Once a development concept is formed and the discovery phase is complete, property developers enter one of the most commercially sensitive stages of the project lifecycle: Initial Consulting.
This is the point at which ideas, designs and strategic decisions are translated into formal documentation — documents that will underpin off-the-plan sales, satisfy statutory obligations, inform buyers and lenders, and ultimately protect the developer’s position.
Initial Consulting is not simply an administrative step. It is where clarity is created, risk is reduced, and trust is built with the market.
At SSKB Developer Consultancy Team (DCT), this phase is where our role as a body corporate consultant becomes most visible. We work alongside developers and their professional advisors to ensure disclosure, budgets and contractual documentation are accurate, defensible and aligned with how the development will actually operate once completed.
What Is the Initial Consulting Phase?
Initial Consulting is the stage where the body corporate framework is formally documented and prepared for disclosure to buyers.
It typically occurs once:
- Concept designs are sufficiently developed
- Development approvals and conditions are known
- The consultant team has been appointed
This phase brings together the developer, solicitor, surveyor, project manager and body corporate consultant to coordinate decisions and ensure that all moving parts align.
The outcome is a suite of documents that form part of the off-the-plan contract and disclosure material — documents that must withstand legal, commercial and reputational scrutiny.
Why Early Coordination Matters
One of the most common sources of risk for developers is fragmented advice.
When disclosure, budgets, agreements and titling decisions are prepared in isolation, inconsistencies can emerge. These inconsistencies may seem minor at first but can have significant consequences later — from buyer confusion to settlement delays or disputes.
Initial Consulting avoids this by ensuring:
- All consultants are working from the same assumptions
- Key decisions are made collaboratively and documented correctly
- Changes are identified early, before contracts are issued
This coordinated approach saves time, reduces rework and protects the integrity of the sales process.
Understanding Developer Disclosure Obligations
Every developer selling lots off the plan is required to provide buyers with a disclosure statement outlining how the body corporate will operate and what costs buyers can expect.
While the specific legislative requirements vary by jurisdiction, disclosure generally must address:
- The proposed lots and common property
- The expected date for settlement
- The estimated body corporate levies
- Details of service and management agreements
- The proposed community management statement
- Assets and facilities forming part of the scheme
Although these requirements are well known, the quality of disclosure is where developments succeed or fail.
Disclosure that is technically compliant but poorly considered can create long-term problems — particularly if buyers feel misled once they move in.
The Disclosure Statement: More Than a Legal Document
For buyers, the disclosure statement is often the first — and only — insight into how the body corporate will function.
It influences:
- Perceived affordability
- Confidence in the developer
- Willingness to proceed with a purchase
- Lender comfort with the transaction
During Initial Consulting, the role of a body corporate consultant is to ensure that disclosure is not only accurate, but meaningful.
This includes testing whether:
- Budget assumptions are realistic
- Facilities and services are properly accounted for
- Agreements reflect the actual operational needs of the building
- Future costs are fairly represented
Clear, honest disclosure reduces the risk of disputes and builds trust with buyers from day one.
Body Corporate Budgets: Where Risk Often Hides
Budgets prepared for disclosure are one of the most sensitive aspects of the Initial Consulting phase.
While legislation typically requires a budget for the first year of the body corporate’s operation, the way that budget is constructed has long-term implications.
Common Budget Pitfalls
Developers sometimes encounter problems when budgets:
- Exclude known future costs
- Push expenses into the second year to reduce disclosed levies
- Underestimate maintenance or service requirements
- Fail to account for agreements disclosed elsewhere
While these approaches may reduce headline levy figures, they often lead to sharp levy increases once the body corporate is operational — a scenario that frequently results in owner dissatisfaction and reputational damage.
Ethical Budgeting and Buyer Confidence
At SSKB, we approach budgeting with a focus on reasonableness and transparency.
A well-prepared budget should:
- Reflect the true cost of operating the building
- Anticipate known expenses, not defer them
- Give buyers a realistic picture of future financial commitments
This approach supports smoother transitions after settlement and reduces the likelihood of conflict between owners and the developer in the early years of the scheme.
Importantly, lenders and valuers increasingly review disclosed budgets when assessing off-the-plan purchases. Unrealistic budgets can create financing challenges that impact sales velocity.
Contribution and Interest Entitlements Explained
During Initial Consulting, contribution and interest schedule lot entitlements are also finalised.
These entitlements determine:
- How levies are shared between lots
- Voting power in certain resolutions
- Insurance contribution proportions
- Ownership interest in common property
Incorrect or poorly considered entitlements can lead to inequitable outcomes and disputes that are difficult to resolve once the scheme is established.
A body corporate consultant ensures entitlements are:
- Calculated in accordance with legislative principles
- Fairly reflective of cost drivers
- Consistent with the design and use of the development
This is particularly critical in mixed-use or layered developments, where different lots may place very different demands on shared services and facilities.
Agreements That Shape the Life of the Scheme
Initial Consulting is also the stage where service and management agreements are finalised for disclosure.
These may include:
- Body corporate management agreements
- Caretaking and management rights agreements
- Embedded network agreements
- Service contracts for lifts, fire systems or utilities
Once disclosed and entered into, these agreements can bind the body corporate for many years.
Early expert review ensures:
- Agreements are commercially appropriate
- Duties and costs align with expectations
- Buyers clearly understand what they are committing to
Poorly structured agreements are one of the most common sources of long-term dissatisfaction in new schemes.
Protecting Off-the-Plan Sales
From a commercial perspective, Initial Consulting plays a critical role in protecting off-the-plan sales.
Clear, consistent documentation:
- Reduces buyer hesitation
- Supports agent confidence
- Minimises contract fall-over risk
- Simplifies finance approval processes
When agents can answer strata-related questions confidently — backed by clear disclosure — sales conversations move faster and with less friction.
Laying the Groundwork for Future Changes
No development remains static.
Initial Consulting also ensures that documentation allows for reasonable change during construction, where permitted by law. This may include:
- Adjustments to lot configurations
- Changes to facilities or services
- Amendments required by regulatory updates
By anticipating change, developers reduce the risk of having to unwind or renegotiate contracts later in the project lifecycle.
Why Initial Consulting Is a Strategic Advantage
Developers who treat Initial Consulting as a strategic phase — rather than a box-ticking exercise — are better positioned to deliver successful projects.
They benefit from:
- Fewer disputes
- Smoother settlements
- Stronger buyer relationships
- Reduced reputational risk
In competitive markets, this discipline can be a meaningful differentiator.
How SSKB Supports Initial Consulting
SSKB’s Developer Consultancy Team works closely with your professional advisors to coordinate and refine all body corporate documentation during this phase.
Our role is to:
- Provide specialist strata advice
- Stress-test budgets and disclosure
- Ensure alignment between documents
- Protect the developer’s commercial and reputational interests
We bring practical operational insight, grounded in decades of managing completed communities — not just establishing them.