Neglecting structural issues can lead to financial risks, lawsuits, insurance headaches, and skyrocketing repair costs. While periodic maintenance is essential to reducing these risks, poor scheduling and delayed asset renewal can prove detrimental to property owners. Here’s what decision-makers need to know about delayed building restoration.
Building restoration planning
Building assets make up the many integrated physical components that protect, support, and contribute to the building’s function. Two of the most critical assets are:
- The building envelope, such as exterior walls, windows/doors, roof, foundation, and balconies, and
- The systems such as HVAC, plumbing and electrical
Building assets eventually require replacement. Without proper asset replacement management, the financial risks of collateral damage to related building components increase exponentially.
Integrated building asset components
Delayed restoration can impact the entire structure as building asset components are integrated. For example, although not part of the building’s thermal envelope, the interrelated components of a balcony contribute to building envelope efficiency and bridging. When one component fails it can increase risks for the following:
- Air penetration affecting energy efficiency and occupant comfort
- Water penetration causing water damage and presenting potential health risks for occupants such as mould growth
- Structural damage that makes the balcony unsafe such as loose railings, increasing the risk of injury
- Collateral damage requiring repairs or replacement
How delayed building restoration escalates costs
Delaying restoration has a domino effect, allowing each small, damaged element to lead to further issues. This causes the following cost escalations:
- Failing cladding leads to costly water damage that affects the entire building structure
- Water damage can lead to mould growth and expensive remediation
- As water works its way through the building envelope, the repair costs increase exponentially when water penetration reaches and damages interiors
- Failing building envelopes increase operational costs due to decreasing energy efficiency
- Safety issues can arise such as loose balcony railings, falling debris, damaged windows, etc. leading to lawsuits
- Building air quality can also be affected by faulty windows and failing seals
- Insurance deductibles and premiums can rise with increased damage-related claims
Financial risks related to delayed building restoration
Time delays in building restoration can have far reaching consequences, including:
- Potential for increased water damage insurance deductibles or even possible claim or insurance denial
- Possible non-compliance related to condominium corporation bylaws and regulations, the Condominium Act or the Landlord and Tenant Act
- Liability for damages caused by management negligence for failure to take reasonable steps to maintain the building
- Liability arising from safety hazards for situations such as unsafe balconies, falling debris, mould, etc.
- Increased occupant access restriction complaints related to hazards caused by delayed restoration, impacting management efficiency
- Liability for occupant property damage related to failure to maintain components such as balcony or roof membranes
- Liability related to business disruptions for commercial buildings
- Liability for condominium corporation fiduciary negligence related to special assessments, unreasonably high common element fee increases or under-funded reserve funds
A proactive approach to building restoration reduces the likelihood of premature building asset failure, collateral damage, and property hazards. As a result, property owners and managers can avoid liability and reduce financial risks while maintaining building value and occupant satisfaction.