Sinking Fund Shortfall due to Re-Painting

There is not enough money in the sinking fund to re-paint the building, what are our options?

Painting is typically the largest expense which will be paid from the monies raised through sinking fund levies. Depending on the climate, building aspect and the original finish applied, external paintwork can last anywhere from 5 to 12 years. If significant monies have not been raised to meet this cost there are options which a body corporate committee can explore:

• Painting Contract. Most large painting companies will offer a 5 to 7 year painting contract with fixed annual payments. This can decrease the large upfront cost and allow more time for the lot owners to raise the required funds into the Sinking Fund. These painting contracts usually include warranties, wash downs and annual touch-ups so after the contract has lapsed you may not need to do any work on these surfaces for some years. The life of the surface paint is extended through the regular maintenance which has occurred during the contract period.
• Access. For multi-storey buildings typically obtaining safe access to the surfaces is more expensive than the painting itself. Typically the cheapest option for large buildings for access is abseiling, where the trained professionals tie-off to roof anchors installed on the roof and abseil down the face of the building applying the new paint surface. Scaffolding is typically far more expensive, takes up more space, is inconvenient and creates more of a mess. If your building doesn’t have roof anchors you may look to install these to save money on the re-paint. Beware though that these anchors must then be maintained and be deemed compliant prior to use which will become an expense out of the administration fund every year.
• Wash down. You may think your building needs a re-paint. But it could just be the build up of dirt and grime. You should think about a building wash down. Usually priced in the thousands rather than the tens of thousands that you would be up for for a full re-paint. This may bide some time to raise more funds.

Utilising one of these options could negate the need for raising special levies.

Does your property require an updated sinking fund forecast? Contact us on 1300 290 235 today.