Spectrum Speak Newsletter – Vol. 17 | September 2025

Special Levies and Strata Finance: Funding Construction Works in Owners Corporation

BY REBECCA CONNOLLY

For many Owners Corporations (OCs), the real challenge doesn’t end when a defect or maintenance issue is identified. The bigger question quicky becomes, how do we pay for it? Whether it’s cladding rectification, structural repairs, or major capital works, OCs often face bills far exceeding annual budgets. Understanding the legal framework for levies and the options for strata finance is critical to meeting statutory obligations while keeping lot owners engaged and informed.

The Legal Basis for Special Levies

Under section 24 of the Owners Corporation Act 2006 (Vic) (the Act), an OC may raise fees to cover extraordinary or unexpected expenses.

The type of resolution required depends on the size of the proposed levy compared to annual fees:

• Ordinary Resolution: If the levy is less than or equal to twice the amount of annual fees.
• Special Resolution: If the levy is more than twice the amount of annual fees (requiring support from at least 75% of lot entitlements or lot owners).

Special levies are typically based on lot liability, but they can also be struck using the benefit principle, where only some lots derive the benefit of the works.

Importantly, if works are urgently required to ensure safety or prevent significant damage, no special resolution is required, regardless of the amount.

Failure to follow the correct procedure can render a levy unenforceable, leaving the OC unable to recover costs from lot owners.

Strata Finance: A Growing Option

When special levies are impractical or create financial hardship for owners, many OCs now turn to strata finance arrangements. These loans provide upfront funding for works, with repayments spread across future levies.

Ultimately, while strata finance can unlock essential funding and spread the burden more fairly, it also requires careful planning and clear communication to balance the benefits against the long-term costs.

Reform on the Horizon

The Victorian Government has recently announced an Expert Panel Review of Owners Corporation laws with a report due by December 2025. Among the issues under consideration are:

These reforms could have direct implications for how OCs raise and enforce special levies or enter into strata finance arrangements. If hardship provisions are expanded, for example, OCs may need to balance the financial strain on individual lot owners with the statutory duty to maintain and repair common property.

Cost Plus Contracts: The Fundamentals

BY GRACE BEALE

We are increasingly dealing with disputes involving cost-plus contracts, particularly for high-end residential projects and complex builds in Melbourne. This trend is a direct response to a number of factors that have made fixed-price contracts ever more difficult and riskier for builders.

In the world of domestic building in Victoria, a cost-plus contract is a building contract without a fixed contract price whereby the homeowner agrees to pay the builder for the actual cost of all materials, labour and subcontractors plus an additional pre-agreed builder’s fee or percentage for the builder’s profit and overheads.

This structure is typically used for projects where the full scope of work is difficult to determine at the outset and the owners want flexibility to make changes. The flexibility exists because there is no predetermined fixed price and fixed scope of work and changes to the design or materials can be made during construction.

While the cost-plus contract offers unique benefits, it also carries significant risk for both builders and owners, requiring a high degree of attention to detail to ensure accountability.

1. The cost-plus contract can only be used in specific situations, such as renovations where the full costs cannot be reasonably calculated at the outset or for projects over $1 million.

2. The cost-plus contract should contain a “fair and reasonable” estimate of the total cost of the project. By law, this is a requirement and is often the subject of legal dispute. The estimate should represent a benchmark of the total project cost and is not a fixed project cost.

3. Detailed invoices, receipts and other relevant documents must be provided by the builder to the owner(s) to ensure transparency and accountability. The builder must be able to justify the costs they are claiming.

4. A clear definition of the “costs” should be defined in the contract. The expenses considered to be “costs” and passed onto the owner(s) must be clearly defined and differentiated from the builder’s fee for profit and overhead.

A failure to comply with the above may cause issues for the builder in enforcing the contract against the owner(s). If a dispute is heard before the Victorian Civil and Administrative Tribunal (VCAT), the Tribunal will scrutinise the builder’s methodology for calculating the total project estimate and whether the estimate was based on the costs for materials and labour known at the time of the contract.

Builders should take care to ensure that the total project estimate relates to the scope of works included in the contract. For example, if the scope of works is for the construction of a new dwelling from start to finish, the estimate should match that scope of works and not represent the preliminary works only.

With the recent changes to AS 4000:2025, it is a great time to reflect on the importance of choosing the right Construction Contract and what it means for your Project.

By Donna Abu-Elias

The form of contract you select at the outset of a project can determine how smoothly the build runs, how risks are allocated, and how disputes are managed. For principals, contractors, and legal advisers alike, the question is not just “what project do we want to deliver?” but “under what framework will we deliver it?”

Role of the Superintendent

You will also need to decide if you want a Superintendent for your project as its role can be pivotal to your project. They certify claims, assess delays, and administer the contract. In some forms (such as the ABIC contract), this role is commonly undertaken by the project architect.

However, superintendents carry a dual role: acting on behalf of the principal while also exercising impartial judgment in certification. This tension can create conflicts. For some projects, appointing an independent third-party contract administrator may better balance fairness and accountability.

The choice of superintendent should therefore be deliberate, not incidental.

Why the Choice Matters

The choice of your contract is important as it assists the parties determine key aspects of a project:

Spotlight on AS 4000:2025

The recent release of AS 4000:2025 marks the first major update to Australia’s most widely used general conditions of contract in almost three decades. While the fundamental risk profile is largely preserved, the amendments modernise the drafting and address several long-standing issues.

What Hasn’t Changed

Notably, AS 4000:2025 does not address security of payment legislation, which remains jurisdiction specific. Nor does it overhaul fundamental risk allocations something some in the industry have criticised as a missed opportunity.

Implications for the Industry

For practitioners and project teams, the revised AS 4000 provides:

But it is not a complete solution. Complex projects will still demand bespoke amendments or alternative forms. Security of payment obligations, jurisdictional issues, and project-specific risks cannot be ignored.

Final Thoughts

The release of AS 4000:2025 is a timely reminder of the importance of contract choice. Whether D&C or Construct-Only, whether an architect or an independent superintendent, these decisions shape not only project delivery but also the risk landscape for all parties.

For lawyers advising clients, and for principals and contractors entering new projects, now is the time to revisit contract strategy. Understanding the strengths, limits, and new features of AS 4000:2025 will ensure you start on solid ground and avoid costly lessons later.

The updated AS 4000 is a valuable step forward, but it’s not a one-size-fits-all solution. Every project demands a contract tailored to its risks, stakeholders, and objectives.

I’d love to hear from you, how do you see AS 4000:2025 impacting your projects or practice?

Will you adopt it straight away, or continue with amended versions of AS 4000:1997?

How to Be an Efficient Sales Consultant: Managing Your Time Between Selling, Sales Admin, Hunting for New Leads & Meeting Prospects

BY FRED ABU-ELIAS

Starting out as a new home consultant can feel like stepping into a whirlwind. You’re not just selling homes, you’re managing a variety of tasks that go beyond showing properties and closing deals. Between administrative work, hunting for new leads, and meeting with prospects, it’s easy to feel overwhelmed. However, with the right approach, you can learn to balance these responsibilities and work efficiently to achieve your sales goals. Here are some tips on how to manage your time effectively as a new home consultant.

Understand Your Core Responsibilities

To get a better grasp on your time management, it’s important to first understand the main components of your role as a home consultant. As a consultant, you’ll typically find yourself doing the following:

Balancing all these responsibilities can be a challenge, but with proper time management, you can stay on top of everything without feeling like you’re running in circles.

Set Clear Priorities and Goals

The key to managing your time effectively starts with knowing what’s important. At the beginning of each day, set clear goals to help you focus. These could be related to the number of leads you need to reach out to, the number of meetings you want to schedule, or the amount of admin work you plan to complete.

A daily structure might look something like this:

By clearly identifying your top priorities, you can approach each task with a sense of purpose and avoid spending too much time on low-priority activities.

Time Block Your Day

A useful time management strategy is to block your day into dedicated periods for specific tasks. Time blocking helps minimise distractions, stay focused, and ensures that you’re addressing all the essential aspects of your role.

For instance, here’s how you could divide your day:

By focusing on one type of task at a time, you increase your efficiency and are less likely to get sidetracked. Plus, you’ll feel a sense of accomplishment after each task is completed, which will keep you motivated.

Delegate When Possible

You might feel inclined to handle every task yourself, but that’s not the most efficient way to operate. If you have support staff or work within a team, delegate where you can.

For example, if you have an assistant or a coordinator, you can have them handle administrative tasks like organizing paperwork, setting up meetings, or responding to routine inquiries. Delegating allows you to focus on higher-priority tasks that directly affect your sales performance, like client interactions and lead generation.

Reflect and Adjust Weekly

At the end of each week, take some time to review how things went. Did you meet your sales goals? Did you spend too much time on one task and neglect others? Regular reflection helps you identify patterns in your productivity and gives you an opportunity to adjust your approach for the following week.

This might involve shifting how much time you dedicate to admin tasks versus prospecting or changing how you structure your meetings to make them more efficient.

Keep Your Workspace Organised

An organized workspace, both physical and digital, is essential for staying on top of your responsibilities. A cluttered desk or overflowing inbox can add unnecessary stress and waste time looking for things.

Leverage Technology to Boost Productivity

Technology plays a significant role in managing a busy sales schedule. Tools that streamline your work processes are invaluable in helping you save time:

By utilizing these tools effectively, you’ll find that your workday becomes more efficient, and you’ll be able to achieve your sales goals faster.

Conclusion: Time Management is Key to Success

The role of a home consultant is dynamic and fast-paced, but with a structured approach to managing your time, you can excel in your position. By setting clear goals, blocking your time effectively, automating where possible, and reflecting on your progress, you’ll be able to balance the demands of sales, administration, lead generation, and client meetings.

At the end of the day, it’s all about working smarter, not harder. The more efficiently you manage your time, the more you can focus on what really matters — building relationships with clients and ultimately selling more homes. Keep learning, stay organized, and adapt as you go — and soon enough, you’ll find your rhythm as a successful home consultant.

At Spectrum Lawyers & Consultants, we understand that estate planning can often feel overwhelming, especially when it comes to making important decisions about Wills and Powers of Attorney. This challenge inspired our firm to create the Spectrum Road Show, a community-focused initiative where we visit retirement villages and lifestyle resorts to provide informative, approachable presentations on these vital legal documents.

Our goal is to help others feel confident and informed about their choices when it comes to planning for the future.

A Successful Visit to Avington Lifestyle Resort

Most recently, our principal Donna, our senior Associate and I (Alyssa) had the pleasure of visiting the Avington Lifestyle Resort in Point Cook. The turnout was fantastic, and we were genuinely encouraged by the level of engagement from residents.

The presentation covered the essentials of Wills, Enduring Powers of Attorney, and Medical Treatment Decision Makers, but more importantly, it provided a space for open discussion, where residents could ask questions, raise concerns, and receive tailored legal guidance in a relaxed and supportive environment.

It was a highly successful event, not only in terms of attendance, but in the real outcomes we were able to achieve. Many residents took the opportunity to review or update their Wills, while others had never created one and left feeling empowered to take that first step.

We are proud to say that we were able to assist a number of attendees with getting their affairs in order, something we know offers tremendous peace of mind to both them and their families.

What We Cover and Why It Matters

In every Road Show session, we cover the following key topics:

We make sure to tailor each session to the unique concerns of the community we are speaking with, and we always leave time for one-on-one discussions afterwards.

Spectrum Lawyers Now Offers Mediation Services

BY DONNA ABU-ELIAS

We are delighted to announce that Donna Abu-Elias, Principal Lawyer at Spectrum Lawyers, has been formally appointed as a Nationally Accredited Mediator under the Australian National Mediator Accreditation System (NMAS).

This new service reflects our commitment to helping clients resolve disputes in ways that are practical, cost-effective, and less stressful than going to court.

What is Mediation?

Mediation is a structured, confidential process where an independent mediator helps parties in dispute have a constructive conversation and explore solutions. Unlike litigation, mediation does not involve a judge or tribunal making a binding decision. Instead, it empowers the parties themselves to take ownership of the outcome.

The mediator’s role is not to decide who is right or wrong, but to guide discussions in a safe, respectful, and solution-focused way. This often helps parties uncover common ground and craft creative, workable agreements that a court may not be able to order.

Why Choose Mediation?

Mediation offers a range of benefits compared with formal legal proceedings:

Our Approach

Donna brings over 20 years of experience in building and construction law, along with her mediation training and accreditation, to every session. She provides a safe and structured environment where parties can:

Where appropriate, mediation can be combined with legal advice and documentation to ensure that agreements are clear, enforceable, and provide certainty moving forward.

Book a Mediation

If you or your clients are currently involved in a dispute, mediation may be the most effective pathway to resolution.

To discuss whether mediation is suitable for your matter, please contact our office for a confidential consultation:
📧 info@spectrumlaw.net.au

📞 (03) 7013 0970

At Spectrum Lawyers, we are here to help you find clarity, fairness, and resolution — without the stress of the courtroom.