Special Levies and Major Works in Eastern Suburbs Strata: Bondi, Coogee, Randwick and Maroubra
A practical committee guide to scope, funding, meetings, owner communication and delivery
Prepared for Ellouise Tyrrell Strata Management | Sydney
Special Levies and Major Works in Eastern Suburbs Strata: Bondi, Coogee, Randwick and Maroubra
Major building work rarely begins with a special levy. It usually begins with a smaller signal: water staining after southerly rain, rust at a balcony edge, loose render, repeated roof call-outs, a lift fault that no longer has a reliable part, or an engineer recommending investigation before a visible defect becomes unsafe. In Bondi, Coogee, Randwick and Maroubra, those signals often appear in buildings that combine age, coastal exposure, difficult access and limited space for scaffolding or materials.
A special levy is therefore not the project. It is one funding decision inside a larger process. The best result comes when an owners corporation first defines the problem, obtains suitable advice, decides what work is genuinely required, tests the budget and timing, and gives owners enough information to make an informed decision. Raising money before the scope is stable can produce a second levy. Delaying a necessary levy can allow deterioration, access costs and disruption to grow.
This guide explains how Eastern Suburbs strata committees can move from the first warning sign to an orderly major works decision. It focuses on funding, governance, communication and delivery. It does not replace project-specific engineering, legal, tax or financial advice.
Why major works feel different in the Eastern Suburbs
The same repair can be more complicated from one street to the next. A walk-up near Coogee Bay Road may have a narrow side passage and no practical laydown area. A block close to Bondi Beach may have more exposed metalwork and façades than a sheltered building further inland. A Randwick apartment building may include older brickwork, timber roof framing or original stormwater details that need investigation before a contractor can price confidently. A larger Maroubra scheme may have several roof forms, basement areas and landscaped common property that make access planning important.
- Local context affects far more than the trade rate. It can change:
- how scaffolding, hoarding, cranes or elevated work platforms can be positioned;
- whether neighbours, shopfronts, driveways or pedestrian routes must be managed;
- how long approvals, consultant design and contractor mobilisation may take;
- whether opening up a concealed area is likely to reveal additional deterioration;
- how readily owners can absorb one payment compared with staged instalments; and
- whether postponement increases water damage, corrosion or safety exposure.
Committees should describe these constraints early. A quote that assumes easy access is not comparable with a quote that includes traffic control, protection, engineering, hazardous-material precautions or after-hours work. The cheapest headline price may simply contain the most exclusions.
What a special levy is in NSW
NSW Government guidance explains that an owners corporation can introduce a special levy when available funds are not enough to meet an expense such as major repairs. The levy must be determined at a general meeting, using the process that applies to levy decisions. It is not an amount that a strata committee or strata manager can create informally.
Contributions are generally calculated according to each lot's unit entitlement. That means owners may pay different dollar amounts even though everyone is contributing to the same project. The resolution and levy notice should make the total amount, purpose, instalments and due dates clear. A contribution is generally not due until at least 30 days after the owners corporation gives the required written notice.
The legal mechanics matter, but a technically valid motion can still create avoidable conflict if owners do not understand what they are funding. The meeting papers should connect the amount to a credible project budget rather than present a bare number. Where the scope is still uncertain, the committee should be transparent about the contingency and the assumptions behind it.
For the current statutory framework, committees should check the Strata Schemes Management Act 2015 and the NSW Government's guidance on strata levies.
Start with evidence, not a levy figure
A common mistake is to begin with the amount owners might tolerate and then try to fit the work inside it. Major works should begin with evidence. The committee needs to understand the cause, extent, risk and reasonable response.
That may require a building consultant, structural engineer, waterproofing consultant, roofing specialist, quantity surveyor, lift consultant or another appropriately qualified adviser. The right discipline depends on the problem. A contractor can be excellent at delivering a defined scope, but a contractor's quote alone may not answer whether the proposed repair treats the cause, which areas were excluded, or what performance standard the owners corporation should require.
- Before seeking a funding resolution, assemble a practical project record:
- photographs, incident reports and a timeline of recurring symptoms;
- previous reports, warranties, invoices and repair attempts;
- the relevant strata plan and information about common property boundaries;
- a consultant's findings and recommended scope, where warranted;
- quotations or a tender comparison based on the same scope;
- allowances for access, consultant fees, approvals, protection and waste;
- an explained contingency for foreseeable uncertainty; and
- an indicative program showing investigation, approvals, procurement and work.
This work is not about making the pack longer. It is about reducing the gap between what owners believe they approved and what the project later requires.
Confirm responsibility before asking owners to fund the work
The owners corporation generally has a duty to maintain and repair common property. However, a defect visible inside a lot does not automatically prove that every related item is common property. Roofs, external walls, structural slabs and many shared services are commonly the owners corporation's responsibility, but boundaries, by-laws, renovations and exclusive-use arrangements can change the analysis.
Responsibility should be checked early, particularly where work crosses lot and common property, involves a past renovation, or may require access through a private courtyard or apartment. If the work includes an improvement or alteration rather than maintenance alone, a different approval pathway may apply. Legal advice can be worthwhile before a major motion is drafted, especially if responsibility or voting requirements are disputed.
The NSW Government's repairs and maintenance guide provides a useful starting point. It also states that schemes must obtain at least two independent quotes for work valued at $30,000 or more. A scheme may need more than the minimum where the work is technically complex or the proposed solutions differ.
Turn the scope into a complete project budget
Owners often focus on the construction contract, yet major works budgets fail at the edges. Scaffolding, investigation, design, permits, contract administration, temporary protection and latent conditions can be material. GST treatment and the timing of invoices also affect cash flow.
- A committee budget should separately identify, as applicable:
- investigations and consultant design;
- the base construction scope;
- access systems, scaffolding, hoarding and traffic or pedestrian control;
- permits, bonds, inspections and certification;
- project management or contract administration;
- temporary relocation or protection of common facilities;
- contingency based on the actual uncertainty, not an arbitrary round number;
- insurance-related professional fees or excesses where relevant; and
- a closing allowance for defects, final certification and record updates.
This creates a better conversation than simply saying the project costs a certain amount. Owners can see which costs are fixed, which are estimates and which risks are being reserved for. If the budget is built from quotations obtained at different times, confirm whether prices remain valid and whether escalation has been included.
Check existing funds before deciding the special levy amount
The next step is to read the scheme's finances in context. How much is available in the capital works fund? What is already committed? Which routine expenses must still be paid? Are insurance premiums, fire safety work, lift obligations or another project approaching? Does the cash at bank include amounts collected for a different purpose?
A healthy-looking balance can be misleading if most of it is needed for known commitments. Conversely, using every available dollar for one project can leave the scheme unable to respond to an unrelated failure. The decision should preserve reasonable liquidity while avoiding unnecessary collection.
The committee should review current financial statements, levy arrears, unpaid invoices, the approved budget and the capital works fund plan. A capital works plan is not a promise that every forecast will occur in that year, but it is an important test: does the proposed project replace planned work, bring it forward, or sit outside the plan entirely?
The related article on strata trust accounts and financial oversight explains why clear fund reporting matters when owners are asked to contribute substantial additional money.
Funding options: one levy, instalments, finance or a combination
There is no single funding structure that suits every building. The right approach depends on urgency, contract milestones, existing reserves, owner circumstances, borrowing costs and the risks of delay.
A special levy paid in one instalment can make funds available quickly and avoid financing costs. It can also place a sharp burden on household cash flow, particularly in a small scheme where each owner's share is significant.
A special levy paid by staged instalments may be easier for owners and can align with a project program. The owners corporation must still ensure the money will be available before invoices fall due. Optimistic collection dates can expose the scheme to late-payment risk or force it to delay the contractor.
Strata finance may allow urgent work to proceed before all contributions are collected. It creates interest, fees and repayment obligations for the owners corporation, so offers should be compared on total cost, security, early-repayment terms, default provisions and the effect on future levies. A loan is not automatically kinder than a special levy; it changes when and how the cost is paid.
A blended approach can use some capital works funds, a special levy and, where justified, finance. This may preserve liquidity and moderate the immediate contribution, but the structure must remain easy to explain and administer.
The committee should not provide personal financial advice to individual owners. It can, however, give everyone accurate dates, amounts and project information early enough to plan. Owners experiencing difficulty should be directed to the scheme's lawful payment-plan process and independent financial or legal advice.
Draft a motion that owners can understand
The motion is the legal decision, but the explanatory material is where trust is built. The meeting notice should allow an owner who has not followed every committee discussion to understand the proposal.
Include:
- the problem and why action is recommended now;
- the consultant's findings and available options;
- the proposed scope and material exclusions;
- the contractor or procurement pathway;
- the total special levy and each due date;
- how each owner's contribution is calculated;
- how existing funds or finance will be used;
- the project contingency and who may approve its use;
- any separate motion needed for the work, contract or improvement; and
- where owners can inspect reports, quotations and meeting papers.
If the work is urgent but the final tender is not ready, separate investigation funding from construction funding. That is often clearer than asking owners to approve a large estimate built on limited information. The committee can explain that the first decision buys the evidence needed for a reliable second decision.
Communication before the general meeting
Major works fail socially before they fail technically. A committee may have spent months reading reports, while most owners first encounter the proposal in a meeting notice. The knowledge gap can make a well-founded recommendation look sudden.
Provide a plain-English project summary with the formal papers. Explain the risk of doing nothing and the consequences of delay without using alarmist language. Make the full report available. If several repair options were considered, show why the preferred option offers better whole-of-life value, risk control or certainty.
For a large or sensitive project, a non-decision information session before the general meeting can help. Owners can hear from the consultant, ask questions and identify unclear assumptions. The actual decision must still be made at the properly convened meeting, but informed discussion can improve the quality of that decision.
Local examples help when they are relevant. A Bondi owner may understand why salt-exposed access and façade work needs robust specification. A Coogee committee may need to explain why narrow access makes mobilisation expensive. A Randwick building may be dealing with an older roof and hidden timber conditions. A Maroubra scheme may need to stage work around several elevations or occupied courtyards. Use the building's facts, not generic fear.
Comparing quotations without comparing apples and oranges
Two prices can appear to describe the same project while allocating risk very differently. One contractor may include scaffold engineering, protection, testing and making good. Another may list those items as provisional sums or exclusions. One may offer a detailed methodology and program. Another may provide a short price with little evidence of the proposed system.
- Use a comparison schedule that identifies:
- scope inclusions and exclusions;
- provisional sums and unit rates;
- access and resident protection;
- licences, insurances and relevant experience;
- proposed materials and compatibility with the existing building;
- warranties and the entities providing them;
- program, working hours and weather allowances;
- payment milestones, retention and security;
- variation rules; and
- defects, completion documents and handover.
Technical advice can cost money, but poor scope alignment can cost much more. The aim is not to make every tender identical. It is to understand why they differ and which proposal best addresses the owners corporation's requirements.
Control the project after the levy is approved
Approval is not the finish line. Once owners have contributed, the owners corporation needs visible discipline around spending, changes and reporting.
Confirm who is authorised to instruct the contractor, approve invoices and communicate with residents. Avoid multiple committee members giving directions on site. Establish how variations will be priced, supported and approved. Match progress claims to inspected work, the contract and any consultant certification. Keep a live budget showing the approved amount, commitments, payments, contingency use and forecast completion cost.
Resident communication should cover access, noise, dust, temporary closures, balcony clearing, security and emergency contacts. Holiday letting and tenant occupancy can complicate access in Bondi, Coogee and Maroubra, so notice protocols need to reach agents and occupiers as well as owners.
At completion, collect warranties, certificates, photographs, manuals, as-built information and a final account. Update the asset register and capital works plan so the next committee knows what was done, when it was done and what maintenance the new system requires.
Changes in scope and the risk of a second levy
Opening a roof, balcony, façade or concealed service can reveal conditions that could not reasonably be confirmed beforehand. A contingency helps, but it is not permission to spend without scrutiny.
- For each material variation, ask:
- Was the condition genuinely outside the documented scope?
- Is the proposed work necessary now, or can it be separately planned?
- Has the consultant confirmed the technical need?
- Is the price supported by the contract or a reasonable breakdown?
- Does the existing authority cover the change?
- What does approval do to contingency and final forecast cost?
If the available funds and authority are insufficient, the owners corporation may need another general meeting. Early reporting is essential. Owners are more likely to accept an unavoidable discovery when they can see the evidence and the decision trail.
Insurance is not a substitute for maintenance funding
Some major work follows a sudden storm, impact or another event that may be insured. Other work addresses gradual deterioration, corrosion, wear, defective installation or deferred maintenance. Coverage depends on the policy, cause, exclusions, excesses and evidence. A committee should notify a potential claim promptly and follow the insurer or broker's instructions, but it should not delay urgent mitigation while assuming the full project will be paid.
Keep pre-event photographs, maintenance records, consultant reports and invoices. Separate emergency make-safe work from long-term improvement where possible. If a claim is accepted only in part, the owners corporation still needs a funding plan for the balance.
A practical Eastern Suburbs scenario
Consider a 24-lot coastal building between Coogee and Randwick. Residents report staining after wind-driven rain. A consultant finds failed joints, local concrete deterioration and corroding balcony-edge components on two elevations. Access requires engineered scaffolding over a narrow common path, and the initial budget is higher than owners expected.
A weak response would be to collect an approximate amount based on one contractor's short quote. A stronger response is to complete testing, define repair quantities and provisional rates, tender the same scope, identify access and consultant costs, test capital works funds, and set an explained contingency. The meeting papers then show the preferred contract, the funding gap, staged levy dates aligned to the program and the consequence of deferring the exposed elevations.
The project may still be expensive. Good process does not remove cost. It gives owners a defensible reason for the amount, reduces surprise and lets the committee manage delivery against an agreed baseline.
A 12-step committee checklist
- Record the symptoms, history and immediate safety or water risks.
- Confirm likely common property responsibility and obtain legal advice if boundaries or approvals are unclear.
- Engage the right independent technical adviser for the problem.
- Define the scope, options, exclusions and expected performance.
- Obtain compliant quotations or run a structured tender process.
- Build a complete budget including access, consultants, approvals and contingency.
- Review capital works funds, commitments, cash flow and levy arrears.
- Compare special levy instalments, available reserves and finance on total cost and timing.
- Prepare clear motions and explanatory meeting papers.
- Give owners reasonable access to reports and an opportunity to ask informed questions.
- Establish project authorities, contract controls and regular financial reporting.
- Close out warranties, records and future maintenance requirements.
How proactive strata management helps
A strata manager should not replace the engineer, lawyer, broker or financial adviser. The manager's value is coordination: keeping the decision pathway orderly, ensuring meeting and levy processes are followed, assembling records, monitoring cash flow, communicating with owners and maintaining a clear project file.
For Sydney committees reviewing their current support, read about Ellouise Tyrrell Strata Management, the Coogee head office serving the Eastern Suburbs, and the practical guide to lift repairs and replacement in Bondi Junction, Randwick, Coogee and Maroubra. Buildings affected by nearby projects may also benefit from the guide to protecting Sydney strata from construction next door.
The objective is not to avoid every special levy. Some necessary projects genuinely exceed existing reserves. The objective is to make the levy timely, proportionate, properly approved and connected to a well-controlled result.
Frequently asked questions
1. Can a strata committee impose a special levy in NSW?
No. The strata committee can investigate the need, obtain advice and recommend a proposal, but the owners corporation must determine the special levy at a properly convened general meeting. The meeting notice should state the motion, total amount, purpose, instalments and due dates clearly. The strata manager then issues contribution notices in accordance with the resolution and legislation.
2. How is each owner's share of a special levy calculated?
Special levy contributions are generally calculated according to the unit entitlement of each lot. They are not normally divided equally by the number of apartments. Owners should receive a notice showing the amount due for their lot. If a scheme believes a different allocation applies because of a specific legal structure, by-law or order, it should obtain advice before issuing notices.
3. Can a special levy be paid in instalments?
Yes. The owners corporation can resolve that the contribution is payable by specified instalments. The dates should align with the expected project cash flow and allow the required notice period. Staging can help owners plan, but the scheme should not commit to contractor payments before it reasonably expects the required funds to be collected.
4. What if an owner cannot pay the special levy on time?
The owner should contact the strata manager promptly and use the current NSW request process for a payment plan for overdue contributions if applicable. The committee should apply its arrears and hardship process consistently, protect privacy and obtain advice where needed. A payment arrangement changes timing; it does not remove the contribution. The scheme must also plan for the effect on project cash flow.
5. Should the owners corporation use strata finance instead?
Finance may help urgent work proceed and spread repayments, but it adds interest, fees and future levy commitments. Compare the total repayment, term, security, early-exit terms and effect on owners, not just the initial instalment. A blended option may be suitable. The decision should be supported by legal and financial advice appropriate to the scheme.
6. Do owners need to approve the building work as well as the levy?
Often the owners corporation will need one or more decisions about the work, contract or project authority in addition to the funding motion. The required resolution depends on whether the proposal is maintenance, renewal, alteration or improvement and on the delegations already in place. For significant or disputed work, obtain legal advice on the motions before the meeting notice is issued.
7. How much contingency should a major works budget include?
There is no universal percentage. The contingency should reflect the quality of investigation, design completeness, access uncertainty, concealed conditions, tender maturity and contract risk. A well-investigated repeatable scope may justify less than work involving hidden substrates or provisional quantities. Explain the basis and establish who can approve its use.
8. Can major work start before every special levy instalment is collected?
It can, but only if the owners corporation has enough cash and a realistic collection forecast to meet its contractual commitments. The committee should consider arrears, existing fund obligations and payment milestones before signing. Commencing without secure cash flow can create late payments, claims, delays or a need for emergency finance.
9. What records should be kept after the project finishes?
Keep the approved motions, contract, consultant reports, tender comparison, variations, progress certificates, invoices, completion certificates, warranties, product data, photographs, access information and final account. Update the capital works plan and maintenance schedule. These records support future committees, warranty claims, insurance questions and more accurate planning.
Planning major works starts with understanding your building, budget and owners' priorities. Explore our local strata management services in Bondi, Coogee, Randwick and Maroubra.
Authoritative external references
NSW Government: Strata repairs and maintenance
NSW Legislation: Strata Schemes Management Act 2015
NSW Fair Trading: Strata and community living
Publication note and disclaimer
This article provides general information current at 17 September 2026. It is not legal, engineering, building, insurance, accounting or financial advice. Building conditions, strata plans, by-laws, contracts, policies and owner circumstances differ. Obtain project-specific advice before approving work, finance, motions or recovery action. Check the current legislation and every linked source immediately before publication.
