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Capital Expenditure Plan
Landlords and resident management companies are advised to have a Capital Expenditure Plan carried out every three to five years, depending on the age of the building, to gain a better understanding of what maintenance needs to be carried out and when.
The Capital Expenditure plan is a useful tool which helps in:
- Decision making and the preparation of future maintenance plans
- Ensuring necessary funds are obtained in sufficient time
- The control of budget expenditure
The plan is a detailed report highlighting areas that are likely to need maintenance or repair over a ten year period (or longer if necessary), following an inspection by one of our surveyors. The plan will take into consideration a number of factors including the current condition of the building, any historical maintenance work carried out and environmental factors.
The plan covers a ten year period so as to cover the main internal and external redecoration cycles set within the lease, although it should be reviewed annually by clients and amendments made if necessary to allow for changes in legislation and other considerations. Where applicable, it will allow works to be grouped together in order to reduce costs. It is wise to regularise maintenance to prevent a backlog and ensure the financial burden is spread more evenly by leaseholders over the years, and a Capital Expenditure Plan is an ideal for this.