Property Managers across Ontario face the challenge of managing capital equipment replacement projects, a task that can at times feel intimidating. With over 11,000 condominium corporations registered in Ontario, majority of managers can expect to have to manage capital equipment replacement projects within their buildings.

The Reserve Fund Study (RFS) is an invaluable tool in planning for capital projects. Combined with other indicators, such as maintenance expenditures and energy efficiency incentives, property managers can anticipate equipment replacements before failure occurs. By doing so, corporations can avoid costly emergency repairs and save on future maintenance fees.

Let’s break down the process of capital projects into clear, actionable steps to ensure success.

Step 1: Managing & Understanding Project Timelines

Supply chain delays have become a common challenge. Although lead times have improved after the immediate impact of COVID, lead times are still far longer than pre-COVID times. Make-Up Air Units that once had a lead time of 8-10 weeks can now take up to 14-20 weeks. Chillers have seen lead times increase to 24-36 weeks. Considering long equipment lead times, and the time it takes to design, plan and execute such projects, initiating capital equipment replacements early will ensure timely project delivery.

Tip: For boiler replacements, retain consultants by February to ensure the project is completed before the fall heating season. For chiller replacements, contact your consultant after the cooling season to plan to have the work completed prior to the following year’s cooling season.

Step 2: Retaining a Consultant

Once a corporation identifies the need for a capital project, the second step is to retain a consultant. Having a well-defined scope of work for each phase of the project is critical. This allows the management team to obtain competitive pricing from consultants and ensures the services provided match the corporation’s needs.

Tip: Use a trusted consultant or an experienced property manager to help draft a comprehensive scope. This will allow for consistent pricing comparisons across consultants and make sure all necessary services are included.

Step 3: The Construction Phase

Once the design is complete and a contractor is selected, the project enters the construction phase. Open communication is key to a successful project, especially when unexpected delays arise, due to labor shortages, equipment delivery issues, or weather disruptions.

Keeping residents informed about the progress is important. If building systems will be affected, such as water shut-offs or heating/cooling downtime, residents need to be notified in advance to plan accordingly. Communication with residents becomes even more important when construction occurs within residential suites for projects such as riser replacements, fan coil unit replacements etc.

Tip: Before starting a project within residential units, hold a town hall meeting with the consultant and contractor to explain the project’s intent. This gives residents the chance to ask questions and helps foster a sense of transparency and community.

Step 4: Project Closeout

As the project nears completion, the final step is the close-out phase. This includes a thorough walk-through with the contractor and consultant to review the work, along with a sign-off confirming all tasks have been completed to satisfaction.

It’s also essential to collect all close-out documents, such as as-built drawings, warranties, and start-up documentation for new equipment. Managers should confirm with their accounting department that all payments to the contractor are complete.

Tip: Arrange training sessions for on-site staff with the contractor. Newly installed equipment often have specific operational and maintenance requirements, and ensuring staff are trained will help operate the equipment in optimal condition.

Capital projects can be daunting, especially if you’re managing them for the first time. Having a clear process and the right team of consultants and contractors makes all the difference. I hope these steps help you successfully navigate even the most challenging projects.

Have you managed a capital project recently? What worked well for you? Share your tips in the comments below.