Hi all,
We had a budget control meeting yesterday to go through our budget and contingency and for planning ways to spend the remaining of our contingency (if any). The conclusion of our meeting was that at this stage* we don't have all the information needed to provide a clear figure.* But we can provide the following summary and recommendations:
*SW CLAIMS & INVOICES *
- We have just approved CLAIM 28 - SW Invoice for around 266K which includes around 82K from variation (mainly site works). - We are expecting to receive the last claim next month which will be for an amount closer to 350 + 20K of variations approved/expected. - We are in the process of approving payments for consultants for around 25K . - As today, we have received final invoices from Surveyors, Archeologists, etc. and are still expecting final invoices from other consultants (Eng, Arch, Project Manager, QS, Lawyers, etc.).
*OVERALL BUDGET* *& TIMELINE*
On our overall budget, there are a few areas that are unknown and hard to estimate: e.g. lawyers final invoice (for unit title and settlement), Interest amount to pay for our kiwibank loan, insurance, DCC final invoice for inspections & CCC, consultants final invoices, etc.
In addition we are expecting funds to be introduced from the sale of the DCC unit. We feel that the variables are too great to try to estimate how much money will remain after settlement.
*The exact amount remaining will not be known until settlement.*
The contract with SW will finish in a few weeks but the company can still operate for a few weeks/months. So there is no rush...
*RECOMMENDATIONS*
We feel that the best idea is to finalise SW contract, receive and pay their final invoice due in March, receive and pay all consultants final invoices (March/April), go through the units settlement process, pay back the kiwibank loan and receive funds from the DCC unit.
Once all that is done, we will have a clear amount in front of us to work with and we can then decide how to spend it over the coming months. Once all money is gone, we'll close the company and UCOL will be history (ideally: no profit & no loss). We'll then operate under our body corp structure.
Sounds simple but we still need to go through it...
*POST SETTLEMENT THINGS TO DO - WORKING BEES *
We have also made a list of things that we need to do post settlement. This could easily add up to 100K (we have estimated materials only) Here is the list (order is not showing priority as we need to discuss this with the group):
- Bikeshed (around 30m2) - Pergolas for 9 units (A units and H units) - Cover canopy for 6 units (D units) - Letterboxes - Patio fences (between units) - Install range hood to common kitchen - kitchen final fit out - dining room furniture - Sauna/Spa fence - Veggie garden fence - Landscape (?) planters/benches...
Please note that we have allowed for some money for the kitchen in our original budget, this is something we can discuss tonight. Specifically we would want to go ahead with the installation of the Rangehood which is important to do before final inspection. The rest could come after...
See you all tonight.
Maria