Capital Works Plan
What the Sinking Fund Must Pay For (2026)

What a capital works plan is, and why a building needs one

Most strata buildings run from one annual budget to the next. That works for security, cleaning and electricity, which cost roughly the same every year. It does not work for the roof, the lifts, the external paint or the water pumps, which cost nothing for years and then a great deal all at once. A capital works plan is simply a list of those big items laid out over the years ahead, so the committee can see them coming.

This guide uses a ten-year horizon because it is long enough to show the big cycles and short enough to update. That horizon is this guide's planning choice; section 51(2) of the Strata Management Act 2013 governs what the sinking fund may be spent on, and your COB can confirm whether any planning requirement applies.

What the sinking fund may pay for

ClickBina's sinking fund misuse guide explains that section 51(2) of the Strata Management Act 2013 lists the purposes the sinking fund may be used for, as a closed list, and that operational expenses must come from the maintenance account instead. The plan should only contain items that sit on the capital side of that line.

The same guide notes that wilfully applying sinking fund money to an unauthorised purpose is an offence under section 51(4). A plan that keeps the two accounts clearly apart protects the committee as much as the owners.

The big-ticket items to list

Start with an inventory of the common property that wears out or dates. For most Klang Valley condos the list looks something like this:

• Roof and podium waterproofing, including outlets, upstands and tank surrounds.
• External repainting of the facade, and internal repainting of lobbies, corridors and car parks.
• Lifts: major components and, eventually, modernisation or replacement.
• Water pumps, tanks and the water supply system, including fire pumps.
• Electrical common property: the main switchboard, common-area lighting, generators where fitted.
• Drainage, roads, car park decks and boundary walls.
• Facilities: pool plant, gym equipment, playground, clubhouse.
• Security systems: barriers, access cards, CCTV and intercoms.

Our condo rooftop waterproofing guide is a good example of how one of these items is judged: it treats a membrane past 12–15 years, with recurring leaks and widespread ponding, as pointing to the end of its life.

Putting each item on a timeline

For each item, record three things: its current condition, the year it is likely to need major work, and a rough cost. Condition matters more than age. A well-maintained roof may run longer than expected and a neglected one much less, which is why the timing should come from an inspection of the actual building rather than from a generic table.

Where the timing is uncertain, show a range of years rather than guessing a single one. Where two items touch the same area, such as the roof and the facade paint at the parapet, plan them together so the access costs are paid once.

Testing the sinking fund against the plan

ClickBina's maintenance fee and sinking fund guide explains that the sinking fund is contributed in addition to the maintenance charge, commonly at 10% of the maintenance charge. Its worked example makes the scale clear: a 1,000 sq ft share area unit at RM0.35 psf pays RM350 a month in maintenance and RM35 a month into the sinking fund.

Add up the plan year by year, set it against the current balance plus expected contributions, and look for the years where the line dips below zero. Those are the years the committee needs to act on now, while there is still time to raise contributions gradually instead of all at once.

When the fund falls short

If the plan shows a gap, the honest options are few. Raise the contribution rate through the proper process, phase the work over more than one budget year starting with the worst areas, or raise a special levy for a specific project. Our special levy guide explains how a levy is approved and shared between owners.

ClickBina's rooftop guide warns against the fourth option committees are sometimes tempted by: quietly starving the maintenance fund to pay for capital works. It leaves the building short on daily running costs and blurs the line between the two accounts.

From plan to project

When an item's year arrives, the plan becomes a project: a written scope, comparable quotes and, for larger works, a tender. ClickBina's guide to how a JMB or MC appoints contractors recommends retaining 5–10% of the contract value until satisfactory completion, and the rooftop guide suggests holding a contingency of around 10% so variations do not force an emergency meeting halfway through the works.

Keeping the plan alive

A plan written once and filed is worth little. ClickBina's special levy guide suggests reviewing, at every AGM, what major works are expected in the next five years and whether the sinking fund balance and contribution rate are enough. Update the plan after every major project, after any inspection, and whenever a big item fails early. Share a summary with owners: a building that can show its plan is in a far stronger position when it asks for an increase.

Common mistakes

• Planning only the next year, so every big item arrives as an emergency.
• Paying operational costs from the sinking fund, or capital works from the maintenance account.
• Using the age of an item instead of its condition to set the year.
• Leaving access costs (scaffolding, gondolas, road closures) out of the estimates.
• Setting the contribution rate without reference to any plan at all.

What one big item can cost

To show how quickly one item can use up a fund, here are ClickBina's published rooftop re-waterproofing figures for a typical 15,000 sq ft condo roof (indicative 2026, Klang Valley).

Other items such as lift modernisation or a full facade repaint are priced from a survey of the building, and no fair range is given here.

How ClickBina can help

ClickBina is an experienced KL & Selangor contractor for refurbishment and trade coordination, and capital works are usually several trades at once: waterproofing, painting, repairs and common-area upgrades. When your plan turns into a project, WhatsApp us your job details for a quote. We reply within the hour, the price we agree is a flat price with no hidden charges, and a site visit is RM150, waived if you go ahead.

Sources & methodology

• ClickBina sinking fund misuse guide — section 51(2) permitted purposes, operational versus capital, section 51(4).
• ClickBina maintenance fee and sinking fund guide — the usual contribution rate and the worked example.
• ClickBina condo rooftop waterproofing guide — membrane end-of-life signs, roof rates and budgets, contingency.
• ClickBina guide to appointing contractors — retention.
• ClickBina special levy guide — reviewing major works at every AGM.

How we estimated prices: every RM figure on this page is quoted unchanged from the ClickBina guides named above; they are indicative Klang Valley figures for 2026, not a quotation for your building. This page is general guidance, not legal advice.