Whilst ideal it may not be feasible to write your own contract. However it is far easier to use the strata manager’s draft contract as a base and make as many changes, deletions, additions as you can negotiate. The proposals you receive will likely have many pages with lists and inclusions/exclusions, activities and dollars.
The schedules, apart from the list of items in A1 (which reflects the duties under legislation), are unique to every company and can even change between contracts from the same strata manager.
Cover pages: Details important information not provided in the schedules or the terms and conditions.
Schedule A: Are the duties that absolutely must be carried out as required by Strata Schemes Management Act (1996) and Property Stock & Business Agents Regulations (Schedule 6 Clause 6). Agents make an election here as to whether they accept a delegation or otherwise.
Schedule A2: More clearly defines how agents agree to meet the obligations accepted in Schedule A1 and whether they are part of a standard charge or an additional charge.
Schedule B: Sets out the additional charges for either unit costs or hourly charges.
Schedule C: Sets out any other financial benefits received by the agent in this contractual relationship.
Schedule D: Are the disbursements and associated fees.
You need to be clear about what is in the ‘Agreed Services’ what constitutes ‘Additional Services’ as detailed in Schedule’s A1 and A2 and the fees and charges set out in Schedules B, C and D. Note, because the contracts that strata companies supply are templates used for all their proposals, Schedules B and D are usually just lists of standard charges and fees – it is up to you to determine whether they are relevant to your quote or not. For example many charges and fees may not be relevant if you have obtained a ‘Fixed Price’ or ‘All Inclusive’ proposal (however see the Tendering pitfalls and tipssection 3.11for some words of caution).
There is no magic to getting a good understanding it just warrants careful reading. For example, Schedule A might include attending the annual general meeting and at a stated number of executive committee meetings as part of an inclusive price, but require that they be held at the strata manager's offices during ordinary business hours. Whereas, Schedule B might detail the fees for attending meetings outside office hours at an hourly rate.