July 2025

Your building is nearing 15 years old and showing signs of wear.  Infrastructure is in need of repair and systems are not working as well as they did.

Some major repairs and replacements can be deferred by extending the life of certain building components.

Mechanical Systems

Fan coil replacements, heat units and piping, which can cost millions of dollars to replace, have an estimated 40-year lifespan which can be shortened if “necessary” maintenance including regular replacement of filters and cleaning of ducts is not undertaken.  System lifespans can be extended to 50 years.

A building with well-maintained systems that does not have pipe failures or pinhole leaks may not need to replace water systems as early as predicted in a reserve fund study.  Before undertaking these system replacements, consider a full assessment of systems to determine their current status.

When specific chiller system components get damaged, repair or replace them quickly to prevent a damaged component from compromising or destroying the entire system.  Ensuring your chiller system receives its mid-life overhaul after about 15 years improves the likelihood that the system will not require early replacement and may extend its life even further.

Concrete

Concrete projects for balconies and garages should not be deferred.  Costs may be escalating faster than shown in reserve fund studies while problems worsen.  Repairs get considerably more expensive and disruptive.  Don’t wait until chunks of concrete fall off before undertaking these repair projects.

Waterproofing

Local waterproofing repairs to a building protect concrete while preventing water from entering interior units and common areas.

Waterproofing should always be maintained in good condition, and is of particular importance in garages which have a greater exposure to salt.  At one time interior slabs of parking garages were not waterproofed, until we learned that exposure to salt causes steel to deteriorate at a greater rate.  Unrepaired areas of a parking garage are likely to contain embedded salt remnants.  Adding a good waterproofing system will restrict the introduction of new salt to these areas.

Water detection systems throughout a building facilitate earlier detection of water infiltration before more serious damage occurs and more extensive repairs become necessary.

Cladding and Windows

Cladding is protective and decorative material on a building’s exterior.  It serves a visual purpose while shielding the building from damaging external elements like weather, UV rays, and temperature fluctuations.  Cladding breaks down over time and with exposure to weather.

Window problems begin slowly and most communities replace individual windows as needed.  Eventually, there is widespread water leakage annual repairs are unable to keep up with.  It may be possible to defer a building-wide window replacement by up to ten years by undertaking full replacement of sealant around the windows; rejuvenating the exterior by painting to address premature corrosion; and localized replacement of the hardware.

Replacing a building’s cladding and window systems are extremely expensive and can be understated in reserve fund studies.  When full window system replacement becomes necessary, cost can exceed $7 million for a 20- to 25-storey building.

If these major expenditures are anticipated in the near future, consider a preliminary building assessment to determine the actual source of water infiltration, extent of current damage, how long this work can reasonably be deferred, and actual costs for this essential work.

Don’t place excessive reliance on reserve fund studies when it comes to major systems replacement.  At best, they are “best guess” financial documents.  They lack the insight of more detailed assessments intended to extend the life of building systems, and are of limited help in making these determinations.  Relying on reserve fund studies to decide on when to replace major building systems, without more detailed systems assessments, leads to poor decisions about major financial assets.

Bring in professionals to evaluate building conditions before undertaking major mid-life projects.  Their expertise can help avoid unnecessary major expenditures and advising when there is no option but to consider a major system replacement.

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