Validate your building's maintenance plan in Western Australia — Quarter

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The plan is what makes the levy honest.

Every building is spending down an asset. The roof, the lifts, the membranes, the paint and the plant all have a service life and a replacement cost, and the only question is whether the strata company is collecting for them or deferring them. A maintenance plan is how you tell. A plan that is stale, generic or never reviewed does not tell you anything — it just makes the building feel prepared while the gap grows.

Validate your building's maintenance plan in Western Australia

Western Australia's 2020 reforms made a ten-year maintenance plan compulsory for schemes of ten or more lots, or where the building's replacement value exceeds $5 million. Many WA schemes caught by that threshold still do not have one, and typically find out when a buyer's solicitor asks. The plan has to set out the anticipated work, the expected life of the building elements and the reserve fund contributions that follow from them.

Governed by the Strata Titles Act 1985, administered by Landgate.

At a glance — WA

Required
A 10-year maintenance plan for schemes of 10 or more lots, or where replacement value exceeds $5 million.
Contents
Anticipated capital works, expected life of building elements, and the reserve fund contributions they imply.
Fund
The reserve fund is separate from the administrative fund and cannot be used to cover day-to-day costs.
Review
Reviewed and kept current — a plan from the year the obligation started is now several years stale.
Common gap
Schemes over the threshold with no plan at all. It surfaces at sale.

How to do it in Western Australia.

  1. 1

    Work out whether you are over the threshold

    Ten or more lots, or over $5 million replacement value. Check both.

    In Quarter: Upload the plan you already have and Quarter reads it into a costed schedule of items, lifecycles and due years. From there it projects the fund thirty years out and tells you the annual contribution that actually funds it.

    Work out whether you are over the threshold in Quarter
  2. 2

    Find the plan, or establish that there is not one

    If there is not, this is the highest-priority item on the strata company's list.

  3. 3

    Check the expected lives against the building's actual condition

    A plan built from ages rather than from an inspection will be wrong about the things that matter.

  4. 4

    Compare reserve fund contributions to the plan

    The plan implies a rate. Check what you actually levy.

    In Quarter: The plan's required contribution feeds the budget, and approving the budget raises the levies from it — so what owners pay is derived from the plan rather than from last year's number plus a bit.

    Compare reserve fund contributions to the plan in Quarter
  5. 5

    Stop cross-subsidising from the reserve fund

    It funds capital work. Using it for operating costs empties both funds at once.

  6. 6

    Take it to the AGM

    With the quorum organised, because a levy change needs a valid resolution.

    In Quarter: Book the year's meetings once — the AGM and the committee meetings around it — and Quarter carries the notice periods, the agendas and the invitations from there. The insurance renewal and the plan review sit on the same calendar, so the year is visible rather than remembered.

    Take it to the AGM in Quarter

Where WA buildings get caught.

No plan in a scheme that requires one

Common, and discovered at the least convenient moment.

Reserve fund used for operating costs

It is a separate fund for a reason.

A plan never reviewed since it was first required

Several years of cost inflation, unaccounted for.

Why a plan on file is not the same as a plan that works

Most buildings have something. Far fewer have a plan that reflects the building as it actually is, costed at what work actually costs now, and matched to what the levies actually raise.

An old plan understates everything
Construction costs rose sharply from 2020. A plan built on pre-2020 numbers is not conservative — it is wrong, by a compounding margin.
A generic plan describes a building you do not own
Plans produced from a template rather than an inspection miss the things that are specific to your building, which are exactly the expensive things.
A plan nobody sets levies against changes nothing
The value is not the document. It is the contribution rate it implies, applied.
The special levy is the bill for not having one
Deferred maintenance does not go away. It arrives as a lump sum, usually at the worst time for the owners least able to pay it.

How Quarter keeps the plan honest

A plan is only as good as the maintenance record behind it and the budget in front of it. Quarter connects the three.

The plan and the real work in one place

What the plan said would happen, and what actually happened. The gap between them is the most useful number a committee has.

Levies set against the plan

Budget from the plan's contribution rate rather than from last year's figure plus a bit.

Review dates that arrive on time

Where a review is required, it is tracked as an obligation with a date, not a good intention.

Every asset with a history

Repairs, quotes, invoices and warranties attached to the thing they were for, so the next plan review starts from evidence.

Owners can see the position

What the fund holds, what the plan says it needs, and the difference — visible, so a levy increase is a conversation rather than an ambush.

Questions we get asked.

How long should the plan cover?
It depends where you are, and the answer ranges from ten years to thirty. The more useful test is whether it covers the building's longest-lived expensive components. A ten-year plan for a building with a lift due for replacement in year twelve is a plan with the worst news left out.
Who should prepare it?
A quantity surveyor or a building consultant who inspects the building. The distinguishing feature of a good plan is that somebody walked the site. Desktop plans built from the plan drawings and a cost table are cheaper and worth roughly what they cost.
How much should the fund hold?
There is no universal number, and any rule of thumb quoted as a percentage of anything should be treated with suspicion. The right amount is whatever the plan says, given your building's components, their condition and their remaining life.
What if we are already behind?
Then you find out by how much, and over what period you can catch up. A building that knows it is behind and is closing the gap on a schedule is in a far better position than one that has not looked — including at sale, when a buyer's solicitor asks.

Where this comes from

General information about Western Australia, not legal or financial advice for your building. Legislation is amended and grant programmes open and close — check the current position with Landgate or the administering body before you act on anything here.

Validate your maintenance plan — elsewhere

Other things to get done in WA

Get this one off the list.

Tell us about your building in Western Australia and we will show you exactly how Quarter would run it.