Practical guide
Reporting on extraordinary works to residents
A major extraordinary works project, whether it is a facade renovation or an elevator replacement, tests the property manager's ability to keep residents informed about timing, costs and outcomes. Reporting is not a formality to close once the site shuts down: it is a continuous flow that follows the works from quotation to final settlement, made of progress milestones, movements in the dedicated special fund, documents to be kept, and timely communication to the assembly. Reporting done well reduces disputes, protects the property manager in the event of a review, and gives residents confidence that they know exactly where every payment went, item by item.
Progress payments (SAL) as the backbone of reporting
For sizeable interventions spanning several months, the contract with the contractor should provide for payments tied to progress milestones: the contractor invoices in several tranches, each linked to a percentage of work actually completed and verified, rather than a single lump sum at the end. This structure is useful for reporting because it automatically creates periodic checkpoints: each approved progress payment becomes a chapter in the report, with the invoiced amount, the works it covers, and the percentage of completion against the total contract value.
The property manager should have each progress payment verified by the site supervisor or the appointed technician before authorizing payment, and keep the verification document together with the invoice. If there are gaps between planned and executed works, or variations requested during the project, the progress payment review is also the natural moment to inform the assembly before the variation becomes a done deal that nobody agreed to.
The special fund and its traceability
Article 1135 of the Italian Civil Code requires the establishment of a special fund equal to the total cost of the works whenever the assembly resolves on extraordinary maintenance or innovations, unless the assembly agrees on a different payment schedule backed by adequate guarantees. The fund must be kept separate from ordinary management: contributions from residents, withdrawals for payments to the contractor and technicians, and any accrued interest must be traceable as autonomous movements, not mixed with ordinary administration expenses.
Periodic reporting should therefore show the fund's status: how much has been paid in, how much has been spent, what remains, together with the list of residents who have paid their share and those who are in arrears. This traceability is what allows the assembly to verify at any time that commitments match available cash, without having to wait for the year end statement.
Separate accounting for the site
Even where the law does not require separate bookkeeping, it is good practice to keep a dedicated ledger for each extraordinary project, distinct from the ordinary statement: a specific account where every inflow into the special fund and every outflow to the contractor, technicians, safety costs and unforeseen expenses is recorded, with the date and supporting document for each movement.
This separation has practical value beyond clarity: if the project spans more than one financial year, it allows the site balance to be carried forward to the next period without confusing it with routine management expenses, and it simplifies handover in case the property manager changes, because the incoming manager finds an isolated, readable picture of the ongoing project.
Documents to collect and keep
Every phase of the works produces documents that should be collected systematically and made available to residents who request them, under the right of access to records recognized by Article 1130 bis of the Civil Code: the resolution minutes approving the expense and the contract award, the works contract, the contractor's insurance policy where required, the progress payment reports signed by the site supervisor, invoices and payment receipts, site safety documentation where the works require it, and the final completion or acceptance certificate.
It is best to organize these documents by project from the start rather than retrieve them afterwards: a digital file ordered by date drastically cuts the time needed to respond to an access request or to prepare the final report at project completion.
Communicating progress to residents
Reporting is not only about closing the books, it is about keeping residents' trust throughout the project. Periodic updates, even informal ones outside a formal assembly meeting, covering progress status, any changes in cost or timing, and upcoming steps, prevent many of the disputes that arise from silence or fragmented information.
Management software such as AmministraPro helps with exactly this step: it keeps the special fund as a distinct line in the statement, lets supporting documents be attached to each site related movement, and allows the current status of progress payments and expenses to be shared with residents without rebuilding a summary by hand every time someone asks for it.
Frequently asked questions
Is a special fund for extraordinary works always mandatory?
Yes, Article 1135 of the Italian Civil Code provides that whenever the assembly resolves on extraordinary maintenance works or innovations, it must establish a special fund equal to the total cost of the works, unless the assembly itself agrees on installment payments backed by adequate guarantees in favor of the condominium. It is therefore not a discretionary choice of the property manager but an obligation tied to the expenditure resolution, and the fund must be kept separate from ordinary management.
What should reporting on a project with progress payments include?
For each approved progress payment, the report should show the amount invoiced by the contractor, the percentage of work completed against the total contract value, the verification by the site supervisor or appointed technician, the payment date, and the link to the special fund movement from which the amount was drawn. This allows the assembly to follow the actual progress of the site against what was agreed in the works contract.
Can residents request to see invoices and site documents at any time?
Article 1130 bis of the Italian Civil Code grants residents the right to inspect and obtain copies, at their own expense, of the supporting expense documents, which includes documents related to extraordinary works. The property manager must therefore keep site documentation organized and accessible, not only for the annual statement but throughout the duration of the works, in order to respond to requests without unjustified delay.
Why keep separate accounting for extraordinary works instead of including them in the ordinary statement?
Because an extraordinary project often lasts several months and can span more than one financial year: mixing it with ordinary management makes it hard to see how much of the fund remains, which expenses have already been incurred, and how unforeseen costs affected the initial budget. Separate accounting, with a dedicated ledger for the site, allows the project to be tracked as a standalone item and its balance to be carried forward clearly to the next period.
How can reporting be simplified for a long project with multiple progress payments and suppliers?
The most effective approach is to digitize the workflow from the start: record every progress payment, invoice and special fund movement in a single system that automatically links site inflows and outflows, instead of keeping separate spreadsheets. Software such as AmministraPro lets the special fund be managed as a distinct item, attaches documents to each related movement, and produces an updated report in a few steps to share with the assembly or with any resident who requests it.
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