecognised gets queried while memories are fresh.
- Quarterly: review recurring contractors against their agreed scope. Is the cleaning matching the specification? Are service visits happening at the agreed frequency, with dockets to prove it?
- Annually: revisit the major recurring contracts. Check insurance and licences are current, confirm the scope still matches what the building needs, and market test where a contract has rolled over for years without comparison. Loyalty to a good contractor is worth keeping. Loyalty by default is not.
With these practices in place, contractors stay accountable and the committee stays in control. The committee also stops relying on any single person's memory, because the paperwork carries the history.
At JKFM, contractor coordination and works oversight are part of our core building management service, from scope through to sign off. Details are on our services page.
Want a second set of eyes on how your building's contractors are managed?