CCI Manitoba Chapter News

Condos and capital project planning

A recent  article published by CondoBusiness (part of the REMI Network), Considerations for deferring capital project work, discusses "what major repairs and replacement costs could potentially be deferred by prolonging the life of various building components and what professional resources to seek out for guidance on the matter".

The reason for deferral could be due to a lack of cash in the reserve fund or could be a benefit of a proactive maintenance plan prolonging the life of a building component. A key to the process is obtaining professional advice to support the decision, in keeping with the Reliance and Indemnificaiton requirements of the provincial condo act.

Reliance and Indemnification

108 Reliance on statements and reports

If a director or officer relies in good faith on 

(a) the condominium corporation's financial statements that

(i) an auditor in a written report,

(ii) a financial officer of the corporation, or 

(iii) a manager under a property management agreement, represents to the director or officer as presenting fairly the corporation's financial position in accordance with generally accepted accounting principles; or 

(b) a report or opinion of a lawyer, accountant, engineer, appraiser or other person whose profession lends credibility to the report or opinion;

the director or officer is not in breach of his or her duty to act honestly and in good faith with a view to the best interests of the corporation.