Assigning vs Granting a Caretaking Agreement: Is a Tender Legally Required?

QLD

Management & Agreements

This article discusses when caretaking agreement tender requirements apply, and whether a body corporate must go to tender when assigning an existing agreement versus granting a new one.

Does a Body Corporate have to go to tender to assign a caretaking contract or can we just get two quotes? Is there a legal requirement to go to tender?

I suspect when the body corporate is referring to a tender, it is referencing the grant of a new agreement.

Only a party with an existing agreement in place can assign an agreement. Accordingly, I suspect when the body corporate is referring to a tender, it is referencing the grant of a new agreement. If that is the case, there is no requirement to go to a tender. However, the regulation module will require:

A general meeting considering the motion by ordinary resolution without the use of proxies (assuming the term of the agreement is more than 12 months);
A secret ballot (if a letting authorisation forms part of the tender proposal); and
Two quotations to be considered (assuming the cost of the proposal is more than the major spending limit).

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Published: 25 Mar 2026

Last Updated: 7 Jul 2026

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Answer by

Todd Garsden

Mahoneys

Todd is an experienced property lawyer who heads up Mahoneys body corporate team.

Todd specialises in body corporate law and predominantly acts for bodies corporate, body corporate managers and lot owners on all matters affecting bodies corporate.

Todd is an active member of the Strata Community Association (Qld). In 2019 he was appointed to the Strata Community Association (Qld) legislation committee and assists in making submissions on behalf of the Strata Community Association (Qld) on issues such as legislative reform in body corporate law.

As Todd is also a body corporate committee member, he understands the day to day requirements of administering a body corporate.

Todd has a focus on achieving practical and commercial results for his clients and understands the market in which bodies corporate operate within.

Todd also provides body corporate managers, and other industry stakeholders, with presentations and training on matters affecting the body corporate industry.