RWA Takeover from the Builder for Facility Management of the Society / Apartment Complex

Sooner or later an RWA has to take over the facility management responsibilities from the builder.

It is very important that the RWA does enough planning for a smooth takeover from the builder. Some of the important considerations for the take-over are as follows:

  1. The RWA should setup a high powered team of committed people who can carry out the takeover activities.
  2. The RWA should ensure that they prepare communication plan to reach out to the residents and the other stake holders. The sensitization of the residents is very important about these matters.
  3. The RWA should carry out a due diligence of the following items:
  • Civil and Structural Due Diligence
  • Legal due diligence
  • Financial due diligence
  • Piping due diligence
  • Electrical Due Diligence
  1. The RWA should ensure that they have adequate by-laws and legal structure to take over the condominium. They should make specific provision in the by-laws to run the apartment operations. They should ensure that the apartment owners are bound by the by-laws to support RWA in their endeavours.
  2. The RWA should ensure that the following master data are made available to them and they should ensure completeness and data integrity of these data items:
  • All the units, their types, areas and other details
  • All the parking, allocations, sticker details etc.
  • All the ID card details
  • The list of all the existing vendor
  • Asset Register
  • List of all the certificates, NOC, licenses and similar documents
  • List of the all the utility services providers, connection details, payment receipts
  1. RWA should take over the list of procedures and processes from the builder / Facility Management Company. They should ensure that as many things are documented as possible.
  2. RWA should work out the business model of running the apartment complex. They should work out a proper mix of insourcing and outsourcing. They should seek if they can continue with the existing service providers under a new RWA contract. If possible, it should be done. RWA however should ensure that they have defined the SLA properly.
  3. RWA should prepare an yearly budget and three yearly budget for the operations based on the previous history. They should account for the capital to be made available by the builder. They should ensure that they have IBMS capital transferred to the RWA.
  4. RWA should also plan for a proper IT system to manage the affairs. Implementation of proper IT systems would help them to automate the tasks and processes and would allow them to focus on more strategic things and less transactional activities.
  5. RWA may take help of legal and facility management process consultants to facilitate this process.

As far as possible, RWA should have a smooth take over. There should be a specific transition plan for the takeover.

 

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