When does a new report need to be prepared?
A Capital Works Fund Forecast must be reviewed every 5 years according to the Strata Schemes Management Act. When we review a report, we undertake a new inspection and re-assess each item’s condition and whether items have been replaced.
It may be that certain items have been well maintained and their expected life is longer than the initial report. It also may be the case that an item will have deteriorated faster than expected in the initial report. New items may have also been added or old items removed. This is all taken into account when a report is reviewed.
Contact Quanto if you have any questions about your current Capital Works Fund Forecast.
How do you assess each item’s condition, expected life and replacement cost?
We carry out an inspection on the building/s and identify all common property items that will need replacing over time. We assess each item’s condition and determine an expected life for both the existing item and its future replacement. We then estimate its replacement cost in today’s prices and make allowances for future price increases using a Building Cost Index.
The information for all items is added to Quanto’s tailored software to determine the amount each lot owner needs to contribute to the Capital Works Fund to have funds available when each item needs replacing.
What items are covered in a Capital Works Fund Forecast?
Common property items covered in a Capital Works Fund Forecast can include:- Driveways
- Fencing
- Roofing
- Gutters
- Downpipes
- Carpet
- Floor tiles
- Fire equipment
- Lights
- Lifts
- Painting
- Balustrades