Reserve fund management perth
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Page 1 Reserve Fund Management For Strata and Commercial Buildi
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Definition A detailed and comprehensive estimate of the councils corporate’s sinking fund expenditure for the scheme’s 10 financial years that must include an estimate for the repainting of common property and of buildings that are Councils corporate assets. Thoughts Think of it as a servicing schedule for your car, with services in years rather that kilometres.
Transcript of Reserve fund management perth
Page 1
Reserve Fund Management For Strata and Commercial Buildings
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What is a Reserve Fund
Definition
A detailed and comprehensive estimate of the councils corporate’s sinking fund expenditure for the scheme’s 10 financial years that must include an estimate for the repainting of common property and of buildings that are Councils corporate assets.
ThoughtsThink of it as a servicing schedule for your car, with services in years rather that kilometres.
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Why Have a Reserve Fund
The Purpose of the Reserve fund in to minimise a impact of a special levy being raised on the owners of the complex.
We have compiled a number of case studies that highlights the importance of a reserve fund.
Some of the replies we had from some of the owners were that we are not going to live for ten years so why should we do one now, or
we have been living here for years and have had no problems.
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Case Study 1
The Complex 56 UnitsNot Maintained for 20 YearsBuilding Cracking and Needs RepairComplex under insuredComplex needs painting,Pool Needs attentionRetaining walls falling downPipework issues
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Case Study 2
The site was a Industrial Complex, no reserve fund was in place.
There was a maintenance issue with the common power pole that has white ant damage. The committee took over 4 years to decide to plan to replace the pole.
The owner of a unit sold and a new owner came into the complex.
The new owner was concerned about the power pole and contacted the Strata Manager. The Strata Manager sent out a electrician to investigate the problem. As part of the duty of care of the electrician, issued a critical defect and reported it to the power company.The Power was turned off to the building and would not be reinstated until a new pole was installed at a cost of over $5000. Ten days later the power was restored, from mismanagement of the committee
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Case Study 3
A site was refurbished by a developer and then was strata titled and then on sold to the new owners.
The outside of the building was repainted and looked quite presentable.
The only problem that there were lift in the building that was not refurbished.
This cost the new owners was over $500,000.
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Case Study 4
A Unit Complex had a Asbestos Roof and went to get their insurance restated.
The insurance company declined to re insure the building until the roofing was replaced.
The Cost to the Owners was over $50,000.
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Independent Inspections /FWR Group Pty Ltd
Independent Inspections Pty Ltdwww.iigi.com.auwww.fwrgroup.com.auwww.independentcertification.com.au
Mr. Peter Greenham
Qualifications:- Diploma of Civil Engineering- Associate Diploma of Laboratory
Operations- Diploma of Quality Management- Diploma of Business- Lead Environmental Auditor- Diploma of workplace training
and Assessment- NATA Assessor
Your Auditors and Trainers
P: 1300 857 149F: 1300 857 150
Team
Mr. Sydney LueM: 0423 234 [email protected]
Mr. Peter GreenhamM: 0402 259 [email protected]
