Refer No. 8 of 2011: Sectional Titles Schemes Management Act, 2011.
· Sectional titles development schemes
· Share block companies
· Home or property owners associations
· Housing schemes for retired persons
· Housing co-operatives
· Gated Villages with a Constitution
· Social Co-operatives
We provide streamlined ten year maintenance plans for Community Management Schemes like Sectional Title, Full Title, Share Block, Time Share, Homeowners Association and Retirement Villages.
The information and requirements to enable someone to draw up a ten year maintenance plan for a residential complex are inter alia, as follows:
· The age of building structures.
· The number of similar structures and sizes to calculate total area size for each type of structure.
· Knowledge of the lifespan of construction components (civil building disciplines).
· Knowledge of construction component costs.
· Knowledge of construction component labour cost.
· Knowledge of construction tools cost.
· Annual inspection of structures to identify what must be changed, repaired or replaced as preventative maintenance actions against higher eventual cost.
· How to spread preventative maintenance actions out over time to minimize and even out costs for owners.
· How to plan ahead for the prescribed maintenance reserve fund annual levies, not to fall irreparably behind.
· How to decide what escalation formulas to use over a planning period of ten years.
· How to combine the operational cost financial entries and maintenance cost financial entries into one planning and monitoring cash flow projection document for ten years.
· Knowledge of interpretation of financial statements and balance sheets.
· Knowledge of technological improvements in the building industry.
· Knowledge of law requirements and changes thereto.
· Knowledge of spread sheet calculation models and the theory of finance.
The purpose with the ten year maintenance reserve fund:
The sole purpose with the reserve fund is to provide for all unforeseen and unexpected expenses, not budgeted for and not covered by levies, whether it is administrative or maintenance.
The reserve fund budget must be calculated on the Administrative Fund total budget only. It must also be used to pay for the major items in the ten year plan. Furthermore the ten year plan is not part of the budget.
We have a questionnaire which must be completed and returned to us, to enable us to start with drawing up the ten year plan. The questionnaire is in MS Word format and can be downloaded from the Internet. We can also pay a visit and conduct a mutual inspection, if distance allows it.
Contact info for urgent assistance: 079 311 6494 - [email protected]
Skype: lepfin
The first due date for filing the plan with the Community Schemes Ombud Service (CSOS) was January 2017.
Experience and how our training guide came about:
All the required forms and regulations can be downloaded from the Community Schemes Ombud Service web site: http://csos.org.za/
They do not, however, have any guidelines on how to draw up and submit a ten year maintenance plan, except for the rules pertaining to the level of the reserve fund budget.
Consequently, after intense research, I discovered an example published by The Ministry of Business, Innovation and Employment of New Zealand, which I converted to the South African environment, by changing some of the linguistic terms.
I found this to be a workable document, but a bit cumbersome, as all calculations must be done manually with a calculator.
I then combined the ideas and methods of the New Zealand example into a spread sheet calculation model by using a Microsoft Excel spread sheet computer program. Luckily I had ample experience with using the formulas inside spread sheet programs, as I previosly had to develop several models for different purposes.
After receiving many enquiries and questions of how how to do it and after compiling several ten year maintenance plans for different building complexes, I realised there is a need for guidelines.
From my previous lifetime experience in writing training manuals, I decided to come up once again with a training manual for compiling the ten year maintenance plan, which the Ombud Service require, but do not have any guidelines for.
The training manual has now become a handy guideline for building complex managements outside of Gauteng borders, as they are too far away to make use of my services in drawing up their plans.
However, if they do not have knowledge of using spread sheet programs, I can still do it with the help of a questionnaire to be completed by the management body.
Several manuals have been sold and I have already compiled several ten year plans for Body Corporates, Home Owners Associations and Retirement Villages.
The biggest problem found so far, is that one cannot easily find a building construction expert, a spread sheet user expert and a financial statement expert, all rolled up into one single person. The solution for this dilemma is to assemble a team of knowledgeable persons for the task, if needed.
Here are the details of the ten year maintenance plan training guide for D.I.Y. enthusiasts.
Table of contents for the Community Management Schemes ten year maintenance plan training guide (40 pages):
1. Job skills requirements to become a provider of ten year maintenance plans:
2. Information needed to compile a ten year maintenance plan.
2.1 Identification
2.2 Income statement information regarding owner common property levy contribution
2.3 Annual inspection results on structures to be renovated, equipment repairs & maintenance
2.4 Balance at latest year-end from financial statements:
2.5 Personal contact details of persons responsible/accountable for the complex ten year maintenance plan (preferably more than one)
2.6. Complex Google maps coordinates or physical address
2.7. Latest audited financial statements included.
2.8. Describe what kind of agreement exists with unit owners, with regard to operational costs and maintenance costs.
3. Compiling a ten year maintenance plan manually, without using a spreadsheet program
3.1 Ten year maintenance plan example template without a spreadsheet program
4. Illustration of how to combine the Administration fund budget with the ten year Maintenance budget in a spreadsheet program.
4.2 Illustration of a Body Corporate 10 year maintenance plan (with MS Excel spreadsheets).
4.3 How to apply the rules of the law in the software program. See page 4 of the Act:
4.4 How to spread out maintenance cost to minimise levies. See rule 22 of the Act, page 37.
4.5 The purpose with the reserve fund.
5. Maintenance lifespan and costs for community complexes.
5.1 Building component and equipment lifespan/life cycle for ten year maintenance plans.
6. Illustration of how to report to the Community Schemes Ombud Service (CSOS).
7. Exceptional cases of adding a savings plan to the ten year maintenance plan.
7.1 Here is an example of equal annual amounts at 0% interest revenue
7.2. Here is an example of required annual savings at 3% interest p.a.
8. The following assumptions are part and parcel of the sale of this guide
9. Get a free spreadsheet program and save thousands
10. Bonus: Where to get these eight training manuals for peanuts. Use them for internal training sessions of employees or to train yourself
10.1 MS Suite 8 training manuals in hard copy
10.2 MS Suite 8 training manuals in digital E-book format
10.3. The one only MS Excel 2016 training manual in digital E-book format
11. Summary notes:
11.1 Easy bookkeeping
11.2 Effect of adding cost items to the Administrative Fund budget
11.3 Effect of adding cost items to the ten year maintenance plan
12. Last step of reporting
13. The huge market potential for providers of ten year maintenance plans
The huge market potential for providers of ten year maintenance plans is made up out of Sectional titles development schemes, Share block companies, Home or property owners associations, Housing schemes for retired persons, Housing co-operatives, Gated Villages with a Constitution, Social Co-operatives and even some Shopping malls with shared ownership. It may in future also include Community Farming Schemes.
We also have a special service offer for complexes outside Gauteng borders.
We are now also offering automated PC software in Excel spread sheets for the ten year maintenance plans:
Get most questions answered by visiting this page link:
https://ten-year-maintenance-plans.co.za/
