Reserve fund study
Under the Quebec Civil Code, a minimum of 5% of the common expenses (or condo costs) must be put in a contingency fund which is used to finance the major repairs or replacements of the common parts as stipulated in Article 1071. Unfortunately, this amount is often insufficient and is not adapted to the situation and the real needs of a building. The reserve fund study consists of preparing a detailed report of all repairs required or expected in the future to maintain the physical and functional integrity of the building elements in the long term.
The valuation of the contingency fund is carried out following an inspection of the condition of the building and the common parts. According to the charter of the co-ownership, the building systems and the common areas of the building include the building envelope, the windows, the balconies, the roof, the parking, as well as any other common goods such as the mechanical and electrical systems.
The contingency fund study offered includes:
- Visual inspection of the building and common areas
- An estimate of the costs associated with correcting deficiencies observed and maintenance work with applicable deadlines
- Inspection of systems with estimates of replacement costs and their life expectancy
- Analysis of the state of the contingency fund
- Recommendations for establishing a building maintenance program
- Proposed contribution scenarios
Our contingency fund assessments suggest different scenarios tailored to the needs of condominium syndicates and building managers.