Under 1071 Civil Code of Québec, at least 5% of the common expenses must be paid into a contingency fund reserved for major repairs and replacements of the common elements.

For example, the contingency fund is a reserve that allows the condo syndicate of a condominium building to meet the above expenses.

From pre-reception report or certificate of building status, the engineer lists the major works to be undertaken in the coming years, provides for the costs of this work and determines how much money the co-owners should have.

Useful life of building materials

The study of the provident fund is based on the useful life (or longevity) of the building materials, on the quantity of materials to repair or replace in the building and on the estimated costs of these materials, our days until a projection in the future for a period of 20 or 25 years.

The useful life of materials varies greatly depending on the quality of materials and installation, as well as the frequency of maintenance work on building components. In general, for each component of the building, there is an average service life (under normal operating conditions) that is known in the construction field.

The contingency fund and the life of the components:

  • A French drain - between 25 and 30 years;
  • Aluminum windows - about 30 years old;
  • An elastomeric roof - about 25 years old;
  • Outside asphalt - about 10 years old.

In the case of a pre-reception inspection, the professional takes note of the construction materials used and the quantity of them and, using the architectural plans, creates a table indicating the life of the materials. and another table describing the quantity of building materials. Then, it calculates the replacement costs of these components for a period of 20 or 25 years.

It is based on this calculation that the expert will establish the monthly contribution, that is to say the amount to be paid, every month, by each co-owner. These amounts are transferred to the co-ownership syndicate account to repair and replace the major components of the building when required.

It can be:

  • replacing the roof or
  • the waterproofing membrane of the indoor parking or that
  • of the French drain,
  • Windows,
  • the ventilation system of the common areas,
  • plumbing ducts or
  • a major repair for the facades and the structural slab of the interior parking, etc.

In the case of a building that is not new, it is essential that the engineer go on site to do an inspection and check the condition of the building to assess the remaining useful life of its components and calculate The provident fund. This inspection aims to identify what are the deficiencies in the building. Subsequently, the engineer prepares a report that contains his findings and recommendations.

The contingency fund and the useful life of building materials

Provident fund for co-ownership