Specifying, funding and approving the work.
The hard part of a building security upgrade is rarely the equipment. It is describing the work precisely enough to compare prices, drawing the money from the right place, and putting something in front of owners that they will support.
QUESTION ANSWEREDWho approves a security system upgrade in a strata building, and which fund pays for it?
Specifying and funding a building security upgrade is mostly a procedural problem. A committee has to describe the work precisely enough that quotations can be compared, draw the money from the correct fund under Malaysian strata practice, and put a decision to owners that they will support. The equipment choice is usually the easiest part.

The blocker is procedural, not technical
Committees rarely stall because they cannot choose between two cameras. They stall because three quotations arrived describing three different jobs, because nobody is certain whether the expenditure is a maintenance item or a capital one, and because the person who has to stand up at the general meeting does not yet have a case they can defend.
Security vendors write about equipment. Property portals write about strata procedure. Almost nobody joins the two, which leaves the committee to do it themselves at exactly the moment they have least time. The three sections that follow are that join.
Writing a scope of works
A scope of works describes the outcome the building wants and the conditions the work has to meet. It is not a list of part numbers. A scope built from one vendor's model numbers ensures that the other two quotations are either non-compliant or a straight copy, and in both cases the comparison is worthless.
- N01Coverage — what must be seen or controlledBY AREA
- N02Performance — identification vs observationSTATED
- N03Retention — how many days, at what qualitySTATED
- N04Existing infrastructure — reuse or replaceDECIDED
- N05Containment and making goodSPECIFIED
- N06Working hours and resident accessSPECIFIED
- N07Testing and acceptanceDEFINED
- N08Documentation and handoverLISTED
- N09Warranty and first-year maintenancePRICED SEPARATELY
Two of those rows do most of the work. Coverage described by area — “every vehicle entering or leaving the basement must be identifiable by plate” — lets each contractor propose the camera count they believe delivers it, which is the comparison you actually want. And retention, because it drives storage, which is frequently a larger line than the cameras and is the item most often quietly under-specified.
One row is worth stating as a figure, because no contractor will volunteer it: spare capacity. Singapore’s standard for video surveillance in buildings asks for a minimum of 20% spare capacity in the design, and for at least 20% reserve recording media, hot-swappable. Malaysia publishes no equivalent, so a committee that wants room to expand has to write the number into its own scope — and a bid sized exactly to today’s camera count will charge for that room at the first extension.
Each of those is a section of a document, and the document has a shape. Written out in full — location by location, with what must be achieved at each and what the contractor has to demonstrate at acceptance — it becomes a scope of works for a CCTV tender. What comes back then still has to be made comparable, which is its own exercise: comparing three quotations fairly.
Which fund the expenditure comes from
Under Malaysian strata practice, governed by the Strata Management Act 2013, a building holds two pots. The maintenance account pays for the day-to-day running and upkeep of common property. The sinking fund is a reserve for major, infrequent capital expenditure — the works that recur once in many years rather than monthly.
The division is written into the Act, and its own words are more useful to a committee than any summary of them. For a joint management body, section 23(3) confines the maintenance account to “general or regular expenditure”, and among the matters it lists is:
paying for the expenses incurred in providing cleaning services for the common property, security services and amenities for the occupiers of the building
Section 24(2) confines the sinking fund to “capital expenditure”, and among the matters it lists is:
the renewal or replacement of any fixture or fitting comprised in any common property
How much sits in that reserve is settled by the Act as well, and it is the number that decides whether an end-of-life replacement is affordable without a special levy. For a joint management body, section 25(4) fixes the sinking-fund contribution at 10% of the Charges, and makes that a floor rather than a target:
The amount of contribution to the sinking fund to be paid under subsections (1) and (2) shall be a sum equivalent to ten per cent of the Charges unless otherwise determined by the joint management body from time to time at a general meeting which shall not be less than ten percent of the Charges
A building still contributing the 10% minimum years after handover is not underfunded by bad luck; it is underfunded by default, because nobody moved a resolution at a general meeting to change it. A security system reaching the end of its life is one of the expenditures that finds that out.
The Act nowhere defines “security services”, and does not say whether the phrase reaches the equipment or only the people. That silence is why the table below is a guide to the usual answer rather than a ruling.
| Work | Usually | Why |
|---|---|---|
| Scheduled servicing of a working system | Maintenance account | Recurrent operating cost of common property. |
| Repairing a failed device or cable section | Maintenance account | Restores what already existed; not an improvement. |
| Replacing a system at the end of its life | Sinking fund | Major, infrequent capital replacement. |
| Extending coverage to areas never covered | Sinking fund | An improvement to common property rather than upkeep. |
| Staged replacement across several years | Usually sinking fund | Judged on the whole programme, not the annual slice. |
The genuinely unclear cases are worth naming: a repair so extensive that it amounts to replacement; an upgrade that is technically a repair because the original part no longer exists; and a replacement that also extends coverage. These are decisions for the committee with its managing agent, and where material, its own advisers — a contractor should not be the one ruling on them. What a contractor can do is quote the elements separately so the committee can allocate them properly, and that is worth asking for explicitly.
The allocation itself is not a matter of taste. Act 757 puts the two accounts to different purposes and puts different approvals behind them, and the section that decides it is not the one most commentary quotes — worked through in sinking fund or maintenance fee.
Getting it approved
Whichever fund it comes from, somebody has to explain the spend to the people paying for it. A paper that carries the following tends to pass; one that carries a price and a brand name tends not to.
- What is failing, and the evidence. The fault log from the diagnosis stage, not an assertion.
- What was considered. Repair, partial replacement, full replacement — and why the recommended option won.
- What happens if nothing is done, stated plainly and without exaggeration.
- The comparison table, normalised, with exclusions shown.
- The fund, and the reasoning for drawing on it.
- What the building will hold afterwards — drawings, credentials, a service arrangement.
The last point is the one committees most often omit and owners most often appreciate: it is the difference between spending money on equipment and spending it on a system the building will still control in five years.
Underneath the paper sits a duty. The by-laws in the Third Schedule to the 2015 Regulations apply to a joint management body as much as to a management corporation, and among the functions they give the management body is to:
set up, manage and maintain proper procurement procedures and tender process in a fair and transparent manner for all purchases, acquisitions or awards of contracts in connection with the management and maintenance of the common property
It prescribes no number of quotations, no threshold and no method. The duty is real and the standard is the building’s own to set — which is what a scope written for comparison, rather than copied from one vendor’s proposal, is for. The method the by-law leaves out is worked through in comparing three quotations fairly.
Staging work across financial years
Where the whole programme is unaffordable in one year, staging is usually possible — but only if the stages are engineered rather than simply chopped by budget. The sequence that works is almost always infrastructure first: cabling and containment, then head end, then devices. Doing it in the other order means paying twice, because the new devices get installed onto cabling that is then replaced beneath them.
Ask for the staged programme to be priced as a whole with the stages shown separately, and for the scope to state what happens if a later stage is deferred or cancelled.
Staging is also how a building funds a replacement it cannot fund in one year, and the fund each stage is drawn from can change as the work moves from repair to replacement. That is the same question of allocation, taken across financial years.
Four things that get an expenditure challenged
- A scope written from one vendor's proposal. It is visible, and it undermines the whole comparison.
- Repair and improvement bundled into one figure. They frequently come from different funds; bundling forces an all-or-nothing decision.
- No exclusions in the accepted quotation. The variations arrive later and the committee has nothing to point to.
- Nothing in writing about what the building receives at handover. Drawings, credentials and configuration records are part of the deliverable, not a favour.
What to keep afterwards
Committees change. The single most useful thing an outgoing committee can leave is a folder that lets the next one understand the building without starting again: the scope, the accepted quotation with its exclusions, the as-built record, the credentials, and the service history. It also makes the next tender genuinely competitive, because the next set of contractors will be pricing from a record rather than from a walk-round.
Where this leads
A scope has to be grounded in what is actually installed, which is why this guide ends where the others do. Occhio Tec designs, installs and maintains the ELV layer of Kuala Lumpur buildings. The company was established in 2012. The practical starting point for a committee at any stage of the above is a site survey that needs before it can put a scope out to price.