Governance

September 22, 2022 Published by Grand River Chapter - By Henry Jansen

Getting Ready for 2023!

It is hard to believe that the summer has passed so quickly. It is already the fall. This is not a time for the board to take a breather. Now is the time to get ready for 2023!

It is hard to believe that the summer has passed so quickly. It is already the fall. This is not a time for the board to take a breather. Now is the time to get ready for 2023!

Boards should be meeting now with property management and their reserve fund engineer to prioritize projects for 2023. All service providers and contractors are busy. The schedule for contractors will start filling shortly for 2023. When you review your reserve fund plan you should discuss,

1. 1.      What projects were not completed in 2022?
2. 2.      What projects are planned for 2023?
3. 3.      Are their unplanned projects which need to happen in 2023?
4. 4.      Can projects be deferred without jeopardizing the community?
5. 5.      Do you have surplus or a shortfall?

Then you can prioritize a list and start to implement. Some projects may be as simple as contacting a contractor to line up the work. But in most cases, there will be specifications needed, or a condition assessment completed to define the project. This can be further developed into bid documents for contractors. Then you have time to get 3-bids to make an informed decision during the contractor selection process. I encourage you to collaborate with your engineer to manage this process. I know this will cost some money, but this process will save money and time overall. Your property manager is not your project manager for these reserve fund projects. Your property manager is busy enough being a professional property manager. When speaking to contractors directly, contractors usually sell you what they are good at doing not necessarily what your condominium needs. The process of developing bid documents stops this from happening.

Then there is a financial part. Once you have contractor pricing you should update your reserve fund plan. You can decide if you need to phase in a project over a couple of years to make it feasible. You can decide if increases are needed to contributions to accomplish the goals. More widespread practice these days is to borrow funds. There are competent lenders who understand condominiums. This is an effective way to ensure that projects do not get deferred and remain affordable.

Plans need to be communicated to your unit owners. Communication is key to a successful project. There may be logistic issues such as parking. All these parts add additional time to the overall process.

This process takes time, so do not delay. It will take months. Now is the time to plan for 2023! You need to get your projects in a contractor’s schedule for 2023! Act now! Get ready for 2023!

Henry Jansen, President
Criterium Jansen Engineers
www.criterium-jansen.com