The Cheapest Quote Came From Their Employer
A committee member works for the company offering the lowest waterproofing quote. What should happen before the committee weighs the three offers?
A fictional NSW strata committee is considering three quotations for common property waterproofing: $51,000, $48,000 and $42,000. Before discussion begins, a member says: “I work for the $42,000 company. I don't receive commission from this job, so I'm happy to answer questions and I think I should still vote.” The price may be good and the contractor may be capable. Who should take part in the decision?
Which option would you choose?
- ALet the member remain in the discussion and vote because they disclosed the relationship.
- BRecord the disclosure, have the member step out of the discussion and decision, then have the remaining committee members assess the quotations objectively.
- CAutomatically exclude the contractor from consideration.
- DAsk the strata manager to choose the contractor instead.
Choose your response before opening the practical explanation.
Reveal the practical explanation
Protect the decision-making process while assessing the quote on its merits.
Under Schedule 2, clause 18 of the Strata Schemes Management Act 2015 (NSW), a committee member who has a direct or indirect pecuniary interest that appears to conflict with the proper performance of their duties must disclose the nature of the interest at a committee meeting as soon as possible after becoming aware of the facts. The disclosure must be recorded. Employment by a bidder calls for this check even if the member receives no commission from the particular job.
After disclosure, the member must not be present for the committee's deliberation or take part in its decision unless the committee otherwise determines. The interested member cannot participate in that determination about their own involvement. In this scenario, recording the interest and stepping out is the sound course. Disclosure alone is not permission to stay and vote.
The contractor is not automatically disqualified. The remaining eligible decision-makers can compare price, scope, experience, qualifications, insurance, references and risk. Check that the committee has authority for the works and that it can make a valid decision without the interested member. Record the reasons for the choice, not only the price.
The strata manager can gather information and explain the options, but should not be handed a committee decision merely to avoid the conflict. If the proposed works require another approval pathway, use that pathway.
A fair process makes the decision explainable
The $42,000 price is $6,000 below one quote and $9,000 below the other. It may still be the best offer. The committee needs a reliable record showing how the interest was managed and how the works and contractor were assessed.
DISCLOSE → RECORD → STEP OUT → ASSESS OBJECTIVELY → DECIDE. Minute the nature of the interest, the member's absence for the item, the comparison of quotations and the authorised decision.
Hold onto thisDisclosure is the starting point. Stepping out protects the decision. A connection can change who should participate without automatically excluding the contractor. How is easy when you know the why.
Official NSW legislation and NSW Government meeting guidance reviewed 1 October 2026. Clause 18 permits a committee determination about participation after disclosure; the interested member must not take part in that determination. This fictional scenario is general educational information, not legal advice. Check the actual interest, scheme records and approval authority for a real decision.
Turn the explanation into practice.
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