Now that the Strata Titles Act has been amended following proclamation day of 1st May 2020, a 10-year maintenance plan is a compulsory requirement for Designated Strata Companies.
- Carrying out a 10 year maintenance is a compulsory requirement for a designated strata company, but it is ideal for all strata companies to consider if this would be beneficial to you, even if it is not mandatory
- 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
- The 10 year plan is a guide for the setting of reserve funds to facilitate capital expenditure in the budget
- The 10 year plan can be completed by anyone, but ESM 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
- It is compulsory for designated strata companies to have this report, however, it is not a requirement to have all items on the report completed as per the recommendations of the report. Should the council of the strata company decide to delay or omit an item this can be decided on without restriction.
What is a 10 year maintenance plan?
Who completes the report?
What is in the report?
What is NOT included in the report?
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The 10 year maintenance plan will assist your strata company in planning for the future expenses of the strata company. It also ensures that the owners funds are used in the most effective manner and could save owners from having to raise large special levies for unexpected costs.
ESM recommend that the report be carried out by a qualified builder or someone qualified to advise on such items.
ESM is not qualified to carry out this function, however we can assist in identifying the common property areas that the report will need to include.
- The common property and the personal property of the strata company that is anticipated to require maintenance, repair, renewal or replacement (other than of a routine nature) in the period covered by the plan.
- Report about the current conditions of those items.
The estimated costs and method by which the maintenance, repairs, renewal or replacement will be performed including:
- remediation process for each item (e.g. what trade to contact).
- approximate cost for each item.
- Plan or recommendation for funding.
- The routine maintenance expectations such as gardening, cleaning and pest control.
- Unforeseeable events or issues that may not be visible/detectable (Plumbing & Electrical conditions)
A 10 year maintenance plan is a compulsory requirement for Designated Strata Companies (10+ lots or building replacement cost of $5,000,000+)
For a Survey Strata Scheme this is a compulsory requirement for a survey strata scheme if the replacement cost of the improvements on the common property is more than $5,000,000.00.
The 10 year maintenance plan assists the Council of the strata company in planning for future maintenance expenses so that large, unexpected special levies may not have to be raised in the future. The exciting addition to the strata regulations makes it so much easier to foresee expenses and have the funds ready to go when the time comes. 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).
Jake Kneebone, one of the directors at ESM and original founder, was on the original committee for the Community Titles Advisory committee for 14 years. He believes the addition of the compulsory 10 year maintenance plan is a long overdue initiative that will help Strata Companies stay on top of maintenance and repairs in an intelligent way.