The strata council of Strata Plan VIS 7890 in Victoria is considering replacing their exterior siding, a capital project recommended in their depreciation report. They obtain a proposal from 'Coastline Contractors' for $180,000. What is the most appropriate next step for the strata council to ensure due diligence and achieve value for money?

Question: The strata council of Strata Plan VIS 7890 in Victoria is considering replacing their exterior siding, a capital project recommended in their depreciation report. They obtain a proposal from 'Coastline Contractors' for $180,000. What is the most appropriate next step for the strata council to ensure due diligence and achieve value for money?

Answer options:

• Approve the proposal quickly to secure the contractor's availability.
• Proceed with the project and include it in the next annual budget. ✅ Engage an independent engineer to prepare a detailed scope of work and solicit competitive bids.
• Ask 'Coastline Contractors' for a 10% discount on their quoted price.

Correct answer: Engage an independent engineer to prepare a detailed scope of work and solicit competitive bids.

Explanation: For significant capital projects, engaging an independent engineer to define the scope and then conducting an RFP process based on that scope ensures transparency, competitive pricing, and technical accuracy, aligning with good governance practices.