Negotiating with confidence: Time and motion studies for fair remuneration
Resort News asks: When a caretaking agreement lacks specificity, can an independent time and motion study help clarify responsibilities and prevent disputes?
Running a management rights business is no easy feat. One day, you’re handling routine property maintenance; the next, you’re dealing with emergency repairs, unexpected disasters, or increased cleaning demands caused by careless residents.
Then there’s the ongoing juggle of keeping owners happy, liaising with committees, and managing body corporate relationships—all while ensuring your investment remains viable.
Some days, there simply aren’t enough hours to tackle the never-ending list of tasks. Many resident managers go above and beyond, picking up extra responsibilities that aren’t formally recognised or adequately compensated. While their dedication keeps operations running smoothly, their true workload is often not reflected in their remuneration, and caretaking service agreements frequently lack the clarity needed to define their duties.
“Few things create more disputes in a managed complex than vague caretaking service agreements. Ambiguous wording, such as ‘the manager must maintain the common areas to a high standard’ or ‘grounds must be kept clean as required,’ leaves too much room for interpretation.”
When managers seek clarification from ARAMA on specific tasks—should they trim tall hedges? Change lightbulbs? Work weekends? Open the pool at 7am?—his response is always the same: “What does your caretaking service agreement say?”
He stresses that understanding the agreement is crucial, as it defines both job responsibilities and remuneration.
“Ideally,” Trevor says, “every responsibility should be clearly outlined. However, many agreements lack clarity, leading to differing interpretations and, ultimately, disputes.”
A broader pattern of undervaluing services
Trevor also questions why some managers undersell their services, failing to recognise the true value they provide to a scheme.
In ARAMA’s most recent bi-annual Costs and Charges Survey, leading MLR accountants Tony Rossiter and Robert Cuda found a significant disparity in hourly rates charged by managers. While the national average is $54 per hour plus GST, some managers in North Queensland charge as little as $37 per hour plus GST—a $17 per hour difference, amounting to thousands of dollars in lost income annually.
Trevor warns that managers are often undercharging for their expertise and workload, ultimately undervaluing their businesses. He encourages them to review the survey, available on the ARAMA website, as a key tool in setting fair and competitive pricing structures.
When a caretaking agreement lacks specificity, engaging an independent time and motion study expert can help define clear, structured agreements by outlining precise daily, weekly, monthly, and annual tasks.
These specialists also play a crucial role in resolving disputes, determining whether a task falls within the manager’s contractual scope or requires a contract variation. By providing an objective workload assessment, time and motion studies help managers and bodies corporate evaluate service agreements, set fair remuneration, establish realistic workload expectations, and settle disputes over duties.
Frank Higginson, leading property lawyer at Hynes Legal, emphasises their value: “A well-executed time and motion study provides a detailed breakdown of caretaking tasks, allocating time values to each duty. This helps managers demonstrate how their workload translates into fair remuneration, offering a transparent foundation for discussions with the body corporate.”
Frank Higginson
However, he also clarifies: “Resident managers are contractors, not employees, so any remuneration changes must be mutually agreed upon. If there’s no statutory or contractual requirement for a remuneration review, the manager must negotiate with the committee and secure approval at a general meeting. Clear and effective communication is key to ensuring a successful outcome.”
Frank also warns against unreliable studies, stating: “Not all time and motion studies are created equal—some may overstate task requirements, leading to disputes. That’s why it’s critical to engage reputable professionals who provide accurate and defensible assessments.”
Despite their growing use, time and motion studies are not legally mandated. The Queensland Body Corporate and Community Management Act 1997 (BCCM Act) regulates community title schemes but does not explicitly require time and motion studies for caretaking duties. This lack of legal obligation has led many industry experts to advocate for structured, more frequent reviews to ensure managers receive fair compensation.
Industry push for legislative inclusion
Many industry experts believe time and motion studies should be conducted more frequently and that structured remuneration reviews should be embedded in management agreements to reflect evolving responsibilities.
Under certain circumstances, both the body corporate and the caretaker have the right to request a review of remuneration or duties. However, most caretaking agreements lack built-in review clauses, meaning updates require mutual agreement. The cost of a time and motion study is usually shared, but if parties fail to agree, disputes often escalate to third parties.
Industry leader Mike O’Farrell, who established MLR Services to help residents, committees, building managers, and bodies corporate resolve disputes through mediation, is among those advocating for legislative change.
He argues that time and motion studies should be a legal requirement: “If I could change one thing, I’d like to see more regular reviews—maybe every five years.”
He believes mandatory time and motion reviews within the first two years of an agreement would help ensure fair compensation as caretaking responsibilities evolve.
Why timely time and motion studies matter
Unfortunately, time and motion studies are often only sought when disputes arise, rather than being proactively used to update agreements and prevent issues before they escalate.
While time and motion studies can be highly effective in resolving disputes, Chris warns they aren’t a magic fix: “They are a valid tool for dispute resolution, but they’re not a magic wand. Sometimes, they can be a rude shock—remuneration can go up or down.”
Mike O’Farrell agrees, adding that managers who receive annual increases (for example, five percent versus CPI) could see their salary reassessed downward if the study finds that certain tasks take less time than originally estimated.
However, it is reported that most time and motion studies reveal managers are significantly underpaid for the workload they carry—often shocking bodies corporate when they realise just how much a manager is responsible for.
Increasingly, it is the manager who seeks a time and motion study to ensure agreements accurately reflect their workload. While committee approval is required, and managers may need to cover the cost, initiating a study early can help prevent disputes before they escalate.
“I’ve seen a rise in managers requesting them, and in my opinion, they should conduct them more regularly to prevent disputes down the line.”
Roland Franz, of Body Corporate Headquarters, also agrees that time and motion studies are essential in modern strata management and should be utilised more frequently “to identify inefficiencies and optimise service delivery in line with client expectations”.
He says: “By analysing how time is allocated to various tasks, strata managers can better assess their capacity, improving resource allocation and client satisfaction.”
Furthermore, he points out that when data from the studies is collated and shared at a broader level, it helps owners understand the scope of a strata manager’s role and set realistic expectations for response times and service delivery.
He adds: “In the strata sector, small business owners inherently grasp this concept and use time and motion studies to ensure quality service and sustainable workload management. However, larger strata corporations often lack this hands-on operational insight, meaning they would greatly benefit from time and motion studies—especially when assessing the impact of email volume, response times, and staff workloads on both morale and customer satisfaction.”
By analysing how time is allocated to various tasks, strata managers can better assess their capacity, improving resource allocation and client satisfaction.”
Time and motion studies as a negotiation tool for top-ups
For management rights owners seeking contract extensions (top-ups), a time and motion study is an invaluable tool—not just for securing fair remuneration but also for strengthening a manager’s position in negotiations.
Mike O’Farrell advises that preparation is key: “A good approach is to start discussions 12 months in advance and initiate a time and motion review.” This ensures that when negotiations begin, managers have clear, objective data to support their case.”
Top-ups are highly sought after because tenure is often more important than salary when it comes to the value of a management rights business. “Buyers prioritise contract length over short-term income. A longer term agreement provides stability and adds significant value to a business,” Mike explains.
Beyond remuneration, a well-conducted time and motion study can justify a top-up request by showing how a manager’s workload has evolved. As schemes expand, new facilities are added, and resident expectations shift, the duties required of a manager often increase—yet contracts may not reflect these changes.
Case study:Why one body corporate commissioned a time and motion study
The body corporate chairperson from a Surfers Paradise building, who wishes to remain anonymous, shared their recent experience on commissioning a time and motion study to assess their building’s caretaking.
When their onsite manager requested a top-up, the committee wasn’t comfortable approving it outright. Concerns had been raised about service levels and costs, with some members feeling that remuneration was excessive for the work being done. On closer inspection, they realised their caretaking agreement was outdated and unclear, leading them to engage a consultant for a time and motion study.
The results were surprising—instead of being overpaid, the study found that the manager was actually underpaid. However, this body corporate saw the process as a necessary and valuable exercise. With clear, updated data, they could now negotiate fairly with the manager and update the agreement to reflect current expectations and responsibilities that had evolved over time.
While the study confirmed higher costs, the body corporate stood by its decision, recognising that a fairly compensated manager leads to better service and a more sustainable working relationship. More importantly, they believe this process will create a more transparent, cooperative dynamic, fostering better communication, stronger trust, and a more harmonious community moving forward.
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How a time and motion study works
Engage an independent expert: A specialist, mutually agreed upon by the manager and body corporate, is appointed to conduct the study.
Workload assessment: The consultant carefully evaluates task frequency, duration, and complexity, ensuring every duty listed in the caretaking agreement is accurately measured.
Review and negotiation: Findings are presented to both parties, facilitating discussions that may lead to adjustments in duties, remuneration, or contract terms.
Implementation of findings: Once agreed upon, changes are formally incorporated into updated contracts, ensuring responsibilities and remuneration are properly aligned.
Setting a benchmark for fair pay
Time and motion studies help establish fair remuneration and workload expectations, but assessment methodologies can vary. Some rely on the Hay System, a globally recognised job evaluation framework based on three key factors:
Know-how: The level of skills, expertise, and experience required.
Problem-solving: The complexity of decision-making in daily operations.
Accountability: The degree of responsibility and financial impact associated with the role.
By using this structured approach, managers and bodies corporate can benchmark roles across industries, ensuring consistent salary structures and justifiable remuneration. Not all time and motion consultants adhere to the Hay System—some develop industry-specific methodologies tailored to property management challenges.
Regardless of the approach, the goal remains the same: ensuring managers are fairly compensated for their responsibilities while providing bodies corporate with a transparent, measurable framework for remuneration.
To achieve this, she explains that ABMA promotes a structured approach to time and motion studies and remuneration reviews, aligning with three key industry standards for building management:
Remuneration reviews within building management agreements.
Performance reviews for building managers.
Preparation of duty schedules in building management agreements.
“These interconnected standards guide the development, implementation, and ongoing review of binding agreements in strata and community title schemes,” Lynda explains. “They are underpinned by the Hay Method of Job Evaluation, the only globally recognised and independent framework for determining fair and sustainable remuneration for caretakers.”
She warns that without structured, independent, and measurable benchmarks, maintaining long-term operational efficiency and commercial sustainability becomes increasingly difficult—leaving agreements vulnerable to disputes, misalignment, and unrealistic workload expectations.
A tool for transparency and fairness
Time and motion studies go beyond salary negotiations; they provide a structured approach to defining responsibilities, resolving disputes, and keeping agreements relevant. Whether renegotiating contracts or evaluating workload concerns, a time and motion study is an essential tool for both resident managers and bodies corporate.
Key providers
Several experts conduct time and motion studies.
BMCS, Barry Turner: Uses the Hay Group methodology and works with Debbie Wiggins to validate findings.
Leary & Partners: David Leary provides structured workload assessments and has testified in QCAT and other jurisdictions.
Danny Little, MRAS Consulting: Recommends that both parties be involved in determining service levels at the scheme, as agreements often lack the necessary clarity.
The property is inspected, photographed, and recorded, followed by discussions to create a new duties list that aligns expectations. Once agreed upon, the duties list is costed to ensure appropriate remuneration for the work performed.
The greatest benefit of these reviews is the alignment of expectations between the committee and the caretaker. These reports provide all parties with a clear understanding of the actual cost of performing the duties and highlight the volume of work the caretaker undertakes on behalf of the scheme.
Tyrin Batty, Olive Tree Consulting Group: We undertake 50 percent of this work for developers and strongly advocate for setting up these agreements properly from the outset.
As quantity surveyors, we apply quantity surveying principles to our time and motion studies. This means we start by accurately quantifying areas and facilities, then map out the necessary duties to maintain these spaces at the desired standard and finally apply market rates for the different types of work. The higher the standard, the more frequent and detailed the required maintenance.
By carefully analysing these elements, we ensure caretaking or building management contracts are remunerated appropriately.
A key tip for management rights businesses is to establish an accurate remuneration amount at the planning stage of a new development. Doing so sets clear expectations and aligns remuneration with the quality of service required—crucial for maintaining harmonious communities.
Mandy has over two decades of experience in accommodation and tourism industry writing, and she is also an accomplished editor and publisher. As co-Director of Multimedia Pty Ltd, a trusted B2B content provider for the accommodation and education sectors in Australia and New Zealand, she oversees high-quality print and digital content across notable publications, including AccomNews, Resort News, and School News, along with the property listing platform AccomProperties. Mandy’s contributions have been recognised with the Female Leader Award at the Best of Tourism 2023 and the ARAMA Life Member Award in 2024.
“Few things create more disputes in a managed complex than vague caretaking service agreements. Ambiguous wording, such as ‘the manager must maintain the common areas to a high standard’ or ‘grounds must be kept clean as required,’ leaves too much room for interpretation.”
Industry leader Mike O’Farrell, who established MLR Services to help residents, committees, building managers, and bodies corporate resolve disputes through mediation, is among those advocating for legislative change.
He says: “By analysing how time is allocated to various tasks, strata managers can better assess their capacity, improving resource allocation and client satisfaction.”
Lynda Kypriadakis, the primary author of the ABMA Code, emphasises the importance of comprehensive reviews to maintain a balanced commercial relationship between bodies corporate and caretakers.
