Tendering

From time to time, it is good practice for a body corporate to review its management contract and consider going out to tender. Tendering means inviting several qualified management companies to submit proposals for how they would run and support the resort — including administration, maintenance, housekeeping, and owner services. Invited companies may be selected from a prior expression of interest process.

It’s not about changing for the sake of it — it’s about making sure the facility continues to be well managed, transparent, and of good value for owners.

The Process

Tendering follows a straightforward process:

• Review what is working – The Body Corporate Committee (BCC) reviews the current contract to identify what is going well and where improvements could be made.

• Prepare tender documents – These outline the duties, service levels, reporting expectations, and performance standards required.

• Invite proposals – A few reputable management companies, including the current one, are invited to tender. This may be after an Expression of Interest process.

• Compare and evaluate – The committee assesses each proposal based on price, experience, reputation, and how well they understand timeshare operations.

• Select and finalise – The preferred company is chosen, and contract terms are negotiated before a decision is confirmed.

The Benefits

Tendering can bring real advantages to owners and the resort:

● Better value for money – Comparing tenders helps ensure the management fee is fair and competitive.

● Fresh ideas – New companies may suggest innovative ways to improve maintenance, owner communication, or marketing.

● Transparency and accountability – The process shows owners that decisions are made openly and based on merit.

● Improved service quality – Even if the current manager is reappointed, the review often results in clearer expectations and stronger performance standards.

The Risks

As with any change, there are some risks to be aware of:

● Time and cost – Preparing and assessing tenders takes time and sometimes requires expert advice.

● Disruption – Changing management can cause short-term disruption to operations or staff.

● Learning curve – A new manager may take time to fully understand the resort, systems, and owner community.

● Short-term focus – The cheapest tender may not always deliver the best long-term results.

A Smart Governance Step

Tendering every few years helps ensure owners get the best value and service. It’s a healthy check-in that keeps management accountable and responsive to owners’ needs. Whether the outcome is a new manager or a renewed contract with improved terms, the process strengthens transparency, performance, and confidence in how the resort is run.

Why This Matters for The Ridge Resort

The current management contract at The Ridge Resort was first signed in October 2016 and runs through to 31 December 2026. Since then, there have been two contract variations:

● March 2024 – allowed Classic Holidays to introduce additional or higher fees in some areas.

● October 2024 – updated the agreement to reflect changes to the Unit Titles Act.

The original 2016 annual management fee of $175,608 + GST increases each year in line with the Consumer Price Index. By 2026, this is forecast to reach $224,495 + GST; and this does not include the resort salaries, an additional $123,675.

Over the last decade, the industry has shifted significantly. Many resorts have moved away from the traditional Unit Titles ownership model — which can be rigid and outdated — to company structures offering more flexibility and clearer operational control.