Features & tools
Tracking the works fund progress in your software
When the meeting approves extraordinary work, such as facade renovation or lift replacement, it often sets up a special fund dedicated to that work. Article 1135 of the Italian Civil Code requires, for extraordinary maintenance works and improvements, the setting up of a fund equal to the amount of the works. Monitoring its progress means knowing at any moment how much owners have paid in, how much has been paid to suppliers according to progress states, and how much remains. Software that keeps the fund separate from ordinary management makes this control immediate and dispute-proof.
Why the fund must be kept separate
The extraordinary works fund has a bound purpose: the sums collected serve that work and cannot finance ordinary management. Keeping the fund distinct in the accounts is the premise for truly monitoring it. If works fees blend with ordinary ones, it becomes impossible to say how much is available to pay the contractor for the work.
Separation also protects owners. Each pays their works share according to thousandths (millesimi) and has the right to know that money stays destined for the work. Clear tracking of the fund prevents suspicion and disputes, especially when works drag on and the sums at stake are significant.
The three numbers to watch
Monitoring rests on three values. Paid-in is how much owners have actually paid of the approved works fees. Spent is how much has been paid to suppliers as the progress states are approved. Remaining is the difference, that is, how much is left in the fund for later payments.
Reading these three numbers together tells whether the fund keeps pace with the works. If spent grows faster than paid-in, the fund is thinning and may not cover the next progress state. This signal anticipates the problem and allows chasing overdue fees before the site stops for lack of liquidity.
- Paid-in: works fees collected from owners
- Spent: payments to suppliers for progress states
- Remaining: availability still in the fund
- Fund arrears: fees approved but not paid in
Linking payments and progress states
Extraordinary works are usually paid by progress states, that is, in tranches tied to the advancement of the work. Linking each payment to the corresponding progress state makes it possible to verify that you are paying for work actually done and within the contract limits. It is a safeguard against unjustified advance payments.
Software that associates invoices, payments and progress states reconstructs the full history of the site from an accounting standpoint. This also eases reporting at the meeting, where owners want to know how far along the works are and whether spending follows the approved budget.
The arrears that stall the site
A specific risk of extraordinary works is arrears on the works fees. Unlike ordinary fees, here unpaid amounts can stop the site: if there is no liquidity to pay the progress state, the contractor may suspend. Monitoring arrears on the works fund separately is therefore even more critical than on ordinary management.
In AmministraPro the works fund is kept distinct from ordinary management, with paid-in, spent and remaining updated at every transaction, payments linked to progress states and fund arrears highlighted separately. The administrator runs the site on the accounting side without separate spreadsheets. The features are described on the /funzioni page and the plans on the /prezzi page.
Frequently asked questions
Is the extraordinary works fund mandatory?
Article 1135 of the Italian Civil Code provides that, for extraordinary maintenance works and improvements, the meeting sets up a special fund equal to the amount of the works. When the works are entrusted under a contract providing for gradual payments, the fund may be set up in relation to the individual payments due.
Why is the ordinary account not enough for the works?
The works fund sums have a purpose bound to that intervention and must not finance ordinary management. Keeping them distinct, including at the accounting level, is the condition for knowing at any moment how much is available to pay the contractor and for protecting the owners who have paid their share.
What happens if an owner does not pay the works fee?
Arrears on works fees reduce the fund's liquidity and can jeopardise payment of progress states, up to stalling the site if the contractor suspends for non-payment. That is why they should be monitored separately and chased promptly, resorting if necessary to the recovery tools provided by law.
How are payments linked to progress states?
Extraordinary works are generally paid by progress states, that is, tranches tied to the advancement of the work. Associating each payment with the corresponding progress state makes it possible to verify that you pay for work actually done and within contract limits, reconstructing the full accounting history of the site.
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