How to plan for major works in your block of flats

When advising our clients of their budgeting needs it is sensible to anticipate what major works may be required beyond the next 12 months This allows a reserve or sinking fund to be maintained at levels that avoid significant fluctuations in charges payable when works are due. This has been so successful with our managed clients that our building surveyors are continuously instructed on a number of properties for non-managed clients. The intention is to avoid unpleasant surprises and prioritise works in a planned, rolling programme which is reviewed on a regular basis.The key principles to observe in compiling such a programme are firstly to consider your legal obligations to lessees and superior landlords to carry out cyclical repairs and redecoration. Secondly look at the major elements of the fabric that may require work over the period, for instance window or roof renewals. Then at the service elements which may often be overlooked in the normal scheme of things.  This will include mechanical and electrical plant as well as incoming electricity, water, gas and drainage. Lastly remember health and safety issues and any remedial works recommended following your risk assessments. This may include asbestos removal and upgrading water tanks.

More specialist advice may be required both to anticipate future life expectancy of plant or equipment and costing of works that may be required.  The older the building the more likely these issues will occur. The costs of each element are assessed by the surveyor or specialist consultant and allocated to a particular year in the plan. Costs are kept under review bearing in mind experience with ongoing works, general economic conditions and cash flow. The client’s final priorities are often more budget led rather than simply based on professional advice. However the main point of the plan is as a budgetary tool to assist the client in providing for future commitments whilst balancing the books. In the end people want to know what the bottom line is going to be and then tend to work backwards to determine prioritising within a budgetary framework. It assists the sales process if the major works plan and future budget levels are predictable. This is important in buildings which may not have had the level of investment needed to maintain the structure and services for some time. A backlog of works means the plan will be front loaded to an extent but demands should come down over the period. Priorities can be reviewed and reassessed as time passes and conditions change and it is an essential framework for planning your future maintenance and budgetary regimes.