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Budget
To prepare a fully costed administration budget requires a detailed understanding of the development
complex. This not only satisfies the legislative requirements for sales contracts, it also alleviates any
future angst around second year budgets.
More often than not we see draft budgets‟ that have, not only fallen short of the legislative requirements
to provide properly noted GST and unit entitlements, they also are deficient in identifying the detailed
expenditure across the asset. Our team has the skills and industry experience to view and analyse the
development plans and assign accurate expenditure.
For example we have identified the following operation requirements at IQ Apartments, not only for
budgeting, for the asset register:
Fire Services – sprinklers installed in basement 1, basement 2 and ground floor
Hot water pumps – maintenance post the DLP period
Security – roller shutter motor, as well as the swipe card readers and intercom system
Management of the car parking allocation to the commercial and retail tenants
Management of the commercial waste areas, in addition to the management and collection of the
tenants waste from the collection points
Lift maintenance post the DLP period
Car park exhausts – maintenance post the DLP period
Landscaping maintenance
Sinking Fund budgets also form part of a properly costed asset plan. Our sinking fund allocation in the first
year budget allows for a properly prepared and costed sinking fund report. This report is the base line for
the property asset management plan, and works towards future-proofing the asset.
We have taken the liberty of applying our knowledge and expertise in providing a draft budget and
contributions schedule that includes some of the omissions identified in your existing budget. Please refer
to Annexure E.
Our process post registration
Registering a complex building such as IQ Apartments is a daunting task, and in our experience we
generally take the lead with developers, builders and solicitors in preparing all the documentation
surrounding the registration and striking levies against the first year budget.
As we have intimate knowledge of the budget process our internal processes allow us to set up the building
in our system well ahead of time. This provides our administration teams with the necessary information to
prepare the section 119 certificates, enter the approved budget figures and complete the draft house rules
and inaugural minutes in readiness for the first annual general meeting.
It‟s also at this time our skills and experienced teams are able to provide you with recommendations around
the best possible way forward in managing the complex. For example with all mixed use developments
there are always issues with:
Signage rights on the outside of the building
Use of company graphics and logos internally
Granting rights of access over easements
Interdependency between commercial/retail and residential tenants around noise, security and
waste issues