Contingency Fund Studies

Contingency Fund Study (Bill 16)
Comply with the law 16

In Quebec, section 39 of Bill 16 was passed and now requires condominiums to have a contingency fund study in order to maintain the integrity of the building and its main components. The purpose of this contingency study is to prepare a report detailing planned spending in the short, medium and long term. Provides funding for replacement and major renovations. Provides funding for replacement and major renovations.

This law also requires that a contingency fund study be done every 5 years and that a maintenance book be put in place.

The contingency fund study is a process that requires the expertise of professionals such as engineers at QualiTAM in Montreal and its surroundings to accurately assess the real condition of the building and maintenance needs in multiple stages:

• First step: Our experts study all available documents to carry out an inventory of the elements of the common parts of the building. This allows them to make an inspection plan.
• Second step: This step allows a visual inspection of the building. Our experts will be able to complete the inventory of common parts components, assess the wear condition of components and determine which components will be repaired in the short term.
• Third step: Our experts report their observations about the building. They assess the actual age of the elements of the common parts, identify premature damage and elements in good condition.
• Fourth step: At this stage, a maintenance plan is developed. Our experts identify in a schedule the major repairs and replacements to be made in the coming decades and the budget to do this maintenance.
• Fifth step: Our experts organize contribution scenarios that will help raise the necessary funds to meet the real needs of the building and that will be given to the condominium union.
• Sixth step : The service log is used to document all service and maintenance work. Our experts will prepare this important document based on the elements observed during the previous steps.

Once all of these steps have been completed, the contingency fund study is presented to the union for comment before a final version of the study is obtained.

Insurable Value (Bill 141)

Qualitam’s team in the greater Montreal region is specialized in estimating the costs of rebuilding or replacing new residential, commercial, industrial buildings, etc.

The purpose of this mandate is to establish the insurance coverage of the building so that it is sufficient to rebuild it in the event of a disaster, in compliance with the requirements set out in Bill 141. This amount is determined by a member of the Ordre des évaluateurs agréés du Québec and evaluated every five years.