Condo Living

January 6, 2025 Published by British Columbia Chapter - By Justin Tudor

The Ballad of the Depreciation Report Engineer

From CCI BC Strata Connection Magazine, Volume 03, Fall/Winter 2024

Driving to a Council meeting on a dark and rainy night
Preparing to discuss how to get the funding plan right
Contemplating how many members in the room
Confident this meeting would have been better on Zoom

Mercifully, the Council has convened a special meeting
The focus: Depreciation Report, other matters shall be fleeting
Two hours scheduled, much to be discussed
This topic’s important and must not be rushed

Discussing a bit of the Depreciation process
What’s needed, what’s spent, and where are the losses
Reviewing the need for more in depth inspection
“The inspections are visual; and this roof needs dissection”

The draft had been provided, but scantily read
Presenting a summary of the path ahead
The building is aging and real work projected
The Condo Act requires the building be protected

An increase in fees, but no special levy
A reasonable plan to keep things steady
But an air fills the room, the tension enhanced
“I have questions for you, not provided in advance”

“My aunt Mary, can roof this for this less”
Has your aunt Mary, considered the rest?
Has she included the full scope of the replacement
Or is it a loose quote with broad limitations

The non-scoped quote may not align
With the forecasted work, the planners defined
The planner will draw from industry practices
To estimate the costs with reasonable exactness

How rigid is this? Is this written in stone?”
The work plan’s a guide, and not referenced alone
Councils should be prudent and monitor distress
If an element has failed, is only part of the test

Can the caulking be done when the windows are cleaned?
Does equipment need replacement, or just parts machined?
The Depreciation Report can’t include every variable
So Council’s must be sure to leave options on the table

“Can we spread out the increase over ten years”
But would that be fair to your future peers
The fund won’t be adequate, it’s just a charade
And the report will update twice a decade

Let’s partially fund – just to get us through
And deal with the future, when the update comes due”
This is not a plan, but a promise forebode
to be in a worst state five years down the road

Adequate is adequate and we should not pretend
That future owners will increase their spend
On projects that Councils knew about today
But didn’t begin to put funds away.

“Why must I fund for projects after I’m gone?”
The legacy of the strata lives on
If not for this rule, where would we be?
Special levies only! (to infinity)

“Should we look ahead to 50 plus years?”
Yes – it’s standard practice to allay your fears
Major work costs beyond the 30-year threshold
Should begin funding now, before they are too old

“If we spread out the project over 4 phases
Won’t that limit the amount of actual raises?”
When practical, this can be a good approach
But do not just fake it, when it matters most

If the work can’t be done in multiple blocks
Don’t fund it that way, or you’re in for some shocks
Don’t smooth out a cost just to lower your fee
You will buy some time, but at great costs, you’ll see

”We’ve created our own plan” the Council implored
Not fully funded, but one we can afford”
It might be permitted under legislation
But, “I won’t endorse it, I have reservations”

“I’ve provided my opinion and urge you to heed it
My counsel, as always, is there if you need it
I’m an engineer, I am not a minion;
And this, of course, is not legal opinion”

An engineer’s job should some days be hard
Lest they cop-out and their futures be tarred
A principled approach and lifetime data
Is required to maintain all aging strata

Wrapping up the meeting and resolving to issue
An updated draft that the Council can commit to
A successful meeting – neither bumps nor scrapes
The Engineer moves on; not all heroes wear capes.


Justin Tudor, P.ENG.
President, Keller Engineering

Justin has more than 15 years of experience in the field of building science and structural engineering. He has overseen and completed hundreds of reserve fund studies, building conditions assessments and technical audits, while leading building element investigation including odour transfers, cladding failures, water infiltration, concrete, masonry deterioration and membrane replacements. As a contract administrator, Justin prepares drawings and specifications for the structural rehabilitations, win- dow and roofing replacements, parking renewals, and envelope restorations. 

DISCLAIMER, USE INFORMATION AT YOUR OWN RISK

This is solely a curation of materials. Not all of this information is created, provided or vetted by CCI. Some of the information is only applicable to certain provinces. CCI does not make any warranties about the reliability or accuracy of any information found in the materials on this website. The information is not updated to reflect changes in legislation or case law and therefore may not always be current and up-to-date. We suggest you seek professional advice with respect to your specific issues or regarding any questions that arise out of the material. We will not be liable for any losses or damages in connection with the use of any of the material found on the website.

Back to Results Back to Overview


© 2025 CCI National