What is this talk of a maintenance plan? We don’t have money to get someone to draw up the plan can the Trustees do it? Once its done it’s done right?
The STSM Act when coming into operation on 7 October 2016 brought with it a new animal. The Maintenance repair and replacement plan – commonly know as the 10year Maintenance plan.
PMR 22 of the Act deals with the Maintenance plan and states the following:
- (1) A body corporate or trustees must prepare a written maintenance, repair and replacement plan for the common property, setting out—
- the major capital items expected to require maintenance, repair and replacement within the next 10 years;
- the present condition or state of repair of those items;
- the time when those items or components of those items will need to be maintained, repaired or replaced;
- the estimated cost of the maintenance, repair and replacement of those items or components;
- the expected life of those items or components once maintained, repaired or replaced; and
- any other information the body corporate considers relevant.
It is therefore not prescribed that it must be done by a professional company – so the Trustees can set it up themselves. But we will always suggest that a professional is rather used for this as they know the details better. Trustees are normally volunteers with day jobs that don’t have the knowledge or experience for something like this.
The Act is also not that prescriptive on what must be included in the plan – so it can be a simple spreadsheet – as long as it shows the items for 10 years as per PMR 22(1)
Unfortunately “once its done its done” does not apply here. The Maintenance plan needs to be approved at the AGM every year. So year 1 falls away as done and another year is added at the end of the plan to keep it on a rolling 10 years.
PMR 22(3)A maintenance, repair and replacement plan takes effect on its approval by the members in general meeting; provided that on approval of such a plan, members may lay down conditions for the payment of money from the reserve fund.