Future or planned?
You may have heard of the 10-year maintenance plan that is now a compulsory requirement for all designated Strata Companies. (A designated Strata Company is one with 10 lots or more or has a building replacement cost exceeding $5mil)
Some Strata Companies may decide to prepare a 10-year maintenance plan on a voluntary basis, either by themselves or by appointing a qualified contractor.
The report will examine;
- the condition of all common property
- identify any items requiring repair or replacement
- note the date of installation or when equipment was last serviced (e.g. lift)
- provide a timeline for when repairs or replacement should be scheduled e.g. in 3-5 years
- estimate the approximate cost and detail funding requirements
Its purpose is to ensure that owners know the potential liabilities and maintenance requirements associated with their property. It provides a guide, not just to the work which must be considered, but also a timeline for when funds will be needed to cover these costs. The report will assist the Strata Council, and the owners, to prioritise spending in the areas where the need is most urgent. It can guide the owners on how much is realistically required to be set aside in reserve funds to meet future maintenance needs. This helps owners understand the costs associated with ownership, both now and in the future.