10 year building maintenance plans - what you need to know
The Strata Titles Amendment Act, which came into effect on May 1st 2020, introduces a 10 year maintenance plan, which will be a compulsory requirement for Designated Strata Companies (10+ lots or building replacement cost of $5,000,000+).
The 10 year maintenance plan will assist the council of owners in planning for future maintenance expenses so that large, unexpected special levies will not have to be raised in the future. The exciting addition to the strata regulations will make it so much easier to foresee expenses and have the funds ready to go when the time does come. The report itself has to cover almost everything that most Strata Companies will require to have repaired in the future – and can be completed internally or by a qualified professional (our recommendation).
Carrying out a 10 year maintenance is now a compulsory requirement for a Designated Strata Company
A designated Strata Company is a Strata company with 10 or more lots, or
a scheme with a building replacement cost of more than $5,000,000.00 (as per draft regulations)
The 10 year plan will be a guide in the setting of reserve funds to facilitate non-recurrent expenditure in the budget
The 10 year plan can be completed by anyone, but WAAA recommends it be carried out by a qualified builder or specialist
Every 5 years, the 10 year maintenance plan must be revised and extended to cover the next 10 years
The first 10 Year Maintenance Plan must be submitted for approval at the very next AGM after it was drafted
It is accepted via an ordinary resolution
Council of Owners should ask their Strata Manager to consider possible suppliers for this service so that the COO can review and appoint a preferred supplier. This is especially as the new Strata Regs place additional responsibility on the COO in terms of liability and appointing a Building Manager will ensure provision of insurance under the suppliers PI.
WAAA will be hosting an event on Thursday 5 July from 5pm on the topic of Building maintenance plans and what they comprise of. To register for this webinar click here.