If you are making the case for a major restoration project, you could be up against a tough audience. Here we share tips to expertly justify restoration costs to your board and stakeholders and successfully secure unanimous approval.
Transparency: rely on facts and data
Facts and data provide compelling evidence you’ve taken all the necessary steps to prolong the life of building assets and mitigate risks. The most critical data includes:
- Dates and findings of annual building assessments Â
- Dates and findings of the last reserve fund study
- Records that findings were addressed in a timely manner using the recommended steps
- Records of appropriate repairs and replacements made at logical life stages to prevent excess damage
- Costs and savings related to ongoing preventative maintenance steps
- Proof of responsible reserve fund allotment
- Occupant complaints, especially those related to potential hazards and liabilities
- Expert warnings resulting from non-action from past inspections
Budget: present costs and long-term savings
Breaking costs down into digestible line items allows your board and stakeholders to understand what the restoration involves. However, you also want them to understand what is at stake. Your presentation should include the following:
- A breakdown of costs including materials, labour, and standard contingency fund
- A cost analysis that outlines the risks of not proceeding with the restorations
- Relevant financial considerations such as having adequate funds to cover the costs now, projections related to inflation’s impact on material costs, possible future labour shortages related to Ontario housing targets, etc.
- Long-term benefits such as prolonging life, energy savings, protecting underlying systems, etc.
Building value: what is the expected ROI
Boards and stakeholders tend to respond to positive financial impact. Outlining the long-term benefits and expected ROI of the restoration must define tangible value improvements. Proactively answer these questions:
- How will restoration reduce operational costs? i.e., energy efficiency, reduced repair requests, reduced repair costs, reset of life stages, etc.
- How will restoration offset maintenance costs? i.e., prolonged cladding life, reduced interior damage related to cladding deterioration, etc.
- How will the proposed upgrades improve unit value? i.e., modernized appearance, green building upgrades, unit comfort, etc.
- How will the restoration improve occupant satisfaction? i.e., exterior noise reduction, improved indoor air quality, pride of ownership, unit comfort, etc. (examples of common complaints can help support this data)
- How will restoration improve occupant wellness and safety? i.e., reduced risk of falling debris, balcony safety, improved indoor air quality, etc.
- How strategic are the updates? i.e., energy efficient, reduced maintenance, improved sustainability, etc.
Enlist experts: Back up your data
Inviting input from engineers, restoration specialists, and financial advisors is critical to prove due diligence. They also back up the thorough research and investigation invested in the process. Perhaps more importantly, experts provide in-depth answers to satisfy board member and stakeholder questions.
Legal: address possible liabilities
Enlist your condominium corporation’s legal advisor to ensure all legal issues are addressed. Decision-makers need to understand the legal implications including possible liabilities related to delaying restoration plans, such as:
- Condo rules and bylaws compliance
- Lawsuit risks
- Condo Act implications
- Effective issues management
While it might seem impossible to get key players on board, following these guidelines will help ensure they make an informed decision in your favour.
The experienced restoration team at WellDone Inc., a building restoration company in the GTA specializing in building improvements for commercial and multi-unit residential buildings, can provide a thorough assessment and restoration plan to help justify costs to your board and stakeholders. Reach out to us today.