sinking fund forecast - integrated building · pdf filepage 3 strata scheme sample rep 64 this...

THIS SAMPLE REPORT IS A SANITISED VERSION OF AN ORIGINAL TECHNICAL REPORT AND SHOULD BE CONSIDERED

CONFIDENTIAL AND NOT FOR PUBLICATION AS THE STYLE AND STRUCTURE REMAIN COPYRIGHT TO

INTEGRATED CONSULTANCY GROUP

SINKING FUND FORECAST

PREPARED FOR: Owners Corporation Strata Scheme …….. PROPERTY: ………………………. ………………………. PURPOSE OF THIS REPORT: Provide a 15 year Sinking Fund

Assessment DATE: ……………………… PREPARED BY: ……………………… Building Consultant OUR REFERENCE: SAMPLE REPORT NO. 64

STRATA SCHEME SAMPLE REP 64

This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at

the time and expressed for the purposes of consideration by the Addressee and not for general publication without written consent.

TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY...................................................................................... 3

1.1 GENERAL..................................................................................................... 3 1.2 SUMMARY OF REQUIRED SINKING FUND CONTRIBUTIONS ................................ 4

2.0 INTRODUCTION.................................................................................................. 5

3.0 PROPERTY.......................................................................................................... 6

4.0 INSPECTION........................................................................................................ 7

5.0 INSPECTION RESULTS...................................................................................... 8

5.1 ITEMS CONSIDERED BEING IN BREACH OF THE BUILDING CODE OF AUSTRALIA OR HEIGHTENING RISK EXPOSURE TO THE OWNERS CORPORATION ................................. 8 5.2 FIRE UPGRADE FROM LOCAL COUNCIL........................................................... 8 5.3 IMMEDIATE MAINTENANCE ITEMS ................................................................... 9 5.4 ITEMS REQUIRING MAINTENANCE WITHIN 5 YEARS ........................................ 17 5.5 ITEMS REQUIRING MAINTENANCE WITHIN 5-10 YEARS................................... 30 5.6 ITEMS REQUIRING MAINTENANCE WITHIN 10-15 YEARS................................. 37

6.0 INSPECTION SUMMARY .................................................................................. 43

6.1 ITEMS CONSIDERED BEING IN BREACH OF THE BUILDING CODE OF AUSTRALIA OR HEIGHTENING RISK EXPOSURE TO THE OWNERS CORPORATION ............................... 43 6.2 FIRE UPGRADE FROM LOCAL COUNCIL ........................................................ 43 6.3 IMMEDIATE MAINTENANCE ITEMS ................................................................. 43 6.4 MAINTENANCE WITHIN 5 YEARS ................................................................... 43 6.5 MAINTENANCE WITHIN 5-10 YEARS.............................................................. 44 6.6 MAINTENANCE WITHIN 10-15 YEARS............................................................ 44

NOTES AND LEGEND IN RELATION TO SINKING FUND SPREADSHEET ON THE FOLLOWING PAGE/S.................................................................................................. 45

7.0 SINKING FUND SCHEDULE COMMENCING 2011.......................................... 48

CONDITIONS RELATING TO THIS REPORT ............................................................. 49

APPENDIX A STRATA PLAN REGISTRATION PAGE (UNIT ENTITLEMENTS) APPENDIX B CD ROM CONTAINING SINKING FUND ASSESSMENT




1.0 EXECUTIVE SUMMARY 1.1 General

The contributions shown in this analysis are based on a 15 year forecast period. The forecast calculations take into account the maintenance and replacement requirements of the building elements and grounds over this period. The spreadsheet at the rear of this document is broken into five year sections. I note for your reference that the Strata Schemes Management Act requires Sinking Fund Forecast to be adjusted every five years. The date of issue of this document has been recorded in our database and your Strata Manager will be advised accordingly when the next inspection and review is required. Owners of most Strata schemes in NSW will now have to prepare a 10 year sinking fund plan as part of the changes to the Strata Schemes Management Act 1996. The implementation of compulsory Sinking Funds is meant to create a user-pay system. The Sinking Funds are a most valuable document if understood and used correctly by both Owners Corporations and their Strata Managers. The Sinking Fund attempts to identify the remaining usable service life of various building elements, eg painting, roofing, guttering, etc and attempts to place a projected budget against each item so that the Owners that currently have the use and enjoyment of the property contribute equally and fairly to the continuing short and long term maintenance and upkeep of the Strata Scheme. In other words, costs associated with the maintenance and replacement of building elements are programmed and funds set aside proportionally each year to ensure that when the item is required to be maintained or replaced, that funds are available without the necessity of raising special levies. It may take several years for Owners Corporations to secure the required catch up funding as many sinking funds fall well short of their projected required expenditure, however the Government expects that within five years that the raising of special levies will start to be a thing of the past and subsequently buildings will be better maintained and the allocation of financial burden shall be equally spread between existing owners and new purchasers alike. Planning ahead for regular maintenance allows time and finances to be effectively managed. It is left to the discretion of the Owners Corporation how much maintenance they wish to carry out on a building but when maintenance is carried out on a regular and orderly basis, the tasks become less onerous and the costs can be spread over time.




1.2 Summary of Required Sinking Fund Contributions

The present sinking fund balance is $................... current as at ………….. The assessed contributions have been calculated in an attempt to ensure that adequate funds are available to meet all foreseeable expenses related to maintenance and items requiring future replacement within the next 15 years. It is the responsibility of the Owners Corporation to use the contributions provided within the Sinking Fund Forecast, apply the existing sinking fund balance and individual number of unit entitlements for each lot to calculate the annual strata levies required per lot.

Summary of Levies - SP ……….

Year Levies to be Struck Levies to be Expended 2011 $35,637 $9,500 2012 $26,921 2013 $27,728 2014 $28,560 2015 $29,417 $63,816 2016 $16,365 2017 $16,856 2018 $17,362 2019 $17,883 2020 $18,419 $85,406 2021 $8,959 2022 $9,228 2023 $9,505 2024 $9,790 2025 $10,084 $123,993




2.0 INTRODUCTION

We are instructed by the Strata Manager, …………………… of …………………………………… on behalf of the Owners Corporation, to provide a Sinking Fund Forecast of all common areas within the property including circulation routes and driveways, the surrounding landscape gardens and open space, the service areas/rooms, car park areas and associated facilities, the general façade and envelope of the building including windows, doors, balustrade and all other common property. If applicable, In relation to lifts, fire compliance and mechanical services, these are required under statutory regulation to be inspected annually, as such they do not form part of our inspection. However we should be provided with any report or forward maintenance programme in relation to the lift, fire compliance and mechanical services for the building and these costs must be included into the funding schedule. In providing this document we make the following comments which may prove helpful in analysing the Forecast.

In the first year of this Forecast there may be a number of one off expenditures. These items are deemed necessary to bring the complex up to a serviceable condition as per the requirements of “Clause 62 Duties of Owners Corporation to maintain and repair property”, of the Strata Schemes Management Act.

Forecasting of costs is not an exact science and it relies to some extent on the experience of the Author. In order to achieve the best result the Sinking Fund schedule is broken into three five year programmes. Sinking Fund Forecasts are just that, a forecast. We seek to estimate rates of wear and tear and in our remedial recommendations we take into account continuing technological changes. A review of the Forecast each five years is required to keep the Sinking Fund in compliance with the regulations under the Strata Schemes Management Act. Once the Forecast is accepted and implemented by the Owners Corporation the likelihood of additional special levies within the forecast period is greatly diminished.




3.0 PROPERTY

The property comprises of ………… units contained in a …….. level multi storey residential building. Other than limited on road parking, there are no car parking facilities’ with this building. The building for the purposes of this Report is considered to face …………. towards ……………………….. and is believed to be approximately …….. years of age. The building is constructed of………………………………….. The roof is ……………………………………………………………………………………………… Other notable features of the building include ………………………………………………….

STRATA SCHE

ME SAMPLE REP 64



4.0 INSPECTION The inspection was carried out on the …………………… and access was made available to all relevant common areas including both the pedestrian access routes to the roof, storage rooms, the basement area, garbage bin area, drying area, and all common garden areas surrounding the building and circulation routes. Weather conditions at the time of our inspection were ………………………….


This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at the time and expressed for the purposes of consideration by the Addressee and not for general publication without written consent.

5.0 INSPECTION RESULTS

5.1 Items considered being in Breach of the Building Code of Australia or heightening Risk Exposure to the Owners Corporation

No items were noted at the time of the Inspection

5.2 Fire Upgrade from Local Council

We are informed that no fire upgrades have recently been carried out to the subject building. There are believed to be several issues of non-compliance in relation to exit signage, emergency lighting, emergency equipment, exit doors, and smoke alarms. The Environmental Planning and Assessment Act requires that all strata complexes have an Annual Fire Safety Statement (formerly known as 15A Certificates) issued in accordance with AS1851-2005. This requires a physical visual annual inspection and testing of the equipment. If pumps for the sprinkler, fire hydrant and fire hose reel systems are installed they need to be tested each month. The EPA Act requires that a copy of the Annual Fire Safety Statement be attached to the strata notice board and a copy issued to the Strata Manager, the NSW Fire Brigade and the Local Government Authority (Council). Fines for non-compliance range from a minimum of $10,000 to a maximum of $1,110,000. As well, once a breach is identified Council has the authority to apply fines accumulating on a daily basis. As such immediate proactive action should be taken to ensure compliance as Council has the power under the Environment Planning and Assessment Regulations to have the necessary works completed and recover the costs from the Owners Corporation.

Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.2.1

All Areas of the property

Existing fire safety measures are believed to be non compliant to the current Building Code of Australia.

Carry out a full Fire Inspection and report on the property. A competitive quote is available from Integrated Building Consultancy if requested.


This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at the time and expressed for the purposes of

consideration by the Addressee and not for general publication without written consent.

5.3 Immediate Maintenance Items Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.3.1 East elevation

MOISTURE INGRESS There is a decorative masonry porch at the main (front) entrance to the building. The roof of this porch was found on inspection to be filled with 20-30mm of surface water. It became evident on closer inspection that the drainage outlet (position indicated) was blocked. This was cleared at the time and the water gradually flowed away. However, it was then noted that there was a significant amount of water running down the outside of the wall directly below the drain outlet. This water was seeping through the brick work approx 300mm down from the roof level indicating a leak within the downpipe from the outlet within the wall. There is evidence of long term staining on the face of this wall indicating that this problem has been prevalent for a considerable time.

Allow to carry out the following works: • Trace the source of the leak

within the down pipe and repair

• Apply a new coating of a suitable waterproof membrane system to the roof area as per manufacturers instructions

• Remove the staining from the wall with an appropriate chemical cleaner

Notation: It is suggested that a suitable reduced width downpipe may be inserted into the existing to form a new water course route and by pass the leak. The outlet should then be sealed to form a new watertight collar and a new membrane applied over the whole area. This method of repair would avoid expensive destructive works on the brickwork.





5.3.1 cont

East elevation (continued)

If left untreated, this is likely to cause water ingress damage within the building with an associated increase in repair costs to the owners.





5.3.2 Roof DOOR REFURBISHMENTS There are two stores positioned either side of the exit onto the roof located on the western elevation. The timber elements of these stores are showing signs of dilapidation and are in need or refurbishment and in some cases, replacement. This includes the doors, door frames and fascia around the flat roof perimeter.

Allow to carry out the following works: • Remove and dispose of the

door to store number 4 as this is deemed beyond economical repair.

• Repair the threshold of door to store 4

• Carry out minor repairs to the door of store 3

• Carry out repainting works to the fascia and doors after repairs/replacement

• The surface of all timber is to be sanded and painted in full gloss in a colour selected by the Owners Corporation.

• Allow for application of a sealer undercoat and two coats of full gloss.





5.3.2 cont

Roof (continued)





5.3.3 South elevation

CRACKING TO RENDERING Upon inspection it was noted that there was some vertical cracking through the rendered finish starting from the base of the wall. This cracking started from ground level as shown in the top photograph adjacent to unit 2. The cracking was approx 2-3mm wide at this point. The cracking continued in an almost vertical line to the top of the building increasing in width and depth until it reached the roof level. At its highest point the cracking was estimated to be approx 15-20mm wide and appeared (from a ground level view) to extend deep into the masonry. Upon further investigation inside the building, it was found that there were no internal cracks to unit 4, which was the highest unit affected on this elevation. The cause of the cracking could not be determined from visual inspection.

Allow to carry out the following works: • Engage the services of a

qualified structural engineer to carry out a full and comprehensive structural survey on the area to report on the cracking to determine what rectification works may be required and a repair methodology.

Notation: This service is available through Integrated Building Consultancy. An estimated cost for inspection by IBC will be entered into the forecast as per the Strata Managers request.





5.3.3 Cont

South elevation (continued)





5.3.4 West elevation

CONCRETE SPALLING There is evidence of concrete spalling appearing under the concrete overhang of the rear entrance to the building. The steel reinforcing has now been exposed due to the long term effects of weathering and the corroding effect of the steel is causing the concrete surrounding it to explode. (Spalling). If left untreated, more extensive damage will be caused, which will in turn increase repair costs.

Allow to carry out the following works: • Cut out all delaminated concrete

and remove loose particles • Metal work is to be prepared with

all loose and flaking paint and rust removed.

• A rust inhibitor shall be applied. • Fill the cavity with Polymer

modified sand and cement mix with a waterproof additive as per manufacturer’s instructions

Notation: We would advise that the owners should continue to monitor the area at regular intervals for further signs of corrosion and treat accordingly as soon as it becomes visually apparent.






ROTATION OF MASONRY WALL The one brick thick boundary wall adjacent to the drying area has become detached from the main wall of the building. This vertical detachment is approx 1m long and ranges from 0-15mm in width from the lower end to the top of the wall coping. It is noted that this wall is in close proximity to the cracking referred too under item 5.3.3. However, from visual Inspection alone, it is unclear whether these items are connected. Clarification should be obtained after the recommended engineer’s inspection and subsequent report has been completed.

Allow to carry out the following works: (Subject to engineers confirmation)

• Repoint on completion where necessary with a flexible sealant and mortar to best match existing.

• Clean up on completion. • Continue to monitor for further

movement




5.4 Items Requiring Maintenance within 5 Years Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.4.1 Roof and the north, south and west elevations

PLUMBING REPAIRS There are a number of redundant water storage tanks on the roof. The timber supports for these tanks are in a dilapidated state of repair and are near collapse. In addition, there are also large quantities of redundant pipe work on all elevations of the building except for the east (front). Furthermore there are damaged redundant vents and stacks exiting at roof level, some of which are severely corroded and loose. We are informed that a new heating system was recently fitted into the building which supersedes the old boiler in the basement. The refurbishment of redundant water tanks and repainting of pipe work maybe cost prohibitive.

Allow to carry out the following works: • Engage the services of a

licensed plumber to obtain a quote for the removal of all redundant boiler fittings and the making good of all open penetrations around the building exterior and interior. An estimation for these works has been included if the forecast spreadsheet to assist the owners in meeting the financial requirement when the works are awarded.

Notation: We would advise that the corroded stacks which are hanging loose (circled) should be removed immediately as they pose a significant OH&S issue in their present condition.





5.4.1 cont

Roof and all external elevations (continued)

It is therefore suggested consideration be given for the removal and disposal of all the elements associated with the redundant boiler system.





5.4.1 cont

Roof and all external elevations (continued)





5.4.2 Roof FASCIA REPLACEMENT The exit from the internal stairway onto the roof from the east elevation is enclosed by a concrete and brick structure. The timber fascia board at the west elevation of this structure has rotted away and appears to be held together by the amount of paint that has been applied to it. The inserted key (which was pushed in with ease) is to demonstrate how soft the wood has become. This fascia has reached the end of its lifespan and requires replacement.

Allow to carry out the following works: • Remove and replace the

existing fascia with new • Prime and repaint to best

match existing • Reseal joints between fascia

and the concrete roof to make watertight

Notation: these works could be carried out in conjunction with item 5.3.2 to reduce costs.





5.4.3 Roof and West elevations

STORE REFURBISHMENT There are four nominated stores for occupants use. Two are situated on the roof either side of the exit on the West elevation and the other two are situated to the left hand side below unit.…. also on the west elevation. These stores are in various states of disrepair. This ranges from cracks in the walls, missing vent covers, rotted timber battening to the ceilings and holes in the ceilings. Evidence of previous water ingress issues are also noted from the amount of staining. If these are to remain as storage areas they should be kept dry and some refurbishment will need to be carried out.

Allow to carry out the following works:

• Remove all dilapidated roof sheeting and rotted battens and replace with new where it is deemed beyond economical repair

• Check for and repair any signs of water ingress

• Make good all cracks in the rendering

• Replace missing vent cover • Decorate as required including

windows and doors paintwork • Remove corrosion from pipe

work, treat with a rust proofing agent and re-paint





5.4.3 cont

Roof and West elevations (continued)





5.4.4 Roof HANDRAIL REPLACEMENT There is a tubular steel framed and wire mesh handrail surrounding the north and south elevations of the roof space recreational area. There are sharp edges on the upper handrail of this fence and the wire mesh is starting to corrode which is affecting its overall integrity. This handrail does not meet current BCA standards, although it is acknowledged that it was likely to have been acceptable at the time of construction. In its present condition it is unlikely that this handrail would fulfil its function as an effective safety barrier. It is clear that the roof area is used for recreation purposes and consequently this handrail should be removed and replaced with a BCA compliant alternative.

Allow to carry out the following works: • Remove existing hand rail and

replace with a BCA compliant alternative in a style and pattern chosen by the owners

Notation one: The works would also require the installation of a number of certified roof anchorage points. This is to ensure the safety of workers during the removal and installation of handrails. The cost of which is included within the forecast. Notation two: The owners are advised that to remain compliant, these anchorage points would have to be re-certified by a competent person each year at a cost of approx $550. This maintenance cost is not included within the forecast.






ROOF REFURBISHMENT The flat roof over the rear entrance to the building is in a dilapidated condition and requires refurbishment. The flashing to the parapet wall on the south elevation of the roof has become detached and will allow water ingress into the building if left untreated.

Allow to carry out the following works: • Redress the flashing into its

correct position and repoint at the joints where required with Cement mortar

Notation: It may be found that once work is undertaken, that it may prove to be more cost effective to replace the flashing rather than repair it.





5.4.6 East elevation

BROKEN DOOR CLOSER The door closer fitted to the door at the entrance to the roof is unable to carry out its correct function as it is broken.

Allow to carry out the following works:

• Repair door closer


DRAINAGE REPAIRS The cement flaunching surrounding the sewer roding point has fallen into a state of disrepair. This is located within the drying area and as such, In its present condition presents an OH&S trip hazard

Allow to carry out the following works: • Remove all existing broken

and detached flaunching and replace with new sealed Roding point to finish at ground level





5.4.8 North elevation

DRAINAGE REPAIRS The junction of the down pipe at path level is poorly fitted and exposes the cavity under the path. If this is left in its present condition this could be a likely passage for vermin from the drainage system and for surface water to undermine the existing path and foundations of the building.

Allow to carry out the following works: • Make good the gap around the

downpipe with Concrete, finishing flush with surrounding surfaces


BOUNDARY MASONRY WALL REFURBISHMENT There is a low level one brick thick, boundary wall under the newer Colourbond fence. This wall does not support the fence. This wall is in a state of collapse along its full length. A section of it has been removed at some stage exposing the sub base of the path of the adjoining property.

Allow to carry out the following works: • Remove existing brick wall • Replace with Concrete block

work or fix formwork both sides and pour a Concrete infill with a fall away from the adjoining property

• Allow for drainage points to be installed along the full length.

Notation: This should be carried out in conjunction with the previous item (5.4.8) to reduce costs for the owners. The estimated repair cost is included in the forecast with the previous item





5.4.9 cont

North elevation (continued)

If left in its present condition the effect of weathering will eventually undermine the Concrete path of the adjoining property causing structural damage.






FLOOR SCREED REPAIRS The entrance path into store number one has become delaminated and requires repair. In its present form it presents an OH&S trip hazard to users.

Allow to carry out the following works: • Removed delaminated

sections of floor screed and clean area of dust and loose debris

• Prime all of the underlying masonry with a bonding agent prior to re-screeding.

• Replace with new sand and cement screed finishing flush with existing

• Clean up on completion




5.5 Items Requiring Maintenance within 5-10 Years Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable


GUTTERING REPLACEMENT The guttering to the flat roof of the rear entrance is showing signs of wear and tear and is expected to have reached the end of its effective lifespan by this time and will therefore require replacement.

Allow to carry out the following works: • Remove existing guttering and

replace with new. Notation: We would suggest that all the proposed plumbing works be carried out at the same time as a means of reducing labour costs to the owners


FLASHING REPLACEMENT There is an open timber and brick surround to the meter boxes attached to the side of the building. The surround is covered by a sheet of alloy and finished off at the junction of the wall with flashing as part of the waterproofing protection. It is expected that with general wear and tear the alloy sheet and flashing will require replacement by this time.

Allow to carry out the following works: • Replace the alloy sheet and

flashing Notation: We would suggest that all the proposed plumbing works be carried out at the same time as a means of reducing labour costs to the owners






WASHING LINE REPLACEMENT There are a number of washing lines at the rear of the building for the general use of all occupants. The ratchets to these lines are believed to be original fixtures and some are showing signs of age. Two are broken. It is expected that a number of these will require replacement within this time frame.

Allow to carry out the following works: • Replace damaged or worn

washing line ratchets with a similar design

• Also allow for the replacement of ageing and worn timber posts






ROOF REFURBISHMENT The flat roof at the rear entrance to the building is covered with a waterproof membrane system which is beginning to show signs of general wear and tear. It is expected that this membrane will require a re-application within this time frame.

Allow to carry out the following works: • Apply a covering of an

appropriate waterproof membrane system as per manufacturers instructions

Notation: It is noted that this roof is being used as a recreational area. Attention is drawn to the fact that there is an unprotected drop of over 2m onto the hard standing below. This is considered an OH&S fall issue which should be highlighted to the users.

5.5.5 South and east elevations

PATH REPAIRS The two entrances to the building are accessed across decorative finished Concrete pathways. Both display movement cracks. It is believed that these long standing cracks are unlikely to increase in width or depth. However, if left untreated they will continue to be a source of water ingress into the subase material. This will eventually undermine the structural stability of the path.

Allow to carry out the following works: • Engage the services of an

experienced heritage registered builder to repair the cracking to best match the existing





5.5.5 cont

South and east elevations (continued)

Notation: It is unclear if the cracks to the path at the south elevation are related to the cracking in item 5.3.3. This should be clarified during the proposed engineers inspection and subsequent report.





5.5.6 South elevation

BOUNDARY WALL REPAIRS The low level brick boundary wall which contains a number of post boxes is displaying signs of diagonal cracking. This is believed to have been caused by ground movement over time. This is not considered to be a significant issue.

Allow to carry out the following works: • Cut out the cracked joints • Cut out any split bricks and

replace to best match existing • Repoint in cement mortar to

best match existing colour and strength

• Continue to monitor for any further movement





5.5.7 External elevations

EXTERNAL PAINTING Due to the effects of weathering the externally painted surfaces will be due for re-painting at this time. This includes painting rendered finishes, doors, door frames, soffits, fascias, masonry walls on the roof area, and metal grilles over window openings. The painting and rust removal of redundant pipe work is not included as this may have been removed by this time. Notation: It is suggested that the current unpainted rendered finishes (Ashlar finish) are included in the external painting to cover up the extensive cracking repairs and the expected repairs from holes where redundant pipes have been removed. This would serve a dual purpose. First to enhance the water proofing effectiveness of the rendering and secondly, the overall aesthetics of the building by covering up all the new and previous crack repairs.

Allow to carry out the following works: • Any cracks, chips and

delaminating render is to be repaired, sanded and feathered so that when painting occurs the patch is not noticeable.

• External painting of rendered surfaces treated with a primer followed by two coats of an elastomeric paint in a colour chosen by the owners.


• Allow for application of a sealer undercoat and two coats of full gloss.

• Metal work is to be prepared with all loose and flaking paint and rust removed.

• A rust inhibitor shall be applied. • A two-pack epoxy finish applied in

a colour as selected by the Owners Corporation.

Notation: It is acknowledged that there are some repair works that will need to take place on dilapidated timber of the fascia and soffit in the area marked on the north elevation.





5.5.7 cont

External elevations (continued)




5.6 Items Requiring Maintenance within 10-15 Years Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.6.1 Internal common areas

INTERNAL PAINTING The internal painted surfaces are expected be due for repainting by this time. Areas such as stairwells and utility rooms, and the two entrance foyers are included. This encompasses the walls, ceilings, metal hand rails, stairs, painted frames, doors and any other timber painted surfaces. This also includes the re-lacquer of doors, panelling, and other handrails, where required.

Allow to carry out the following works: • For internal walls and ceilings, all

cracks, chips and delaminating render is to be repaired, sanded and feathered so that when painting occurs the patch is not noticeable.

• The painter is to clean all ceilings and walls with sugar soap or similar product prior to applying a suitable primer to all walls and ceiling surfaces.

• The ceiling is to be finished in flat white acrylic paint or other colour chosen by the owners.

• The walls are to receive one coat of paint in a finish and colour as selected by the Owners Corporation.


• Allow for application of a suitable sealer undercoat and two coats of full gloss.

• Clean up on completion.





5.6.1 cont

Internal common areas (continued)

For stained entrance doors, panelling and stair handrails allow the following works:

• Remove all loose and flaking lacquer by scraping or other appropriate means so that a clean smooth dry surface remains. If a smooth surface cannot be achieved, then stripping of the lacquer to the affected area should take place.

• Fill all cracks, holes and other imperfections with an approved flexible filler of matching colour with the timber and sand smooth.

• Attention should be given to ensure that a stain is applied to match the existing stained colour of the woodwork.





5.6.1 cont

Internal common areas (continued)





5.6.2 Roof ROOF REFURBISHMENT The roof is covered with a waterproof membrane. It is unclear when this was last recoated. However, there is evidence of some previous patch repair works at various locations. There was also some “give” in the material when walked upon. We were not informed of any current water ingress issues when the question was raised. It is expected that the roof covering will have reached the end of its life span by this time and will require replacement. It is believed that the original roof finish is underneath the waterproof membrane and due to the age of the building we advise that this is given close inspection at the time of refurbishment to determine if there are any further refurbishment works that need to be carried out prior to a new waterproof membrane being laid.

Allow to carry out the following works: • Remove all the existing

waterproof membrane material • Carry out a detailed Inspection

of the elements of the roof under the existing waterproof membrane

• (dependant on the result of a detailed inspection), Apply new waterproofing membrane to the roof area approx 28m x 12m

STRATA SCHEME SAMPLE REPORT 64

This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at the time and expressed for the purposes of consideration by the Addressee and not for general publication without written consent.

6.0 INSPECTION SUMMARY

6.1 Items considered being in Breach of the Building Code of Australia or heightening Risk Exposure to the Owners Corporation

6.1.1 No items were noted at the time of the Inspection 6.2 Fire Upgrade from Local Council 6.2.1 Complete fire audit and report 6.3 Immediate Maintenance Items 6.3.1 Repair moisture ingress 6.3.2 Door refurbishment 6.3.3 Structural engineers Inspection 6.3.4 Concrete spalling repairs 6.3.5 Boundary wall repairs 6.4 Maintenance within 5 Years 6.4.1 Plumbing repairs 6.4.2 Replace fascia 6.4.3 Store internal refurbishment 6.4.4 Replace handrail 6.4.5 Roof refurbishment 6.4.6 Repair door closer 6.4.7 Drainage repairs 6.4.8 Rectification of boundary wall 6.4.9 Repair floor screed




6.5 Maintenance within 5-10 Years 6.5.1 Replace guttering 6.5.2 Replace waterproof cover 6.5.3 Washing line repairs 6.5.4 Roof refurbishment 6.5.5 Repair cracked paths 6.5.6 Boundary wall repairs 6.5.7 External painting 6.6 Maintenance within 10-15 Years 6.6.1 Internal decoration 6.6.2 Roof refurbishment




Notes and Legend in relation to Sinking Fund Spreadsheet on the following page/s On the following page/s is the financial breakdown of the Sinking Fund Forecast in a spreadsheet format. We provide the following notes and legend to assist in the dissemination of this information. The first column is currently not in use. The next column summarises the projected required maintenance work (1st line) and the costs we estimate if the works were carried out today (2nd line) and the projected cost allowing for inflation (3rd line). The third column is the number of years that the levies will be collected prior to the expense being incurred. The fourth column is the inflation factor that has been applied per annum to allow for CPI and projected material/labour cost increases per annum, so that when works are scheduled for commencement sufficient funds are available. The following columns are broken into Years. For each year it shows the levies required to be raised in that year and in the adjacent column the amount that will be expended in that year. Please note that where no amount is shown as expended, this means that the funds are accumulating in the Sinking Fund for future expense. Ultimately where the funds are showing as being expended ($ value in brackets) this is the year that the works are projected to be carried out. At the very bottom of the spreadsheet on the left hand side, third row from the bottom entitled TOTAL, shows the total funds raised and expended in each year. The second row from the bottom shows the total unit entitlements allocated as per Strata Plan details or as advised by your Strata Manager. The bottom row of the spreadsheet, divides the total required funds to be raised by the total lot entitlement, so that a per owner entitlement amount is calculated. As such for each allotment to determine their contribution to the Sinking Fund is a matter of establishing the unit entitlement for that unit and multiplying it by the unit entitlement rate. For example: If the unit entitlement (including carparking) was 46 and the contribution rate was $28.00. Therefore 46 x 28 = $1,288.00 being the sinking fund levy for that year, for that particular lot.




Accuracy of Costings We draw the attention of the reader to Item 8 of the Conditions Relating to this Report in regard to the accuracy of the estimations. It is our recommendation that quotations be sourced to evaluate the commercial cost of the works at least six months prior to the programmed works taking place so that any adjustments to the projected budgets can be incorporated. This may result in the necessity to increase the levies in the following year or allow for a lower collection based on the commercial reality at the time of the works taking place. Balance of Existing Funds Existing monies in the Sinking Fund have not been included in the following table. The reason being is we are not aware of the invoices or payments that may be required to be deducted from the existing balance shown in Item 1.2. The Owners Corporation have two options: (1) unless the balance is in arrears, any surplus could be left out of the spreadsheet

calculation to be used as a buffer, or (2) the Strata Manager could deduct any outstanding or projected expenses that

have not been accounted for in the spreadsheet summary. Deduct these from the balance as shown in Item 1.2 and deduct any surplus from the required Sinking Fund amount for the first year of operation of the new Sinking Fund.

If the Sinking Fund is starting in arrears, the arrears will need to be taken up as

further contributions on the first year totals and adjustment of the Sinking Fund should take place accordingly.

Adjustment of Sinking Fund Forecast Our research has shown that many sinking funds do not deliver a long term benefit to Owners Corporations. One of the main reasons is that the schedule quite often changes for various reasons, such as items due for replacement in a particular year may be found to have a longer life expectancy or through acts of god and vandalism some works which are not forecasted require attention. As well there are regular changes of committees over the years and priorities may well change. In light of this we have provided the Sinking Fund Schedule in a digital excel spreadsheet format on a CD Rom to your Strata Manager. Minor changes can be made and the spreadsheet will automatically recalculate the levies required to be raised. For major changes, Integrated would be happy to provide advice and readjust the spreadsheet for a small fee.




Assistance with Scoping, Tendering & Contracts Administration of Works & OH&S requirements Due to the on site inspection process and the development of this Sinking Fund, Integrated has acquired a firm understanding of the condition and maintenance requirements of your building and would be pleased to continue providing assistance and services to the Owners Corporation. We are able to provide a quotation for the development of a Scope of Works and Specification for the repairs and maintenance as identified in this Sinking Fund Report; calling of Tenders and provision of a Tender Analysis. Also, we can Contract Administrate the works through to completion and provide certification of compliance. Please be advised that once a contractor has been engaged to carry out works by the executive committee, that current OH&S exemptions for Strata schemes do not apply as they become “employers”, and as such must under the OH&S 2001 regulations “provide a safe working environment”. We are able to provide OH&S audits that will comply with current legislation on behalf of the Executive. If we can assist you in any of the above, please do not hesitate to contact our office.




7.0 SINKING FUND SCHEDULE COMMENCING 2011

Our Ref: ………….. Date: ……………

CONDITIONS RELATING TO THIS REPORT 1. The Report is made in accordance with the requirements of Australian Standard 4349.1-

1995 and is a special purpose property report that reflects the requirements of the instructions provided to Integrated Building Consultancy Norwest ACN 119 674 298. This is not a pre-purchase report nor does it express any view as to the value of the Property or parts thereof being inspected.

2. This Report and all its content is prepared for the exclusive use of the Addressee and

may not be used for any other purpose than its stated intention with the exception of its distribution to any party in litigation to which this Report may have reference. No responsibility will be accepted for its content in respect of Third Parties.

3. This Report will remain the property of Integrated Building Consultancy Norwest ACN 119

674 298 and may not be used by the Addressee for any purpose whatsoever until full payment is made. Non compliance with this condition forms a substantial breach in the terms of the agreement between the Addressee and Integrated Building Consultancy Norwest ACN 119 674 298.

4. This Report may not necessarily be suitable for presentation in litigation and other Court

or Tribunal actions as a report with a different structure, ie, a Scott Schedule, may be required by direction of the adjudicative body.

5. Unless otherwise stated-

(a) no soil etc has been excavated (b) no plants or trees have been removed (c) no fixtures, fittings, cladding or lining materials have been removed (d) no items of furniture or chattels have been moved (e) no enquiries of Councils or Authorities or persons have been made for the

purpose of inspecting the Building and providing this Report. 6. This Report does not include-

(a) faults in inaccessible parts of the Building (b) faults not apparent on visual inspection (c) faults apparent only in different weather or environmental conditions (d) faults resulting from different use of the Building’s intended use (e) minor faults (e.g. hairline plaster cracks, jamming doors, window and catches

etc)

This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at the

time and expressed for the purposes of consideration by the Addressee and not for general publication without written consent.

CONDITIONS RELATING TO THIS REPORT Continued 7. Asbestos Disclaimer: “No inspection for asbestos was carried out at the property

and no report on the presence or absence of asbestos is provided. If during the course of the Inspection asbestos or materials containing asbestos happened to be noticed then this may be noted in the general remarks section of the report. Buildings built prior to 1982 may have all and/or ceiling sheeting and other products including roof sheeting that contains Asbestos. Even buildings built after this date up until the early 90’s may contain some Asbestos. Sheeting should be fully sealed. If concerned or if the building was built prior to 1990 you should seek advice from a qualified asbestos removal expert as to the amount and importance of the asbestos present and the cost of sealing or removal. If asbestos is noted as present within the property then you should seek advice from a qualified asbestos removal expert as to the amount and importance of the asbestos present and the cost of sealing or of removal. Drilling, cutting or removing sheeting or products containing Asbestos is a high risk to peoples’ health. You should seek advice from a qualified asbestos removal expert.”

8. Expert Witness Estimating Disclaimer: Any estimates provided in this report are

merely opinions of possible costs that could be encountered, based on the knowledge and experience of the consultant. The estimates are NOT a guarantee or quotation for work to be carried out. The actual cost is ultimately dependent upon the materials used, standard of finish required and what a contractor is prepared to do the work for. It is recommended in ALL instances that multiple independent quotes are sourced prior to any work being carried out. The consultant accepts no liability for any estimates provided throughout this report.

9. Professional Indemnity Insurance: Integrated Building Consultancy Norwest ACN 119 674

298 holds current professional indemnity insurance. This insurance is limited to a maximum of $1million per event. It is a condition on engagement of Integrated Building Consultancy Norwest ACN 119 674 298 that any claim on the professional indemnity insurance will be limited to a maximum of $1million.

APPENDIX A

STRATA PLAN REGISTRATION PAGE (UNIT ENTITLEMENT)

PLEASE CONTACT YOUR STRATA MANAGER

REFER TO PAGE OF THIS REPORT, ADJUSTMENT OF SINKING FUND FORECAST

7.0 SINKING FUND SCHEDULE(Whole Dollars Only)

PARAMETERS

COSTS BEGINNING

NO. OF YEARS INFLATION FACTOR

YEAR Per Annum Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck

Levies Expended

Levies Struck Levies Expended

Today's Cost 0 2011 1 0.0%

Projected Costs For Inflation 0

Today's Cost 2,000 2011 1 0.0% $2,000

Projected Costs For Inflation 2,000 ($2,000)

Today's Cost 3,000 2011 1 0.0% $3,000


Today's Cost 2,500 2011 1 0.0% $2,500


Today's Cost 1,500 2011 1 0.0% $1,500


Today's Cost 500 2011 1 0.0% $500

Projected Costs For Inflation 500 ($500)

Today's Cost 7,500 2011 5 3.0% $1,500 $1,545 $1,591 $1,639 $1,688


Today's Cost 750 2011 5 3.0% $150 $155 $159 $164 $169


Today's Cost 4,000 2011 5 3.0% $800 $824 $849 $874 $900


Today's Cost 40,000 2011 5 3.0% $8,000 $8,240 $8,487 $8,742 $9,004


Today's Cost 800 2011 5 3.0% $160 $165 $170 $175 $180


Today's Cost 300 2011 5 3.0% $60 $62 $64 $66 $68


Today's Cost 250 2011 5 3.0% $50 $52 $53 $55 $56


Today's Cost 5,000 2011 5 3.0% $1,000 $1,030 $1,061 $1,093 $1,126


Today's Cost 1,500 2011 5 3.0% $300 $309 $318 $328 $338


Today's Cost 2,500 2011 10 3.0% $250 $258 $265 $273 $281 $290 $299 $307 $317 $326


Today's Cost 500 2011 10 3.0% $50 $52 $53 $55 $56 $58 $60 $61 $63 $65


Today's Cost 750 2011 10 3.0% $75 $77 $80 $82 $84 $87 $90 $92 $95 $98


Today's Cost 1,250 2011 10 3.0% $125 $129 $133 $137 $141 $145 $149 $154 $158 $163


Today's Cost 4,000 2011 10 3.0% $400 $412 $424 $437 $450 $464 $478 $492 $507 $522


Today's Cost 500 2011 10 3.0% $50 $52 $53 $55 $56 $58 $60 $61 $63 $65


Today's Cost 65,000 2011 10 3.0% $6,500 $6,695 $6,896 $7,103 $7,316 $7,535 $7,761 $7,994 $8,234 $8,481


Today's Cost 40,000 2011 15 3.0% $2,667 $2,747 $2,829 $2,914 $3,001 $3,091 $3,184 $3,280 $3,378 $3,479 $3,584 $3,691 $3,802 $3,916 $4,034


Today's Cost 60,000 2011 15 3.0% $4,000 $4,120 $4,244 $4,371 $4,502 $4,637 $4,776 $4,919 $5,067 $5,219 $5,376 $5,537 $5,703 $5,874 $6,050


Today's Cost 0 2011 0 0.0%

Projected Costs For Inflation 0

Total $35,637 ($9,500) $26,921 $27,728 $28,560 $29,417 ($63,816) $16,365 $16,856 $17,362 $17,883 $18,419 ($85,406) $8,959 $9,228 $9,505 $9,790 $10,084 ($123,993)

Total Lot Entitlements 120

Contribution Per Lot Entitlement $297 $224 $231 $238 $245 $136 $140 $145 $149 $153 $75 $77 $79 $82 $84

Roof refurbishment

Spare

Repair cracked paths

Boundary wall repairs

External painting

Internal decoration

NEXT SINKING FUND ANALYSIS DUE

Strata Plan: Subject Property: NEXT SINKING FUND ANALYSIS DUE

Prepared by: Integrated Building Consultancy 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Fire audit and report quote

Store internal refurbishment

Replace handrail

Roof refurbishment

Repair door closer

Drainage repairs

Repair moisture ingress

Door refurbishment

Repair floor screed

Rectification of boundary wall

Engineers Inspection

Concrete spalling repairs

Boundary wall repairs

Plumbing repairs

Replace fascia

Replace guttering

Replace waterproof cover

Washing line repairs

Roof refurbishment

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