Bulk Contracts and Required Condo Services

November 2019

Communities have authority to require that residents receive certain services through their condo corporation.  These are described as bulk contracts negotiated and agreed to by the corporation.  Services may include electricity, telecommunications and cleaning all of which are provided in-suite.  Once in force, the cost of these services is added to common expenses paid with monthly condo fees.

Condo owners are not required to arrange or pay directly for these services.  Advantages of this approach can include lower pricing.  Owners do not select a service provider of their choice or opt out of specific services.

Pest control, duct cleaning and fan coil maintenance are services that may be treated as common element services.  Authority for securing these services may be appropriate for reasons of safety, security or inclusion in governing documents.

Authority for entering into bulk agreements is based on governing documents and supported by the Condo Act.  A declaration requiring the corporation to provide for television services, for example, would require directors to provide the service equally to all.  Opting out by individual owners is not an option.  Expanding the obligation to include internet access or telephone service, for example, would not necessarily be supported by governing documents and require a revision to the declaration.