In most states except for Victoria it has been a legislative requirement for a Sinking Fund Forecast or a Maintenance Plan to be provided for Body Corporate managed buildings to raise funds for future non-recurrent maintenance to the fabric and equipment of the common property.

In September 2007, the Corporations Act was introduced in Victoria. This act requires mandatory Maintenance Plan  for all buildings with 100 or more lots or annual contributions exceeding $200k.

The Maintenance Plan is assessed taking into account expenditure required to maintain the property in good condition. The Maintenance Plan is independent of the Administration Fund, which is for recurrent expenditure (e.g. power, care taking and regular maintenance).

Buildcheck has had extensive experience in calculating Maintenance Plans for large buildings. In 2007 we completed the Maintenance Plan analysis for Eureka Towers plus numerous buildings along St. Kilda Rd, Melbourne and in the Docklands area.

Buildcheck’s analysis is calculated over 10 years and extrapolated over 30 years to arrive at a realistic annual contribution.