Capital works fund report
Capital Works Fund / Sinking Fund 10 Year Plan
What is a Capital Works Fund or Sinking Fund Forecast?
A Capital works fund is also known as a 10 Year plan or Sinking Fund Forecast and a Reserve Fund Forecast. Essentially it is a detailed cost schedule or plan which ensures property owners and strata mangers allow for sufficient financial reserves to maintain a building. The important purpose of these reports is to minimise the future risk of insufficient funds, creating a safety net for both the body corporate and the building itself.
What is included in the HRQS Capital Works Fund Plan?
Our Capital works fund plan covers amounts or expenditure of a capital of non-repetitive nature including periodic replacement of major capital items (including plant and equipment). We also include other spending that will be required for the reasonable operation and maintenance of the building.
Update your Capital Works Fund Plan.
The Strata Schemes Management Act requires that a Capital Works Plan is be reviewed every five (5) years. Whether it be the first assessment or a five year review / update of the initial assessment, we will conduct a site inspection to ensure that the capital works fund reflects the actual aging and associated works of the building, as well as any changes to the common property and the correct allocation / distribution of funds.
Ordering a Capital Works Fund Plan.
1. Place order for Capital Works Fund or Sinking Fund Plan
2. We inspect the required common and personal property of the building complex.
3. We identify all items which are anticipated to require maintenance, repair, renewal or replacement.
4. We provide the opportunity to the Owners to including additional items.
5. We prepare and present a report about the condition of the covered items and the anticipated costs for maintenance, repairs, renewal or replacement (Capital Works Fund / Sinking Fund plan) with the required funds to be allocated to the reserve.
6. All our Capital Works / Sinking Fund plans are carried out by registered tertiary qualified Quantity Surveyors / Cost Engineers.
How is the Capital Works Fund or Sinking Fund Plan Different to the Administration Fund
The administration fun sets out the cost of maintenance contract items and hence these, are excluded from the Reserve Fund Forecast or Capital Works Fund.
Are our reports easy to read?
Our reports are comprehensive and will explain how we have estimated the expected life of the items; the items that are included and excluded and a summary of costings.