condominium
owners
Timely ideas, insight, inspiration and information of particular interest to condominium owners
Ryan Griffiths CWB Maxium Financial
A Clear Strategy
Window Pain The cost to replace windows in a highrise condominium typically represents the largest expense the corporation will ever undertake by a huge magnitude. The cost to replace the windows can be 2 to 5 times the next most expensive project for a high-rise condominium corporation (interestingly, the same dynamics apply for a townhouse complex with an underground parking garage). Although each corporation is unique, this dynamic means that the repair or replacement strategy for the windows has a huge impact on the financial needs of the condominium corporation. The first condo in Canada was built in 1967, making the oldest condominium in the country 54 years old. The rapid development in the following years means that many condos are now between 25 and 50 years old, the period in the lifecycle of a building where the decision on whether to proceed with major window refurbishment or replacement is on the horizon. An older condominium with deteriorating windows is in a particularly challenging situation. In an ideal world where money isn’t an issue, the decision to replace the windows would be easy. Unfortunately, the cost of most major construction, and window replacements specifically, has increased significantly over the last several years, which likely creates a shortfall for even the most studiously planned con-
dominium corporations. To compound the issue, the present risk of continued inflation and the rising cost of deferring this kind of project presents an additional challenge. Ultimately, many high-rise corporations will need additional funding when it comes time to replace the windows, and the community may need to consider a special assessment or a loan to the condominium corporation. There are several key considerations. Total cost to Refurbish or Replace The immediate cost to refurbish the existing window system is always going to be less expensive than full replacement, however, it is wise for the corporation to consider the total cost over time. If a window refurbishment only buys the corporation 10 more years before a full replacement is
necessary, is that really money well spent? If a window refurbishment is undertaken, the reserve funding model in Ontario will still require the corporation to save for the eventual window replacement. Often, the refurbishment expense plus the cost of full window system replacement in the future will be more expensive than replacing the windows now when looking at total costs over time. To get a sense of the true cost, a qualified engineering consultant needs to be engaged to price the cost of refurbishment or replacement, the lifespan of each approach, and the impact on the funding needs for the corporation’s Reserve Fund. Defer vs. Do Now When funding is at issue the natural reaction may be to defer the project and save to do the work in the future. For a large window project, this presents some challenges. Deferring a window replacement CONDOVOICE WINTER 2021
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ILLUSTRATION BY CARL WIENS
Replacing Windows is Typically the Largest Expense a High-Rise Condominium Corporation will Ever Undertake
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2021-12-17 8:18 PM
