Practical guide
How to manage extraordinary works in a condominium
Extraordinary works, from facade renovation to elevator replacement, involve significant sums and precise obligations for the property manager. Article 1135 of the Italian Civil Code requires qualified majorities at the assembly and, since the 2013 reform, the creation of a special fund before work begins whenever the amount is significant relative to the ordinary budget. On top of that comes managing work progress payments, allocating costs among owners according to the correct ownership shares, and keeping complete, traceable documentation. Loose handling exposes the property manager to disputes and liability: this guide explains step by step how to set up the whole process correctly, from the resolution to the final statement.
The assembly resolution and required majorities
Article 1135 of the Italian Civil Code gives the assembly authority to approve extraordinary maintenance works and innovations. For significant extraordinary maintenance a majority of those present representing at least half the value of the building is required; for more substantial innovations, such as installing non mandatory systems, the threshold rises further. The agenda must precisely describe the intervention, the estimated cost and how it will be funded, because a vague or generic resolution can be challenged.
It is advisable to attach at least one technical estimate or survey to the notice of meeting, so owners arrive with concrete elements to vote on. If the final cost of the works diverges significantly from the approved estimate, it is prudent to bring a supplementary resolution to the assembly before proceeding, to avoid later disputes over the legitimacy of the expense.
The mandatory special fund
For extraordinary maintenance works and innovations, the condominium reform law introduced the obligation to set up a special fund equal to the amount of the approved works, before the intervention starts. The fund protects both creditors, who know the sums have already been set aside, and owners, preventing the property manager from advancing personal funds or generating unauthorized exposure toward suppliers.
In practice, together with the resolution on the works, the assembly also approves the timing and terms for owners to pay their share into the special fund, which must be held in a dedicated bank account separate from ordinary management. Only after the fund has been set up, or according to the approved schedule, can the property manager commit spending toward the contractor.
Work progress statements (SAL) and payments
For extraordinary works of some complexity it is established practice to structure payments through work progress statements: the contractor invoices in installments corresponding to phases actually completed, verified by a technician or the works director. This scheme reduces financial risk for the condominium, since payments follow the actual progress of the site instead of advancing sums for work not yet performed.
Each progress statement should be accompanied by a technical document certifying the completed work, the corresponding invoice, and proof of payment through the dedicated account. Keeping an orderly record of every progress statement, with amounts, dates and status, is essential both for transparency toward owners and in case of a dispute with the contractor.
Allocating costs among owners
Allocation generally follows ownership shares, unless the asset or service in question benefits owners to a different extent, such as an elevator serving only some floors, allocated under the criteria of Article 1124, or parts attributable to a single building within a supercondominium. It is the property manager's task to verify the applicable allocation table before issuing payment requests for the fund and any subsequent adjustments.
A frequent mistake is applying general ownership shares to expenses that the law or the condominium bylaws assign to a specific table: this generates well founded disputes and can lead to the allocation being annulled in court.
Documentation and final statement
At the end of the works the property manager must prepare a specific statement of the extraordinary intervention, separate from the ordinary budget, summarizing the reference resolution, amounts paid into the special fund, invoices and progress statements, any savings or extra costs compared to the estimate, and the final allocation among owners. Keeping the specifications, contracts, contractor insurance policies, acceptance reports and warranties is essential for future liability of both the property manager and the owners in case of defects.
Management software such as AmministraPro helps keep special funds separate from ordinary management, record work progress statements together with the related payments, and automatically generate the allocation on the correct table, reducing the risk of errors during the most delicate phase of a condominium's life.
Frequently asked questions
When is it mandatory to set up the special fund for extraordinary works?
The special fund must be set up, through a resolution passed together with the one on the works, for extraordinary maintenance works and innovations, before the intervention begins. Its amount must match the approved works, and it must be held in a dedicated account separate from the condominium's ordinary management.
What majority is needed to approve extraordinary works at the assembly?
Article 1135 of the Italian Civil Code requires, for significant extraordinary maintenance, a majority of those present representing at least half the value of the building; for more substantial innovations the majority threshold rises further. The agenda must precisely state the subject of the works and the estimated cost.
How are the costs of extraordinary works allocated among owners?
The general rule is allocation according to ownership shares, unless the asset or service involved benefits owners to a different extent, as with an elevator allocated under Article 1124, or parts attributable to a single building in a supercondominium with its own dedicated table. The property manager must verify the correct table before issuing payment requests.
What are work progress statements and what are they for?
Work progress statements, or SAL, are payment installments corresponding to construction site phases actually completed and verified by a technician or the works director. They reduce financial risk for the condominium by avoiding advance payment for work not yet performed, and must be documented with a technical report, invoice and proof of payment.
What documents must the property manager keep after extraordinary works are completed?
At the end of the intervention, the assembly resolution, a specific statement of the works with amounts paid into the special fund, invoices and progress statements, the specifications and contract with the contractor, insurance policies, acceptance reports and warranties should all be kept. Management software such as AmministraPro allows these documents to be archived in an orderly way, linked to the final cost allocation.
Try AmministraPro
Accounting, thousandths-based cost splitting, meetings, communications and artificial intelligence in a single Italian software, compliant with UNI 10801 and GDPR.