PLANNING WORK
FOR SOUND MANAGEMENT OF YOUR ASSETS
Contingency fund
WHAT IS IT ABOUT?
Even with the best materials in the world, any building will, sooner or later, experience a certain level of dilapidation. In order to cope with these inevitable future expenses, the contingency fund is of paramount importance for the sound management of the finances of a condominium. Corresponding to a budgetary fund that the Board of Directors will allocate strictly for major repairs to the common areas of the building, the contingency fund is a requirement of the Civil Code of Quebec (Article 1071).
The maintenance log, which is a document that can be compared to a “memory card” retracing the history of the building, is included in our “Contingency Fund” solutions. Mandatory since 2019, it makes it possible to plan and monitor the interventions to be carried out to meet legal and contractual obligations. It is also an essential tool for calculating the amount that the co-owners will have to pay into the contingency fund. This estimate therefore requires not only precise knowledge of the building but also orderly planning of the work.
Calling on our experts means ensuring a diligent inspection and an optimal multi-year budget program for upgrading or replacing the components of your building.
WHAT WE PROVIDE
Each contingency fund request begins with a physical and visual inspection of the condominium (with the support of a drone, crane or nacelle if necessary). It will also be an opportunity to consult all the documentation necessary for the understanding and development of the contingency fund.
Subsequently, the professionals of ProspecPlus provide you with a report specifying the measures and sums necessary to maintain your assets.
Thanks to our inspection report of the common areas and the maintenance log , we determine when major asset maintenance work should be carried out and at what cost. Based on this information and the life expectancy of the components inspected, our professionals determine the amounts that must be deposited in the contingency fund and what will be the annual contribution of the co-owners to the contingency fund to meet the anticipated expenses according to the schedule. the next 30 years.
This estimate is mainly based on the following points:
- Estimation of the condition of the main components;
- Determination of the residual life of the main components;
- Estimation of the unit price of replacement or repair of the main components, taking into account the increase in consumer prices;
- Assessment of income (contributions, bank interest income).
In addition, and if you wish (optional services), our experts can also:
- Be present during the presentation of the results to the members of the Board of Directors and answer their questions if necessary;
- Provide the drawings, plans and specifications for the tender phase which leads to the completion of work to ensure the safety and sustainability of your building;
- Organize site supervision.
Supporting your project from A to Z, ProspecPlus is the Total Solution for your building.
KNOW HOW TO DECRYPT
LAW
Building law mainly concerning the modernization of safety standards in December 2010 following accidents due to dilapidation and failure to bring certain buildings up to standard.
DATE
Official date from which the law provides that the management council must set up a contingency fund which must be partly liquid, available in the short term and its capital must be guaranteed.
DAYS
Maximum notice period that the financial institution must guarantee to the co-ownership so that it has access to part of the sums deposited in the contingency fund (these sums must remain liquid and available in the short term).
Sources: Régie du Bâtiment du Québec, RBQ, www.rbq.gouv.qc.ca, 2021
Condo Légal, www.condolegal.com, 2021
La copropriété, www.lacopropriete.info, 2021