10-Year Capital Works Fund Plan NSW
Archi-QS prepares professional 10-year Capital Works Fund Plans that help NSW strata schemes identify, cost and plan future major expenditure on common property, so the owners corporation can fund the work it will actually need.
- Compliant with the prescribed form under the April 2026 strata reforms
- Built around what your owners corporation needs, not a generic plan
- Prepared by qualified quantity surveyors
What Is a 10-Year Capital Works Fund Plan?
A 10-year Capital Works Fund Plan is a long-term plan that identifies and forecasts the significant capital expenditure a strata scheme is likely to need for the repair, replacement or renewal of its common property assets over a 10-year period.
Rather than reacting to failures as they happen, a capital works plan looks ahead. It sets out the major common property items an owners corporation is responsible for, when each is likely to require work, and what allowance should be made for that work. The 10-year horizon matters because most significant building components (roofing, waterproofing, lifts, plant and façade elements) fail or reach the end of their lifecycle over periods far longer than a single annual budget.
Archi-QS prepares Capital Works Fund Plans for NSW strata schemes as a quantity surveying service, combining asset assessment with professional cost forecasting.
In short
- Identifies major common property assets
- Assesses condition and remaining useful life
- Forecasts when expenditure is likely to fall due
- Estimates the allowance required for each item
- Informs annual capital works fund contributions
Why Does a Strata Scheme Need a Capital Works Fund Plan?
Capital works planning turns an unpredictable future expense into a structured, fundable programme the owners corporation can see coming.
Plan future major expenditure
Major works are mapped across the planning period instead of arriving without warning, giving the scheme time to prepare.
Understand asset lifecycle
Each significant common property asset has a useful life. The plan records condition and expected replacement timing in one place.
Prepare for funding requirements
Forecast expenditure and timing show what the capital works fund needs to hold, supporting steadier contributions over time.
Support informed decisions
Committees and owners can debate priorities and levies against documented figures rather than estimates and assumptions.
What Are the NSW Requirements for a Capital Works Fund Plan?
In New South Wales, an owners corporation is required to establish a capital works fund and to prepare a plan estimating the major expenditure it expects to incur on common property over a 10-year period. The plan is intended to support the fund, not replace it. It identifies what the scheme is likely to have to pay for, and when.
The scope of the plan follows the scheme's common property. That typically includes structural and external building elements, shared services and infrastructure, plant and equipment, and common area finishes, to the extent the owners corporation is responsible for them. The precise inventory depends on the strata plan, by-laws and the building itself.
Plans are not intended to sit unchanged for a decade. NSW requirements include reviewing the plan at least every five years, and schemes commonly revisit their figures more often (for example, at each annual general meeting) so that contributions remain aligned with current costs and building condition.
Archi-QS prepares the technical and cost content of the plan. Adoption of the plan, and decisions about levies and contributions, remain matters for the owners corporation.
Key points
- Owners corporations must establish a capital works fund
- A 10-year plan of anticipated major expenditure is required
- The plan covers common property the scheme is responsible for
- The plan must be reviewed at least every five years
- The plan informs, but does not set, annual contributions
- Requirements may vary with scheme circumstances, so confirm what applies to your building
What Changed Under the 2026 NSW Strata Reforms?
Reforms taking effect on 1 April 2026 tighten how capital works fund plans are prepared and presented. The practical effect for most schemes is about format, timing and content rather than a change to the underlying obligation to plan.
A standard form for plans
New or reviewed 10-year capital works fund plans are to be prepared using the standard form issued by NSW Fair Trading, creating a consistent structure across schemes.
Broader content expectations
Plans are expected to capture major common property items across the building and its infrastructure, including sustainability-related infrastructure where relevant to the scheme.
Earlier planning for new schemes
For new developments, a compliant 10-year capital works forecast is expected to be available in time to inform the proposed budget at the first annual general meeting.
What this means in practice
Schemes with a current plan are generally not required to redo it immediately. The new format becomes relevant at the next review, or when a plan reaches the end of its 10-year period and is replaced. Because plans must be reviewed at least every five years, most schemes will encounter the new requirements within the normal review cycle.
If your plan is approaching its review date, or was prepared some years ago against materially different construction costs, it is a sensible time to have it reassessed rather than carried forward.
Should your plan be reviewed?
- The plan is five or more years old
- Major works have been completed or deferred
- Building condition 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 plan considers the significant common property assets a scheme is responsible for. Depending on the building, these may include:
The exact asset inventory depends on the individual building and its common property. Not every scheme contains every asset listed, and some buildings include significant assets not shown here.
The financial detail your committee needs to set levies with confidence
Levy contributions per unit
A clear table showing the recommended capital works fund contribution for each unit, based on unit entitlement, across the full 10-year period.
Allowance for inflation
Future works are escalated for inflation and construction cost movement, so they are costed at what they are likely to cost when they fall due, not at today's prices.
General contingency
A general contingency allowance covers unforeseen repairs and items that cannot be predicted at inspection, so the fund is not left short.
Special levies considered
We consider where special levies may be needed and structure contributions to reduce the risk of large, unexpected levies for owners.
How Are Capital Works Costs Estimated?
Capital works cost forecasting draws on the condition of the asset, how long it is likely to last, and what the work would realistically cost when it falls due.
Asset condition
The present condition of each significant asset, including evidence of wear, previous repairs and any known defects.
Expected useful life
Typical service life for the asset type, adjusted for observed condition, exposure and how the building is used.
Replacement timing
The point within the planning period at which repair, replacement or renewal is likely to be required.
Current market costs
Construction and trade rates relevant to the work, the location and the access conditions of the building.
Scope and building characteristics
The extent of work involved, building height, construction type, access and site constraints that influence cost.
Escalation and cost data
Allowances for cost movement over time, informed by professional cost data rather than a flat assumption.
Forecast figures are professional estimates based on the information available at the time of assessment. Actual expenditure will depend on final scope, market conditions and building performance.
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.
Every Archi-QS plan sets out the common property assets item by item, grouped by trade, with the condition of each and when it is expected to need work. From that comes a 10-year expenditure schedule showing what falls due in each year, the proposed contributions compared with the existing fund and levies, and the contribution for each lot.
How Are Annual Capital Works Contributions Calculated?
Annual contributions follow from the plan rather than the other way around. Once the forecast capital expenditure and its likely timing are known, the scheme can consider what the capital works fund needs to hold at each point in the period, and what level of contribution would get it there.
The starting inputs are the forecast expenditure, the year in which each item is expected to fall due, and the existing fund balance where relevant. From there, the owners corporation can consider its funding requirements: whether contributions should be level across the period, stepped, or adjusted around a known major item, as well as what is practical for owners.
Every Archi-QS plan includes a levy contribution table showing what each unit contributes, with inflation, a general contingency and the risk of special levies factored in, so the committee can compare options on real numbers.
Final levy and contribution decisions are made by the relevant strata body (typically the owners corporation), not by Archi-QS. Our role is to provide the forecast and supporting assessment on which those decisions can be based.
What feeds the calculation
- Forecast capital expenditure across the period
- Timing of each anticipated item
- Existing capital works fund balance, where relevant
- Overall funding requirement for the scheme
- Preferred contribution profile over the 10 years
- Decisions of the owners corporation
Capital Works Plan vs Initial Maintenance Schedule
These are two different documents with two different purposes. A capital works plan is about long-term capital expenditure and funding; an Initial Maintenance Schedule is about the maintenance and servicing requirements of a new strata scheme.
| Capital Works Fund Plan | Initial Maintenance Schedule | |
|---|---|---|
| Primary purpose | Forecast and fund future capital expenditure on common property | Set out maintenance and servicing requirements for the applicable new strata scheme |
| Main focus | Asset lifecycle, replacement timing and cost allowances | Maintenance, servicing and replacement requirements of building items |
| Time horizon | 10-year forecast period, reviewed periodically | Prepared at the commencement of the new scheme |
| Key information | Asset condition, useful life, forecast expenditure and timing | Items requiring maintenance, recommended actions and intervals |
| Financial planning role | Directly informs capital works fund contributions | Supports maintenance planning rather than capital funding |
| When it is relevant | Ongoing, for established and new schemes alike | Relevant to applicable new strata schemes on establishment |
If your scheme is newly established, you may need both. Archi-QS also prepares IMS and initial levy certification and a broader range of strata services.
Capital Works Plan vs Building Condition Report
A Building Condition Report records the present condition of the building and its defects, and recommends the repairs needed now. A Capital Works Fund Plan looks forward: it forecasts the major works the common property will need over the next 10 years and what the fund should hold to pay for them. Where a Building Condition Report identifies significant repairs, those works can be carried into the plan. Archi-QS prepares both.
More Than a Completed Standard Form
The NSW Fair Trading standard form sets the format of a plan. It does not do the assessment. The value of a plan still depends on who inspects the building and how the figures are prepared, and that is where Archi-QS is different.
Trade-by-trade breakdown of actual assets
Every plan itemises, trade by trade, the assets actually on site and their current condition. Not a generic list of items that may not even exist in your building.
Figures based on current construction costs
Our services span every stage of construction, including cost planning, so we see first-hand how the industry and its costs are moving. Our figures are updated in line with the latest construction costs.
Senior staff on every project
Our senior staff and Managing Director are involved in every project to ensure the highest quality assessment.
Realistic, not inflated
Our allowances reflect what the work will realistically cost, with nothing added for the sake of it. Owners fund what the building will need over the life of the plan, and no more than that.
We know how your building evolves
We have often updated plans for the same property for 10 to 20 years. Our recommendations reflect real-life wear and tear and actual use, not assumptions.
Desktop plans where suitable
For properties we assess as suitable, a desktop Capital Works Plan keeps costs low for the owners corporation while remaining high quality and fully compliant.
How Our Capital Works Planning Process Works
A structured six-step engagement, from first review to final plan.
Document review
We review the strata scheme, the building and the records available to us.
Asset identification
Significant common property assets likely to require capital expenditure are identified.
Condition assessment
Condition, remaining useful life and likely replacement requirements are assessed.
Cost forecasting
Future expenditure is estimated using appropriate cost information and assumptions.
10-year planning
Projected works and expenditure are mapped across the 10-year planning period.
Final plan
The Capital Works Fund Plan is prepared and delivered to the scheme.
Archi-QS Plan vs a Generic Capital Works Plan
Any plan can be entered into the standard form. What goes into it is what protects owners from missed assets, underfunding and unexpected special levies.
| Generic, template-based plan | Archi-QS Capital Works Plan | |
|---|---|---|
| Asset list | Generic building items, some of which may not exist on site, while others are missed | Trade-by-trade breakdown of the actual assets on site |
| Condition and timing | Standard life expectancies applied as assumptions | Based on the current condition of each asset and real-life wear, tear and use |
| Cost allowances | Dated rates or a flat escalation figure | Latest construction costs, with inflation and a general contingency allowed for |
| Levy planning | A total fund figure that owners have to interpret | Levy contribution table per unit, with special levies considered |
| Who is involved | Varies, often without construction cost expertise | Quantity surveyors, with senior staff and our Managing Director on every project |
| Over time | Each review starts again from scratch | Many buildings planned by us for 10 to 20 years, so we know how they have evolved |
Frequently Asked Questions
Is a Capital Works Fund Plan mandatory in NSW?
Yes. NSW owners corporations are required to establish a capital works fund and to have a 10-year plan estimating anticipated major expenditure on common property. Requirements can vary with scheme circumstances, so confirm what applies to your scheme before relying on a general statement.
Which assets are included in a Capital Works Plan?
The significant common property assets the owners corporation is responsible for. Depending on the building, that may include roofing, external building elements and façades, waterproofing, lifts, fire safety infrastructure, plant and equipment, common area finishes, and electrical and plumbing infrastructure. The exact inventory depends on the individual building.
How are Capital Works costs estimated?
By assessing each asset's condition and expected useful life, determining when repair or replacement is likely to be required, and applying current market costs to the scope of work involved. Building characteristics, access and cost escalation over the planning period are also taken into account. Forecast figures are professional estimates, not guaranteed future costs.
How are annual Capital Works contributions calculated?
They are derived from the forecast expenditure and its timing, considered against the existing fund balance and the scheme's overall funding requirement. There is no single universal formula. The contribution profile depends on when expenditure falls and what has already been accumulated. Final levy and contribution decisions rest with the owners corporation.
What changed under the 2026 NSW strata reforms?
From 1 April 2026, new or reviewed 10-year capital works fund plans are to be prepared using a standard form issued by NSW Fair Trading, with broader expectations around the common property items and infrastructure captured. New developments are expected to have a compliant forecast available to inform the budget at the first annual general meeting.
Schemes with a current plan generally do not need to redo it immediately; the new format applies at the next review or replacement. Confirm the current requirements for your scheme before acting.
Is a Capital Works Plan the same as an Initial Maintenance Schedule?
No. A Capital Works Fund Plan forecasts long-term capital expenditure and supports funding decisions over a 10-year period. An Initial Maintenance Schedule sets out maintenance and servicing requirements for the applicable new strata scheme. A newly established scheme may need both.
When should a Capital Works Fund Plan be reviewed?
At least every five years, and sooner if circumstances change. Completed or deferred major works, newly identified defects, significant movement in construction costs, or a plan approaching the end of its 10-year period are all reasons to have the forecast reassessed.
Need a 10-Year Capital Works Fund Plan for Your Strata Scheme?
Speak with Archi-QS about your building, capital works requirements and long-term planning needs.
Plan Ahead With Confidence
A well-prepared capital works plan gives your owners corporation a clear view of what the building will need and when, so contributions can be planned rather than reacted to. Tell us about your scheme and we will explain what preparing or reviewing your 10-year Capital Works Fund Plan would involve.
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Level 1, Tower 1 / 201 Sussex Street, Sydney NSW 2000