Building Services for Strata: Owner's Corporation Guide

What You Need to Know

The owners corporation in a strata scheme is responsible for maintaining, repairing, and replacing all building services that serve common property. This includes HVAC plant, fire protection systems, hydraulic risers, electrical switchboards, and emergency services. These are not optional maintenance items. They are legal obligations under the NSW Strata Schemes Management Act 2015 and the Environmental Planning and Assessment Regulation 2021.

Building services in strata buildings have a finite lifespan. Cooling towers last 15 to 20 years. Chillers last 20 to 25 years. Fire pumps last 25 to 30 years. Hydraulic risers in older buildings may already be past their design life. If the capital works fund does not account for these replacements, the owners corporation faces special levies of $50,000 to $500,000+ when critical plant fails.

The line between common property and lot owner responsibility is the single biggest source of disputes. In general, anything that serves more than one lot or is embedded in common structure is the owners corporation's problem. Split system air conditioners serving a single apartment are the lot owner's responsibility. The central condenser water loop they connect to is common property.

• The owners corporation must maintain and repair common property. This includes all building services infrastructure that serves common areas or multiple lots. The obligation is strict and cannot be avoided by claiming insufficient funds. (Strata Schemes Management Act 2015, s 106)
• A 10-year capital works fund plan is mandatory. The plan must account for expected major repairs and replacement of common property, including building services plant. It must be prepared by a qualified person and reviewed at least every 5 years. (Strata Schemes Management Act 2015, s 80)
• An Annual Fire Safety Statement must be submitted each year. The AFSS confirms that all essential fire safety measures have been assessed and are performing to the required standard. It must be submitted to the local council and Fire and Rescue NSW. (Environmental Planning and Assessment Regulation 2021, cl 182)
• Essential services must be maintained to the standard in the original fire safety schedule. This includes sprinklers, hydrants, fire detection and alarm systems, emergency lighting, smoke exhaust, and mechanical ventilation serving fire-isolated passageways and stairwells. (Environmental Planning and Assessment Regulation 2021, cl 183)
• Fire protection systems must be inspected and tested per AS 1851. The standard sets mandatory inspection frequencies for all fire protection equipment. Monthly, quarterly, half-yearly, and annual inspections are required depending on the system type. (AS 1851-2012, Tables 2.2 to 16.3)
• Backflow prevention devices must be tested annually. Sydney Water requires annual testing and certification of all backflow prevention devices connected to the water supply. This applies to fire hydrant boosters, cooling towers, and any cross-connection risk. (Sydney Water Backflow Prevention Policy)
• Statutory warranty periods apply to new buildings. Structural defects are covered for 6 years. Non-structural defects, including building services, are covered for 2 years from completion. The developer and builder carry this liability. (Home Building Act 1989, s 18E)

Common Property vs Lot Owner Responsibilities

HVAC is the most complex discipline to divide. In a building with a central chilled water or condenser water system, the owners corporation is responsible for the cooling towers, chillers, pumps, pipework risers, and the building management system (BMS). Individual lot owners are responsible for their fan coil units or split systems and any branch pipework within their lot. If the building uses a VRF system with outdoor units on the roof serving multiple lots, the outdoor units and refrigerant risers are common property. The indoor units within each lot are the lot owner's responsibility.

Fire protection is almost entirely common property. Sprinkler systems, hydrant boosters, fire detection panels, smoke detectors in common areas, emergency warning and intercommunication systems (EWIS), and smoke exhaust systems all belong to the owners corporation. The only exception is fire equipment within a lot that was installed by the lot owner, such as a portable fire extinguisher.

Hydraulic services split at the lot boundary. The rising main, sewer stacks, stormwater drainage, and common area hot water systems are common property. Internal plumbing fixtures, tapware, and branch pipework within a lot are the lot owner's responsibility. Hot water systems are a grey area. If the building has a central hot water plant, it is common property. If each lot has its own hot water unit, the unit is the lot owner's responsibility, but the pipework connecting to the common risers may still be common property.

Electrical services follow a similar pattern. The main switchboard, submains to each lot, house lighting, emergency lighting, and common area power are all common property. The lot owner is responsible for circuits, power points, and lighting within their lot. Metering is increasingly contentious as buildings age and embedded networks create complications around energy retailer choice.

Essential Services Compliance

The Annual Fire Safety Statement is the single most important compliance obligation for strata. Missing the AFSS deadline exposes the strata committee to personal liability. The process requires engaging competent fire protection practitioners to inspect every essential fire safety measure listed on the building's fire safety schedule. Mechanical systems that form part of the essential services include stair pressurisation fans, smoke exhaust fans, and mechanical ventilation to fire-isolated passageways.

Beyond fire compliance, cooling towers require registration with NSW Health and must be tested for Legionella at least monthly under the Public Health Regulation 2022. Buildings with cooling towers must have a risk management plan prepared by a competent person. This is a separate obligation from HVAC maintenance and is often overlooked by strata committees. See the guide on Legionella risk in hot water systems for related requirements.

Capital Works Fund Planning

The 10-year capital works fund plan is where most strata buildings fail. A qualified quantity surveyor or building services engineer should prepare lifecycle cost estimates for all major plant. A cooling tower replacement costs $80,000 to $250,000 depending on capacity. A chiller replacement runs $150,000 to $500,000. A full fire detection system upgrade in a 10-storey building can cost $200,000 to $400,000. Hydraulic riser replacement in a building built before 1990 can cost $500,000 to $2,000,000+ due to the need to access risers through individual lots.

These numbers should be in the capital works fund plan with estimated replacement years. If they are not, the fund is underfunded and the owners corporation will face special levies. The plan should be updated every time a major plant condition assessment is carried out.

Common Strata Building Services Issues

Aging HVAC plant is the most expensive problem. Buildings constructed in the 1990s and 2000s are now reaching the end of their original plant lifecycle. The chillers, cooling towers, and air handling units installed at construction may no longer have spare parts available. Refrigerants used in older systems (R-22, R-407C) are being phased out, making maintenance increasingly expensive.

Water leaks in hydraulic risers are the most disruptive problem. Copper risers in buildings over 30 years old develop pinhole leaks caused by erosion corrosion. Repairing a single leak is cheap. Replacing the entire riser requires access through every lot on that stack, extensive builder's work, and temporary water supply arrangements. The cost and disruption are enormous.

Fire compliance gaps are the highest liability risk. Buildings change over time. Tenancy fitouts block sprinkler coverage. Smoke detectors get removed during renovations and never replaced. Fire doors are propped open or have damaged seals. These issues accumulate until the fire protection inspection under AS 1851 identifies them, at which point the owners corporation must rectify every deficiency to maintain the AFSS.

Switchboard Upgrades and EV Charging

Older strata buildings were designed for a fraction of the electrical load now demanded by residents. EV charging in strata car parks is the most common trigger for switchboard upgrades. A single Level 2 EV charger draws 7 to 22 kW. Ten chargers in a car park can exceed the spare capacity of the existing main switchboard and supply authority connection. The owners corporation needs an electrical engineer to assess the existing supply capacity, design the distribution upgrades, and coordinate with the supply authority for any augmentation. This is not a job for an electrician alone.

Defects in New Buildings

New strata buildings are covered by statutory warranty periods under the Home Building Act 1989. Building services defects such as undersized HVAC, leaking pipework, or fire system non-compliance must be reported within 2 years for non-structural defects. The owners corporation should commission an independent building defects report within the first 12 months. Building services should be assessed by a mechanical, hydraulic, or electrical engineer, not just a building inspector. Many defects in HVAC and fire systems are not visible to a generalist inspector.