NAT: Is there an average dollar value per lot that should be paid into the capital works fund?

Question: Is there an average dollar value per lot that should be put aside for the Capital Fund?

Answer: Each building has such varied maintenance requirements, however….

There is no one dollar amount per lot that can be a hard and fast rule for a Capital Works Fund Plan (CWFP) as each building has such varied maintenance requirements.

We always try to ensure there is a sufficient minimum balance throughout the life of a CWFP to ensure that the scheme maintains a healthy financial position amongst future expenses. For a very basic scheme of say 4-6 lots, simple design, we would usually hope to see $2000 – $2500 per lot as a minimum at any one time. For larger schemes, however, it is crucial to incorporate such factors as age, construction type, aesthetic appearance, current state of the scheme and any maintenance contracts in place (e.g. lift or painting contracts).

Dakota Panetta
Solutions in Engineering
E: dakotap@solutionsinengineering.com
P: 1300 136 036