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Reserve Fund Study Report Card - Clauses in an Elevator Modernization Contract

Sophia Rojenko, Sally Thompson
Publication date:
December 29, 2022
Article Summary: 

The article warns about the potential pitfalls of "Work by Others" or "Owner's Work" clauses in elevator modernization contracts for high-rise residential buildings. These clauses can lead to additional costs that are not covered by the elevator modernization budget. Some of the modifications triggered by the elevator modernization work include adding air conditioning to the machine room, installing smoke detectors in elevator lobbies, and making electrical modifications that may require the replacement of the fire alarm panel and impact the automatic transfer switch and generator. It is essential for reserve fund planners to consider the building's age and potential related work when budgeting for elevator modernization. They should flag the risk of such additional costs if the information is not available at the time of the study. Board of Directors and Property Managers should inquire about the need for modifications to the fire alarm panel and automatic transfer switch before proceeding with the modernization project. Additionally, upgrading elevator machines from geared to gearless would be considered an addition, alteration, or improvement under the Condominium Act 1998, and the additional cost for this upgrade would not be eligible for reserve fund coverage.


Elevator Modernization, Reserve Fund Study, Work by Others, Owner's Work, High-Rise Residential Building, Fire Alarm Panel, Automatic Transfer Switch, Gearless Elevators, Geared Elevators, Condominium Act 1998.

Source Citation: 
Sophia Rojenko, Sally Thompson
Reserve Fund Study Report Card - Clauses in an Elevator Modernization Contract
December 29, 2022
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