Maintenance plans are an essential aspect of any Owners Corporation's operations. Your building will need maintenance as it ages. Good maintenance helps retain the value of the building and makes the property more enjoyable to live in. Poor maintenance or neglect can lead to serious damage and safety hazards. Maintenance plans ensure that the common property of the building or development is well-maintained, safe, and functional. In this article, we will discuss what maintenance plans are, why they are important, and how they are prepared.

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What is a Maintenance Plan for Owners Corporations?

A maintenance plan is a comprehensive document that outlines the regular maintenance tasks required for the common property of a building or development. It provides a schedule of when maintenance should occur, how often it should take place, and the resources required to complete the tasks. Here are three types of maintenance plans:

• Corrective maintenance: maintaining an acceptable standard of the building, which covers tasks such as cleaning gutters and changing light bulbs. This should be covered in the annual fees.

• Predictable maintenance of major capital items: to prevent the predictable failure of building infrastructure or major capital items, such as replacing lifts due to wear and tear. These costs should be covered in the annual fees under the maintenance plan.

• Emergency corrective maintenance: must happen immediately for health, safety, and security reasons. It includes repairs to avoid rapid deterioration of the structure or fabric, such as roof repairs after storm damage or repairing broken glass. The costs should be covered by replacement and reinstatement insurance.

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From Consumer Affairs:

Download the approved form for an Owners corporation maintenance plan (Word, 228KB)

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Why are Maintenance Plan Important?

Maintenance plans are critical for the safe and efficient operation of the building or development. They help Owners Corporations manage their finances and ensure that maintenance tasks are performed regularly, minimizing the risk of major repairs and breakdowns. Maintenance plans also help Owners Corporations comply with legal and regulatory requirements, such as workplace health and safety regulations.

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How are Maintenance Plans Prepared?

To prepare a maintenance plan, Owners Corporations should engage a qualified professional to assess the common property's maintenance needs. This assessment should include an inspection of the property and an evaluation of the assets' condition, such as the roof, lifts, and fire protection systems. Based on this assessment, the professional will create a maintenance plan that outlines the maintenance tasks required, the frequency of each task, and the resources I needed to complete them. Strata Plan’s maintenance experts help your Owners Corporation develop these maintenance plans.  

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Changes to the Owners Corporation Act

In December 2021, changes were made to the Owners Corporation Act that mandate tier one and tier two Owners Corporations to develop and approve a maintenance plan. Here are the relevant Sections:

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19 Section 36 substituted For section 36 of the Owners Corporations Act 2006 substitute:

36 Maintenance plan (1) A tier one owner's corporation or a tier two owners corporation must prepare and approve a maintenance plan for The property for which it is responsible. (2) A tier three owners corporation, a tier four owners corporation or a tier five owners corporation may prepare and approve a maintenance plan for the property for which it is responsible.

What is a Maintenance Plan?  

These maintenance plans must include:

• A schedule of maintenance tasks for the common property.

• The frequency of each maintenance task.

• The estimated cost of each maintenance task.

• The estimated lifespan of each asset and when it will need replacement.

• A budget for the maintenance plan.

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If an owner's corporation has a maintenance plan, then it must have a maintenance fund to cover the cost of work in the plan. For more information, visit Consumer Affairs Victoria’s Maintenance Fund - owners corporation's page.

To ensure the maintenance plan's effective implementation, the Owners Corporation issues a maintenance fund levy as a separate levy, with funds directed to a separate account exclusively for items related to the maintenance plan. These funds cannot be used for any other prpose.

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Concluion

In conclusion, maintenance plans are an essential aspect of Owners Corporation's operations. They ensure that the common property is well-maintained, safe, and functional, and they help Owners' Corporations manage their finances and comply with legal and regulatory requirements. With the recent changes to the Owners Corporation Act, it is more important than ever for Owners Corporations to prioritize the development of comprehensive and effective maintenance plans.

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