We recently invited bids from 3 Strata Managing Agents for 3 years with following conditions :
All invoices must be paid within 5 business days AFTER receipt of due approval subject to availability of funds in trust accounts.
Fixed SMA commission with a fixed annual hike, say 3%, given in $ per lot per annum.
All other charges including Schedule A or any other including postage,phone calls,printing fixed given in $ per lot per annum.
SM Visit charges for attending AGM and other Strata Committee meetings fixed in $ per hour or part thereof.
We expect savings of over 30% compared to last year.
One Strata Management Agency we deal with is levying charges in units of time like lawyers. Hence we put these new conditions. And it worked.
Also I request all treasurers to check payments once a day.It takes only 5 minutes.It tells you how lazy or active is your SM in paying approved invoices ; faster invoice payment improves service providers’ loyalty to the Strata ; helps detect over or short payment , double payments. Most SMA Accounts staff are handling more work than they can and are thus prone to make unintended mistakes.
Be gentle when you find mistakes. Above useful for large strata with over 75 lots.