Maintenance schedule, asset management plan, contingency fund, maintenance booklet: it is certainly difficult to find one’s way through the terminology surrounding the world of condominiums. We know from experience that many people rightly confuse the asset management plan with the contingency fund. Stay tuned as we sort out these concepts and separate the asset management plan from the contingency fund.

First of all, it is essential to know the building under study. To do so, it is important to proceed with an inventory of the components of the common areas. A visual inspection of the common areas by an expert becomes necessary. This inspection will establish, in addition to the inventory of the building’s components, their condition, their theoretical and remaining life expectancy and their maintenance needs. The result of this inspection will be compiled in the building condition report, for an existing property, or in the common area acceptance report, for a newly constructed building.

The building condition report is a report based on the inspection of the common areas. It represents a photograph of the physical condition of the building at the time of the inspection. This document will state the condition of the various components of the building and will take into consideration these observations in the maintenance or replacement forecast.

Next comes the contingency fund study. This is based on the budgetary information of the syndicate, the work to be done on the building, the plans and specifications as well as the building condition report as we have just described. With all this information, the condominium specialist can establish when and how often each item will need to be replaced and how much it will cost to do the work when the time comes.

The twenty-five year contingency fund balance also takes into account a total period of up to sixty years in calculating the amount of money required to cover the full life cycles of the components.

The asset management plan is a tool which allows the condominium administrators to plan the maintenance activities and budgets as well as to determine the judicious contributions to the contingency fund in order to ensure the proper functioning of the building as well as its durability and, by the same token, to meet the obligations of the syndicate as prescribed by law.

In summary, the contingency fund study, the maintenance booklet and the building condition report or the acceptance report are all grouped together under the name of “asset management plan”.

If you have any questions about the contingency fund study, the maintenance booklet, the asset management plan or any other situation related to the management of your condominium, we invite you to contact us. At Legault-Dubois, our inspectors and technologists specialized in condominiums are there to advise you on the service you really need and to accompany you for as long as you wish.