What is a Capital Works Fund in a Strata Scheme?

A Capital Works Fund in a strata scheme is a pooled fund used to pay for major long-term repairs, replacements, and upgrades to the building and common property. Unlike the administrative fund, which covers day-to-day expenses, the capital works fund is specifically set aside for significant future works that maintain the building’s value, safety, and functionality.

This fund typically covers items such as roof replacement, lift refurbishment, repainting, structural repairs, waterproofing, façade works, or major plant and equipment upgrades. Every owners corporation is legally required to maintain a capital works fund and prepare a 10-year Capital Works Plan to ensure adequate money is available when major works arise. It ensures owners are not hit with sudden, large special levies and that the property remains well maintained over time.