Bill 16: Contingency Fund Study and EEI

Bill 16 is changing the practical management of a divided co-ownership in Quebec. It requires a study of the condition of the immovable (EEI, sometimes called an EUC) and a contingency fund study (EFP). For a board of directors and co-owners, understanding these obligations helps avoid surprises in common expenses and protects the value of the units.

This article explains, as of 2026-05-15, what Bill 16 requires, the usual deadlines, what each deliverable contains, and how to budget for work without unnecessarily increasing condo fees.

Bill 16 at a glance: what the board of directors must do

Bill 16 amends the Civil Code of Quebec to better regulate the maintenance of common portions. In summary, the syndicate must:

• Keep an up-to-date maintenance logbook based on a sound EEI.
• Have a contingency fund study carried out using the EEI to determine the contributions required for the contingency fund.
• Plan and carry out the preventive maintenance arising from the maintenance logbook.

The legislature specifies that the contingency fund may be used exclusively for major repairs and the replacement of common portions (see section 1071 C.C.Q.). The new requirements concerning the EEI and maintenance logbook are set out in the C.C.Q. provisions dealing with the preservation of the immovable (in particular, sections 1070 and following; see LégisQuébec).

Here is a comparative overview of each deliverable:

For official references, consult the Civil Code of Quebec on LégisQuébec and the RGCQ resources that explain best practices for syndicates of co-owners.

EEI (study of the condition of the immovable): content, who conducts it and why

The EEI inventories the components of the common portions and assesses their condition. It typically covers the building envelope (roof, façades and balconies), electromechanical systems (heating, ventilation and plumbing), as well as shared facilities (parking, elevators, pool and intercom). Some observations may concern private portions if visible signs affect the preservation of the common portions.

• The report ranks interventions by priority and risk level.
• It estimates remaining service life and proposes intervention windows.
• It feeds into the maintenance logbook and provides the technical basis for the EFP.

The board of directors appoints a competent professional, generally an engineer or architect. Depending on the nature of the work arising from the EEI, the syndicate will need to retain contractors holding the appropriate licences. In this regard, see the RBQ requirements when choosing licensed and compliant contractors.

An EEI is not static. It must be reviewed periodically, particularly after major work, a loss, or when a significant discrepancy is found between the actual behaviour of an element and the initial assumptions.

EFP (contingency fund study): method and connection with contributions

The EFP translates the technical assessment into financial needs spread over time. Over a horizon of at least 25 years, it projects the likely disbursements for major repairs and the replacement of common portions.

Typical method for a robust EFP:

1. Inventory the components and their replacement costs, based on the EEI.
2. Estimate remaining service life and the years in which interventions will be required.
3. Establish prudent financial assumptions (cost inflation, returns and contribution indexing).
4. Simulate contribution scenarios, aim for stable common expenses and avoid reactive special assessments.
5. Document the results and recommend a realistic financing strategy for the board of directors and the annual general meeting.

The EFP is not an annual budget, but it directly influences the budget and financial statements. In practice, the board of directors adjusts contingency fund contributions based on the recommendations and then submits them to the annual general meeting. Everything must be recorded in the minutes and be consistent with the declaration of co-ownership and the by-laws of the immovable.

For administrative and financial support, see the financial and administrative management services presented here:

• Services – financial management
• Services – administrative management

Deadlines, proof of compliance and governance

The transitional deadlines related to Bill 16 depend in particular on the age of the building and the regulations adopted for its implementation. As of 2026-05-15, the most prudent approach for a syndicate is to:

• Schedule the EEI without delay if it has not been completed, or update it if it is out of date.
• Put in place a living maintenance logbook supported by the EEI.
• Commission the EFP as soon as the EEI is available, then review it periodically.

Good governance practices for the board of directors:

• Include a presentation of the EEI and EFP conclusions on the annual general meeting agenda.
• Obtain the necessary resolutions and append the relevant materials to the minutes (summaries and action plans).
• Update the documentation provided to co-owners and brokers during a sale (see the OACIQ) to ensure transparency and reduce the risk of disputes.
• Document decisions concerning contingency fund contributions and their impact on common expenses.

For legal obligations, consult the Civil Code of Quebec – divided co-ownership and the RGCQ resources detailing best practices for syndicates.

Costs, financing and good practices for the board of directors

Costs related to the EEI and EFP vary according to several factors: the building’s size and complexity, accessibility (for example, façades), the number of technical components to be examined, and the level of detail expected. Professional fees also depend on the scope of the mandate and the quality of the information available in your records (plans, previous reports, warranties and so on).

Practical tips for controlling costs and the schedule:

• Define clear specifications for the EEI and EFP, including deliverables and deadlines.
• Issue a call for services to qualified firms and compare their methodology, not just their fees.
• If possible, combine updates to the EEI, maintenance logbook and EFP to limit back-and-forth.
• Appoint a single point of contact on the board of directors and communicate regularly with co-owners.

Financing and impact on contributions:

• Aim for regular, progressive and sustainable contingency fund contributions rather than abrupt special assessments.
• Align the EFP with your multi-year budget planning and financial statements.
• Assess relevant tax programs or incentives for certain work by consulting Revenu Quebec.
• For work subject to RBQ requirements, select licensed contractors and plan for compliance in advance.

Who orders the EEI and EFP, and who adopts them?

The board of directors orders the studies, manages the call for services and oversees their completion. Conclusions affecting contributions are presented to the annual general meeting for information and budgetary decisions, then recorded in the minutes.

Does the EEI cover private portions?

It primarily concerns common portions. Observations concerning visible elements in private portions may be noted when they affect the preservation or safety of the common portions. The declaration of co-ownership and the by-laws of the immovable specify how responsibilities are divided.

How often should they be updated, and how can this be demonstrated?

Many syndicates review the EEI and EFP approximately every five years or after a major event. Proof consists of the dated report, the action plan incorporated into the maintenance logbook, and the resolutions recorded in the minutes. Always verify the applicable update requirements on LégisQuébec, as of 2026-05-15.

For an overview of condominium management support options in Montreal and on the South Shore, see the service packages and the multiRent blog for practical guides.

This article provides general information and does not constitute legal advice. Consult a lawyer or notary regarding your situation.

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