Congratulations if your scheme has committed to obtaining a long-term maintenance plan (also known as a capital works or sinking fund plans). This is a significant and essential step toward ensuring the long-term financial health of your building.
But what happens next?
Too often, these plans are created, approved, and then left untouched. Without regular reviews, a maintenance plan can quickly become outdated and ineffective.
In the below article, Mabi services outline why maintenance plans require regular reviews. And why “set and forget” can be a costly mistake for many schemes across Australia.
What is a maintenance plan?
A maintenance plan is a long-term financial strategy that outlines projected major repairs, replacements, and upgrades for common property assets within a strata scheme. Under the Owners Corporations Act 2006 (Vic), maintenance plans are mandatory for Tier 1 and 2 buildings and strongly recommended for all others. Their purpose is to ensure adequate financial provision is made for future works, reduce the likelihood of special levies, and support compliance with legislative obligations.
These plans are particularly important for larger or more complex properties where asset degradation and lifecycle costs must be carefully managed over time.
Why are regular reviews essential?
Like any strategic document, a maintenance plan must be updated to remain relevant. Properties are dynamic—new assets are installed, major works are undertaken, and external factors like inflation or regulatory changes can significantly impact previously forecast costs.
Examples of why a review might be needed include:
- Installation of solar panels or EV chargers—New infrastructure.
- Early lifecycle replacements—An item has been renewed earlier than planned.
- Delayed lifecycle replacements—An item is still functioning past it estimated replacement/maintenance cycle.
- Industry shifts—inflation, building cost escalation may impact the viability of the current plan.
While initial plans are developed using current best estimates, no plan can predict the future with complete accuracy. Regular reviews help to realign the budget with the actual condition of the building and any changes that have occurred.
When should a maintenance plan be reviewed?
There is no one-size-fits-all answer. The frequency of reviews should reflect the complexity, age, and condition of the property.
In our experience:
- Annual reviews suit highly complex or high-value buildings with active capital works programs.
- A review every 2–3 years is generally the recommended standard for most properties.
- Infrequent reviews often lead to outdated budgets and higher costs when a full reassessment is eventually required.
The key is to establish a review cycle at the outset and revisit it regularly with your committee, servicing contractors and building managers.
Why committee involvement is key?
Whether your building is a decades-old or a newly completed, developing and maintaining a maintenance plan should be a collaborative process. We strongly advocate that the plan is developed with the committee, not simply for them.
Committees that understand and contribute to the budget are more likely to approve and implement it.
Our process includes:
- Site inspection and asset identification
- Data collection and analysis
- Report preparation
- Committee consultation and review meeting
- Finalisation of the plan
Yes, it’s a process—but good plans take time, and the results speak for themselves.
The Cost of Delay
Let’s be clear: the longer you wait between reviews, the more extensive—and expensive—the review process is likely to become.
A case in point: any budget that hasn’t been reviewed in recent years should be treated as a priority. Ongoing increases in material and labour have significantly impacted timelines and pricing structures. As a result, many older plans no longer reflect current economic conditions.
Regular reviews keep your plan accurate and relevant but also allow the cost of updates to be spread out over time.
How to plan for long-term success?
Ensure your approach includes:
- In-built meeting time and revision periods.
- A consultative and transparent process with the committee.
- Clear timelines that align with AGM scheduling and budget planning cycles.
Most importantly, it is vital that committees to plan ahead. The best results come when the process is scheduled with time to spare—not rushed in the final week before an AGM.
To learn more about maintenance plans or schedule a review, contact Mabi Services. To discuss your property’s strata management needs or receive a FREE management proposal contact our friendly team. We also offer more helpful resources and community living news in our FREE newsletter.
