Understanding Engineering and Specialist Reports
Condominium corporations rely on engineering and specialist reports to assess the physical condition of the building, ensure safety, and plan for future maintenance and repairs. Common reports include:
Reserve Fund Studies
Required under the CPA, a reserve fund study assesses the long-term repair and replacement needs of common property.
Must be updated every five years, with contributions adjusted accordingly.
Structural Assessments
Engineers assess the integrity of the building, including foundations, load-bearing structures, and exterior walls.
Critical for identifying risks such as foundation settlement or structural weaknesses.
Building Envelope Reports
Examines issues such as water infiltration from the exterior.
Some Alberta municipalities require a Building Envelope Visual Assessment of the roof and walls of a building.
Mechanical and Electrical Reports
Evaluates HVAC, plumbing, electrical, and elevator systems.
Helps plan for repairs and avoid unexpected failures.
Legal Obligations Related to Reports
When Boards Are Required to Act on Findings
The board has a fiduciary duty to act in the best interests of the condominium corporation.
If a report identifies a safety risk, the board must take action immediately.
The CPA and Condominium Property Regulation outline responsibilities for implementing reserve fund recommendations.
How Condominium Managers Must Assist in Compliance
Managers must ensure reports are properly documented and stored.
Provide recommendations to the board on next steps.
Obtain quotes and oversee the execution of required work.
Creating a Response Plan for Specialist Reports
To ensure compliance and effective decision-making, condominium managers should follow a structured approach to reviewing and implementing report findings:
Step 1: Review the Report
Identify key findings and required actions.
Confirm whether issues are urgent, long-term, or discretionary.
Step 2: Present Findings to the Board
Summarize key points and explain implications.
Recommend a plan of action.
Step 3: Develop an Implementation Plan
Prioritize tasks based on safety, urgency, and budget constraints.
Obtain quotes from contractors as needed.
Step 4: Communicate with Owners
Provide updates on necessary repairs.
Explain cost implications, including potential special assessments.
Step 5: Monitor and Follow Up
Ensure repairs are completed according to plan.
Keep records for future audits or legal compliance.
Case Study: Failure to Act on a Structural Report
Scenario:
A condominium board receives an engineering report warning of deterioration in the underground parkade’s support beams. The report advises immediate repairs to prevent structural failure.
Instead of acting, the board delays the repairs to avoid raising condo fees. Months later, the damage worsens, leading to costly emergency repairs and legal action from unit owners.
Analysis:
What legal obligations did the board fail to meet?
How could the condominium manager have guided the board toward compliance?
What financial and legal consequences arose from the board’s inaction?
