Preparation for Capital Projects
When a condominium corporation is moving towards a capital repair project it can become a daunting
process at times. Below are some best practices when undertaking a large project such as paving,
building envelope restoration, and/or infrastructure replacement. While it is likely your reserve fund
study or some other indicator (hopefully not failure) such as a condition survey that has identified a
capital item that is need of repair or replacement, the challenge is just beginning. Many would agree
that it is the primary steps of a project that can really set the tone for success. Please consider the
following:
- Determine the scope of a project. Make use of the Reserve Fund Study, any condition
assessments, or repair recommendations that may have been provided, or seek the advice of
professionals related to the overall project scope. - For simpler or more straightforward projects, a professional/expert may not be required for the
duration of the project and in those cases a corporation should be prepared with the assistance
of their manager to identify the scope, obtain competitive estimates based on the scope, and
select and manage the work directly with the approved contractor. - For larger or more complex projects, look to engage a professional/expert to work with the
corporation throughout the project process from scope of work to tendering/estimating,
inspections, etc. In today’s competitive world these professionals will greatly assist a
corporation in securing competitive viable estimates, reduce liability, and provide a comfort
level for the corporation and contractors which can lead to better value and overall results. - Timing of larger projects should always be reviewed. Keep in mind you may have other annual
maintenance items that could be completed while undertaking a large project that will result in
savings for the corporation from an operating standpoint. A simple example is to have the
roofers scope include cleaning the eaves when roof replacement is being done. Consider
repairing adjacent items, such as curbs, sidewalks, or buried infrastructure when doing asphalt
replacement. - All have seen large variances with pricing. Ensure requests for quotations are clear and simple.
Ensure the key points are captured such as what (service, supply) and when (frequency,
urgency). Contracts and purchase orders need to clearly reflect the approved scope, pricing, and
timing expectations. - Quoting/tendering and contract preparation can be challenging in today’s environment for
varying reasons. Volatile marketplaces, surplus of work, and increasing inflation have made this
process far more challenging as of late. Much of the time contractors, when given the
opportunity for future business, will provide firm pricing and or annualized increases for multi-
year commitments when possible. - Communication with residents is always vital for a successful project. Try to be informative but
general in nature with respect to the scope, timing, specific needs such a relocation of vehiclesetc., and what to expect for residents such as noise, vibration, and traffic. Be prepared to
provide updates as projects progress. This will ensure residents have what they need information wise. Clearly identify who concerns should be brought to in the event a question or
issue arises. - As a project moves forward, look to keep all parties updated through progress reports prepared
by who is managing the project and ensure all participating contractors are sent updates as well
to ensure all agree at each phase. - At project completion, ensure full project reviews are undertaken and any holdback, warranty,
future maintenance requirements, etc. are discussed and recorded.
Please remember this advice when considering your next project!
Corey Sargeant RCM,
President,
G3 Property Solutions Ltd
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