This article discusses the proper procedure for raising a special levy contribution and how excess funds are managed if project costs are lower than expected.
Question: Can a strata manager demand payment of a special levy before the contractor completes the work? If there is any overpayment, is this kept by the strata company?
All four owners in our small strata scheme agreed to roof maintenance, with each unit paying a different amount. The strata company raised a special levy based on the original quote. The strata manager says we must pay the full quoted amount in advance and that if the final cost is lower, the strata company will retain any excess. Can they do this? Shouldn’t we receive a firm quote and pay only after the work is completed satisfactorily?
Answer: If the works are less than the amount raised, those funds remain part of the strata company funds.
The process of raising levy contributions is detailed in Section 100 of the Strata Titles Act 1985, specifically section 100(1) (b) (c) & (4).
Normal procedure would be to obtain a quote, convene a general meeting (or a vote outside a general meeting) with a motion to accept the quote and a motion to raise then a special levy contribution. The motion must include the required amount and the due and payable date. The levy contribution would be raised in accordance with the unit entitlement of each lot (unless there is a specific by law stating that the strata company will raise levy contributions via a different method).
If the works turn out to be less than the amount raised, those funds remain part of the strata company funds. It is not unusual for levies to be required to be paid prior to any works commencing, as in some cases the contractor may require a deposit. It would, however, be very unusual to pay the contractor in full before the satisfactory completion of the works.
Andrew Chambers
Chambers Franklyn Strata Management
E: andrew@chambersfranklyn.com.au
P: 08 9200 4200
This post appears in the November 2025 edition of The WA Strata Magazine.
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Read next:
- WA: Q&A Lot Owner’s Overdue Strata Levies. What are the rules?
- WA: Q&A Should I receive a receipt for my levy payment?
- WA: Q&A What Do Strata Fees Cover? How are Increases Calculated?
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