Otherwise known as a Reserve Funds Forecast, or a Life Cycle Costing, these reports are a detailed cost schedule ensuring the property owners allow for sufficient financial reserves to maintain the building.
Most importantly, these clear financial reports minimise the future risk of insufficient funds, creating a safety net for both the body corporate and the building itself.
If you are a Strata Owner in Western Australia, the new and improved 2018 Strata Reform states that every Strata company with 10 or more lots (or a high insurance replacement value) must establish a 10 year plan that sets out;
- the common and personal property of the strata company that is anticipated to require maintenance, repair, renewal or replacement.
- the estimated costs for maintenance, repairs, renewal or replacement
- that the 10 year plan is updated at least once every 5 years
- a strata company must prepare a budget forecast for each financial year to its annual general meeting
Find out more about our Sinking Funds Forecasts below or call us for a chat on 089424 5800.
Alternatively, you can send us an email for an obligation free quotation.
A Rawlinson’s (W.A.)'s Sinking Fund Forecast covers expenditure of a capital or non-recurrent nature including periodic replacement of major capital items (including plant and equipment), and other spending that may reasonably be required for the safe operation and upkeep of the building. It does not include expenditure on capital improvements. The reports will include an escalated cash flow forecast for the 10 year plan.
The cost of maintenance contract items are normally included within the administration fund, therefore they are excluded from the sinking fund forecast.
These items include, but are not limited to:
Our comprehensive report will explain how we have estimated the expected life of the items, the included and excluded items and a summary of costings.
The new Strata Title Amendment Bill 2018 states that every strata company for larger schemes will need to prepare a 10 year maintenance plan. Rawlinsons (W.A.)'s reports can detail the expected yearly costs for up to 15 years (sample below), however, we recommend the Sinking Fund Forecast be reviewed annually to include any changes arising from extraordinary expenditure, inflation, local market factors and the general building condition.
Rawlinsons (W.A.) Quantity Surveyors and Construction Cost Consultants are highly trained professionals and experts in estimating construction costs. We cover the full range of cost management services from initial cost planning through to contract administration, as well as ancillary services such as sinking funds forecasts, insurance replacement valuations and tax depreciation schedules.
Since 1983 Rawlinsons (W.A.) have been the leading creators and publishers of construction cost data in Australia. Our comprehensive publications of technical building costs are an essential tool for builders, architects, quantity surveyors and many others in the construction industry. Head over to, Rawlhouse Publishing, for more information and for a snapshot of our services please watch our video below.