The Contingency Fund Study - All you need to know
BILL 16 OFFICIALLY ADOPTED!
As of August 14, 2025, the regulations under Bill 16 are officially in effect.
We have been awaiting this since 2020, and the regulations under Bill 16 have now been formally adopted. The final deadline for syndicates to have a compliant contingency fund study is August 14, 2028. After this date, every syndicate must have a valid study in place.
Moving forward, condominium corporations will be required to comply with the new standards regarding:
The maintenance logbook
The contingency fund study
The corporation’s attestation on the condition of the property
*) For more information, you can consult Quebec Government Decree 991-2025 here.
Professional professionals who are members of the 'Ordre des technologues professionnels du Québec (OTPQ)', adhere to a professional code of ethics, hold recognized training, and are authorized to perform studies that comply with the requirements of Bill 16 on condominiums, prepare your maintenance logbook and produce reliable financial projections for your contingency fund, ensuring quality, rigor, and regulatory compliance.
WHAT IS A CONTINGENCY FUND STUDY?
In Quebec, since January 10, 2020, Article 39 of Bill 16 (2019, Chapter 28) states:
"Every five years, the syndicate must obtain a contingency fund study establishing the amounts necessary to ensure that the fund is sufficient to cover the estimated cost of major repairs and the replacement of common elements. Contributions to the contingency fund are determined based on the recommendations provided in the study, taking into account the condominium’s evolution, including the amounts already available in the fund."
It is important to note that, regardless of the type of condominium or syndicate, the contingency fund study must be renewed every five years. However, the maintenance logbook must be updated every five or ten years, depending on the specific circumstances of your property.
WHY CONDUCT A CONTINGENCY FUND STUDY?
To accurately determine the contributions of co-owners, the contingency fund study must establish a short-, medium-, and long-term financing plan to ensure that major repairs or the replacement of significant common elements can be carried out.
Conducted by one of our professional technologists, who is a licensed member in good standing with the Ordre des technologues professionnels du Québec (OTPQ), this study will specify the annual amounts that the condominium corporation must collect through condominium fees. This ensures that the contingency fund remains adequate, thereby minimizing the need to impose special or extraordinary assessments on co-owners for. The study typically covers:
All the interior finishes of the common area
Fire safety systems
Mechanical and electrical systems
Roof and parking
Building foundations
PROS AND CONS OF HAVING A CONTINGENCY FUND STUDY
Advantages of Having a Study
Protection During a Sale
When a unit is sold, and there is no study, the notary will request an official confirmation from the syndicate along with a mandatory form to fill out. If there are inconsistencies between the financial statements and the minutes or the documents provided by the syndicate, the buyer has the right to cancel the deal at the notary's office, even at the time of signing the deed of sale.
Insurance Stability
Insurance companies carefully evaluate risks, and if a building doesn't have a contingency fund analysis, it's usually seen as higher risk. This can result in higher insurance costs, fewer coverage options, and tougher requirements for policy approval.
Financial Predictability
A compliant study ensures structured contributions from co-owners, minimizing surprise assessments while safeguarding your property’s value.
COMPLY WITH BILL 16 IN 3 STEPS!
To accurately determine the contribution of co-owners, the asset management plan must establish short-, medium-, and long-term funding strategies to ensure that major repairs or the replacement of significant common elements can be properly carried out.
The study will specify the annual amount that the syndicate of co-ownership must allocate through condominium fees to ensure that the contingency fund remains adequately funded, thereby reducing the risk of imposing special or extraordinary assessments on co-owners.
Ensure your condominium complies with Bill 16 by following these three key steps, carried out by our condominium specialists:
COMPLY WITH BILL 16 IN 3 STEPS!
To accurately determine the contribution of co-owners, the asset management plan must establish short-, medium-, and long-term funding strategies to ensure that major repairs or the replacement of significant common elements can be properly carried out.
The study will specify the annual amount that the syndicate of co-ownership must allocate through condominium fees to ensure that the contingency fund remains adequately funded, thereby reducing the risk of imposing special or extraordinary assessments on co-owners.
Ensure your condominium complies with Bill 16 by following these three key steps, carried out by our condominium specialists:
DOCUMENT REVIEW AND ON-SITE INSPECTION
The specialist will:
Review all documentation provided by the syndicate
Conduct a visual inspection of the common areas
Prepare a detailed inventory of the building components
Estimates an assessment of their current condition, useful life, remaining lifespan, and maintenance requirements
A comprehensive condition report will be prepared and delivered.
PREPARATION OF THE CONTINGENCY FUND STUDY CALCULATIONS
The specialist will:
Determine the timelines of repair or replacement of the building components
Outline cost projections
Develop financial scenarios
Recommend some clear contribution to the contingency fund, ensuring adequate long-term planning and funding
CREATION OF A MAINTENANCE LOGBOOK
The specialist will:
Create a structured maintenance logbook
Elaborate a clear documentation of all future interventions
TWO FUNDING STRATEGIES
THE 1ST STRATEGY
(1 year adjustment)
Immediate alignment of contributions with required levels
Fully compliant with legal requirements
May result in significant increase in fees
RISK: Financial strain for co-owners
THE 2ND STRATEGY
(10 year gradual adjustment)
Progressive increase over ten years
Eases financial transition
Legally compliant
RISK: Special assessment may still be required during the transistion period if majior work arises.
For more information, just give me a call or send me an email to [email protected]
