You own a condo and have been hearing about Bill 16 for some time now. You do some Internet research on the subject, then contact a few service companies to carry out your contingency fund study. You’re amazed at the differences between the services on offer, and wonder: is inspection necessary for my contingency fund study? Stay with us and see what our condominium specialists have to say!

While it’s true that there’s currently no law requiring an inspection to be carried out before a contingency fund study is undertaken, it’s nevertheless an extremely important step in the process. Not only is this step recommended by, among others, the RGCQ (Regroupement des gestionnaires et copropriétaires du Québec), but it’s a safe bet that it will be required when all the elements of Bill 16 come into force.

Why, you ask?

The answer lies in the very description of the contingency fund study. The purpose of such a study is to project the expenses that will be generated by the maintenance and repairs that the building will require for the next 25 years! That’s right, for the next 25 years, because although the document you’ll receive following the study will establish your needs and contributions for the coming year, or the next 10 depending on the scenario, the study looks much further ahead. It plans the evolution of the various components over a 25-year horizon to minimize the margin of error.

Of course, the more accurate the initial picture, the more reliable the projection, the fairer the condominium assessments and the lower the risk of having to resort to extraordinary assessments.

But to obtain this accurate and realistic picture of the building under study, a professional inspection is essential. To do this, a building inspector must visit the site and assess the condition of the various components of the common areas, using his experience and knowledge to determine the remaining life expectancy of each of these elements. Without his intervention, you run the risk of incurring unforeseen expenses and, consequently, having to resort to extraordinary contributions to remedy the situation…

So, when the time comes for your condominium corporation to choose a company to carry out its contingency fund study, never forget the importance of inspection.

Bear in mind that if a company offers you a service at a much lower price than its competitors, the chances are that the service will not be as comprehensive as those offered by other companies.

After all, if the price is too low for the study, you may end up paying for it… later!