Contingency fund study and maintenance logbook (Bill 16)

Contingency Fund Study (Bill 16)

The contingency fund study is conducted by a certified appraiser who is a member of the Quebec Order of Certified Appraisers. This study provides an estimation, with a reasonable degree of accuracy, of the annual contributions required for the contingency fund to cover major repairs and replacement of common parts of the building that have reached the end of their useful life within the study’s timeframe.

This study outlines major repair and replacement works of common parts over a 25-year period, along with the estimation of annual contributions required (under various scenarios) to be deposited in the contingency fund to cover the costs of these works. These contributions are in addition to other fees, such as those for the operational management of the syndicate.

The contingency fund study is conducted in compliance with the professional practice standards of the Quebec Order of Certified Appraisers and is inspired by the standard for contingency fund studies for condominiums in Quebec, published by the Quebec Association of Property Managers and Co-owners (RGCQ).

• Identification of the building
• Identification and inventory of common parts components
• Identification of replacement works and major repairs over a 25-year period
• Timeline for works over a 25-year period (presented in a table format)
• Estimation of costs for these works
• Recommendation of contributions to the fund under different scenarios

Maintenance Log (Bill 16)

Essential in condominiums, the maintenance log serves as your syndicate’s dashboard, documenting the building’s history as well as all past and upcoming operations on the property. It enhances a condominium’s competitiveness in the resale market. Moreover, administrators who use it demonstrate a commitment to good governance and sound management.

The maintenance log includes the following information:

• Building identification,
• Identification of the current syndicate and its administrators,
• Identification of the syndicate’s insurance contract(s),
• List of maintenance contracts,
• List of major repairs and replacements of common parts done and planned for the building,
• List of maintenance work done and planned for the next 5 years.

Visual Inspection of Common Parts

Building inspection allows for the inventory of components of common parts. This inventory is crucial for preparing the contingency fund study and the maintenance log. This visual inspection is tailored to the needs of the contingency fund study and will also help assess the apparent condition of the main components of the building’s common parts.

CONTINGENCY FUND STUDY / MAINTENANCE LOG / INSPECTION