Curasure-Building Maintenance Solutions

10-Year Maintenance Plans for Bodies Corporates

Preventative Maintenance Requires A Paradigm Shift

10-Year Maintenance Plans for Bodies Corporate and Sectional Title Schemes

KEEPING YOU COMPLIANT WITH THE LAW

WHAT IS A 10-YEAR MAINTENANCE PLAN?

A 10-year maintenance plan for Bodies Corporate and Sectional Title Schemes is part of the Maintenance, Repair and Replacement Plan (MRRP). Basically, it estimates the total maintenance costs for each year over a 10 year period. It is important to note that this is a legal requirement as per the Sectional Title Schemes Management Act.

In short, the MRRP aims to ensure:

  • Community scheme maintenance plans and budget
  • Enough money is available for expensive maintenance projects
  • Proactive maintenance tasks are scheduled and maintained
  • Expenditure is accounted for and maintenance is recorded.
Furthermore, the Maintenance, Repair and Replacement Plan (MRRP) should include:
  • A list of the major capital items
  • The present condition of those items
  • When those items require maintenance, repair or replacement
  • Estimated costs
  • The expected life-span of those items
  • Other relevant information required by the body corporate.

For further clarity regarding 10-year building maintenance plans, please refer to our article, Let’s talk about 10 year maintenance plans for Sectional Title Scheme.

WHAT IS REQUIRED?

In order for Bodies Corporate to manage their schemes in line with the legislation, the Body Corporate trustees are required to:

  • Establish a reserve fund
  • Make contributions to the reserve fund
  • Keep accurate records and maintenance plans for current, required and future maintenance.

Essentially, the legislative requirements include:

  • Maintenance Repair and Replacement Plan
  • 10-year planned forecast and budgets for the maintenance plan
  • A ring-fenced maintenance reserve fund
  • Prescribed Minimum and Annual Reserve Fund contributions.

Although the requirements are comprehensive, it is critical (in our opinion) in protecting Sectional Title Scheme asset value and maintenance expenditure.

Lastly, bodies corporate are required to submit Maintenance, Repair and Replacement Plans with a 10-year budget and plan at each Annual General Meeting (AGM).

RESERVE FUND REQUIREMENTS?

The legislative requirements include the following:

  • A separate ring-fenced Reserve Fund. This is dedicated to the maintenance of the common property
  • A separate bank account and a set of accounts for the Reserve Fund
  • A minimum contribution and level for the Reserve Fund
  • Annual contributions to the Reserve Fund aligned with the Maintenance, Repair and Replacement Plan.

The above sets a clear intention to ensure that bodies corporate prudently manage the 10-year maintenance plan for the common property.

CURASURE COMPLIANCE ACTION PLAN (CAP) REPORT (10-YEAR MAINTENANCE PLAN)

As can be seen from above, setting up a 10-year maintenance plan requires knowledge and expertise. For this reason, we developed a system to make it easy for trustees and bodies corporate.

Our unique system is designed to assist the Sectional Title Industry in complying with the Sectional Title Act. Our Compliance Action Plan report includes:

  • Physical site inspection of the property
  • Photographic documentation
  • Listing of the major building envelope components and substrates, and the current condition
  • Preparing a preliminary forecast 10-year plan and budget, with estimated costs
  • Initial calculations of reserve fund contributions
  • Explanation and reference to the Act and compliance
  • Brief overview
  • A recommended approach to maintenance planning, maintenance repair, and replacement.

It is imperative to recognise that the requirements in the Law determines that this document will be a “living” document. It will require an annual review and update. Therefore, it is only the first step towards legislation compliance.

OUR TRACK RECORD AND FEES

Curasure actively promotes and completes 10-year maintenance plans for the sectional title community.

Since 2006, we’ve built a proud record of successfully assisting bodies corporate. Additionally, we are an award-winning registered trademark company, with operational experience of more than 20 years.

Our fees for the CAP (Compliance Action Plan) reports are tailor-made to suit your specific needs. Please contact us to receive an obligation-free quote.

Have a 10-year maintenance plan, but struggling with implementation?

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WHAT OUR CLIENTS SAY ABOUT OUR 10-YEAR MAINTENANCE PLAN

"Curasure provided an initial detailed report of the state of the complex and identified areas requiring attention, and we used this to compile our initial 10-year maintenance plan. "

"Curasure compiled and continue to update our 10-year-plan as and when necessary – hopefully only annually, but if the need arises, the plan is updated."

"They manage our 10 year maintenance plan from a technical perspective and continue to provide their services for every project we embark on annually with an identical discipline of rigour and process. "

"In preparation of the AGM we also completed a updated 10 year maintenance plan with Curasure. The full pack will be included in the AGM documentation with our proposed budget to fund our maintenance plan, which will be discussed under the finance section of the AGM."