The "Lego-Land" of Strata
HFM’s General Manager of Technical Services, David Chokolich, was the keynote speaker at the recent Strata Communities Australia (WA) workshop; “The Lego Land of Strata”.
David’s presentation centred specifically on two of the key proposed changes to the Strata Act:
- Documents for a Scheme
- Reserve Fund Plan
These make up 2 of the approximate 27 changes currently proposed by Landgate, who has been tasked with the management of the reform process by the Western Australian Government.
Documents for a Scheme
The draft bill sets out that the original proprietor of a scheme must take all reasonable steps to acquire and deliver the scheme documents to the strata company at the first AGM [s27C].
The reasoning for this is that key documents are required for the operation of a scheme and if they are not supplied, it can cause great difficulty and expense for the strata company.
Some of these documents include:
- Development Approvals
- Building Permit
- Practical Completion Certificates
- Defects Lists
- Fire Engineering Report
- Operating and Maintenance Manuals
- Asset Registers
- Warranties
- Maintenance Contracts
- As Constructed Documentation:
- Architectural
- Structural
- Fire
- Mechanical
- Electrical
- Hydraulic
- Security
- Metering
Reserve Fund Plan
The draft bill stipulates that any schemes with greater than 10 lots (or less if they are of significant value) will be required to prepare a Reserve Fund Plan every 5 years.
It will also be a requirement to present the reserve fund plan at each AGM.
David’s presentation stepped the audience through the process of preparing a Reserve Fund Plan.
At HFM Asset Management, we can assist with the major components of these plans for our clients; commencing with the Asset register and then undertaking a condition audit and life cycle costing assessment.
The draft bill stipulates that any schemes with greater than 10 lots (or less if they are of significant value) will be required to prepare a Reserve Fund Plan every 5 years.
For a full copy of David’s presentation, please contact us here or by sending an email to [email protected]
