Loi 16 Condo Work Planning: Building Study and Budget

Bill 16 has transformed the management of divided co-ownership buildings in Quebec. It requires a structured approach, from the initial building condition assessment through to the work plan and 10-year budget. Between the EEI (building condition study), the maintenance logbook (EUC) and the contingency fund study, several deliverables follow one another to equip your board of directors (board).

This article explains how to move, step by step, from the EEI to a realistic work program aligned with your common expenses and assessments. You will see who does what, how to prioritize interventions, and how to incorporate financing into condo fees, while complying with your declaration of co-ownership (DCV) and the Civil Code (see sections 1070.1 and following of the Civil Code of Quebec – see LégisQuébec).

Updated as of 2026-05-18.

From the EEI to the work plan and 10-year budget

Bill 16 strengthens three complementary pillars:

1. EEI (building condition study): a comprehensive inspection of the common portions and major systems to establish their inventory, condition and remaining useful life.
2. Maintenance logbook (EUC): preventive maintenance planning and records, including frequencies, methods and intervention histories.
3. Contingency fund study (EFP): financial projections for replacing or rehabilitating common components over the long term.

By combining these deliverables, you obtain a schedule of phased interventions and a 10-year budget that support your annual planning, annual general meeting and the minutes of the syndicate’s decisions. The following table summarizes the process and usual responsibilities.

A few useful guidelines:

• The 10-year plan is a living document: update it after every inspection, loss or change in costs.
• The common portions (roof, building envelope, parking, mechanical systems) account for most of the budget. Private portions are not included unless the DCV provides otherwise.
• Inflation, labour and materials assumptions have a major impact; review them annually.

Reference: Civil Code of Quebec, divided co-ownership (see https://www.legisquebec.gouv.qc.ca/fr/document/lc/CCQ-1991), and guidelines arising from Bill 16.

Roles and responsibilities: board, condominium manager and professionals

• Board of directors (board): leads the process, retains professionals, approves the documents and is accountable to the annual general meeting. It ensures compliance with the DCV and has the decisions recorded in the minutes.
• Condominium manager: coordinates visits, gathers documents (plans, warranties, records), keeps the maintenance logbook up to date and prepares tenders according to the phasing.
• Professionals (engineer, architect, technologist): carry out the EEI, structure the maintenance logbook and EFP, establish technical priorities and intervention windows.

For the execution of the work, choose contractors who hold the appropriate licence. Verify the validity of the licence and subcategories with the Regie du batiment du Quebec (RBQ) before signing a contract. See: https://www.rbq.gouv.qc.ca/consommateurs/vous-choisissez-un-entrepreneur/verifier-la-licence-dun-entrepreneur.html.

Need operational support to schedule your interventions? See the Operations Management section of our Services page: https://www.multirent.ca/services/#gestion-des-operations.

Prioritizing and scheduling interventions

10-year planning must balance safety, building integrity and the ability to pay. Work with your professionals to rank each intervention according to the following criteria.

Prioritization method

• Health, safety and compliance: urgent interventions (e.g., advanced corrosion in a garage structure, risk of major infiltration, electrical non-compliance).
• Asset preservation: preventive work to extend useful life (building-envelope sealants, slab sealing, roof membrane maintenance).
• Performance and efficiency: energy optimization, humidity control and ventilation systems.
• Comfort and resale value: refreshing common spaces and non-critical finishes.

Group work by category (building envelope, roof, structure and electromechanical systems) to reduce mobilization and indirect costs. Consider the seasons, access to the common portions and operational constraints (pool, parking and elevators).

Financial assumptions and risks

• Inflation and indexing: apply a realistic inflation rate to material and labour costs. Document your assumptions in the plan.
• Contingencies: set aside an amount for unforeseen circumstances (often 10-15% depending on the complexity) and professional fees.
• Taxes: calculate GST/QST correctly on the work. Refer to Revenu Québec for the applicable rules: https://www.revenuquebec.ca/fr/entreprises/taxes/tpstvh-et-tvq/.
• Access and phasing: work on the building envelope and balconies requires access methods; budget for equipment rentals and temporary engineering.

RGCQ regularly publishes good-practice guidelines for syndicates: https://rgcq.org/.

Budgeting and financing: assessments, contingency fund and special assessments

The contingency fund study (EFP) projects long-term replacements and proposes a contribution pace. Under Bill 16, the objective is to avoid painful catch-up contributions and ensure intergenerational equity among co-owners.

• Regular assessments (common expenses): adjust condo fees to reflect the EFP and 10-year plan. Explain increases at the annual general meeting with a clear chart of needs.
• Special assessments: if a temporary shortfall is anticipated (e.g., building-envelope or garage rehabilitation), prepare a special assessment scenario in compliance with the DCV and the Civil Code of Quebec. Put it to a vote with preliminary estimates.
• Grants and credits: monitor relevant government or municipal programs (e.g., energy efficiency). Tax rules evolve; always validate them with Revenu Québec.

Close cash flow monitoring is essential. Document your forecasts in the annual budget and in a rolling 5- and 10-year projection. For structured support with budget preparation, see our financial management service: https://www.multirent.ca/services/#gestion-financiere.

Regarding legal compliance and governance, remind co-owners at the annual general meeting of the obligations arising from the Civil Code of Quebec (LégisQuébec) and the by-laws of the immovable, and attach the relevant excerpts to the minutes. Consult: https://www.legisquebec.gouv.qc.ca/fr/document/lc/CCQ-1991.

Implementation, tendering and annual monitoring

• Specifications and tendering: have your professional prepare plans and specifications proportionate to the risk. Request several bids, require proof of an RBQ licence and insurance, and compare them on an equivalent basis.
• Contracts and schedule: align timelines with occupancy of the building and weather conditions. Inform co-owners early, especially when private portions will be temporarily affected.
• Monitoring and acceptance: keep the maintenance logbook up to date, retain warranties, and update your 10-year plan and EFP after the work.
• Recurring updates: reassess the EEI and EFP periodically (often every 5 years in practice) or following triggering events (losses, accelerated wear or new standards).

For more resources and practical articles, visit our blog: https://www.multirent.ca/blogue/. For an overview of our administrative support services, visit: https://www.multirent.ca/services/#gestion-administrative.

FAQ – planning and Bill 16

What is the difference between the EEI, maintenance logbook (EUC) and EFP?

– EEI: a technical snapshot of the condition of the common portions and their remaining useful life.
– Maintenance logbook (EUC): a practical preventive maintenance program with frequencies and methods.
– EFP: financial projections for major replacements and contribution recommendations.

The three complement one another to build a credible work plan and budget.

How often should these documents be updated?

Update the maintenance logbook continuously after every intervention. Review the EEI and EFP periodically (often every 5 years) or after a major event. Adapt the 10-year plan and budget during each budget cycle and annual general meeting.

What should we do if the co-ownership cannot absorb an increase in assessments?

Consider phasing the work, prudently extending the time frames if the risks are controlled, or staging a special assessment. Clearly inform co-owners, support the choices with professional reports and document the decisions in the minutes. Always validate the tax implications with Revenu Québec.

This article provides general information and does not constitute legal advice. For your situation, consult a lawyer or notary.

This article provides general information and does not replace advice from a tax specialist or accountant. Refer to Revenu Québec and the CRA for the exact rules.

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