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7.3.4 Sinking/reserve fund management: For mixed use developments with commercial service charge
paying occupiers we recommend reserve funds are written into leases. The reason for using the term
‘reserve fund’ as opposed to a ‘sinking fund’ is to provide flexibility as a ‘sinking fund’ should only be
used for the specific identified plant item replacement whereas a reserve fund is pooled for general
expenditure on capital items. At Ringley monies held in trust to comply with section 42 of the 1987 Act
and our Client account bankers (Barclays) pay interest based on a credit aggregation agreement based
on all funds we hold, all sites.

7.3.5 Asset registers: During mobilisation plant and asset registers are reconciled up by our Building
Engineers to gain a full understanding of guarantees that require inspections, e.g., roofs and any
specified maintenance. During dry run training site staff can catalogue and number light fittings. Then,
it is from this analysis the PPM (planned property maintenance schedules) are compiled. Depending on
the quality of information and manuals obtained this work takes 3-5 days per site.

7.3.6 Facilities management: From the CAPEX and asset registers the PPM (Planned Property Maintenance
schedule) takes circa 3-5 days to put together. For each item to maximise the gross to net the
consideration is:
 what can be done by an on site Maintenance Engineer,
 as opposed to contract staff,
then diarise what needs to happen when. It is the Ringley HQ Asset Manager’s job to hold the on-site
team to the PPM calendar and to check receipt of plant inspections and ensure decisions are taken on
recommended works. The method for preparing the PPM (planned property maintenance) schedules
is:
1) Site set up – create asset register to define plant,
2) Upload maintenance contract with end/review dates to safe cloud storage,
22
3) Create diary EVENTS based on relevant requirements for each type of plant ,
4) Close events by uploading worksheets,
5) Where worksheet makes recommendations FLAG this for
discussion/decision.

Each event needs to have its skills level assessed, most legislation
states that maintenance work needs to be carried out by a
‘competent person’, e.g., for emergency lighting the 14 events
required are:
 1 x annual full battery discharge test
 1 x bi-annual test
 12 x monthly function tests (some fire officers argue
weekly)
For emergency lighting after a 2 day training course certified to
BS5266 these tests can easily be carried out by an on-site
Maintenance Engineer, whereas fire alarm testing would remain

22 Plant requirements may arise from statute, delegated legislation, byelaws, caselaw best practice, British Standards, Approved
Codes of Practice, Health & Safety Executive Guidance or HSE Approved Codes of Practice.

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