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Delegation and Third-Party Services

Condo Management Models & Agency Responsibilities

Delegation in Condominium Management


Delegation allows condominium managers to assign specific tasks to staff or third-party service providers while maintaining overall responsibility for service quality and compliance. However, improper delegation can lead to legal and operational risks if not handled correctly.


When Can a Condominium Manager Delegate Responsibilities?


Condominium managers may delegate certain operational and administrative tasks, such as:


  • Routine maintenance and repairs (e.g., hiring cleaning or landscaping services).

  • Administrative duties (e.g., sending notices, collecting owner documents).

  • Financial management support (e.g., working with accountants to prepare financial reports).


However, a manager cannot delegate their legal obligations under the Real Estate Act Rules, including ensuring compliance with the Condominium Property Act (CPA) and Condominium Property Regulation.


Best Practices for Delegation


To ensure effective delegation, a condominium manager should:

  • Clearly define roles and expectations for staff and service providers.

  • Ensure service contracts include performance standards and compliance requirements.

  • Maintain oversight and monitor delegated tasks to ensure quality and legal adherence.


The Role of the Condominium Manager in Overseeing Third-Party Service Providers


A condominium corporation may hire external contractors for specialized services, such as:


  • Property maintenance and repairs.

  • Security services and janitorial work.

  • Legal, financial, or engineering consultations.


The condominium manager acts as the liaison between the board and these service providers, ensuring that contracts are fair, transparent, and legally compliant.


Key Responsibilities in Third-Party Oversight


  • Selecting qualified service providers: Ensuring contractors have proper licensing, insurance, and experience.

  • Monitoring contract performance: Conducting inspections, reviewing reports, and verifying completed work.

  • Managing disputes and enforcing contracts: Holding service providers accountable for non-compliance or substandard work.


Legal and Regulatory Considerations When Outsourcing Services


When a condominium corporation hires third-party service providers, the condominium manager must ensure compliance with relevant legislation.


Contractual Obligations and Risk Management


  • Contracts should outline:

    • The scope of work and service standards.

    • Insurance and liability coverage for damages or injuries.

    • The condominium corporation’s rights to terminate for non-performance.


  • Legal Compliance:

    • Contractors must follow building safety codes, employment laws, and CPA regulations.

    • Service agreements should align with the Condominium Property Act and Real Estate Act Rules.


The Real Estate Act Rules require condominium managers to act competently and in the best interest of the condominium corporation when engaging service providers.


Evaluating Third-Party Contracts


Before approving a contract, condominium managers should assess whether the service provider meets the condominium corporation’s needs.


Key Evaluation Criteria:


  • Does the contract align with the condominium corporation’s budget and operational needs?

  • Are the provider’s qualifications and past work experience sufficient?

  • Does the agreement include clear deliverables, timelines, and accountability measures?

  • Are dispute resolution mechanisms outlined in case of contract breaches?


By following these best practices, condominium managers can effectively delegate responsibilities, oversee third-party service providers, and maintain compliance with Alberta’s condominium legislation.

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