Contingency Fund Study

The completion of a reserve fund study every five years is one of the new requirements introduced by Bill 16. You are now obligated to carry out a periodic reserve fund study. The reserve fund is the cornerstone of a condominium’s financial management, designed to anticipate expenses related to major repairs and the replacement of components in the common areas of a building. Unlike funds intended for day-to-day maintenance, the reserve fund focuses on financing significant long-term work. It is an essential strategic tool, not only for maintaining the building’s value but also for protecting co-owners from unforeseen special assessments and the financial stress they may cause.

Why a reserve fund study is crucial

Understanding the difference between routine maintenance and long-term planning

It is essential to distinguish routine maintenance from major repairs. While the operating fund covers daily maintenance and management expenses (cleaning, minor repairs, electricity, etc.), the reserve fund is specifically designed for major interventions such as replacing the roof, elevators, plumbing systems, or refurbishing façades.

This distinction is crucial because co-owners can easily underestimate the scope of future work to be completed. Without an adequate reserve fund, condominium corporations expose themselves to significant special assessments, which can become a source of stress and disagreement within the community.

A lever for proactive condominium management

Conducting a reserve fund study not only helps anticipate future needs but also allows for strategic planning of interventions. By accurately assessing financial needs over a 25-year period, co-owners can distribute costs fairly over the years, ensuring financial stability for the condominium.

This helps avoid unpleasant surprises and emergency situations where special assessments would be required to fund critical work. By adopting a proactive approach, condominium boards can face management challenges with greater peace of mind and preserve cohesion within the community.

Bill 16: a legal framework reinforcing long-term planning

Since December 2019, Bill 16 has required condominium corporations in Quebec to carry out a reserve fund study every five years. This measure aims to ensure that each condominium has a clear and adequate plan to finance major repairs and replacement work in the common areas.

Far from being a mere formality, the reserve fund study is an essential tool for healthy and transparent management. It helps define the amounts to be contributed to the fund based on precise projections and professional recommendations, thus ensuring the building’s sustainability while reducing financial risks for co-owners.

Key steps in the reserve fund study with Planibâtimat

At Planibâtimat, our approach to the reserve fund study is based on a rigorous and methodical process, supported by years of expertise in property management and financial assessment. Every step is designed to maximize the accuracy of the evaluation and provide condominium boards with solutions tailored to their specific needs.

1. Thorough review of condominium documents

The first step in our reserve fund study process is to analyze in detail all the legal and financial documents of the condominium, such as the declaration of co-ownership, past financial statements, as well as maintenance and management reports. This analysis allows us to fully understand the building’s specific issues, as well as the repairs completed and planned.

This initial analytical work is essential to identify weaknesses in the current management and to assess whether the existing reserve fund is sufficient to meet the condominium’s future needs.

2. Comprehensive visual inspection of the common areas

The second step of the reserve fund study involves a detailed visual inspection of all common areas of the building, carried out by our professional technologists. This step aims to assess the condition of building components such as roofs, heating systems, elevators, parking areas, and façades.

We identify signs of deterioration and estimate the remaining lifespan of each component, allowing us to create a list of urgent or medium-term work. This evaluation is crucial for anticipating necessary interventions and avoiding unforeseen short-term expenses.

3. 25-year financial projection

Based on the inspection results and document analysis, we establish a detailed financial projection covering a 25-year period. This projection includes an estimate of the costs for major repairs and component replacement while taking into account factors such as inflation, variations in construction costs, and environmental requirements.

This projection becomes part of the reserve fund study and helps determine the annual contributions co-owners must make to ensure adequate financing for future work. We provide several financial scenarios, enabling the board of directors to choose the best strategy based on the condominium’s needs and financial capacity.

4. Contribution scenarios for the reserve fund

Based on the study’s results, we propose different contribution scenarios for the reserve fund. These scenarios take into account the current state of the fund, the building’s needs, and the co-owners’ financial capacity. Each scenario is designed to minimize the financial impact on co-owners while ensuring that funds will be available at the right time to complete the necessary work.

What you receive with Planibâtimat

By choosing Planibâtimat for your reserve fund study, you benefit from a complete and professional service, compliant with legal requirements and tailored to your condominium’s specific needs. Our expertise in reserve fund evaluation allows you to receive a comprehensive report that includes:

• A detailed expert report compliant with Bill 16: This report includes an accurate assessment of the condition of the building’s common areas, as well as a 25-year financial projection. This document justifies the amounts to be contributed to the reserve fund and assists in planning future interventions.
• A maintenance schedule: This schedule specifies the expected dates for maintenance or replacement of various building components, helping the board anticipate work and avoid costly emergency interventions.
• Strategic recommendations: We provide several contribution scenarios to help the board determine the best financial management strategy. These scenarios are designed to balance the condominium’s needs with the co-owners’ financial capacity.

The impact of Bill 16 and the challenges for your condominium

Since it came into effect on August 14, 2025, Bill 16 has transformed condominium management in Quebec by imposing much stricter requirements regarding building maintenance and long-term financial planning.

Every condominium corporation must now comply with precise requirements regarding the reserve fund and the maintenance logbook, to ensure the durability of buildings and transparency in their management.

One of the major obligations introduced by Bill 16 is the mandatory completion of a reserve fund study every five years, carried out exclusively by a professional who is a member of a recognized order.

This study aims to ensure a realistic evaluation of the condominium’s financial needs and prevent chronic underfunding situations that could compromise the corporation’s ability to carry out required major work.

Furthermore, the law now requires the implementation of a maintenance logbook for every building. This document must list past interventions, plan future work, and be updated according to government-defined rules. It becomes an essential tool for preventive and structured management of real estate assets.

Advisory engineering support for worry-free compliance

Our team assists condominiums through every step of their compliance with Bill 16.
Thanks to our expertise in consulting engineering and our approach focused on sustainable work planning, we offer comprehensive support:

• Reserve fund studies compliant with legal requirements;
• Development and updating of maintenance logbooks tailored to each building’s reality;
• Technical analyses and strategic recommendations to prioritize work and optimize budgets;
• Ongoing support for the board of directors to ensure clear, transparent, and preventive management.

Our professionals, who are members of recognized orders, apply the highest industry standards to ensure accurate evaluations and comprehensive reports that meet both the requirements of Bill 16 and the specific needs of each condominium.

Protect your assets with structured planning

Complying with Bill 16 means, above all, protecting the value of your building.

Proper planning of work and sound management of the reserve fund ensures the safety, durability, and profitability of your real estate assets.

Our mission is to offer a proactive and personalized approach to property management.

By entrusting your reserve fund study and maintenance logbook to a team specializing in consulting engineering, you gain a clear vision, guaranteed compliance, and long-term peace of mind.

Adoption of the Bill 16 implementation regulation | RGCQ