How much does a contingency fund study cost?

Since the new obligations introduced by Law 16 came into effect, all co-ownership syndicates are now required to produce a contingency fund study. This exercise, essential to the sound management of an immovable held in co-ownership, nevertheless represents a significant investment—particularly for buildings with complex technical systems.

What is the purpose of the study, and how is it carried out?

The study aims to plan, over a minimum 25-year horizon, the major interventions that will affect the common portions of the immovable:
• building envelope, roofing and windows
• mechanical, electrical and electronic systems
• equipment related to safety, heating, air conditioning, and more

It must be updated every five years.

A report prepared by professionals generally includes:
• an overview of the condition of the immovable, including the assessment of common portions and maintenance needs;
• a projected intervention plan, accompanied by a table of estimated costs;
• a financial strategy outlining the capital required for the contingency fund and the recommended future contributions.

Depending on the size and complexity of the building, a report can easily reach 150 to 300 pages, including detailed descriptions and photo documentation.

Studies are carried out by engineers, professional technologists or firms specializing in asset management for immovables. Their analysis often requires access to:
• architectural plans,
• technical documentation for building systems,
• and the history of past maintenance and work.

In many co-ownerships, this information is incomplete, which can make the process more complex—and potentially more expensive.

How much should syndicates expect to pay?

Costs vary considerably depending on:
• the number of units;
• the building’s age;
• its general condition;
• the complexity of its systems;
• the availability of technical documents.

Industry ranges generally observed:

Large co-ownerships (25 units or more)
Fees often range between $8,000 and $10,000, but may vary from $5,000 to $15,000 depending on the building’s characteristics.
In some buildings with more than 100 units, the total can reach or exceed $20,000.

Smaller co-ownerships
For buildings of modest size or limited complexity, costs typically range from $2,500 to $3,500.

It is important to note that complexity often matters more than size: a 10-unit building with sophisticated technical systems may require more work than a larger, simpler one.

What the study often reveals—and practical recommendations

Even when general maintenance appears adequate, many syndicates discover:
• the scale of the amounts that must be set aside;
• the need to increase contributions to the contingency fund quickly;
• interventions that must be planned in the short or medium term;
• gaps relating to common portions for restricted use, sometimes poorly documented in the declaration of co-ownership.

For some co-ownerships that are less well organized or whose contingency fund is undercapitalized, the study may reveal a concerning situation: limited financial capacity, increased risks when renewing insurance coverage, or difficulties in selling certain units.

Many co-owners—and even some actors in the real estate market—are still unaware that the contingency fund study is now mandatory. A significant number of funds are undercapitalized, exposing buildings to the risk of major deficits during costly interventions or emergencies.

Practical advice for your syndicate:
• Begin the process as soon as possible: specialized firms are in high demand, and delays can reach three to four months after the contract is signed.
• Expect to provide a deposit of 5% to 20% at signing, with the balance due before the report is delivered.
• Professionals generally carry out one or two visits of 1 to 3 hours, with additional specialized inspections as needed (e.g., elevators).
• If the building is significantly deteriorated, expect additional fees.

Based on an article published in the Journal de Montréal.

Click here to read [in French] the Journal de Montréal article and watch the interview with Me Yves Joli-Cœur.