Types of Contracts and Documentation Required for Suppliers and Service Providers
Condominium managers must ensure that all suppliers and contractors providing goods or services to a condominium corporation have the necessary documentation. Proper documentation protects the corporation from financial, legal, and operational risks.
Key Documents Required:
Service Agreements or Contracts – Must outline the scope of work, pricing, timelines, and obligations of both parties.
Proof of Insurance – Contractors must provide evidence of liability insurance and workers’ compensation coverage.
Warranties and Guarantees – Any repair or installation work must include a warranty period for defects or future issues.
Business Licenses and Certifications – Ensures the contractor is legally permitted to operate in Alberta.
References and Past Work History – Helps assess the contractor’s reliability and experience.
Managing Contractor Agreements, Insurance, and Warranties for Condominium Maintenance
Condominium managers must ensure that all contractors comply with Alberta legislation when performing maintenance or repair work. This includes legal requirements for service contracts, payment terms, and liability coverage.
Best Practices for Contract Management:
Ensure contracts specify payment schedules, project deadlines, and termination clauses.
Confirm that all contractors carry valid liability insurance to protect the condominium from potential damages.
Maintain a record of warranties for installed equipment and materials.
Document any contractor disputes, service delays, or performance issues.
According to the Real Estate Act, a condominium manager must ensure that any contract for services is properly documented, and financial management is conducted in a way that protects the condominium corporation’s assets.
Chattel-Related Property Responsibilities: Tracking and Maintenance Records
Chattel property refers to movable assets owned by the condominium corporation, such as:
Maintenance equipment (e.g., lawnmowers, snowblowers).
Office furniture and IT equipment.
Security and access control systems.
Inventory Management Responsibilities
To maintain accountability, condominium managers must:
Keep detailed records of all chattel property for at least 3 years after the equipment is disposed, including purchase dates, maintenance history, and replacement schedules.
Implement a regular inspection process to ensure assets are in working order.
Secure proper storage and access controls to prevent theft or misuse.
Best Practices for Ensuring Legal Compliance with Service Contracts
To minimize legal risks and ensure compliance with Alberta condominium regulations, managers should:
Use standardized contract templates that align with condominium governance policies.
Require all contracts to be reviewed and approved by the condominium board before signing.
Maintain a centralized database of contractor agreements, invoices, and warranty documents.
Verify that contractors follow safety regulations and applicable building codes.
Assessing the Risks of Incomplete or Missing Supplier and Contractor Documentation
Failing to maintain proper contractor records can expose the condominium corporation to financial losses, legal disputes, and liability risks.
Potential Risks of Poor Documentation:
Disputes over contractor performance due to unclear agreements.
Uninsured contractors leading to unexpected costs in case of damages.
Warranty claims being denied due to missing documentation.
Failure to comply with Alberta laws, resulting in potential fines or legal action.
Creating a Compliance Checklist for Supplier and Contractor Documentation
Checklist for Ensuring Proper Documentation:
Contracts: Clearly define scope, deliverables, and payment terms.
Insurance Coverage: Verify liability and workers’ compensation insurance.
Licensing: Confirm that contractors have the required certifications.
Warranty Information: Collect documentation for all equipment and services.
Maintenance Records: Keep logs of repairs and replacements.
Board Approval: Ensure all contracts are reviewed and approved before execution.
