A Sinking Fund Forecast is a vital tool for ensuring the financial health and sustainability of your Body Corporate’s ongoing maintenance and replacement plan. An important process of a healthy Sinking Fund Forecast involves reviewing and recalibrating the financial data to reflect current market realities, including rising material costs, changes in labour rates, and evolving regulatory requirements. By keeping your forecast up to date, you can align projected expenses and contributions with actual economic conditions, safeguarding the long-term stability of your maintenance plan.

Rawlinson Cost Guide & Construction Data Trends

While most Sinking Fund Forecasts provide a 15-year expenditure outlook, their accuracy depends on regular updates to account for fluctuating market conditions. Rawlinson’s 2025 construction cost index reveals significant cost increases in key building materials, emphasizing the critical need to stay proactive in revising your forecast.

The 2025 Rawlinson Construction Cost Guide has shown square meter construction rates have increased in Brisbane by over 6.9% from 2024 to 2025. Changes in material costs have a direct impact on the expenses for maintaining, repairing, or replacing building components. Notable examples include:

• Blockwork (Concrete blocks): A 6.9% increase will affect repairs or structural modifications.
• Fire Rated Cladding: A 50%+ surge can drastically increase costs for compliance with fire safety regulations or façade upgrades.
• Double Glazed Curtain Wall Windows: A 6-10% rise means higher expenses for window replacements, common in energy-efficient retrofits.
• Bitumen Waterproofing: Doubling in cost significantly impacts roof repairs or basement waterproofing projects.

Risks of Not Updating Your Sinking Fund Forecast

• Underfunding Risks: Insufficient funds may delay critical repairs, causing property damage or safety hazards.
• Unexpected Special Levies: If the Sinking Fund cannot cover necessary expenses, your Body Corporate may need to impose special levies to owners.
• Higher Costs Later: Emergency repairs are often more expensive than planned maintenance.
• Regulatory Non-Compliance: Failing to adequately collect funds for compliance upgrades could result in penalties or legal issues. Similarly failing to maintain the common property and the building due to lack of funding is often grounds for litigation amongst the owners and the body corporate.

If your Sinking Fund Forecast hasn’t been updated in the last 3–5 years, we strongly recommend a comprehensive review, including a full site visit. If not, you will not be raising an adequate amount in levies to actually meet their future maintenance obligations.

Partner with a professional company that uses up-to-date cost data in their reports is essential for maintaining an accurate Sinking Fund Forecast.