Compass Strata
Navigating the Transition: What to Expect When Moving from a House to Strata Living
Making the shift from a standalone house to strata living can be both exciting and daunting. While the allure of a low-maintenance,...
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03. Building Management Committee (BMC)
Simplying complexities in mixed-use developments
As the size and complexity of strata developments increase in NSW, Building Management Committee (BMC) structures have become more prevalent in new Sydney developments. BMCs are crucial in mixed-use properties where diverse usage types coexist within the same building or development.
For example, the development may have a commercial strata scheme occupying Tower A, a residential strata scheme occupying Tower B, a retail stratra scheme occupying the podium and ground levels. Each entity would have separate Owners Corporations but contribute to the shared facilities within the development such as car parking, lifts, landscaping etc.
The BMC is like an umbrella structure that sits on top of each entity aimed to bring the entities together, aligning the distinct goals of each, in making decisions that impact the development as a whole.
A Strata Management Statement (SMS) serves as the governing tool for BMCs, outlining the establishment, functions, and fair allocation of costs. BMCs require adherence to key requirements, regular meetings, and specialised decision-making, addressing shared expenses and overseeing amendments to the SMS through Special Resolutions. Effective BMC management relies on proper accounting, Capital Works Fund provisions, and ensuring comprehensive coverage of building capital items in Capital Works Fund forecasts.
The ultimate goal is to foster harmony among diverse usage types within a building or development while accommodating individual amenity improvements within the SMS framework. Compass Strata excel in interpreting SMS, managing shared facilities, and providing fiscally-prudent building, repairs, and maintenance solutions. Our practical knowledge and diplomatic approach make us adept at addressing day-to-day needs and exceptional circumstances in the dynamic realm of mixed-use properties.
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