Why the Initial Maintenance Schedule Matters in Strata Handover
The handover of a strata building is a critical stage. It can determine whether the building runs smoothly or faces ongoing issues.
One of the most important parts of this process is the Initial Maintenance Schedule (IMS). Under Section 115 of the Strata Schemes Management Act 2015 (NSW), developers are required to provide an IMS at handover.
However, unclear supporting legislation—particularly Section 29 of the Strata Schemes Management Regulation 2016 (NSW)—has often led to incomplete or inconsistent schedules. This creates problems such as poor cost estimates and confusion around maintenance responsibilities.
New legislation expected soon will aim to fix this by introducing clearer standards and improving consistency across the industry
What Is an Initial Maintenance Schedule?
The Initial Maintenance Schedule is more than a checklist. It is a guide that outlines:
- What needs to be maintained
- When maintenance should happen
- How much it is likely to cost
It helps different stakeholders understand their responsibilities and plan ahead.
Why it matters:
- Developers meet obligations under Section 115
- Owners gain clarity on maintaining common property under Section 106 of the Strata Schemes Management Act
- Managers can prepare accurate budgets and maintenance plans
A well-prepared IMS reduces disputes and supports long-term property value.
Why Has IMS Quality Been Inconsistent?
One of the main issues has been unclear legislative detail.
While Section 115 of the Act requires an IMS, it does not clearly define the level of detail required. At the same time, Section 29 of the Regulation provides only limited guidance.
As a result, some developers rely on general O&M manuals rather than structured schedules.
This often leads to:
- Budgets that don’t reflect real costs
- Gaps in maintenance planning
- Confusion during the First AGM
Upcoming reforms are expected to introduce a standard format, improving clarity and consistency.
What Should Be Included?
Current Regulations outline some core building elements, including:
- External structure (walls, roofing, drainage)
- Fire safety systems
- Security and access systems
However, a complete IMS should go further.
A strong schedule should also cover:
- Waterproofing and structural elements
- Electrical, hydraulic, and mechanical systems
- HVAC and plant equipment
- Landscaping and shared facilities
- Technology systems and cabling
It should also include:
- Warranty details
- Maintenance instructions
- Service frequency
- Estimated costs
- Supplier and contractor contacts
The IMS should act as a clear summary, supported by detailed manuals provided under Section 16 record-keeping requirements at handover.
When Should It Be Prepared?
Timing is one of the biggest issues with IMS preparation.
Although Section 115 requires the IMS to be provided before the First AGM, preparing it at that stage is often too late. By then, budgets and expectations may already be misaligned.
A better approach is to prepare it earlier:
- Begin drafting during planning or DA stage
- Update it during construction
- Finalise it before the occupation certificate
This ensures levy estimates—required shortly after registration—are realistic and aligned with actual maintenance needs.
What Happens After It’s Provided?
Even though developers must provide the IMS, there is currently no strict requirement for owners corporations to follow it.
This creates a gap between planning and action, particularly when considering obligations under Section 106, which requires proper maintenance of common property.
However, this is expected to change. NSW Fair Trading is being given stronger enforcement powers, including compliance mechanisms to ensure maintenance obligations are met.
This will likely increase reliance on the IMS as a practical benchmark for required maintenance.
How the IMS Protects Developers
The IMS is not only useful for owners and managers—it also protects developers.
Under Section 115(4) of the Strata Schemes Management Act, the IMS can be used as a defence in defect-related claims if issues arise due to a failure to maintain the building properly.
It may also assist in defending claims under Section 89, by showing that initial levies were based on documented and reasonable maintenance assumptions.
What Should Each Stakeholder Do?
Improving IMS quality requires input from all parties.
Developers
- Prepare the IMS early to meet Section 115 obligations
- Include detailed costs and maintenance schedules
- Work closely with builders and consultants
Strata and Building Managers
- Use the IMS to guide budgets and operations
- Support compliance with Section 106 maintenance obligations
- Avoid setting unrealistically low levies
Owners
- Review the IMS at the First AGM
- Use it to plan maintenance decisions
- Refer to it when assessing costs and works
Setting the Right Foundation
A clear and well-prepared Initial Maintenance Schedule plays a major role in a successful strata handover.
It provides structure, improves transparency, and supports compliance with key legislative requirements. More importantly, it helps create a well-managed building from the very beginning.
With legislative reforms on the way, there is a strong opportunity to improve standards. A detailed and accessible IMS will support better planning, fewer disputes, and a more stable strata community over the long term.
