Buildings age whether anyone is thinking about it or not. Most strata owners hear terms like capital works fund, maintenance planning and forecasting and assume the scheme’s future is highly complex. In reality, good long-term planning should simplify things. Being organised and proactive helps reduce unnecessary surprises and makes the road ahead far easier to navigate.

At All Suburbs Strata Management, we have provided premier strata management services across Greater Sydney, the Nepean and the Central Coast for over 40 years. We know that committees are in a stronger position to manage repairs, maintenance and costs when they can see potential issues before they become urgent.

The whole point of long-term planning is identifying likely future needs before they become urgent present issues. It’s preventative. Obviously, we can’t predict everything down to the letter, but it is possible to carefully give the owners corporation a reasonable framework from which they can make decisions. Planning also helps committees that may already be in a reactive cycle start considering things in advance. This is one of the main reasons NSW legislation requires a capital works fund.

All buildings will age and deteriorate over time, even when they are maintained meticulously. Common property elements such as roofs, lifts, driveways, external painting, waterproofing, lighting, fencing and shared spaces will all eventually require attention of some kind. Part of the long-term planning process is having a good look at these known future obligations.

Once these obligations are estimated and factored in, a scheme has more time to prepare financially. It also allows for more time to obtain quotes, assess options, prioritise projects and schedule the works appropriately.

So, what is a capital works fund? It’s money set aside by the owners corporation for significant common property expenditure. While day-to-day operational spending is kept in an administrative fund, a capital works fund is intended for larger building-related costs. Examples include roof replacement, external painting, lift upgrades, driveway resurfacing and waterproofing projects.

Under the Strata Schemes Management Act 2015, most NSW owners corporations must have and prepare a capital works fund plan covering at least 10 years. This is because the legislation recognises that buildings require ongoing investment throughout their lifespan. The plan considers anticipated common property expenditure over that period.

Contributions to the fund are made through levies. While some owners may view this as another cost, the purpose is to ensure money is being set aside for when it is needed.

Everything changes over time. Buildings. The condition of common property. And so do the construction, repair and contractor costs associated with maintaining them. Additionally, despite best efforts, new issues can arise that were not anticipated when the plan was first prepared. Priorities can also shift as different assets approach the end of their useful life.

That’s why plans aren’t supposed to be produced and then forgotten. NSW legislation takes this into account, requiring capital works fund plans to be reviewed at least every five years. Many schemes even choose to review them more regularly than that, particularly after major projects, significant changes to the building or updated condition reports. This helps ensure they remain relevant to the property’s actual condition and needs.

As circumstances evolve, reviews help reassess anticipated expenditure and identify projects that may need to happen sooner or later than originally expected. Costs can also be updated to reflect current market conditions, and committees can ensure levy contributions remain aligned with projected costs.

Long-term planning is never a one-size-fits-all exercise. Different strata properties have different facilities, infrastructure and maintenance obligations. For example, the priorities for a smaller apartment complex may look very different to those of a building with lifts, pools, basements, security systems, extensive landscaping or shared recreational spaces.

Older buildings may have more components approaching replacement or renewal, but age is only one factor when determining planning priorities. A newer building can still have significant maintenance needs depending on its design, facilities and maintenance history. Construction quality, previous upgrades, environmental exposure and the condition of common property can all influence what attention may be required and when.

A building’s maintenance history often shapes what attention it is likely to receive in the years ahead. If schemes have been consistent with maintenance, they will generally have fewer concerns than those dealing with deferred works. This is why long-term planning has to reflect the specific characteristics of a building rather than follow a set formula.

Long-term planning often sounds more complicated than it really is. At its core, it is simply about understanding a building, keeping information current and making informed decisions as circumstances change.

At All Suburbs Strata Management, we understand how small, consistent planning decisions today can make future decisions easier and less stressful. With more than 40 years of experience across residential, community, commercial and industrial properties, our team brings the knowledge needed to support organised, well-managed strata communities.

If your current strata manager is not meeting expectations, contact our experienced team to discuss your options. We can assist with a smooth and straightforward handover.