Quantity Surveyors generally produce the first Sinking Fund Report for an off the plan scheme on the basis of what they know (reading the plans) and what they are told (information obtained at the consultants meeting).
The information that is not shared generally ends up in the “Lets include unknown capital costs until proven otherwise”.
The above strategy is great!! Opportunity can then be given to all consultants engaged on the project to review the report and provide key feedback on what is or is not to be included in the project. The Quantity Surveyor is more than happy to update the report with the new critical information.
One example – a central hot water system (CHWS) is included at $110K – on a yearly basis this equates to between $2 per week per lot to $5 per week per lot depending on how many lots within the scheme.
If the CHWS is not required ie the scheme is engaging a 3rd party to provide under a supply arrangement or each unit has individual hot water systems, when removed from the report considerable savings are made.
Taking the time, is well worth the exercise to tighten levies, especially in this challenging market for sales, detail is everything.
Contact our team on 5504 2015 or firstname.lastname@example.org for an obligation free session on how you can improve your project.