sinking fund forecast - metro asset management€¦ · year sinking fund plan as part of the...

SINKING FUND FORECAST

PREPARED FOR: Owners Corporation Strata Scheme 77523 PROPERTY: 541 Pembroke Road LEUMEAH NSW PURPOSE OF THIS REPORT: Provide a Sinking Fund Assessment DATE: 9th December 2009 PREPARED BY: Colin Saunders Building Consultant OUR REFERENCE: 29485SF

STRATA SCHEME 77523 541 Pembroke Rd LEUMEAH 29485SF

This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at

the time and expressed for the purposes of consideration by the Addressee and not for general publication without written consent.

TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY...................................................................................... 3

1.1 GENERAL..................................................................................................... 3

1.2 SUMMARY OF REQUIRED SINKING FUND CONTRIBUTIONS ................................ 4

2.0 INTRODUCTION.................................................................................................. 5

3.0 PROPERTY.......................................................................................................... 6

4.0 INSPECTION........................................................................................................ 7

5.0 INSPECTION RESULTS...................................................................................... 8

5.1 ITEMS CONSIDERED BEING IN BREACH OF THE BUILDING CODE OF AUSTRALIA OR

HEIGHTENING RISK EXPOSURE TO THE OWNERS CORPORATION ................................. 8

5.2 FIRE UPGRADE FROM LOCAL COUNCIL ........................................................... 8

5.3 IMMEDIATE MAINTENANCE ITEMS ................................................................... 9

5.4 ITEMS REQUIRING MAINTENANCE WITHIN 5 YEARS ........................................ 17

5.5 ITEMS REQUIRING MAINTENANCE WITHIN 5-10 YEARS ................................... 20

5.6 ITEMS REQUIRING MAINTENANCE WITHIN 10-15 YEARS ................................. 26

6.0 INSPECTION SUMMARY .................................................................................. 28

6.1 ITEMS CONSIDERED BEING IN BREACH OF THE BUILDING CODE OF AUSTRALIA OR

HEIGHTENING RISK EXPOSURE TO THE OWNERS CORPORATION ............................... 28

6.2 IMMEDIATE MAINTENANCE ITEMS ................................................................. 28

6.3 MAINTENANCE WITHIN 5 YEARS ................................................................... 28

6.4 MAINTENANCE WITHIN 5-10 YEARS.............................................................. 28

6.5 MAINTENANCE WITHIN 10-15 YEARS............................................................ 29

NOTES AND LEGEND IN RELATION TO SINKING FUND SPREADSHEET ON THE FOLLOWING PAGE/S.................................................................................................. 30

7.0 SINKING FUND SCHEDULE COMMENCING 2010.......................................... 33

CONDITIONS RELATING TO THIS REPORT ............................................................. 34

APPENDIX A STRATA PLAN REGISTRATION PAGE (UNIT ENTITLEMENTS)




1.0 EXECUTIVE SUMMARY

1.1 General

The contributions shown in this analysis are based on a 15 year forecast period. The forecast calculations take into account the maintenance and replacement requirements of the building elements and grounds over this period. The spreadsheet at the rear of this document is broken into five year sections. I note for your reference that the Strata Schemes Management Act requires Sinking Fund Forecast to be adjusted every five years. The date of issue of this document has been recorded in our database and your Strata Manager will be advised accordingly when the next inspection and review is required. Owners of most Strata schemes in NSW will now have to prepare a 10 year sinking fund plan as part of the changes to the Strata Schemes Management Act 1996. The implementation of compulsory Sinking Funds is meant to create a user-pay system. The Sinking Funds are a most valuable document if understood and used correctly by both Owners Corporations and their Strata Managers. The Sinking Fund attempts to identify the remaining usable service life of various building elements, eg painting, roofing, guttering, etc and attempts to place a projected budget against each item so that the Owners that currently have the use and enjoyment of the property contribute equally and fairly to the continuing short and long term maintenance and upkeep of the Strata Scheme. In other words, costs associated with the maintenance and replacement of building elements are programmed and funds set aside proportionally each year to ensure that when the item is required to be maintained or replaced, that funds are available without the necessity of raising special levies. It may take several years for Owners Corporations to secure the required catch up funding as many sinking funds fall well short of their projected required expenditure, however the Government expects that within five years that the raising of special levies will start to be a thing of the past and subsequently buildings will be better maintained and the allocation of financial burden shall be equally spread between existing owners and new purchasers alike. Planning ahead for regular maintenance allows time and finances to be effectively managed. It is left to the discretion of the Owners Corporation how much maintenance they wish to carry out on a building but when maintenance is carried out on a regular and orderly basis, the tasks become less onerous and the costs can be spread over time.




1.2 Summary of Required Sinking Fund Contributions

The present sinking fund balance is $20,157.39 current as at 8th December 2009. The assessed contributions have been calculated in an attempt to ensure that adequate funds are available to meet all foreseeable expenses related to maintenance and items requiring future replacement within the next 15 years. It is the responsibility of the Owners Corporation to use the contributions provided within the Sinking Fund Forecast, apply the existing sinking fund balance and individual number of unit entitlements for each lot to calculate the annual strata levies required per lot.

Summary of Levies

Year Levies to be Struck Levies to be Expended

2010 $58,283 $20,950

2011 $38,453 $618

2012 $39,607 $637

2013 $40,795 $656

2014 $42,019 $93,054

2015 $23,108 $696

2016 $28,801 $716

2017 $24,515 $738

2018 $25,251 $760

2019 $26,008 $204,840

2020 $2,867 $806

2021 $2,953 $831

2022 $3,042 $855

2023 $3,133 $881

2024 $3,227 $29,427




2.0 INTRODUCTION

We are instructed by the Strata Manager, Craig Ferguson of Metro Strata Managers Pty Ltd on behalf of the Owners Corporation, to provide a Sinking Fund Forecast of all common areas within the property including circulation routes and driveways, the surrounding landscape gardens and open space, the service areas/rooms, car park areas and associated facilities, the general façade and envelope of the building including windows, doors, balustrade and all other common property. If applicable, in relation to lifts, fire compliance and mechanical services, these are required under statutory regulation to be inspected on a regular basis by a suitably qualified technician and are considered the responsibility of the owners for compliance. As such they do not form part of our inspection. We should however, be provided with costings of any maintenance programme in relation to the lift, fire compliance and mechanical services for the building if the owners wish these costs to be included into the sinking fund forecast. In providing this document we make the following comments which may prove helpful in analysing the Forecast.

In the first year of this Forecast there may be a number of one off expenditures. These items are deemed necessary to bring the complex up to a serviceable condition as per the requirements of “Clause 62 Duties of Owners Corporation to maintain and repair property”, of the Strata Schemes Management Act.

Forecasting of costs is not an exact science and it relies to some extent on the experience of the Author. In order to achieve the best result the Sinking Fund schedule is broken into three five year programmes. Sinking Fund Forecasts are just that, a forecast. We seek to estimate rates of wear and tear and in our remedial recommendations we take into account continuing technological changes. A review of the Forecast each five years is required to keep the Sinking Fund in compliance with the regulations under the Strata Schemes Management Act. Once the Forecast is accepted and implemented by the Owners Corporation the likelihood of additional special levies within the forecast period is greatly diminished.




3.0 PROPERTY

The property comprises of 174 units contained in a complex containing 5 individual multi storey residential buildings and 1 mixed residential and commercial building. Buildings are nominated a prefix of A to F for identification purposes. The centre of the complex contains a gymnasium and swimming pool with an adjacent small recreational area. Car parking space is provided within the basement car parking area accessed from Old Leumeah Road. The complex for the purposes of this Report is considered to face north towards Old Leumeah Road and is approximately 3 years of age. It is constructed using full masonry on concrete slabs. Roof construction is of low pitched design with steel sheeted covering and additional smaller roofing areas covered with pebbles.




4.0 INSPECTION

The inspection was carried out on the 4th December 2009 and access was made available to all relevant common areas including all pedestrian access and vehicle access routes to the basement car park, and all common garden areas surrounding the buildings including the swimming pool and recreational area. Escorted access was gained onto a minimum of one floor of each building. No access was gained onto the roofs as access was restricted. A separate request for a roof inspection can be made through this office if required although given the age of the buildings and that there are no reports of any water ingress issues from the roofs, it is felt unnecessary at this moment in time. It is understood that a number of the items contained in the report may be the subject of ongoing or future builders defect claims. No intended reference is made as to causes or to apportion any blame. Weather conditions at the time of our inspection were warm and sunny.


This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at the time and expressed for the purposes of consideration by the

Addressee and not for general publication without written consent.

5.0 INSPECTION RESULTS

5.1 Items considered being in Breach of the Building Code of Australia or heightening Risk Exposure to the

Owners Corporation

5.1.1 Items listed which may fall into this category are; 5.3.2, 5.3.5, 5.3.7, and 5.3.9 5.2 Fire Upgrade from Local Council

We are informed that there is an annual fire safety statement on the building. However, we would respectfully remind the owners to remain vigilant to changes within the building which may have an adverse effect on current fire safety issues such as faulty door closers and obstructions in nominated fire escape routes.

The Environmental Planning and Assessment Act requires that all strata complexes have an Annual Fire Safety Statement (formerly known as 15A Certificates) issued in accordance with AS1851-2005. This requires a physical visual annual inspection and testing of the equipment. If pumps for the sprinkler, fire hydrant and fire hose reel systems are installed they need to be tested each month. The EPA Act requires that a copy of the Annual Fire Safety Statement be attached to the strata notice board and a copy issued to the Strata Manager, the NSW Fire Brigade and the Local Government Authority (Council). Fines for non-compliance range from a minimum of $10,000 to a maximum of $1,110,000. As well, once a breach is identified Council has the authority to apply fines accumulating on a daily basis. As such immediate proactive action should be taken to ensure compliance as Council has the power under the Environment Planning and Assessment Regulations to have the necessary works completed and recover the costs from the Owners Corporation.

Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.2.1

All Areas of the property

Existing fire safety measures are audited and expected to be compliant to Building Code of Australia.

No items were noted at the time of Inspection.


This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at the time and expressed for the purposes of

consideration by the Addressee and not for general publication without written consent.

5.3 Immediate Maintenance Items Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.3.1 Common recreation area

MASONRY WALL DAMAGE The masonry wall is showing signs of damage which has exposed part of the steel reinforcing. If left in this condition the steel, now exposed to the elements, will begin to corrode. This will lead to more extensive damage to the wall and an increase in repair costs to the owners.

Allow to carry out the following works:

• Cut out all delaminated rendering and remove loose particles

• Metal work is to be prepared with all loose and flaking paint and rust removed.

• A rust inhibitor shall be applied.

• Fill the cavity with Polymer modified sand and cement mix with a waterproof additive as per manufacturer’s instructions leaving all surfaces flush with original

• Repaint to best match existing





5.3.2 Recreational area

FIRE SAFETY EQUIPMENT The fire blanket and the fire extinguisher are missing from their mounting brackets on the wall of the gymnasium.


• Replace missing Blanket and extinguisher

Notation: If feasible, consideration should be given to relocation in an area less susceptible to misuse.

5.3.3 Gymnasium TREADMILL We are informed that the treadmill is in a poor state of repair and is unusable in its present condition.

Replace Treadmill

5.3.4 Recreational area

BBQ AND STAND We are informed that the BBQ and stand is in a poor state of repair and is unusable in its present condition.

Replace BBQ





5.3.5 Roofs ROOF ANCHORAGE POINTS The roof anchorage points which are fitted to allow safe access for roof and service maintenance workers on the roof, do not display any indication that they are, or have been load tested as is the legal requirement. Notation: Fixed anchorage points are required under AS/NZS 1891 Part 4, to be inspected on a 12 monthly basis by a competent person.


• All anchorage points to be load tested and adequate safety records of yearly testing kept.

• Indication tags or plates are to be installed on each fitting to show that such testing has been carried out

Notation one: No works should be allowed to proceed using these anchorage points until such testing has taken place. Notation two: Yearly re-inspection costs have been entered into the forecast spreadsheet.





5.3.6 Common areas

TILED PAVING There are a number of locations around the tiled paved walkways where damaged or temporary repairs of damaged tiles have occurred. Examples can be found adjacent to the sink by the swimming pool, and adjacent to units 2b, 3b, and 4e. There is also evidence of salts leaching through the tiled finish.


• Remove damaged tiles by cutting along the grouted joints with a mechanical disc cutter, taking care not to damage adjoining undamaged tiles or the sub base.

• Bed new tiles to best match existing using an appropriate tile adhesive leaving flush with surrounding tiles.

• Re-grout joints in a colour to best match existing.

• Leaching salt stains to be cleaned by attempting to remove with dry brushing using a stiff-bristled brush.

• If this fails use a diluted acid such as hydrochloric acid to remove efflorescence.

• Great care is to be taken using this method as it may cause discolouration of the surface

Notation: Using water in conjunction with brushing may cause salt deposits to appear again.





5.3.6 cont

Common areas (continued)





5.3.6 cont

Common areas (continued)

5.3.7 Buildings E/F UNSECURED ROOF ACCESS The hinged security plate which is designed to prevent unauthorised access to the roof area has been left unlocked. This item is mentioned as an OH&S issue with a minimal cost involved to the sinking fund.


• Supply a suitable padlock and secure

• Supply and fit a suitable sign to be mounted on the adjacent wall stating that this is to be kept locked at all times.

• Adopt a policy of security and safety awareness for users





5.3.7 cont

Buildings E/F (continued)

5.3.8 Roofs FALLING BALLAST We are informed that there is an OH&S issue regarding falling pebbles which have been used as a membrane covering on some of the roofing areas. We are further informed that this is caused by wildlife picking up the pebbles and dropping them onto pedestrian areas below. We believe the removal of the pebbles and fitting of an alternative covering to be cost prohibitive.


• Supply and fit a fine wire mesh over the areas covered with pebbles. This will prevent access by wildlife.





5.3.9 Balcony access routes

WINDOW OPENINGS There are a number of unit windows within the complex of the design shown. These open into the pathway and obstruct the passageway of pedestrians. Given their current configuration it is considered that these window openings could be the cause of a serious head or facial injury in the event of emergency evacuation.


• Supply and install a suitable bracket to the windows which would restrict movement to allow an opening of no more than 200mm. This would greatly reduce the existing OH&S hazard.




5.4 Items Requiring Maintenance within 5 Years Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.4.1 Pool area DECKING REFURBISHMENT The timber decking is expected to be requiring additional refurbishment to extend its lifespan within this time frame. This would entail the application of a suitable preservation sealant and possible replacement if damaged planks.


• Sand down the decking • Re-seal with an

appropriate sealing agent • Allow to replace in

10years





5.4.2 Gymnasium WEIGHTLIFTING MACHINE We are advised that the weightlifting machine is to be entered for replacement at this time

Replace Weightlifting machine

5.4.3 Internal common areas

INTERNAL PAINTING The internal painted surfaces are likely to be due for repainting by this time. Areas such as stairwells and utility rooms, passageways and entrance foyers are included. This encompasses the walls, ceilings, painted frames, doors and any other timber painted surfaces.

Allow to carry out the following works: • For internal walls and ceilings, all

cracks, chips and delaminating render is to be repaired, sanded and feathered so that when painting occurs the patch is not noticeable.

• The painter is to clean all ceilings and walls with sugar soap or similar product prior to applying a suitable primer to all walls and ceiling surfaces.

• The ceiling is to be finished in flat white acrylic paint.

• The walls are to receive one coat of paint in a finish and colour as selected by the Owners Corporation.

• The surface of all timber is to be sanded and painted in full gloss in a colour selected by the Owners Corporation.

• Allow for application of a sealer undercoat and two coats of full gloss.





5.4.3 cont

Internal common areas (continued)




5.5 Items Requiring Maintenance within 5-10 Years Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.5.1 Entrance to underground Car park

ROLLER DOOR MOTOR It is expected that the roller door motor will be nearing the end if it’s life expectancy by this time and will require replacement.


• Replace motor

5.5.2 North elevation

AWNING INSPECTION It is recommended that awnings are inspected on a regular basis by a Structural Engineer to ensure compliance and ongoing stability of the structure.


• Engage the services of a Structural Engineer to inspect and certify the structural integrity of the awning

Notation: This service is available from Integrated Building Consultancy Norwest. A competitive quote may be obtained by contacting out office. Our policy is generally to re-inspect every 5 years dependant on the age of the structure and condition after the first inspection





5.5.3 External facade

EXTERNAL PAINTING Due to the effects of weathering the externally painted surfaces are expected to be due for re-painting at this time. This includes painting rendered and concrete finishes such as the edging of balconies and concrete beams, columns, walls, ceilings, awnings supports, pool railings, doors, and door frames. Timber treatment should also be carried out to the unit boundary fences within the complex. Painting works in the underground garage should also be carried out at the same time. This would include any existing painted surfaces and the repainting of bollards, line markings, bay numbers, and parking restriction notices.

Allow to carry out the following works: • Any cracks, chips and

delaminating render is to be repaired, sanded and feathered so that when painting occurs the patch is not noticeable. (An example of the type of cracking requiring repair can be found on the walls of unit 25d, photo included)

• External painting of rendered and concrete surfaces treated with a primer followed by two coats of an elastomeric paint in a colour chosen by the owners.

• The surface of all timber is to be sanded and painted in full gloss in a colour selected by the Owners Corporation.

• A suitable timber preservation treatment is to be applied to boundary fences.

• Allow for application of a sealer undercoat and two coats of full gloss.





5.3.3 cont

External façade (continued)





5.3.3 cont

External façade (continued)

• For line marking chemically remove oils and lubricant staining from the surface

• Repaint bay numbers, signage and lines as required in an appropriate type of paint.





5.3.4 Gym CARPET REPLACEMENT The Carpet in the gymnasium is expected to be in need of replacement around this timeframe due to general wear and tear.


• Replace approx 35sqm of carpet in a style as chosen by the owners




5.6 Items Requiring Maintenance within 10-15 Years Item No Location Item Description Remedial Works Required Photograph if Necessary or Applicable

5.6.1 Pool area DECKING REPLACEMENT As previously mentioned in item 5.4.1 the timber decking surrounding the pool and its approaches are likely to require replacement by this time due to fair wear and tear.


• Remove and replace the existing timber decking surrounding the pool area and ramp approach.





5.6.2 Pool POOL EQUIPMENT REPLACEMENT

Items such as the pool filter and pump are likely to require replacement around this time even with continued regular maintenance. A budget figure has therefore been entered into the forecast spreadsheet to meet expected costs.


• Replace Pool equipment as required


This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available

at the time and expressed for the purposes of consideration by the Addressee and not for general publication without written consent.

6.0 INSPECTION SUMMARY

6.1 Items considered being in Breach of the Building Code of

Australia or heightening Risk Exposure to the Owners Corporation

6.1.1 Items listed which fall into this category are; 5.3.2, 5.3.5, 5.3.7, and

5.3.9 6.2 Immediate Maintenance Items 6.2.1 Masonry wall repairs 6.2.2 Replace missing Fire equipment 6.2.3 Replace treadmill 6.2.4 Replace BBQ 6.2.5 Anchorage point Inspection 6.2.6 Tiled walkway repairs 6.2.7 Secure roof access point 6.2.8 Install wire mesh on roof 6.2.9 Refurbish windows 6.3 Maintenance within 5 Years 6.3.1 Decking Refurbishment 6.3.2 Replace weight machine 6.3.3 Internal painting 6.4 Maintenance within 5-10 Years 6.4.1 Roller door motor replacement 6.4.2 Awning Inspection 6.4.3 External painting 6.4.4 Carpet replacement




6.5 Maintenance within 10-15 Years 6.5.1 Decking replacement 6.5.2 Pool equipment replacement




Notes and Legend in relation to Sinking Fund Spreadsheet on the following page/s

On the following page/s is the financial breakdown of the Sinking Fund Forecast in a spreadsheet format. We provide the following notes and legend to assist in the dissemination of this information. The first column is not in use. The next column summarises the projected required maintenance work (1st line) and the costs we estimate if the works were carried out today (2nd line) and the projected cost allowing for inflation (3rd line). The third column is the number of years that the levies will be collected prior to the expense being incurred. The fourth column is the inflation factor that has been applied per annum to allow for CPI and projected material/labour cost increases per annum, so that when works are scheduled for commencement sufficient funds are available. The following columns are broken into Years. For each year it shows the levies required to be raised in that year and in the adjacent column the amount that will be expended in that year. Please note that where no amount is shown as expended, this means that the funds are accumulating in the Sinking Fund for future expense. Ultimately where the funds are showing as being expended ($ value in brackets) this is the year that the works are projected to be carried out. At the very bottom of the spreadsheet on the left hand side, third row from the bottom entitled TOTAL, shows the total funds raised and expended in each year. The second row from the bottom shows the total unit entitlements allocated as per Strata Plan details or as advised by your Strata Manager. The bottom row of the spreadsheet, divides the total required funds to be raised by the total lot entitlement, so that a per owner entitlement amount is calculated. As such for each allotment to determine their contribution to the Sinking Fund is a matter of establishing the unit entitlement for that unit and multiplying it by the unit entitlement rate. For example:

If the unit entitlement (including carparking) was 46 and the contribution rate was $28.00. Therefore 46 x 28 = $1,288.00 being the sinking fund levy for that year, for that particular lot.




Accuracy of Costings

We draw the attention of the reader to Item 8 of the Conditions Relating to this Report in regard to the accuracy of the estimations. It is our recommendation that quotations be sourced to evaluate the commercial cost of the works at least six months prior to the programmed works taking place so that any adjustments to the projected budgets can be incorporated. This may result in the necessity to increase the levies in the following year or allow for a lower collection based on the commercial reality at the time of the works taking place. Balance of Existing Funds Existing monies in the Sinking Fund have not been included in the following table. The reason being is we are not aware of the invoices or payments that may be required to be deducted from the existing balance shown in Item 1.2. The Owners Corporation have two options: (1) unless the balance is in arrears, any surplus could be left out of the spreadsheet

calculation to be used as a buffer, or (2) the Strata Manager could deduct any outstanding or projected expenses that

have not been accounted for in the spreadsheet summary. Deduct these from the balance as shown in Item 1.2 and deduct any surplus from the required Sinking Fund amount for the first year of operation of the new Sinking Fund.

If the Sinking Fund is starting in arrears, the arrears will need to be taken up as

further contributions on the first year totals and adjustment of the Sinking Fund should take place accordingly.

Adjustment of Sinking Fund Forecast Our research has shown that many sinking funds do not deliver a long term benefit to Owners Corporations. One of the main reasons is that the schedule quite often changes for various reasons, such as items due for replacement in a particular year may be found to have a longer life expectancy or through acts of god and vandalism some works which are not forecasted require attention. As well there are regular changes of committees over the years and priorities may well change. In light of this we have provided the Sinking Fund Schedule in a digital excel spreadsheet format to your Strata Manager. Minor changes can be made and the spreadsheet will automatically recalculate the levies required to be raised. For major changes, Integrated would be happy to provide advice and readjust the spreadsheet for a small fee.




Assistance with Scoping, Tendering & Contracts Administration of Works & OH&S requirements Due to the on site inspection process and the development of this Sinking Fund, Integrated has acquired a firm understanding of the condition and maintenance requirements of your building and would be pleased to continue providing assistance and services to the Owners Corporation. We are able to provide a quotation for the development of a Scope of Works and Specification for the repairs and maintenance as identified in this Sinking Fund Report; calling of Tenders and provision of a Tender Analysis. Also, we can Contract Administrate the works through to completion and provide certification of compliance. Please be advised that once a contractor has been engaged to carry out works by the executive committee, that current OH&S exemptions for Strata schemes do not apply as they become “employers”, and as such must under the OH&S 2001 regulations “provide a safe working environment”. We are able to provide OH&S audits that will comply with current legislation on behalf of the Executive. If we can assist you in any of the above, please do not hesitate to contact our office.




7.0 SINKING FUND SCHEDULE COMMENCING 2010

CONDITIONS RELATING TO THIS REPORT

1. The Report is made in accordance with the requirements of Australian Standard 4349.1-

1995 and is a special purpose property report that reflects the requirements of the instructions provided to Integrated Building Consultancy ACN 119 674 298. This is not a pre-purchase report nor does it express any view as to the value of the Property or parts thereof being inspected.

2. This Report and all its content is prepared for the exclusive use of the Addressee and

may not be used for any other purpose than its stated intention with the exception of its distribution to any party in litigation to which this Report may have reference. No responsibility will be accepted for its content in respect of Third Parties.

3. This Report will remain the property of Integrated Building Consultancy Norwest ACN 119

674 298 and may not be used by the Addressee for any purpose whatsoever until full payment is made. Non compliance with this condition forms a substantial breach in the terms of the agreement between the Addressee and Integrated Building Consultancy Norwest ACN 119 674 298.

4. This Report may not necessarily be suitable for presentation in litigation and other Court

or Tribunal actions as a report with a different structure, ie, a Scott Schedule, may be required by direction of the adjudicative body.

5. Unless otherwise stated-

(a) no soil etc has been excavated (b) no plants or trees have been removed (c) no fixtures, fittings, cladding or lining materials have been removed (d) no items of furniture or chattels have been moved (e) no enquiries of Councils or Authorities or persons have been made for the

purpose of inspecting the Building and providing this Report. 6. This Report does not include-

(a) faults in inaccessible parts of the Building (b) faults not apparent on visual inspection (c) faults apparent only in different weather or environmental conditions (d) faults resulting from different use of the Building’s intended use (e) minor faults (e.g. hairline plaster cracks, jamming doors, window and catches

etc)

This document and its contents are intended for the Addressee only and contains opinions held by the Author based on material available at the

time and expressed for the purposes of consideration by the Addressee and not for general publication without written consent.

CONDITIONS RELATING TO THIS REPORT Continued

7. Asbestos Disclaimer: “No inspection for asbestos was carried out at the property and no report on the presence or absence of asbestos is provided. If during the course of the Inspection asbestos or materials containing asbestos happened to be noticed then this may be noted in the general remarks section of the report. Buildings built prior to 1982 may have all and/or ceiling sheeting and other products including roof sheeting that contains Asbestos. Even buildings built after this date up until the early 90’s may contain some Asbestos. Sheeting should be fully sealed. If concerned or if the building was built prior to 1990 you should seek advice from a qualified asbestos removal expert as to the amount and importance of the asbestos present and the cost of sealing or removal. If asbestos is noted as present within the property then you should seek advice from a qualified asbestos removal expert as to the amount and importance of the asbestos present and the cost of sealing or of removal. Drilling, cutting or removing sheeting or products containing Asbestos is a high risk to peoples’ health. You should seek advice from a qualified asbestos removal expert.”

8. Expert Witness Estimating Disclaimer: Any estimates provided in this report are

merely opinions of possible costs that could be encountered, based on the knowledge and experience of the consultant. The estimates are NOT a guarantee or quotation for work to be carried out. The actual cost is ultimately dependent upon the materials used, standard of finish required and what a contractor is prepared to do the work for. It is recommended in ALL instances that multiple independent quotes are sourced prior to any work being carried out. The consultant accepts no liability for any estimates provided throughout this report.

9. Professional Indemnity Insurance: Integrated Building Consultancy Norwest ACN 119 674

298 holds current professional indemnity insurance. This insurance is limited to a maximum of $1million per event. It is a condition on engagement of Integrated Building Consultancy Norwest ACN 119 674 298 that any claim on the professional indemnity insurance will be limited to a maximum of $1million.

APPENDIX A

STRATA PLAN REGISTRATION PAGE (UNIT ENTITLEMENTS)

sinking fund forecast - metro asset management€¦ · year sinking fund plan as part of the...

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