Our world is changing, and with it, the challenges facing condominiums are evolving at an unprecedented pace. Stronger storms, hotter summers, and unpredictable weather is becoming the new normal. At the same time, there's a growing push for buildings to become more sustainable and energy efficient.

For condominiums, this creates a complex landscape when it comes to planning capital renewal projects. How do you protect your building and residents from a changing climate while also striving for environmentally friendly solutions? And how do you do it all while staying within the boundaries of the Condominium Act?

This article will serve as a guide for property managers and board members, providing strategies to help you navigate the procurement process for your next major project. By arming yourselves with the right knowledge and questions, you can ensure your experts deliver the best possible results, safeguarding your condominium's future.

The Dual Challenge: Climate Resiliency and Sustainability

Capital renewal projects often focus on replacing aging components with a “like” component. While this approach has served condominiums well in the past, it's no longer sufficient. Today, we must look at two connected priorities: climate resiliency and sustainability.

Climate resiliency means ensuring your building can withstand the effects of climate change. This can mean reinforcing your roof to handle stronger winds, upgrading your drainage systems to manage heavier rainfall, or installing backup power to handle prolonged outages. It’s about being proactive, not reactive. For example, when replacing windows, consider higher-performance windows that can better withstand severe weather. A resilient building is a safe and protected building.

Sustainability is about reducing your building’s environmental impact. This often means improving energy efficiency. Upgrades like high-efficiency boilers, LED lighting retrofits, or better insulation not only reduce your carbon footprint but also lead to significant cost savings on utilities.

The concepts of climate resiliency and sustainability often go hand-in-hand. A modern and resilient building is often also an energy-efficient building. The challenge lies in integrating these concepts into a capital renewal plan that has traditionally been focused on other goals.

Navigating the Procurement Process: Asking the Right Questions

When you embark on a major project such as a new roof, window replacement, or a parking garage repair, you will likely engage with a consultant like an engineer or architect. These are your experts, and their advice is critical for project success.

The key to getting the right results is asking the right questions. Before you issue a request for proposal, sit down and discuss your priorities. Are you simply looking for a comparable option, or are you willing to invest more for a solution that offers better long-term performance, durability, or energy savings?

Here are some questions to pose to your consultants:

• "How does this project address our community's long-term climate resiliency goals?" This moves the conversation beyond simple repair to proactive protection. If you're replacing the roof, ask if the new design or materials are rated for stronger winds or heavier snow loads than what was previously used.
• "What are the long-term energy and maintenance costs of this option versus a less expensive alternative?" The cheapest upfront option is rarely the most cost-effective over time. A more energy-efficient system might cost more to install but could save the corporation money in the longer term.
• "Can you provide us with a lifecycle cost analysis?" A lifecycle cost analysis is a powerful tool that looks at the total cost of an asset over its entire lifespan, including the initial purchase price, installation costs, maintenance, and energy usage. This can help the board make a truly informed decision on all costs – not just the “sticker price”.
• "Are there any government grants or incentives available for the more sustainable options you've proposed?" Governments at the municipal, provincial, and federal levels can offer financial incentives for green building upgrades. Your consultant should be aware of these and can help you apply for them.

By asking these pointed questions, you empower your board to make decisions that not only fix a problem but also add long-term value to the building.

Understanding Your Authority: The Condominium Act

One of the most common challenges for boards is understanding what they can and cannot do under the Condominium Act. This is particularly true when considering more expensive, long-term upgrades that go beyond a simple repair.

The Act gives the board a duty to maintain and repair the common elements. This is a broad power, but not unlimited. The board must make decisions that they believe are in the best interest of the corporation. When a board wants to pursue a more expensive, sustainable option over a cheaper alternative, they can do so, provided they follow the requirements of the Act. This often involves proper owner communication and having a solid, well-documented reason for the change.

For example, if an engineer's report recommends two options for a new boiler—a standard efficiency model and a high-efficiency model—the board can choose the more expensive, high-efficiency model if they can justify the decision with data. The justification might include a detailed lifecycle cost analysis showing significant long-term savings, reduced environmental impact, and alignment with the corporation’s long-term plan.

Boards must be cautious about making “substantial changes” to the common elements. The Act generally requires notice to be given to owners and often a vote for substantial changes. A "substantial change" is defined in Section 97 of the Act and is based on the cost of the improvement compared to the condominium’s annual budget, and also generally refers to changes that alter the nature, use, or appearance of the common elements, as opposed to a repair or replacement with a similar product. When in doubt, consult with your corporation’s legal counsel.

A Path Forward: Proactive Planning for Long-Term Success

To successfully manage these complex projects, corporations need a clear plan. The most effective tool for this is a well-maintained reserve fund study. Reserve fund studies are more than just a legal requirement – they are also your roadmap for the future.

Ask your reserve fund planner to model the impact of sustainable and resilient upgrades. How does it change your future reserve fund contributions if you replace your standard boiler with a high efficiency boiler or invest in a more durable roofing material that lasts longer. Proactive planning allows you to forecast both costs and benefits, making it easier to get board and owner buy-in when the time comes for the project.

Remember, the goal is not just to maintain what you have, but to build a better, stronger, and more efficient community for the long term. By taking a proactive approach, asking the right questions, and understanding your legal authority, you can transform a capital renewal project from a simple repair into a strategic investment in your condominium's future.

Mitchell Gerskup, P.Eng., is a Canadian Professional Engineer specializing in building science and restoration engineering. He has spent the last 20 years applying building science principles to investigate and repair existing buildings and structures. He currently teaches Sustainable Building Design at Humber Polytechnic for their Engineering/Architecture Bridging
Program.
bestconsultants.ca

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