Sinking funds are established by corporate bodies to fund future expenditure on the repairs and maintenance of common property. Regular contributions are made to the fund by property owners in an effort to ensure that sufficient funds are available when required.
A sinking fund forecast is a comprehensive report on the expected future repair and maintenance costs of common property, including when those costs are likely to occur. On completion of the report, corporate bodies will know the amount of funding required in the reserve at any future point in time and the contributions required to maintain a sufficient reserve.
From July 2009, all strata schemes are required by law to have a 10-year sinking fund plan in place (Section 75A of the Strata Schemes Management Act 1996 ) and we recommend updating the plan every 3 years.
A sinking fund forecast prepared by a registered quantity surveyor will provide corporate bodies with the most reliable forecast of expenditure. At Goeldner Consulting, our extensive experience in building maintenance and construction costs will ensure that the sinking fund forecast can be relied on to provide the most accurate forecast of repair and maintenance costs.
