A sinking fund forecast the committee can stand behind.
FeeFrom $6,000 plus GST
$6,600 incl. GST
Timing4 to 6 weeks
ForBody corporates
“What will the building need over the next 10, 15 or 20 years, and what contribution schedule funds it without a shock?”
What it is
A capital works funding forecast for the scheme's sinking fund (or capital works fund, depending on the client's terminology), over a horizon the client selects at 10, 15 or 20 years: a defensible cash flow model projecting major capital spending, the funding shortfall or surplus under current contribution levels, and a recommended contribution schedule ready to put to the AGM. The model always holds the full 20-year detail regardless of the horizon selected. The engagement also includes an indicative affordability check on one nominated major capital item not otherwise costed on the asset register.
Built on your quantity surveyor's asset report; meets the Standard Module requirement to reserve for anticipated major expenditure over at least the next nine years; includes a risk assessment that flags stale asset data.
When clients call us
The sinking fund forecast has not been reviewed in several years, a body corporate manager or committee is concerned contributions are not keeping pace with likely capital spending, a major item (roof, lift, painting cycle) is approaching and the committee wants to know if the fund can absorb it, or an incoming committee wants an independent check before signing off on next year's budget.
What you receive
Long-term sinking fund forecast, unlocked, with a selectable 10, 15 or 20-year horizon and full 20-year detail always available
Funding adequacy assessment against the supplied asset register, bounded to the selected horizon
Recommended contribution schedule, with at least one alternative scenario
Indicative affordability check for one nominated major capital item, with a suggested funding response
AGM-ready summary document
What we’ll need from you
A one-page checklist comes with the engagement letter, with a private page to upload everything. The main items:
Current and prior sinking fund forecast, if one exists
Asset register with condition, expected remaining life and replacement cost for each item, from a quantity surveyor's report or equivalent, dated within the last three years where possible
Current sinking fund and administrative fund balances
Last three years of sinking fund income and expenditure
Current levy or contribution schedule and unit entitlement schedule
Body corporate minutes covering any capital works decisions in the last two years
Insurance valuation, if it references building condition or replacement value
Not included
Does not include site inspection, building condition assessment, or estimation of replacement costs. These must be supplied by the client from a quantity surveyor's report or equivalent. Does not include a full options analysis or cost-benefit appraisal for any nominated capital item beyond the indicative affordability check. Does not include legal advice on the body corporate's statutory funding obligations. Does not include the administrative fund budget unless separately scoped. Does not guarantee the forecast will be accepted without amendment at the AGM.
What it can look like
Representative example
A 96-lot residential scheme on the Gold Coast · Body Corporate Sinking Fund Forecast
Avoiding a $4,375-per-lot special levy
The sinking fund forecast was seven years old. The lift and the roof were both approaching replacement, and the committee wanted to know before the AGM whether the fund could cope.
$420,000 ($4,375 per lot)Special levy avoided
+12%, then 3.5% a yearContribution change
$6,000Fee for the work
Fund shortfall when the roof falls due in year eleven
Contributions left as they were$420,000
Recommended schedule$0
Down $420,000
Where the gap was
$420,000 short in year eleven, which would have meant a special levy of about $4,375 per lot.
Insight
Built on the scheme's current quantity surveyor's report, the forecast showed that if contributions stayed where they were, the fund would run $420,000 short when the roof fell due in year eleven, forcing a special levy of about $4,375 per lot.
Advice
Increase sinking fund contributions by 12% next year and 3.5% a year after that, and obtain a fresh quote for the lift before year six so the forecast can be tightened.
Opportunity
A steady contribution path that funds both replacements with no special levy, and a forecast that meets the nine-year reserving requirement with room to spare.
Results
The committee tabled the recommended schedule at the AGM with a two-page summary, and owners approved it.
Representative example: a composite scenario with narrative-driven figures, showing the kind of result this work is designed to produce. It is not a specific client engagement and the outcome is not a guarantee. A full case study walk-through is available on request.
Common questions
How much does a sinking fund forecast cost in Queensland?
From $6,000 plus GST ($6,600 including GST) for a standard residential scheme, over four to six weeks from receiving the quantity surveyor's report and the scheme's records.
Does the forecast meet the nine-year requirement?
Yes. Under the Standard Module, the sinking fund budget must provide for major expenditure reasonably anticipated over at least the next nine years. The forecast is built to that requirement and holds the full 20-year detail regardless of the horizon you choose. Your body corporate manager can confirm the requirements of your scheme's regulation module.
Do we need a quantity surveyor's report?
Yes. The forecast is built on an asset register with condition, remaining life and replacement cost, normally from a quantity surveyor's report dated within the last three years. Wickham Advisory does not inspect buildings or estimate replacement costs.
Can it help us avoid a special levy?
It shows, years in advance, whether current contributions will cover the major works coming up, and gives the committee a contribution schedule that funds them without a shock, so a special levy can usually be avoided or planned for.
