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“Contingency” Reserve Fund

The strata finances’ second required fund as per the Strata Property Act (SPA) of British Columbia (BC), defined as  a contingency reserve fund for common expenses that usually occur less often than once a year or that do not usually occur.

With depreciation reports its nature has changed and the qualifier ‘contingency’ no longer makes sense. A contingency refers to trades and engineers work and refers to the part of their contract that has yet to be planned.

This fund is geared to expenditures that happen less than once a year.

The fund’s risk-management requires scheduled planning of its accumulated monies in investments that come to maturity with concern for available liquidities  to meet the timing of expenditures, and of regular and special contributions to meet the requirements of long-term major repairs and full | partial replacements of components, systems and elements.

About Author: Jean-François

With experience gained in construction, project management, field reviews, inspections, report writing and as strata president, J.-F. has cross-industry expertise guaranteeing that you will participate in a process geared to improving the corporation's finances and to setting the condo | strata board | council's planning to stand the test-of-time.