How to manage the special fund for extraordinary works

When the special fund is mandatory

The special fund is required for extraordinary maintenance works and for innovations, not for ordinary management. When the meeting resolves to carry out such works it must, at the same time, set up a fund equal to the total cost of the works, so that the expense is covered before the start.

The rationale is to protect the firm and the condominium: without financial cover you would avoid starting works that you then cannot pay for. This is why case law considers setting up the fund a substantive requirement of the resolution and not a formal step.

Full fund or staged payments

The general rule is a fund equal to the entire amount of the works. However, if the works contract provides for payments deferred according to states of progress, the rule allows the fund to be set up in relation to the individual payments due, that is to request from owners the amounts as the tranches become payable.

This second method is often preferred for long works, because it avoids tying up the entire capital from the outset. It requires, however, precise coordination between the payment schedule and the due dates of the shares requested from owners.

• Fund equal to total cost: immediate and complete cover
• Fund by states of progress: shares aligned with contractual tranches
• In both cases the resolution must state amount and payment terms

Account for the special fund separately

The special fund is a management dedicated to extraordinary works and must be kept distinct from ordinary management. Even if it passes through the current account held in the condominium's name, in the accounts it must be represented as a separate item, indicating the amounts paid by owners and those already paid to the firm.

This separation allows you to know at any moment how much has been collected, how much has been spent and how much is still to be paid. The accounts, under Article 1130-bis of the Italian Civil Code, must also report available funds and reserves, so the works fund must always be shown clearly.

Arrears on the fund and completing the works

If some owners do not pay their share of the fund, the condominium risks being unable to pay the firm. It is therefore crucial to monitor the fund's collections separately and to promptly start reminders and, if necessary, recovery, so as not to stop the site.

Some condominiums provide that works do not start until the fund is fully collected, or at least until the first tranche is covered. It is a management caution that reduces the risk of interruptions due to lack of liquidity.

Closing the fund and final adjustment

When the works are finished you draw up the closing statement of the work: you compare what was collected with the actual cost, including any approved variations and contingencies. If the final cost is lower than forecast, the surplus must be returned or offset to owners; if it is higher, an adjustment is requested to top up the fund.

Managing the special fund with software such as AmministraPro allows you to track payments, disbursements and progress in a separate management, with the accounts always aligned. You can see the features on the /funzioni page and the plans on the /prezzi page.

• Closing statement of the work with actual cost and approved variations
• Return of the surplus or top-up adjustment
• Final accounts of the fund distinct from ordinary management

Frequently asked questions