Written by Murray Cameron on 09/09/2026.

Up to Three Quotes, No Shortcuts: How Supplier Quotes Are Chosen in Your Strata Scheme

Before a tradesperson is ever booked for anything substantial, NSW law already has an opinion on how that decision gets made. It isn’t “whoever the strata manager likes” or “whoever answers the phone first” — it’s a defined process built around comparison, independence and a paper trail. (NSW Government)

At Strata Real Estate Services, we don’t treat that process as red tape to get through quickly. We treat it as the whole point.

What the Law Actually Guarantees You

• Under section 102(1) of the Strata Schemes Management Act 2015 (NSW), an owners corporation must obtain at least 2 independent quotations before committing to proposed expenditure over the prescribed threshold — currently $30,000. Below that figure, quotes aren’t a strict legal requirement, but they remain best practice.
• “Independent” isn’t a loose word here: the quotes must come from suppliers who aren’t connected to each other, and aren’t connected to the strata managing agent, the building manager, or a member of the strata committee. A quote from a mate of a committee member doesn’t count as the second quote.
• If two genuinely independent quotes can’t be obtained, section 102(2) doesn’t let that slide quietly — the secretary must put it on the agenda of the next general meeting, along with the reason why.
• The two-quote rule has a carve-out for genuine emergencies: burst or blocked pipes, storm or fire damage, electrical or security failures, and glass breakages that compromise building security don’t need to wait for competing quotes first.
• For insurance specifically, the bar is higher again — section 166 requires the strata managing agent to obtain at least 3 quotations from different insurers, or record in writing why fewer were obtained.

What committees can do to get the right contractors

Our strong recommendation is for the committee to select their preferred suppliers / contractors. StrataSoft has a section which provides for committee selected Preferred Suppliers – contractors how give great services, know the building, know the demands, deliever value for money.

With the Preferred Suppliers in place and reviewed annually the committee is directing the strata management team to utilise their contracts as a proirity. Strata Managers see the preferred suppliers at the top of the list of available suppliers when generating a work order. Ultimately this gives the committee control of who is choosen and peace of mind that they know who will look after the repair of maintenance issue.

Where We Stand: A Decision, Not a Rubber Stamp

Section 102 tells an owners corporation how many quotes it needs before it spends money. It doesn’t say anything about whether an owner or committee member can actually see that comparison happening, or who chose which supplier and why.

Technically, three quotes can be collected, one can be picked, and the decision can simply appear as a line item in the next set of minutes. We don’t think “we got a few quotes” is the same thing as “we made a considered decision” — and we don’t think owners should have to take that on faith.

That’s why quote decisions for schemes we manage run through a visible Vote tab in StrataSoft: every competing supplier listed side by side, their uploaded quote and amount attached, and a Meeting Decision recorded against each one individually — not just a single outcome buried in a set of minutes months later. Whoever makes the call has to actively select an outcome for every supplier, confirm it, and that decision is timestamped against their name.

Our view is simple: the law says get two quotes. We think owners are entitled to see all quotes, know who compared them, and know why one was chosen over the other — not just be told the box was ticked.

How Strata Real Estate Services Can Help

We’re finalising a dedicated step-by-step guide to How to Use Quote Approval in your StrataSoft Owners Portal

Your Strata, Our Expertise.

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Key Takeaways

• Expenditure over $30,000 requires 2 independent quotations under section 102(1) of the Strata Schemes Management Act 2015 (NSW), and independence has a specific legal meaning.
• If two quotes can’t be obtained, the reason has to be disclosed at the next general meeting (section 102(2)) — it can’t just be skipped.
• Genuine emergencies are exempt from the two-quote rule; “the tradesperson was free this week” is not.
• Insurance requires 3 quotations from different insurers (section 166).
• At Strata Real Estate Services, every supplier decision is recorded individually and visibly in StrataSoft — not just summarised as an outcome after the fact.

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