Five questions before a strata committee approves expenditure
A practical five-minute check for authority, budget, evidence, conflicts and a clear record before money is committed.
Do not begin with the quote. First identify the decision, confirm who has authority, check the approved budget and evidence, manage conflicts, and record the resolution and next action.
What you need to know
- A committee may approve expenditure within its statutory powers under section 36, subject to legislation and owners corporation restrictions. Check a specific delegation separately where the particular function requires one.
- An approved budget does not by itself prove that cash is available or that the committee has authority for the proposed commitment.
- A defensible decision records the scope, evidence, conflicts, resolution, responsible person and follow-up date.
Check authority before comparing prices.
1. Define the actual decision
Separate the problem from the proposed solution. Record what must be achieved, why it is needed and whether the matter is routine, urgent or a change to common property.
2. Check authority
Check section 36 and any scheme restrictions. Routine committee decisions do not all require a separate delegation. The committee cannot decide matters reserved by law or by an owners corporation general-meeting determination. Special levies require a general-meeting decision. Separately verify any specific delegation required for the function and the manager’s authority to implement the decision.
3. Check the money
Identify the correct fund, approved budget, available cash and any spending restriction. If a special levy may be needed, prepare the decision for a general meeting.
4. Test the evidence
Compare a clear scope, suitable quotes, warranties, insurance, qualifications and risk. A low price is not a substitute for a comparable, complete scope.
5. Record and follow through
Identify the lawful decision pathway and record the motion, result, conflicts, responsible person, conditions and follow-up date. Clear email votes can support a valid written committee decision where Schedule 2, clause 9(2) is satisfied; an informal discussion does not automatically do so. Retain the notice and votes with the record, then monitor implementation.
Watch for
- A quote without a defined scope
- A committee decision that needs a general meeting
- An undisclosed personal or financial interest
- Urgency being used to avoid evidence or a proper record
Escalate when
- Authority or delegation is uncertain
- Common-property change or a special resolution may be involved
- A special levy may be needed
- Safety, engineering, building regulation or legal interpretation is involved
Clear answers before you act
Can the chairperson approve a quote alone?
Not merely because they are chairperson. The instruction must be supported by an actual statutory power, delegation or valid owners corporation or committee resolution.
Does unanimous committee support cure an authority problem?
No. Agreement cannot transfer a decision reserved by law to the owners corporation. The correct general-meeting pathway must still be used.
Are three quotes always legally required?
Not as a universal rule for every expense. Check the legislation, scheme decisions, spending restrictions, agency agreement and procurement policy, then obtain evidence proportionate to the risk and value.
Source-controlled learning
Reviewed against the following current official material on 20 October 2026. Open the source to check the latest version before relying on it.
- Act section 36 — committee powers and limits ↗
- Act Schedule 2 — clauses 9–10 and 17: written votes, voting methods and records ↗
- Regulation clauses 14–17 — electronic voting ↗
- Act section 110(6) — minor-renovation delegation ↗
- NSW Government — How to run a strata meeting ↗
- NSW Government — Levies ↗
- NSW Government — Record keeping requirements ↗
- Strata Schemes Management Act 2015 (current) ↗
Knowing the check is useful. Practising the judgement is better.
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