Our 10-Year capital works fund plan helps strata schemes plan, schedule and budget for major works across the building’s lifecycle. Prepared in line with the 2026 NSW strata requirements, our plans provide clear cost forecasts to help you plan future expenditure and manage your capital works fund.
Compliant, Accurate & Now Updated for the 2026 Strata Reforms
Every strata scheme in New South Wales must maintain a 10-year capital works fund plan to ensure adequate budgeting for the repair, maintenance, and replacement of major common property assets. These plans are essential for long-term financial sustainability and for protecting owners from unexpected special levies.
From 1 April 2026, new legislative requirements will apply to the preparation and review of these plans. We provide fully compliant 10-year capital works fund plans prepared in accordance with the new standard form introduced under the strata reforms.
What is a 10-year capital works fund plan?
A 10-year capital works fund plan (CWFP), formerly known as a sinking fund forecast, sets out the anticipated major expenditure to be met from the capital works fund over a 10-year period, including expenditure for major repairs, replacements and upgrades to common property.
The plan provides a long-term view of the work a building may need and the likely costs involved. This helps the strata scheme plan its capital works fund and set aside sufficient funds for major works when they arise.
From 1 April 2026, new, revised and replacement 10-year capital works fund plans must be prepared using the prescribed standard form. An existing plan does not need to be converted immediately if it is not being revised or replaced.
At Archi-QS, we prepare 10-year capital works fund plans for NSW strata schemes as a quantity surveying service, combining assessment of the building’s assets with professional cost forecasting.
Does your strata scheme need a capital works fund plan?
Talk to Archi-QS about your requirements.
Why does a strata scheme need a capital works fund plan?
A capital works fund plan helps an owners corporation anticipate and prepare for major expenditure on the strata scheme’s common property. Under section 80 of the Strata Schemes Management Act 2015 (NSW), the plan covers anticipated major expenditure from the capital works fund over a 10-year period.
Plan future major expenditure
The plan identifies major works, replacements and other capital expenses expected over the 10-year planning period. This gives the strata scheme visibility into future costs and helps it plan and manage its capital works fund more effectively.
Track common property assets
The plan can track relevant common-property assets, their condition, expected useful life and likely replacement timing, where required by the prescribed form.
Prepare for funding requirements
Forecast costs can help the owners corporation plan the capital works fund contributions and reduce the risk of unexpected levy increases.
Support informed decisions
Committees and owners can discuss priorities and contributions using documented forecasts rather than relying on informal estimates or guesswork.
What Are the NSW Requirements for a Capital Works Fund Plan?
What changed under the 2026 NSW strata reforms?
Under current NSW strata laws, every strata scheme must have a 10-year capital works plan. However, until 1 April 2026, there was no standard format for preparing these plans.
This meant plans could look quite different from one building to another, making it difficult to compare them or assess whether future costs had been properly accounted for.
From 1 April 2026, new requirements apply to how these plans are prepared, how developers hand over new buildings and the information provided to prospective buyers.
Change 01 — A standard form for 10-year plans
Owners corporations must use the new NSW Fair Trading standard form when they next prepare or revise their 10-year capital works fund plan. If an existing plan is still current, there is no need to replace it immediately. However, an owners corporation can choose to adopt the new format earlier.
Change 02 — Tighter requirements for new strata schemes
Developers must now prepare the Initial Maintenance Schedule (IMS) using the prescribed form and provide it to the owners corporation at least 14 days before the first AGM.
For multi-storey schemes, an independent surveyor must review and certify the IMS and initial levy estimates. Penalties may apply if these requirements are not met.
Change 03 — More information in strata certificates
Section 184 certificates, which are issued when a strata lot is sold, must now include more information. This includes details of embedded network arrangements, orders and certain compliance action against the owners corporation, and records of recent and upcoming meetings.
When you may need a new capital works fund plan
You generally do not need to replace a current plan immediately. The new format applies when your plan is next reviewed or replaced.
If your plan is due for review, or the cost estimates are several years old, it may be time to reassess your building’s assets, upcoming works and projected costs.
Archi-QS can review your existing plan and prepare an updated Capital Works Plan using current construction costs and the latest requirements.
Should your plan be reviewed?
- The plan is five or more years old
- Major works have been completed or deferred
- The condition of the building has changed materially
- Cost assumptions no longer reflect the market
- A new plan is due to replace an expiring one
What is included in a capital works fund plan?
A capital works fund plan provides a 10-year forecast of the major works a strata scheme may need, when they are likely to occur and what they are expected to cost.
At Archi-QS, we prepare detailed, accurate and compliant 10-year capital works fund plans using the prescribed standard form and tailored to the building’s circumstances.
Our plans include:
- Full Asset Review & Condition Assessment: We identify all major capital items and assess their expected lifecycle, replacement timing, and maintenance requirements.
- Cost Forecasting Over 10 Years: We provide realistic, data-driven cost projections for repair, renewals and replacements.
- Fund Contribution Modelling: We calculate recommended annual contributions to ensure the capital works fund remains adequately resourced.
- Compliance with the New Standard Form (2026 Reform): All plans prepared or reviewed from now on can be delivered in the new standard form, ensuring your scheme is ready for the legislative change.
- Clear, Easy-to-Read Reporting: Our plans are structured for clarity, making it simple for owners corporations and strata managers to understand future financial obligations.
The assessment covers relevant areas of the common property, which may include roofs, facades, lifts, building services, common areas and external works.
Our plans follow the categories in the NSW prescribed standard form and are based on the building’s assessed condition and current cost data.
Request a 10-year capital works fund plan.
How are capital works costs calculated?
How Does a 10-Year Capital Works Plan Work?
Different assets reach the end of their useful life at different times. A 10-year plan spreads anticipated works across the planning period so the fund can be built up ahead of the expenditure. The example below is illustrative only.
| Year | Typical planning activity | Expenditure profile |
|---|---|---|
| Year 1 | Plan adopted; minor planned works and inspections | Planned works |
| Year 2 | Routine renewal items; contributions accumulate | Renewal allowance |
| Year 3 | Condition review of key assets | Asset review |
| Year 4 | Planned works on shorter-life components | Planned works |
| Year 5 | Plan review point; forecast reassessed | Asset review |
| Year 6 | Larger renewal item anticipated | Major expenditure |
| Year 7 | Fund rebuilds following major works | Renewal allowance |
| Year 8 | Planned works on building elements | Planned works |
| Year 9 | Condition review ahead of next cycle | Asset review |
| Year 10 | Significant asset replacement anticipated | Major expenditure |
Illustrative structure only. The works, timing and values in an actual plan are determined by the assets present in the building, their assessed condition and remaining useful life.
How are annual capital works contributions calculated?
A 10-year capital works fund plan forecasts the major repairs, replacements and other capital works a strata scheme may need over the next decade, and estimates when they may be needed and what they are likely to cost.
An owners corporation can consider these forecasts, along with the existing Capital Works Fund balance, to determine how much money needs to be raised through Capital Works Fund contributions. The forecast also includes the timing of planned works, which can help the owners corporation determine the contributions payable by owners each year.
Each owner’s share is generally based on their lot’s unit entitlement. At Archi-QS, we can help prepare the capital works plan and cost estimates for strata schemes. The owners corporation determines and manages the contributions.
10-Year Capital Works Plan vs Initial Maintenance Schedule
These are two different documents with two different purposes. A capital works fund plan forecasts long-term capital expenditure for common property while an Initial Maintenance Schedule sets out the maintenance and inspection requirements of a new strata scheme.
| Category | 10-year capital works fund plan | Initial maintenance schedule |
|---|---|---|
| Primary purpose | Forecast and fund future major expenditure and capital works on common property. | Set out maintenance and inspection requirements for common-property items in an applicable new strata scheme. |
| Main focus | Asset lifecycle, replacement timing and cost allowances. | Maintenance, inspection, servicing and replacement requirements for relevant building items. |
| Time horizon | A 10-year forecast period, reviewed at least every five years. | Prepared by the original owner for an applicable new strata scheme and provided to the owners corporation at least 14 days before the first AGM. |
| Key information | Asset condition, useful life, forecast expenditure and timing, where required by the plan. | Items requiring maintenance or inspection, recommended actions and intervals, together with relevant warranties, manuals and manufacturer or installer details. |
| Financial planning role | Helps inform capital works fund contributions and long-term expenditure planning. | Primarily supports maintenance and inspection planning; it does not itself determine capital works fund contributions. |
| When it is relevant | Ongoing for strata schemes, subject to the statutory requirements and applicable exceptions. | Relevant to applicable new strata schemes on establishment and provided to the owners corporation before the first AGM. |
If your scheme is newly established, both documents may be relevant. Archi-QS also prepares IMS and initial levy certification and a broader range of strata services.
10-Year Capital Works Fund Plans by Archi-QS
How our 10-year capital works fund plan process works
Archi-QS’s 10-year capital works fund plans are prepared in accordance with the prescribed standard form under clause 17I of the Strata Schemes Management Regulation 2016, effective from 1 April 2026.
Our template covers the required fields, including the prescribed expenditure categories, contingency allowance and 10-year source of funding cash flow.
The value of our service goes beyond completing the form. We identify and assess the building assets on site, apply current cost data and model the capital works fund to develop a practical 10-year funding plan.
Step 1. Engagement and information gathering
When you contact us, we provide a quote and request the following information from you:
- A copy of the strata plan
- The date from which the 10-year forecast is to commence.
- The capital works fund annual levy budget for the previous financial year, including GST
- The closing balance of the capital works fund
- Details of any special levies raised recently or planned
- Whether the owners corporation is registered for GST
- The current interest rate earned on the capital works fund, or the rate expected for the plan period
- Details of any works completed recently and their associated costs
- Details of any upcoming works and their estimated costs
Note that we don’t ask the scheme for an asset list. At this stage, we generally request financial, administrative and access-related information.
Step 2. Site inspection and asset identification
Our inspector visits the site to identify the assets and elements of the property, assess their condition, record quantities and take a photographic record. We also determine the remaining useful life of each item.
We recommend a site inspection for all initial reports. Where the property has previously had a Capital Works Fund Plan prepared by Archi-QS, or where the scheme specifically requests it, we also offer a desktop assessment. This assessment is based on the documentation and information provided, our previous report for the property and information available online.
Step 3. Costing and lifecycle modelling
Each identified item is costed at current replacement or repair rates drawn from our live project cost data. Costs are recorded in today’s dollars and then scheduled across the 10-year period according to the item’s lifecycle, with an assumed rate of inflation compounded annually to the year the cost falls due.
Longer-life items falling due beyond year 10, such as lifts and generators, are progressively budgeted within the current plan so the following plan period is not front-loaded.
Step 4. Fund modelling and levy recommendation
We complete the source of the funding table for each of the 10 years, showing the opening balance, total levy contributions including GST, interest earned after tax, anticipated expenses including GST and closing balance.
Based on this modelling, we estimate the annual capital works fund contributions required per unit entitlement to help maintain the fund and meet forecast expenditure. The owners corporation determines the contributions.
Step 5. Reporting, review and delivery
The plan is issued in the prescribed standard form, internally reviewed before release and provided to the owners corporation with the assumptions clearly stated.
We present the findings to the strata committee and include one round of committee feedback and revision. The plan can then be provided to the owners corporation for review and any required approval.
Why Choose Archi-QS for Your Capital Works Fund Plan?
Accurate assessments, reliable cost data and practical 10-year funding forecasts.
- Experienced Quantity Surveyors: We specialise in strata financial planning and capital works forecasting.
- Reform-Ready Documentation: Our plans are prepared using the prescribed standard form applicable from 1 April 2026
- Accurate, Independent & Transparent: We provide unbiased assessments based on real-world construction and maintenance costs.
- Tailored to Your Scheme: Every building is unique. Our plans reflect your actual assets, condition, and usage patterns.
Common Problems With Capital Works Fund Plans
Plans often fail the scheme for these common reasons:
Failure to meet current requirements
New or revised plans prepared from 1 April 2026 must use the prescribed NSW standard form
Outdated information:
The plan may not reflect completed works, new defects, asset replacements, changing building conditions or rising construction costs.
Incomplete asset assessment
Some common-property items, such as roofs, waterproofing, lifts, fire-safety systems or plumbing, may be missed.
Unrealistic costs or insufficient funding
Underestimated project costs or low contributions can leave the capital works fund underfunded. This increases the risk of special levies.
Frequently Asked Questions
Is a Capital Works Fund Plan mandatory in NSW?
A 10-year capital works fund plan is generally required for all strata schemes in NSW, subject to any exceptions that may apply to certain small or two-lot schemes.
Archi-QS assesses common-property assets, forecasts likely repair and replacement costs, models the capital works fund and prepares a 10-year capital works fund plan using the prescribed NSW standard form where applicable.
How are Capital Works costs estimated?
What changed under the 2026 NSW strata reforms?
One of the main changes under the 2026 NSW strata reforms is the introduction of a prescribed standard form for 10-year Capital Works Fund Plans. From 1 April 2026, this form must be used when an owners corporation prepares a new plan, revises an existing plan or replaces a plan that has reached the end of its 10-year period.
The reforms also introduced new initial maintenance schedule requirements for applicable new strata schemes and expanded the information required in strata information certificates.
What is the difference between a capital works fund plan and an initial maintenance schedule?
A 10-year capital works fund plan forecasts anticipated major expenditure from a strata scheme’s capital works fund over 10 years. An initial maintenance schedule sets out maintenance and inspection requirements for relevant common-property items in an applicable new strata scheme.
These are separate documents with different purposes. However, both may be relevant when a new strata scheme is established