One of the biggest challenges, and one of the biggest worries of a client or committee when changing managers is how the handover process will be handled to ensure continuity and no loss of data.

RERA have eased this process by having the MOLLAK system maintain financial and owners’ details and by providing the management companies with handover templates to follow for handover.

However, the outgoing management company, and the incoming management company need to manage this process professionally and ensure the client is protected during this period. Most of the times a management company is changed is due to a breakdown in some part of the operation, whether in communication, performance, financial or technical performance.

The main areas of handover are within financial, technical, administrative, and legal operations. A best practice would be for a shadowing period of both companies for a period to ensure a smooth handover – this may require making payments to two management companies for the same period however this should ease any handover issues in advance which can be costly later in the project.

Financially, the goal of the financial handover is to transfer the records of the projects in an audited state until the last day of handover to the new management company. Ensuring that unit balances on any management system are aligned with MOLLAK, that all accounts payables to vendors are recorded and status reviewed and liaising with the Escrow Bank account team to gain access to the bank account for the project. Similarly updating records at FTA and ensuring these have been filed currently

Technically, the goal is to handover the day to day of the project and the service providers to ensure a continuity of service that is seamless to the occupants of the project. Novating agreements with service providers ensuring transparency in the process to them, handover of service reports, purchase orders and technical reports alongside having a third party conduct a building condition report would be the best practice to follow and ensure clarity to all parties on behalf of the client.

Administration such as handover of passwords, access cards, sign-off handover sheets between both parties and ensuring everyone – including the client is aware of the process that has been undertaken.

The handover process is the time to be transparent and professional. Committees and clients shouldn’t be afraid of change, but they should be wary to ensure that it is conducted professionally to prevent any issues with the operation of the project.

This article has been written by Garry Murray, director of CORE Owners Association and President Elect of Community Associations Institute Middle East (CAIME).