Housing Provider Kit

Maintenance
 Housing Provider Kit • Maintenance

Maintenance
TA B L E O F C O N T E N T S

Chapter 1 ~ Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
What’s in this Guide? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Chapter 2 ~ Maintenance Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Building Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Maintenance Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Maintenance Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Chapter 3 ~ New Developments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Construction Deficiencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Builders Lien Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Contract Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Chapter 4 ~ Building Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

The Board's Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Residential Tenancy Act Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
a) Landlord Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
b) Resident Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Housing Co-ops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Caretakers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Regular, Cyclical and Emergency Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Sample Maintenance Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Major Asset Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
a) Replacement Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
b) Modernization and Improvement Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
c) Extraordinary Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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 Housing Provider Kit • Maintenance

Chapter 5 ~ Warranty Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Home Warranty ~ New Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
a) Maintenance Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
b) Warranty Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Building Envelope Repair Warranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Building Envelope Repair Flowchart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Chapter 6 ~ Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Move-in and Move-out Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Annual Site Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Annual Suite Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Preventative Maintenance Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Elevator Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Fire Protection Equipment Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
General Equipment Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
a) Boilers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
b) Mechanical Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
c) Emergency Generators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Playground Equipment Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Group Home Health Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Chapter 7 ~ Purchases and Service Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Purchasing Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Tendering the Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
a) Tender Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
b) Tender Form and Addendum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
c) Tender Opening . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
d) Pre-Qualifying a Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Setting Up Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
a) Notice of Award Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
b) Notice to Proceed Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Monitoring Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Paying Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
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Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Maintenance Planning
Maintenance Request Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Sample Maintenance Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Bachelor/One Bedroom Unit Move-in/Move-out Inspection Form . . . . . . . . 56
Family Unit Move-in/Move-out Inspection Form . . . . . . . . . . . . . . . . . . . . . . . . 57
Sample Move-in/Move-out Inspection Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Multiple Unit Property Inspection Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Group Home Inspection Form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Mould Management Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Mould Notification Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Purchasing and Service Contracts
Sample Tender Advertisement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Tender Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Notice of Award Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Notice to Proceed Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Sample Purchase Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Sample Service Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Letter of Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Notice of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Contemplated Change Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Change Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Inspection Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Progress Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Statutory Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Contractor Performance Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

This publication is produced by BC Housing Management Commission

Copyright June 2002

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 Housing Provider Kit • Maintenance

Chapter 1
INTRODUCTION

This Maintenance Guide is one in a series designed to help non-profit societies and
housing co-operatives manage affordable housing developments. The guide explains
how to set up maintenance systems for the buildings and property you manage in
partnership with BC Housing. Together, these guides provide detailed reference
material and form a comprehensive Housing Provider Kit that covers key areas of
housing management:
• Operations
• Financial Management
• Governance
• Maintenance
• Management Performance
Following the practices outlined in this series will enable your organization to
operate safe, secure, affordable housing communities that:
• Demonstrate excellence in management and maintenance.
• Provide residents with secure tenure and opportunities to participate in decision-
making.
Your organization owns and manages the development, because community groups
are in the best position to understand and meet local housing needs. BC Housing
plays a dual role as a resource and monitoring agency. We provide the subsidies you
need to run the development, and review the administration and use of public funds
to ensure housing program goals are met.
For a copy of any of these guides, contact BC Housing's Home Office at 604-433-1711,
or visit our website at www.bchousing.org, and select the Housing Provider Kit in
the Housing Provider section.

What’s in this Guide?

In the first chapter of the Maintenance Guide, we list the most Frequently Asked Questions
about maintenance, with answers for quick reference. You’ll also find these FAQs
on our website at www.bchousing.org.
Chapter two outlines building and maintenance records you need to maintain.
Chapter three explains how to handle construction deficiencies and protect
developments from liens.

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In chapter four, we describe your maintenance responsibilities under the Residential

Tenancy and Co-operative Association Acts, regular, cyclical and emergency maintenance
requirements, and the asset planning necessary to maintain the structure, function
and aesthetic value of the development.
In chapter five, we outline your maintenance obligations under the Homeowner Protection
Act to ensure your warranties remain valid.
Chapter six defines the various maintenance inspections required to keep your
facilities, equipment and property in good condition.
And chapter seven explains how to tender, set up and monitor contracts for goods
and services needed to build and maintain a development.

Frequently Asked Questions

What maintenance work can be funded from the replacement reserve?
The Housing Provider Checklist in the Housing Provider section of our website –
www.bchousing.org – contains a list of items you can pay for from replacement reserve
funds. These items include:
• Appliances ~ dishwashers, dryers, fridges, wall ovens, stoves, washers.
• Flooring ~ carpets, linoleum/vinyl (suites and common areas).
• Heating ~ furnace, boiler, electric heat, hot water tanks, water/oil pumps.
• Interior Structure ~ air conditioning, countertops.
• Painting ~ exterior painting, exterior trim painting, interior painting (suites and
common areas).
• Paving ~ driveways.
• Roofing ~ roof replacement.
• Window Coverings ~ blinds, drapes, awnings.
• Exterior Structure ~ balcony coverings, deck and deck coverings, fencing, playground
equipment, security gate.
• Other ~ fresh water pump, sewage/pressure/relay.
See chapter six of the Financial Management Guide for more information on replace-
ment reserves.

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Are housing providers required to get three quotes for maintenance projects?
Here are BC Housing’s purchasing guidelines for different price ranges, which can
be adapted to suit your organization:
• $100 or less ~ Make the purchase using petty cash.
• $101 to $5,000 ~ Obtain a minimum of one verbal quote, preferably two or three.
• $5,001 to $30,000 ~ Obtain a minimum of three written quotes.
• $30,001 to $50,000 ~ Use an Invitational Tender to obtain a minimum of three
written quotes.
• More than $50,000 ~ Advertise a Public Tender in the Journal of Commerce and local
newspapers in the area where the work will be performed. Include the time and
location tender documents will be available for pick up. You’ll find sample adver-
tisements on pages 71 and 72 in the appendix. A minimum of three sealed bids is
required. We recommend you contact your Property Portfolio Manager for assis-
tance setting up a contract of this value.
For amounts greater than $5,000, BC Housing requires contractors to provide a Statutory
Declaration that all supplies and labour have been paid, when the work is completed.
You can use this amount or set a different level for the Statutory Declaration
requirement. A Statutory Declaration form is included on page 99 in the appendix.
See chapter seven, beginning on page 39, for more information on tendering projects.

Does BC Housing help housing providers tender large projects or provide

tendering guidelines?
BC Housing’s Regional Maintenance Managers are available to help societies and
co-ops tender large projects. We have a list of contractors with expertise in a variety
of trades. In most cases, you have two options:
• You can request the Maintenance Manager act as your agent and tender the project
for you, or
• You can choose to tender the project yourself.
Refer to chapter seven, beginning on page 39, for information on tendering guide-
lines. You can also contact BC Housing’s Purchasing Department at 604-433-1711 for
assistance with tendering questions.

Does BC Housing have specifications that societies and co-ops can use for ten-
dering purposes?
BC Housing has developed Master Specifications that are available in the
Housing Provider section of our website at www.bchousing.org, in the Resource
Directory. You can use these specifications verbatim or as guidelines to develop your
own documents.

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Does the Builders Lien Act require housing providers to hold back 10 per cent
of development invoices?
Yes, the Builders Lien Act does require you to hold back 10 per cent of each invoice,
for a period of 55 days from the date substantial completion is declared. You are
also required to establish a holdback account for each contract valued at $100,000
or more.
BC Housing holds back funds for projects exceeding $5,000. You can use this figure
or set a higher amount for holdbacks, when using reliable, reputable contractors you
have worked with before.
Failure to hold back funds may have negative legal and financial implications. For
example, a supplier or subcontractor can place a lien on a development if the
contractor fails to pay them, until payment is received. If you hold back 10 per cent,
you will limit your liability as owner.

Does the Builders Lien Act require housing providers to ask contractors for a
Statutory Declaration, confirming they have paid all suppliers, subcontractors,
and employees?
The Act gives you the right to ask contractors for a Statutory Declaration, confirming
they have paid their bills. BC Housing requires contractors to submit a Statutory Declaration
Form 9A for second and subsequent payment draws and when requesting release
of the lien holdback. The lien holdback must be paid 55 days after the contractor declares
substantial performance, provided no liens have been filed. Conduct a lien search
before making the payment. The contractor is confirming bills have been paid
when the Statutory Declaration is signed, which will limit your liability for unpaid
contractor accounts. See page 13 for more information on lien searches.

What documentation should housing providers obtain from contractors before

proceeding with a new development?
After the tender has closed and you have determined the lowest qualified bidder,
use a “Notice of Award” letter to confirm your acceptance of the contractor or sup-
plier’s bid, subject to receiving some or all of the following documents, within 10
business days:
• Proof of current Workers’ Compensation Board coverage.
• Proof of current Comprehensive General Liability insurance for not less than $2,000,000,
showing the society/co-op as the Additional Insured.
• Proof of Third Party Legal Liability Insurance covering the duration of the
project (Insurance Corporation of BC form APV47).
• Names of subcontractors and a description of the work they will perform, or
confirmation that no subcontractors will be involved in the project.
• A Schedule of Work. (This information is only required on construction projects where
the work may take an extended period.)
• At least two copies of the contract document for the contractor to sign.

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• Performance, and Labour and Material Bonds (if applicable).

• Business Number (BN) for GST registration.
Your contract administrator should select the appropriate documents from this list
to include in your Notice of Award letter. If the contractor/supplier will be entering
your work site, ensure their Workers’ Compensation Board and liability insurance
are kept current during the whole term of the contract.

Are there any advantages for societies or co-ops in hiring a building

manager/caretaker on a contract basis?
Housing providers that manage small developments with no need for a full-time
caretaker may benefit from hiring someone on a contract basis to perform specific
tasks such as grounds work or cleaning common areas. Less supervision is required
than with an employee. Organizations that manage larger or multiple developments
may need one or more full-time caretaker(s), hired as employees.
If you hire a contractor rather than an employee, the Real Estate Act requires any
contractor acting as an agent – collecting rent, showing suites, signing agreements,
for example – to be licensed by the Superintendent of Real Estate.
If you choose to use a single contractor as a full-time caretaker, Revenue Canada may
deem the position to be an employee. Please call Revenue Canada at 1-800-267-1267
for a copy of the pamphlet – Employee or Self-Employed? – which lists the criteria for
determining whether someone is working as an employee or contractor.

Does the BC Non-Profit Housing Association (BCNPHA) help its members

develop maintenance operating systems? What about the Co-operative
Housing Federation of BC (CHF BC)?
The BCNPHA has a Policy and Procedures Manual for non-profit housing providers,
and offers a property management workshop. Call 604-527-8859 or 1-800-494-8859.
The CHF BC offers a maintenance and property management workshop. Call
604-879-5111 or 1-866-879-5111 for information.

How can we find reliable, competitive small contractors such as plumbers or

roofers?
Your Property Portfolio Manager may be able to refer you to local suppliers and
contractors. The BC Non-Profit Housing Association has prepared a Supplier
Directory by geographic area, and can be reached at 604-527-8859 or 1-800-494-8859.
Provincial associations such as the Roofing Contractors Association of BC
(www.rcabc.org or 604-882-9734), the BC Floor Covering Association
(www.bcfca.com or 604-689-9928), and the Master Painters and Decorators
Association (www.paintinfo.com or 604-298-7578) can provide names of
member tradespeople.

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You can also visit the Better Business Bureau at www.bbbvan.org and select Company
Reports, which lists member service providers and their service record. The Greater
Vancouver Home Builders Association website at www.vancouverhomebuilders.org
also lists member contractors in the Members section.
The Co-operative Housing Federation of BC has building envelope consultants who
can assess damage and advise co-ops on the steps to take to remedy building
envelope problems.

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Chapter 2
MAINTENANCE RECORDS

Building Records
Store copies of the building records for each development to document important
information on the history of the building. Keep records of the following documents:
1) Building specifications.
2) As-built drawings.
3) Contract documents.
4) Guarantees and warranties for contract work, equipment and appliances.
5) Building maintenance manuals.
6) Equipment maintenance manuals.
7) Equipment operating instructions.
8) Serial and model numbers of equipment and an equipment inventory.
9) An inventory of tools and supplies. (Minor supplies that are regularly replaced,
such as floor wax and cleaners, don’t require records.)
10) Site inspections, noting when maintenance work has been done, any observations,
the cost, if applicable, and who performed the work.
11) Suite inspections and all work orders. (Refer to the next section on maintenance
inventories for more information.)
You can obtain copies of the first eight documents from your architect, engineer and/or
contractor.

Maintenance Inventory
Keep a maintenance inventory for each unit that lists information on:
• The make, model, colour and serial number of each appliance.
• Paint colour.
• Colour and type of drapes/blinds.
• Colour and type of floor coverings and/or carpet.
• Any purchases and replacements, such as new flooring, fridges, etc., with dates.

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• All maintenance work and renovations, with dates:

Using a Maintenance Request Form is an easy way to record maintenance work in
resident units without a lot of paperwork. Residents fill out and sign the form
identifying work that needs to be done and giving you permission to enter the unit.
Simply write ‘completed’ and the date, initial the form, and then put it in the res-
ident’s file so you have a maintenance record you can use to track repairs, identify
problems, or show proof of repairs in arbitration, if necessary. You’ll find a sample
form on page 52 in the appendix.
Maintenance records provide a history of the maintenance performed on every
product. For example, these records will show when a suite was last painted, when
carpets were installed and cleaned, and when a refrigerator or stove was replaced
or repaired.
When you perform suite or building inspections, update your maintenance inventory
records. Use up-to-date inspection information to plan short and long-term
maintenance projects in your budget. For example, list equipment such as the
type of hot water tank or furnace, and rate its condition, using a code:
1) Requires immediate replacement.
2) Requires replacement within 3 years.
3) Requires replacement in 3-5 years.
4) Requires replacement in 5-10 years.
In addition, store information on materials and appliances in common areas, such
as the lounge, lobby and laundry room, in a maintenance inventory file.
Also maintain records of regular inspections such as fire alarm, elevator and boiler
servicing, because you need these records to obtain warranty repairs.
Property management software programs are designed to track and maintain
inventory lists and work orders. If you do not have a computer tracking system, ensure
your files contain paper records.

The BC Non-Profit Housing Association has researched a property

management software program for non-profit societies. Contact the
BCNPHA at 604-527-8859 or 1-800-494-8859 for more information.

Maintenance Specifications
Keep records of the product brands and specifications you use to match products
and find replacement parts when repairs are needed.
A comprehensive list of BC Housing’s current product specifications is available on
our website at www.bchousing.org, for everything from the grade and colours of
paint to carpets, roofs, linoleum and countertops. You can use these specifications
as a guide for any work at the development. Just click on the Housing Provider
section and select the Resource Directory - Purchasing Documents.

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Chapter 3
NEW DEVELOPMENTS

Construction Deficiencies
The architect will issue a Certificate of Completion when the contract for a new devel-
opment is substantially complete, or when the outstanding balance payable on the
contract reaches a particular amount defined in the Builders Lien Act. We explain
how to calculate this amount on page 49.
Prior to issuing the certificate, the architect and someone from your organization should
inspect the building to list any construction deficiencies, such as missing trim or
defective window locks. The architect is responsible for ensuring the building is
completed in accordance with the contract documents (drawings and specifications).
A sample Inspection Report is included on page 97 in the appendix. The other design
consultants should also conduct substantial performance inspections and prepare
deficiency reports. The contractor should be present during this inspection.
The architect should make a list of the deficiencies and place a value on each. The
contract allows you to hold back twice the value of the deficiencies, until the work
is completed or corrected. Retain the full deficiency holdback until all deficiencies
are corrected. This deficiency holdback is different from the builder’s lien holdback,
which is explained in the next section. Ensure your organization retains funds to cover
both holdbacks.
In addition, whenever the contractor sends you an invoice for part of the work, ask
for a Statutory Declaration, which is a sworn statement that all the supplies and labour
used so far have been paid. This declaration will provide you with recourse if sup-
pliers or subcontractors place liens against the development for unpaid materials
or wages. (Refer to page 48 for more information on paying contractors.)
Identify deficiencies during the first year after the date of the Certificate of Completion,
because the contract stipulates contractors must make repairs during this period. Ask
residents to help identify any deficiencies they find in their suites or the common
areas. Conduct a complete unit and building inspection ten months after the date
of the Certificate of Completion. This timing allows the contractor time to correct any
deficiencies before the expiry of the one-year warranty. Your organization or the
architect will have to follow up with the contractor to ensure the remedial work is
completed.

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Builders Lien Act

The Builders Lien Act requires you to hold back 10 per cent of the contract value for
55 days, from the day the architect gives you a declaration of substantial completion.
The holdback is intended to give you adequate funds to pay subcontractors or
suppliers, if the contractor fails to pay them. You are also required to establish a hold-
back account for each contract valued at $100,000 or more.
If you hold back 10 per cent, your liability as owner will be limited to this amount,
unless more than 10 per cent is still owing.
The contractor can submit a Statutory Declaration 9A form requesting release of the
lien holdback funds any time after substantial completion of the project has been declared.
When you receive the Statutory Declaration 9A, do a lien search with the Land
Titles office. The search can also be done online at www.bconline.gov.bc.ca, but first
you need to set up an account with BC OnLine by calling 604-660-6970 in Vancouver,
250-952-6777 in Victoria, or 1-800-373-6393. If no liens are found related to the
project, release the holdback to the contractor on the 55th day.

Contract Documents
Your contractor is required to provide you with a number of important contract
documents including:
• Appliance warranties.
• As-built drawings and specifications.
• Maintenance manuals including registered material and product-specific warranties,
and instruction manuals for the operating systems.
• A letter scheduling the date for the one-year warranty inspection.
• Copies of all municipal Building and Occupancy Permits.
• A list of construction contacts for the development, including the contractor and
sub-trades.
The architect should review these documents to ensure they are complete and
accurate.
The contractor is also required to conduct a demonstration of the mechanical and
electrical systems and equipment before applying for substantial completion. The
contractor should explain where to find operating and maintenance information in
the maintenance manuals during this meeting. Your caretaker and/or building man-
ager should attend. The architect should also attend to ensure the demonstration is
complete. We recommend you videotape the demonstration for your caretaker to
use as a reference.

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Chapter 4
BUILDING MAINTENANCE

The Board's Responsibilities

Your buildings and land are home to the residents and part of the local community.
Keeping the property well maintained enhances the quality of residents’ housing,
and reflects positively on your organization and its role in the neighbourhood.
Ultimately, responsibility rests with your Board of Directors to ensure maintenance
systems and procedures are in place to keep developments clean, orderly and in good
condition. Your organization must develop and implement a maintenance plan with
an inspection schedule to ensure all maintenance work is completed on time.
Review and update the plan annually.
The Board is also responsible for ensuring the people you choose to handle building
and grounds maintenance have the experience and expertise to properly care for the
facilities, equipment and property. Some organizations with larger portfolios may
delegate this responsibility to management staff.
For example, only qualified tradespeople should be used to perform technical
tasks, while volunteers could do some landscaping or painting jobs. Set up contracts
with tradespeople such as plumbers and electricians, and service contractors who
maintain fire alarm, elevator and heating systems. (Chapter seven explains how to
set up and monitor a contract.)
In addition, ensure you consult with Regional Operations staff and the Building
Envelope Coordinator at BC Housing before starting any structural or building
envelope repairs.

Residential Tenancy Act Requirements

The Residential Tenancy Act (RTA) applies to non-profit housing societies, and
explains resident and landlord responsibilities for maintenance and repairs, as
well as the process for arbitration, should a disagreement arise. Keep a reference copy
of the Act and the RTA Regulations on hand.

a) LANDLORD RESPONSIBILITIES
As landlord, you're expected to maintain the building and property to health and
safety standards and to make necessary repairs. If you do not follow through on this
responsibility, residents can apply to the Residential Tenancy Office for an order to
have the repairs completed and the cost deducted from their rent.

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Include terms in your tenancy agreement to explain both resident and landlord
responsibilities for maintenance and repairs. Keep in mind that the terms of the RTA
will apply under arbitration, even if these conditions aren’t defined in the tenancy
agreement.

The Residential Tenancy Office has produced a Guide for Landlords and
Tenants in BC. You can obtain a copy of the guide or more information
about the RTA at 604-660-3456 or 1-800-665-8779. Or visit the Residential
Tenancy Office website at www.pssg.gov.bc.ca/rto for online assistance
and to download forms and the guide.

b) RESIDENT RESPONSIBILITIES
Under the RTA, residents are entitled to expect:
• Maintenance and repair of the development will comply with health, safety and
housing standards required by law.
• They will be informed about any work being done in their units.
• Contact phone numbers will be posted in the building for regular and emergency
maintenance.
Residents need to understand their maintenance responsibilities under the RTA. Residents
are required to:
• Maintain ordinary health, cleanliness and sanitary standards, but are not liable for
reasonable wear and tear.
• Repair any damage they or their guests cause.
You can review this information and the tenancy agreement with residents before
they move in. Information can also be communicated in a resident handbook, flyers,
posters, at meetings, or through a residents’ newsletter, if there is one. (Refer to page
31 for information on move-in and move-out suite inspections.)
If residents request permission to redecorate at their expense, you can approve
painting or modifying a suite, as long as the modifications don’t adversely affect the
unit’s value or appearance. Discuss changes with the resident so everyone is clear
about what will be done, and give approval in writing before the work begins. If you
expect the unit to be painted its original colour again before move-out, specify this
condition in writing. Give the resident a copy of your paint specifications to ensure
the work is completed using acceptable products.
Residents in non-profit buildings cannot be expected to perform building or
property maintenance, unless they want to volunteer to help with this work. But you
can ask people to report any general maintenance problems to the building manager
or to notify your office staff.

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Advise volunteers that BC Housing’s group insurance program does not provide
a disability policy for volunteers. If a volunteer is injured on your property, any legal
suit launched would be filed against your liability insurance. Depending on the injury
and whether your organization is shown to have any negligence, an injured volunteer
may or may not be successful in a claim.

Housing Co-ops
The Co-operative Association Act does not contain maintenance regulations. Instead,
some maintenance responsibilities are defined in the occupancy agreement each
member signs. These terms state:
• Members are required to keep their units in good condition and repair.
• Members are liable for any damage they cause.
• Whether people are allowed to make alterations to their units, the process to obtain
consent, and who pays for changes.
• The co-op can exercise a lien against the share purchase, if cleaning and repairs
are required when a member moves out.
Other maintenance responsibilities vary among co-ops. For example, co-op main-
tenance policies generally define responsibility for painting, plumbing, flooring and
other minor repairs. At some developments, the co-op pays for these maintenance
items, while at other buildings, individual members are responsible for paying.
Participation policies define whether members are expected to help with general
cleaning and building maintenance. Some co-ops assign chores that rotate among
members or hold biannual building and yard cleanups. Anyone who is physically
unable to perform these tasks is asked to help in other ways, such as making calls
to organize meetings or bringing food to the cleanup. Expectations for participation
are explained when people apply to join a co-op. Other co-ops hire people to per-
form this type of work.
Some co-ops hire property management companies to handle maintenance and other
tasks, such as collecting housing charges. Other co-ops oversee cleaning and main-
tenance requirements and use property managers for other responsibilities.

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Caretakers
Many organizations hire resident or non-resident caretakers to handle day-to-day
maintenance. We ask that you demonstrate the need to hire a caretaker. BC Housing’s
guideline for assessing whether a caretaker is needed is one full-time person for each
100 suites, depending on the job description and layout of the property. If the
property is large, requires a lot of grounds work and common area maintenance, but
has fewer units, a caretaker may be justified. Or there may be a higher number of
units at a concentrated development requiring fewer staff. Generally, seniors’
complexes have more common areas and require more maintenance, while family
townhouse developments have less common areas, with residents responsible for
maintaining their own yards. Smaller developments may not require a caretaker, or
a position may be shared between more than one building, or a part-time caretaker
may be needed.
A copy of BC Housing’s Cleaning Standards for building managers and janitors is
available on our website at www.bchousing.org. Select the Housing Provider section
and go to the Resource Directory - Maintenance Documents. The standards list how
often each task should be done, such as vacuuming common areas once a week and
cleaning the lobby daily.
If you want to hire a caretaker, please send a written request to your Property Portfolio
Manager.

Refer to the Rent Calculation section of the Operations Guide for information
on how to calculate rent for a live-in caretaker.

Regular, Cyclical and Emergency Maintenance

Use a detailed maintenance checklist and schedule to ensure the building and site
are regularly inspected and consistently well maintained. Routine maintenance can
identify problems at an early stage, allowing remedial work to be completed before
a problem becomes significant.
Whoever handles maintenance needs to be familiar with the systems and equipment
at the development. Select qualified people with experience making repairs and keep-
ing buildings and property clean and orderly. Maintenance staff require tools and
equipment kept in good repair, and easy access to drawings, specifications, warranties,
operating manuals, and accurate records of equipment repairs.
We recommend you schedule maintenance work by the season. For example, land-
scaping, grounds clean up and sign repair can be done in spring. Wash windows and
buildings and paint the building exterior in the summer. Replace furnace filters and
clean other equipment in the spring and fall, and clear drains of leaves or dirt in the
fall. In winter, monitor and mend any frozen pipes. You can use the sample main-
tenance checklist on the next page as a guide, or download a copy from our website
at www.bchousing.org. A copy is also included in the appendix on page 53.

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Sample Maintenance Checklist

YEAR: ________

GROUNDS FREQUENCY INSPECTION/MAINTENANCE DATE REFERENCE SERVICE

(See Note 1 at the (See Note 2) PROCEDURES (3) (4) CONTRACT
end of the checklist) (5)

Playground Annually Inspect for loose cracked parts, sharp 02880 (6)
Equipment edges, rot and fall protection.

Planting Annually Inspect for plant and tree growth against 02900 (7)
building.

Concrete Annually Inspect for cracks, shifting, water damage _ (8)

Patios and and drainage
Retaining
Walls

Sidewalks and Annually Inspect for cracks and trip hazards. _ (8)
Driveways

BUILDING FREQUENCY INSPECTION/MAINTENANCE DATE REFERENCE SERVICE

EXTERIOR PROCEDURES CONTRACT
(#9)

Crawlspaces, Annually Inspect for dampness, vermin, inspect _ (10)

Concrete beams and posts for rot. Inspect foundations
Foundations for cracks, shifting, water damage.

Masonry Annually Inspect for efflorescence (white powder), 04200 (10)

Veneer inspect sealants.

Porches and Annually Clean and inspect for cracks, rot, _ (8)
Balconies trip hazards, secure railings and steps.

Wood Siding, Annually Inspect for cracks, water damage, 06100 (8)
Fascias and deteriorated finishes and vermin.
Trim

Attic Roof Annually Inspect for water damage, mildew, _ (10)

Sheathing condensation.

Attic Annually Inspect for moisture, vermin, voids, _

Insulation compressed insulation.

Attic Annually Inspect for obstructions, rot, vermin. _

Ventilation

Vinyl Decks Annually Check for lifting, water damage, 07100 (8)
damaged flashing.

Concealed Annually Check underside of slabs for evidence 07100 (10)

Waterproofing of leaks.
(parkade)

Stucco Annually Check for signs of water leakage, mould, 07240 (10)
mildew and staining.

Roof Shingles Annually Check for curled or missing shingles, 07300 (11)
excessive moss, damaged flashing,
clean gutters.

Vinyl Siding Annually Inspect for damaged siding and water 07460 (8)
damage.

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 Housing Provider Kit • Maintenance

BUILDING FREQUENCY INSPECTION/MAINTENANCE DATE REFERENCE SERVICE

EXTERIOR PROCEDURES CONTRACT

Steel Siding Annually Inspect for water damage and damaged 07465 (8)
sheets.

Flat Roofs Annually Inspect for ponding, loose flashing, 07500 (11)
plugged drains, air pockets, blisters, debris.

Roof Hatch Annually Inspect for forced entry, hardware operation, 07700
leaks and weather stripping.

Metal Doors Annually Inspect for forced entry, correct hardware 08100 (8)
and Frames operation, weather stripping and sealants.

Wood Doors Annually Inspect for forced entry, correct hardware 08210 (8)
and Frames operation, weather stripping and sealants.

Automatic Semi-Annually Inspect for damage, forced entry, wear, and 08710 (8)
Door Openers test all safety features.

Overhead Semi-Annually Inspect for proper operation and damage 08360 (8)
Parkade Doors to components, test safety features.

Aluminum Semi-Annually Inspect for forced entry, hardware 08410 (8)

Entrances and operation, closer adjustment
Storefront

Windows and Annually Inspect for leaks, hardware operation, 08500 (10)
Doors sealing.

Hose Bibs Semi-Annually Inspect for damage and winterize in 15400

advance of freezing temperatures.

Outdoor Semi-Annually Test ground fault plugs. 16000

Outlets

Dryer Vents Monthly Clean bird screens monthly and vents as 15500
required.

Floor and Annually Clean out drains and trenches. 15400

Trench Drains

Chimneys Annually Clean and check for cracks, loose bricks, _ (8)
leaks or damage. Include fireplaces and
wood stoves.

BUILDING FREQUENCY INSPECTION/MAINTENANCE DATE REFERENCE SERVICE

INTERIOR PROCEDURES CONTRACT
AND
SERVICES
(#12)

Door Handles, Semi-Annually Check hardware for proper function, 08710 (8)
Hinges and check and test fire exit hardware.
Closures

Residential Semi-Annually Check fridge seals and drain tubes. Check 11450 (8)
Appliances stove burners and wires for electrical
shorting or grease build up. Check hood
fans for filters, venting, grease build up
and fire hazards.

Walls and Annually Inspect for mould, water damage, holes, 09250 (8)
Ceilings cracking, paint and humidity levels.

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BUILDING FREQUENCY INSPECTION/MAINTENANCE DATE REFERENCE SERVICE

INTERIOR PROCEDURES CONTRACT
AND
SERVICES
(#12)

Elevators Monthly/ Have an elevator contractor service 14200 (6)

Quarterly and maintain the elevator equipment
(Subject to
licensing
requirements)

Boiler - Large Monthly Service monthly, including circulating 15500 (6)

Building pumps. Adjust for seasonal temperatures.

Boiler/ Annually Service annually, plus filter changes 15500 (6)

Furnace - 3 to 4 times per year. Adjust for seasonal
Small Building temperatures.

Air Annually Inspect for damage, icing, noise, leaks. 15500 (6)
Conditioning Clean condenser.

Ductwork Annually Clean and inspect for rust or damage. 15500 (8)

Gas Piping Annually Inspect for leaks and clearance between 15400
gas fired fixtures and combustibles.

Hot Water Annually Open drain, inspect pressure reducer 15400

Tank valve for leaks.

Electrical Panel Monthly Inspect for loose, frayed, exposed or overloaded 16000 (8)
and Wiring wires/plugs. Test ground fault plugs monthly.

Electrical Annually Inspect for damage. 16000

Radiant Heater

Fire Alarm Daily/ Inspect annually using a qualified inspection 16000 (8)
System, Weekly/ firm. Have staff conduct daily, weekly
Extinguishers, Monthly/ and monthly checks from Fire Safety Plan.
Hoses, Annually
Sprinklers, Heat
and Smoke
Detectors

Emergency Weekly/ Run emergency generators once per week 16000 (8)
Generators Semi-Annually for 20 minutes, and have inspected by a
qualified firm every 6 months. Maintain
fuel supply.

NOTES:
1. Includes site improvements outside the building envelope.
2. The recommended maintenance or inspection interval.
3. The date you complete the inspection and/or maintenance procedures.
4. The reference section found in the Design and Construction Standards and the building operating and maintenance manual
submitted by the contractor. Review the manual to determine if product is still covered under warranty.
5. A purchase order or service contract to carry out independent inspection, maintenance, repair or re-construction.
6. Have the equipment manufacturer or subcontractor attend to the repairs.
7. Have the landscape maintenance service perform the work.
8. Employ a specialist trade contractor to perform the repairs.
9. Includes foundation walls, roofs, windows, and doors.
10. Employ an independent building envelope inspection agency to review suspect conditions.
11. Have an independent roof inspection agency inspect roof every 5 years. Have roofing contractor perform repairs annually as required.
12. Includes building services and interior finishes.

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Develop a system for responding to resident requests for maintenance and repairs,
and let them know how the system works. For example, do you want residents to
fill out a request form when they need something fixed? Are the forms kept in a box
in one of the common areas? Or do you want people to phone in requests, and leave
a message?
If you decide to supply Maintenance Request Forms in common areas, people can advise
you of maintenance problems, and grant permission for someone to enter their suites
to complete repairs while they’re out. There’s a sample Maintenance Request Form on
page 52 in the appendix. The forms also provide an easy way to keep a maintenance
record for a suite.
Some cyclical maintenance automatically occurs as part of a service contract, such
as the monthly elevator servicing. Plan non-cyclical maintenance following the
annual suite and site inspections, outlined on pages 32 and 33.
In addition, the Residential Tenancy Act requires you to post a contact phone number
in the building for after hour emergency maintenance, in case of an emergency such
as a fire, flood, elevator break down, power or heat outage, broken window or
leaking roof. The caretaker or a service company may be the contact.

To find out how other organizations handle these responsibilities or to

arrange maintenance training, contact the BC Non-Profit Housing
Association at 604-527-8859 or 1-800-494-8859, or the Co-operative
Housing Federation of BC at 604-879-5111 or 1-866-879-5111.
The Mount Allison University Resource Kit for volunteer housing
boards includes a session on facilities and maintenance management, and
can be ordered at www.mta.ca/rstp/order.html.

Major Asset Planning *

Use the information you gather during annual suite and site inspections to accurately
determine when major assets will need to be replaced. Use the inspections to iden-
tify what work needs to be done, and develop a five-year maintenance plan for major
assets. Update the plan following annual inspections by qualified professionals. Include
estimated dates and costs for asset replacements.
For example, during the annual suite inspections in the seventh year after opening,
you discover the linoleum will need to be replaced in two years, even though it’s
supposed to last ten. Use this information to update your plan to replace the flooring
in the ninth year. Or at year four, the interior paint looks like it will last six years,
even though it’s scheduled to last five. Update the plan to reschedule the painting
for a year later.

*Major asset planning is referred to as capital planning in the Financial Management Guide.

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You’ll find a list of estimated useful life years for major assets on our web-
site at www.bchousing.org. Click on the Housing Providers section and
go to the Resource Directory.

The annual inspection should be detailed enough to identify specific numbers that
must be replaced, such as 50 appliances or 20 carpets in a 90-unit development, in
the coming year.
Give first priority for asset maintenance to immediate operational or structural needs,
such as damage or a hazard that could affect the health or safety of residents and
staff. Also consider technical and aesthetic implications when setting priorities. For
example, exterior and interior painting may both be required, but you only have the
resources for one job this year. Wood may begin to rot outside if the exterior painting
is not done first, while the interior will be less visually attractive for another year.
As a result, do the exterior painting first to preserve the wood. Or perhaps flooring
and interior paint both need replacing. Paint first and install flooring next, so you
don’t risk getting paint on the new flooring.
There are three types of funding for major asset replacements in non-profit and co-op
developments: replacement reserve, modernization and improvement projects,
and extraordinary payments.

a) REPLACEMENT RESERVES
Most housing providers have a replacement reserve fund under the terms of your
operating agreement with BC Housing. Replacement reserves are established to replace
major assets that wear out. The replacement reserve is funded through an annual
or monthly transfer from your operating bank account to the replacement reserve
accounts.
Chapter six of the Financial Management Guide contains instructions on how to
complete a Replacement Reserve Schedule, which estimates the:
• Amount to set aside each year in your budget to cover replacement costs.
• Life years for assets such as appliances, flooring, furnaces, hot water tanks, carpets,
linoleum, window covering, painting and paving.
For example, if a major asset will cost $100,000 to replace and has a life span of 20
years, you need to set aside $5,000 per year for 20 years, so the money is available
to replace it at the end of 20 years.
The list of eligible replacement reserve items specifies the only items that can be paid
out of reserve funds.

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b) MODERNIZATION AND IMPROVEMENT PROJECTS (M&I)

Modernization and Improvement projects include replacing and repairing major
structural components of a building due to:
• Premature failure.
• Deficiencies in construction or design.
• Cosmetic or functional upgrades.
• Obsolescence of existing components.

A Modernization and Improvement replacement is not:

• An item that might normally be scheduled for replacement or upgrading within
ten years of the Interest Adjustment Date (IAD) for the property.
• The replacement of an individual, small expense item that could be funded in the
operating budget.
• An item already funded in the operating budget or through the replacement reserve
provision.

Some examples of items that could be replaced under Modernization and Improvement
include:
• Bathtub and bathtub surrounds.
• Toilets.
• Sinks.
• Cupboards.
• Light fixtures.
• Windows or doors.
• Exterior cladding or siding.
• Window screens.
• Elevators.
• Structural or building envelope components.
• Fire sprinkler systems.
• Building re-wiring.
• Building re-plumbing.
• Renovation or conversion projects.

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M&I funds can also be used to add new items to improve a site rather than
upgrading existing items, such as:
• Installing playground equipment or a sports court at a development that didn’t
previously have these facilities.
• Removing a standard bathtub and replacing it with a wheel-in shower or tub that
is easier for seniors to use. The current equipment may still be in good condition,
but no longer meets a client’s physical needs.
BC Housing arranges financing for Modernization and Improvement projects,
which are added as an annual expense item to your budget. Items costing less than
$5,000 may be funded as a non-recurring maintenance expense in your operating
budget or as a one-time extraordinary payment.
Your Property Portfolio Manager (PPM) will send an M&I worksheet with your budg-
et package. Send your plan for Modernization and Improvement replacements to
your PPM, who will submit the plan for approval. M&I projects must be com-
pleted within the fiscal year they receive approval. Contact your PPM for more
information on M&I projects.

c) EXTRAORDINARY PAYMENTS
Developments without sufficient funding for scheduled replacement reserve items
may get funding for maintenance expenditures through an extraordinary payment
from BC Housing. BC Housing may also provide a one-time payment for emergency
repairs.
If a major maintenance project arises unexpectedly, contact your Property Portfolio
Manager for assistance.

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Chapter 5
WARRANTY PROTECTION

Warranty protection is provided for new construction and for repairs to develop-
ments with premature building envelope failure. As a building owner, non-profit
societies and co-ops must meet mandatory maintenance requirements under the
Homeowner Protection Act to file a warranty claim. If these maintenance obligations
are not met, the warranty for a new building or building envelope repairs will become
void. The Act applies to new construction and building envelope repair for multiple
unit buildings and group homes. (A Home Warranty will not be issued for a
renovated group home.)

For information on the Homeowner Protection Act, visit the Homeowner

Protection Office website at www.hpo.bc.ca or call 604-646-7055 or
1-800-407-7757.

Home Warranty ~ New Construction

Under the Homeowner Protection Act, developers must provide warranty insurance
on all new buildings that includes:
• 12 months on non-common property in units such as doors, cabinets, sinks and
plumbing fixtures.
• 15 months on common property.
• 2 years on delivery and distribution systems such as the electrical, plumbing,
heating ventilation and air conditioning systems.
• 5 years on the building envelope.
• 10 years on major structural components.
The warranty period begins when your architect issues a certificate of substantial
performance or completion, generally issued at occupancy. Under the Act, the
builder must give you a maintenance manual containing information on how to
properly maintain the building, or forfeit the right to exclude coverage. If you
receive all the information in the builder’s maintenance manual and fail to
maintain the building, you void the warranty. For example, if you don’t have the
gutters cleaned and water gets into the building, the warranty would not cover the
cost of repairing this damage.

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Maintenance manuals are broken into sixteen divisions, each of which covers
specific categories with detailed specifications:
• Division 1 ~ General Requirements (including a summary of the work, quality control,
maintenance and other items).
• Division 2 ~ Site Work (including site preparation, paving and surfacing, sewerage
and drainage, landscaping).
• Division 3 ~ Concrete (including concrete formwork, reinforcement, grout, restoration
and cleaning).
• Division 4 ~ Masonry (including mortar, accessories, corrosion resistant masonry).
• Division 5 ~ Metals (including metal materials, finishes, joists, decking, fabrications).
• Division 6 ~ Wood and Plastics (including fasteners and adhesives, heavy timber
construction, finish carpentry, plastic fabrications).
• Division 7 ~ Thermal and Moisture Protection (including waterproofing, insulation,
fireproofing, shingles and roofing tiles, flashing and sheet metal).
• Division 8 ~ Doors and Windows (including metal doors and frames, wood and
plastic doors, metal windows, wood and plastic windows, hardware).
• Division 9 ~ Finishes (including aggregate coatings, tile, carpet, floor treatment,
painting, wall coverings).
• Division 10 ~ Specialties (including louvers and vents, wall and corner guards, pest
control, storage shelving, toilet and bath accessories).
• Division 11 ~ Equipment (including maintenance equipment, parking control
equipment, unit kitchens).
• Division 12 ~ Furnishings (including fabrics, window treatment, furniture and
accessories, multiple seating).
• Division 13 ~ Special Construction (including special purpose rooms, sound, vibration
and seismic control, building automation systems).
• Division 14 ~ Conveying Systems (including elevators, material handling systems,
scaffolding).
• Division 15 ~ Mechanical (including basic mechanical materials and methods,
plumbing, heating, ventilation and air conditioning).
• Division 16 ~ Electrical (including basic electrical materials and methods, power
generation, lighting).

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a) MAINTENANCE PLAN
Have your architect or consultant produce a Maintenance and Renewals Plan for all
components of the building, based on the maintenance manual requirements. You
can use the sample maintenance checklist on page 53 as a guide, or print a copy from
our website at www.bchousing.org. Include the following information in your
maintenance plan:
• A generic inspection form for recording results of the annual inspections. Record
when maintenance work is done, any observations, the cost, if applicable, and who
performed the work.
• Expiry dates for the product warranties and guarantees, such as the two-year paint
and window and five-year roof guarantees provided by trade associations. Before
you begin deficiency repairs on components, equipment or systems that are
covered by manufacturer or trade association warranties or guarantees, contact
the manufacturer or supplier about providing the required notice. You need to ensure
you do not void the warranty by not providing adequate notice.
• A list of contact names, phone/fax numbers, email and mailing addresses for
consultants, the general contractor, specific trades and manufacturers.
• Definitions for building envelope terms such as moisture barrier, air barrier,
vapour barrier, drainage cavity, insulation and cladding.
• A brief description of the building envelope wall, window/glazing and roof
assemblies and their main components.
You also need a renewals plan to replace assets as they wear out to preserve the struc-
ture, function and aesthetic value of the development. Refer to page 21 for
information on major asset planning and chapter six of the Financial Management Guide
for instructions on setting up a replacement reserve fund.

b) WARRANTY INSPECTIONS
Always hire a qualified architect or engineering consultant with the expertise to assess
the building condition to conduct the 1, 2, 5 and 10-year warranty inspections out-
lined on page 25. Have your consultant perform the inspections a month or two before
the warranty periods expire, so you have time to file a claim if necessary. The
inspection report should identify any warranty items that require repair. The archi-
tect should bring in other consultants, such as a building envelope specialist or mechanical
or structural engineer, to assess the problem in detail, if symptoms are identified dur-
ing an inspection.
The construction contract requires that the contractor repair any deficiencies
identified by the owner during the one-year period after the date of substantial
performance. The architect’s basic services include conducting the one-year inspec-
tion and preparing a deficiency list. You and your residents will need to prepare a
list of deficiencies before the inspection for the architect and contractor to review.
Keep a record or log of all problems with warranty items during the first year. Warranty
deficiencies include defects in workmanship or materials, not resident damage.

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Your consultant should prepare a report on the warranty inspection results. Send
a copy to your Property Portfolio Manager and the warranty provider. If warranty
work is required, proceed with making a claim. You don’t need to determine
whether the claim is material and labour or design related, because the insurer will
send an adjuster to determine the cause.
In addition, an annual maintenance review should be part of your ongoing, routine
maintenance plan, because problems can usually be remedied at a lower cost if
detected early, before obvious damage occurs. See page 32 for more on regular
annual inspections.
At the five-year building envelope warranty inspection, a building envelope
consultant can identify and assess damage and suggest repair options. Contact the
Architectural Institute of BC at 604-683-8588, or the Association of Professional Engineers
and Geoscientists of BC at 604-430-8035 for referrals. Your municipality or region-
al district may also be able to provide a list of building envelope consultants.

For more information on home warranty coverage and maintenance require-

ments, contact Technical Services at BC Housing at 604-433-1711.

Building Envelope Repair Warranty

Some non-profit and co-op developments are experiencing the same water penetration
problems as buildings in the private market, and may require building envelope repairs.
The building envelope includes all building components that separate the indoors
from the outdoors, such as the exterior walls, foundations, roof, windows and
doors. Common signs that indicate water problems include:
• Water flowing down the sides of a building.
• Water stains appearing on the insides of walls, ceilings or inside foundations.
• Pools of water on decks or balconies.
• Window leaks or ponding at the windowsill.
• Mould or fungi forming.
• Wood rot.

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BC Housing will assist you to repair water penetration damage by providing

technical and financial support, while your society or co-op signs the contracts and
pays the building envelope consultant and contractor.
Our staff evaluate proposals and help housing providers select an architect or
engineer as a building envelope consultant. The consultant assesses the building and
provides repair options, by determining:
• How the water is getting in.
• Why the water isn’t draining.
• What path water is taking inside the walls.
• How much damage has been done to the building.
For example, the building envelope consultant will identify whether the entire
building requires repair or if the problem is located in a specific area. BC Housing
discusses the repair options with you, develops a budget and timeframe, and
helps you put the repair work out for tender. The flow chart on page 30 outlines
the building envelope repair process. (Refer to chapter seven, beginning on page
39, for more information on tendering contracts.)
Under the Homeowner Protection Act, contractors performing building envelope
renovations must be licensed by the provincial Homeowner Protection Office, and
provide mandatory third-party warranty insurance. The minimum coverage is
two years on labour and materials. An additional five-year warranty on water
penetration must be provided, if 60 per cent or more of any wall is replaced. Design
work is also covered in building repair warranties.
When the repair work is complete, the building envelope consultant will conduct
a final inspection and prepare a project completion package for you, with building
envelope maintenance and renewal plans, as-built drawings and warranties.
You must conduct regular maintenance procedures to meet your obligations under
the warranty, or the warranty will become void. In addition, you must hire a qualified
professional to conduct inspections prior to each warranty period expiring, so you
have time to file a claim, if necessary. Send inspection reports to your PPM and the
warranty provider. Some warranty providers may offer extended coverage for some
components, such as 10 years of coverage for the building envelope, for both new
construction and repair work.

CMHC has produced two guides on building envelope repairs, Building

Envelope Rehabilitation – Owner/Property Manager Guide and Building
Envelope Rehabilitation – Consultant Guide. To purchase one of these
guides, contact CMHC at 1-800-668-2642 or your local office:
Vancouver 604-731-5733 Victoria 250-363-8040
Kelowna 250-712-4333 Prince George 250-561-5433
Visit the CMHC website at www.cmhc-schl.gc.ca

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 Housing Provider Kit • Maintenance

Building Envelope Repair Flowchart

BC Housing identifies priority buildings for repair

Review building envelope assessment

with housing provider to determine scope
of work and estimated cost

BC Housing/Housing Provider develop/approve

project budget

Request for Proposal to hire building

envelope consultant
(Prepared by BC Housing staff)

BC Housing staff assist Housing Provider to

select building envelope consultant

Consultant prepares project design and

tender documents

Consultant prepares Request for

Tender and selects contractor

BC Housing technician monitors construction

and consultant services

Construction complete

Consultant inspects at project completion

and issues certificate of completion

Consultant develops maintenance plan

1-year warranty inspection by owner and consultant

Report to PPM/warranty provider

5-year warranty inspection Note: 10-year warranty coverage may

be provided for some projects

For more information on building envelope repairs, contact BC Housing’s

Building Envelope Coordinator at 604-433-1711.

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Chapter 6
INSPECTIONS

Regulations
Ensure your development complies with all applicable statutory health and safety
standards. Your staff need to be familiar with provincial and municipal regulations
that govern the development and equipment. For example, the provincial government
requires regular servicing and certification for elevator, boiler and fire safety systems,
and regional governments have regulations governing septic fields and streams
flowing through properties.
Municipalities also have various requirements that govern the condition and safety
of local developments. For instance, some municipalities have tree bylaws that require
prior approval to remove a tree. Local governments often have parking bylaws that
can affect residents and staff. And municipal health department licensing requirements
vary for different special needs clients. Call your municipality for details of the health
and fire safety bylaws in your area.
In addition, municipalities are authorized to inspect the condition of a building if
they receive a complaint from a resident, and can order repairs, maintenance work,
or pesticide spraying, if the building doesn’t meet municipal standards.

Move-in and Move-out Inspections

When a new resident moves in, inspect the suite with the resident present. You must
both sign an inspection form describing the condition of the unit.
Before people move out, give them a list of cleaning they must complete by the move-
out day. You can conduct a pre move-out inspection with the resident by walking
through the unit to identify areas that require cleaning in a copy of the inspection
form. Residents can make minor repairs themselves. Make an appointment to do
another joint inspection on move-out day to compare the suite’s condition to the
move-in day. People are responsible for leaving the unit as clean as it was when they
moved in, except for reasonable wear and tear.
Move-in and move-out inspections are needed in case any damage is done to the unit,
so you have a basis for comparison. The Residential Tenancy Act requires landlords
to provide bills or invoices showing how much was spent for repairs, if you want
to keep some of the security deposit or have the resident pay for any damage. If a
resident disagrees with the damage costs, the landlord must apply to the Residential
Tenancy Office to withhold all or part of the deposit. Occupancy agreements allow
co-ops to use funds from the share purchase for repairs.

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There are move-in and move-out inspection forms on pages 56 and 57 in the appen-
dix for bachelor/one bedroom units and family units with two to five bedrooms. The
forms provide space to comment on the condition of walls, ceilings, windows, doors,
fixtures, appliances, etc., in the kitchen, living room, bedrooms, bathrooms, entry-
way and other areas. Use descriptive wording such as “clean,” “painted,” “washed,”
or “dirty,” rather than less clear terms such as “okay” or “good.” A completed sample
form is also included on page 58.

Annual Site Inspections

We recommend your Board Chair or President join your Property Manager, if you
have one, to inspect the cleanliness, condition, appearance and standard of maintenance
of the entire building and grounds once a year, including:
• All common areas.
• The roof.
• The basement.
• The boiler room.
• The electrical room.
• Storage areas.
• Public washrooms.
• Laundry rooms.
• Signs.
• Carpets.
• Floors.
• Landscaping.
The inspection will demonstrate the quality of your caretaker’s work, and help you
identify:
• Preventative maintenance work that needs to be completed.
• Servicing, repairs or replacement work.
• A schedule for doing the work.
If you do not have a Property Manager, hire a qualified professional to conduct the
site inspection. If a property management company handles maintenance for you,
the Board needs to ensure annual inspections are performed to monitor the company’s
work and ensure the property and building are kept in good condition. If necessary,
conduct site inspections more frequently. There’s a sample Multiple Unit Property Inspection
form on page 59 in the appendix.
Some Boards with large portfolios may delegate responsibility for the annual site
inspection to management staff.

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Annual Suite Inspections

Conduct a general maintenance, health and safety inspection of all suites at the same
time as the site inspection to determine whether upgrading or repairs are required.
You can use a move-in/move-out form to record these inspections.
Ensure residents understand the purpose of the inspection is to maintain the quality
of their homes and plan for any maintenance that’s needed, not to inspect their house-
keeping. However, if there is a health or safety issue, you are entitled to give notice
and enter the suite to rectify the situation when necessary. Refer to the Residential
Tenancy Act for more information on your rights and obligations as a landlord.
In addition to any repairs, watch for the following safety considerations:
• Smoke alarms should be checked to ensure they’re functioning properly and are
not disconnected or covered.
• Materials should not be stacked around gas hot water tanks or furnaces, because
they create a fire hazard.
• A child’s bed should not be positioned underneath a flip out window, where the
child could fall out.
• Sleeping quarters should not be set up in a basement where occupants have no fire
exit. Basements must not be used as bedrooms.
• Attics and crawlspaces should be checked to ensure belongings are not improperly
stored, there are no leaks or pests, and no illegal activity is underway, such as a
marijuana grow operation. (Refer to the Resident Relations section of the Operations
Guide for information on the Crime Free Housing Program, or visit the website
www.bccpa.org/multi.)
• Growth of mould contamination, which is a health risk to residents. The areas where
mould growth is most commonly found are bathrooms, around windows and doors,
closets, cold sections of wall or floor assemblies, cooling coil sections of air han-
dling units and ductwork, foundation walls, crawlspaces and tunnels. Watch for
obvious signs of mould – black, grey, green or white growth – and for musty or
dank odours and areas of high humidity. BC Housing has a Mould Management
Program on page 63 in the appendix that you can use as a guideline for respond-
ing to mould. A Mould Notification Order form is included on page 70. BC Housing
also has an information bulletin for residents on how to reduce the likelihood of
mould growth in their units. Contact your PPM for information or if you require
assistance.
• Large stacks of newspapers are a fire hazard and can block exit passageways, mak-
ing it difficult for someone with mobility problems to get out easily if there is a fire.

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• Be aware of non-housing issues such as a lack of food or a dangerous situation for

a child. If this type of situation arises, you may want to contact home care staff,
the provincial child protection service, or your PPM at BC Housing for recom-
mendations on how to handle the situation.
• Pest infestations that require spraying.
• Overloaded electrical circuits with too many items plugged into a single outlet.
A power bar is an acceptable alternative.
• Flammable materials such as propane tanks from a barbecue, paint thinners or
oil-based paints stored in basements. These products should be kept in sealed
airtight metal containers away from ignition sources.
• Damage to the unit, such as holes in the walls or doors, or soiled carpets.
If you find a safety hazard, advise the resident how to remedy the problem, and make
an appointment to inspect the suite again in two weeks. If you encounter a situation
where someone is unwilling to meet safety standards, you can consider taking action
to remedy the problem or end the tenancy or membership under the Residential Tenancy
Act or Co-operative Association Act.

Preventative Maintenance Inspections

Use your maintenance checklist to identify and track daily, weekly and monthly
inspections, in addition to the annual maintenance inspections. These periodic
inspections will help identify any preventative maintenance that needs to be done.
For example, you should check electrical panels and wiring for loose, frayed,
exposed or overloaded wires and plugs monthly, and appliances and finish hard-
ware for damage semi-annually. Use the information from the interim inspections
to update the regular maintenance schedule.

Elevator Inspections
Regular elevator inspections are a legal requirement. Elevator maintenance companies
offer full service contracts that cover bi-weekly, monthly or quarterly maintenance,
parts and repairs. With this type of contract, the only additional charges are for
vandalism repairs or upgrades required to meet a change in provincial standards.
The elevator company should send you a work sheet outlining the work done and
parts replaced during the scheduled inspection. Keep the work sheets on file so your
records are current, and post a sign-off sheet in the elevator machine room so service
personnel can sign in and out.

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We can give you BC Housing’s standard elevator maintenance tender,

which covers all components of an elevator contract. Call our Purchasing
Department at 604-433-1711 for a copy.

Fire Protection Equipment Inspections

You are legally required to have a professional inspect the fire alarm systems annually.
Set up a contract to have the fire alarm system, extinguishers, hoses, sprinklers and
heat and smoke detectors regularly inspected. In some smaller communities, the local
fire department may conduct an annual inspection as part of their duties. Also have
staff conduct daily, weekly and monthly tests to make sure the system is operating
properly. For example:
• Check daily to ensure fire doors are not propped open.
• Check the fire alarm panel daily to ensure the power light is on and the trouble
and alarm lights are off.
• Check daily to ensure hallways and stairwells are clear of debris or boxes.
• Check monthly to ensure emergency lighting and fire alarm systems are working
properly.
Refer to the Emergency Preparedness section in the Operations Guide for information
on fire safety plans. A fire safety plan includes sheets for logging fire alarm system
tests, and lists hazards to watch for during daily, monthly and annual inspections.
If your building has a fire alarm system it is also required to have a fire safety plan.
If you do not have one, contact your fire protection contractor, local fire department
or the fire commissioner’s office for more information. Visit the fire commissioner
website at www.marh.gov.bc.ca/FIRECOM and click on Services and Information to
view a sample fire safety plan.

It may be easier to have staff check the smoke alarms in people’s suites
during annual suite inspections, rather than trying to arrange for a
contractor to enter every unit.

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General Equipment Inspections

a) BOILERS
Set up a service contract to have boilers inspected and serviced each spring and fall.
In addition, boiler rooms should be inspected daily. Keep a logbook in the room to
log the date and time of each inspection.

b) MECHANICAL SYSTEMS
Have mechanical systems such as the air conditioning and plumbing inspected
annually. You may be able to arrange these inspections as part of the boiler service
contract.

c) EMERGENCY GENERATORS
Run emergency generators for 20 minutes each week to make sure they work
properly, and have them inspected every six months by a qualified company.
Test emergency lighting monthly to ensure it’s in good working order, because power
may be lost in the event of a fire. If you have an older battery box with plug-in
emergency lighting, pull the plug and drain the battery every three months. This
will extend the life of the battery and test whether the lights last for the twenty
minutes it takes to drain the battery.

Playground Equipment Inspections

The Standards Council of Canada (SCC) has developed a standards document
governing play equipment and play spaces for children. The document outlines owner
and manufacturer responsibilities, and includes detailed standards for:
• Materials.
• Installation.
• Structural integrity.
• Surfacing.
• Inspection and maintenance.
• Performance requirements.
• Requirements for access/exit.
• Play space layout.
• Equipment.
• Identification and information.
The maintenance and inspection requirements under this standard include checking:
• All equipment frequently for potential hazards.

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• The entire playground area for hazardous debris or litter.

• For damage such as broken or missing components, wear or vandalism.
• For broken or missing handrails, guardrails, protective barriers, steps or rungs on
ladders, or damage to fences, benches or signs on the playground.
• Added strings or ropes, which should be removed.
Post owner identification in the area so people have a contact to notify in case of emergency,
defective equipment or hazards. Replace or repair all hazards promptly. The SCC
standard includes the following inspection schedule:
• Daily/Weekly ~ Conduct a visual check at least weekly, preferably daily, to identify
defects and emergency problems.
• Detailed Monthly Inspection ~ Keep a permanent record of the results and actions
from this inspection.
• Annual Comprehensive Written Report ~ Document the results and action taken.
Follow the manufacturer’s recommendations for inspection frequency. Some
manufacturers provide a maintenance checklist and instructions. The SCC publication
contains a detailed maintenance checklist for playground equipment and play
areas. You can order this standard, CAN/CSA-Z614-98, by contacting the Standards
Council of Canada at 604-273-4581 or 613-238-3222, or visit the SCC website
www.scc.ca , select the Standards section, and enter playground equipment.

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Group Home Health Inspections

Health department licensing requirements for group homes may vary from
municipality to municipality and for different client groups. However, health
department inspectors will generally review the:
• Temperature regulators on hot water tanks to ensure the water can’t get hot
enough to burn someone.
• Safety levers on taps so people can’t scald themselves.
• Type of lifts and stretchers to ensure they’re adequate for clients.
• Medication storage and security.
• Temperature setting on the dishwasher to ensure washed dishes will be hygienic.
• Disposal for diapers, medical wastes, etc., to ensure the system is adequate and safe.
• Back flow prevention devices on sprinklers and boilers to safeguard against
contaminated water getting into the water supply.
• Health and safety conditions for staff to prevent problems like back stress.

A sample Group Home Inspection Form is included on page 61 in the

appendix.

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Chapter 7
PURCHASES AND SERVICE CONTRACTS

Purchasing Guidelines
BC Housing’s purchasing policies are outlined below as a guide you can adapt to
suit the needs of your organization.
When equipment needs to be repaired or replaced or you need to hire a service provider,
three or more competitive bids will allow you to compare the service and prices offered
by different companies or contractors. In some cases, qualified tradespeople may need
to do an inspection to provide an estimate for the work. Here are BC Housing’s
purchasing guidelines for services within different price ranges:
• $100 or less ~ Make the purchase using petty cash.
• $101 to $5,000 ~ Obtain a minimum of one verbal quote, preferably two or three.
You can set up a purchase order or send a letter to the supplier you select.
• $5,001 to $30,000 ~ Obtain a minimum of three written quotes. Again, set up a
purchase order or send a letter to the supplier you select.
• $30,001 to $50,000 ~ Use an Invitational Tender to obtain a minimum of three written
quotes. Send the invitational letter to suppliers, and set up a contract with the
company you choose.
• More than $50,000 ~ Advertise a Public Tender in the Journal of Commerce and local
newspapers in the area where the work will be performed. Include the time and
location tender documents will be available for pick up. You’ll find sample adver-
tisements on pages 72 and 73 in the appendix. A minimum of three sealed bids is
required. Again, set up a contract with the supplier you select. We recommend you
contact your Property Portfolio Manager for assistance setting up a contract of this
value.
BC Housing’s Regional Maintenance Managers are available to help societies and
co-ops tender large projects. We have a list of contractors with expertise in a variety
of trades. In most cases, you have two options:
• You can request the Maintenance Manager act as your agent and tender the project
for you, or
• You can choose to tender the project yourself.
You can also contact BC Housing’s Purchasing Department at 604-433-1711 for
assistance answering your tendering questions.

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For amounts greater than $5,000, BC Housing requires contractors to provide a Statutory
Declaration certifying that all supplies and labour have been paid, when the work
is completed. You can use this amount, or set a different level for the Statutory Declaration
requirement. For example, if you use reliable, reputable contractors who always meet
their bid price, this requirement may not be necessary for a $5,000 project, but would
be appropriate for a new contractor on a $10,000 project. See page 48 for more on
statutory declarations. You’ll find a sample declaration on page 99 in the appendix.

Tendering the Work

a) TENDER SPECIFICATIONS
Prepare tender documents for goods or services worth more than $30,000. The cover
page should include the project name and location, and identify the person handling
inquiries. In the tender specifications, include:
• A summary of the work you want done, or a description of the goods you wish
to purchase.
• The location of the work.
• Any related work that’s excluded from the contract.
• The timeline for completing the contract.
• What criteria you will use to evaluate the bids.
• The type of contract you will use: a Purchase Order, Service Contract, CCDC-2* Stipulated
Price Contract, or a CCDC-4* Unit Price Contract.
• If required, the site meeting date and time.
• The tender closing date and time for making bid submissions.
• Bond requirements.

(*CCDC stands for Canadian Construction Documents Committee.)

BC Housing requires bidders to provide a 10 per cent Bid Deposit with their sub-
mission for contracts with a value greater than $30,000. If the lowest qualified
bidder wants to withdraw a bid submission after the tender closes, you can retain
the Bid Deposit to cover your out of pocket expenses, such as the difference between
this bid and the next low bidder. Some organizations set a higher level for Bid Deposits,
so you may want to consult other housing providers about the amount they use.
Bid deposits are returned to unsuccessful bidders with a letter notifying them they
did not win the contract. Return the bid deposit to the successful bidder when you
issue the “Notice to Proceed.” See page 47 for an explanation of this notice.

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Give each bidder a tender specification package. Make the specifications clear and
detailed, so each company or person who submits a bid is bidding on the same job.
Give all bidders the same written and verbal information about the contract.
If the tender refers to a specific product by its brand name – a Delta Faucet for
example – the document should read Delta Faucet #1234 “or equivalent” because other
manufacturers may provide comparable products that meet the same standards and
specifications.

Ask your PPM for sample specifications for different types of contracts.
In addition, BC Housing Purchasing staff can provide information on
preparing tender documents and contracts. Call 604-433-1711.

Send the Invitational Tender to at least three contractors, unless this is not feasible.
For example, there may not be three companies offering a specialized service in some
remote areas. Document the reasons for sending the tender to less than three
companies, if this occurs. When you prepare the tender document, consider:
• Product or service quality.
• Availability of goods or services.
• Duration of the contract.
• Credentials and reputation of the bidders.
• Financial and technical references of the bidders.

b) TENDER FORM AND ADDENDUM

Include two copies of the Tender Form in each package, one for the bidder to fill in
and return and one they can retain as a file copy. The tender should include the:
• Pricing.
• Bid authorization.
• Addendum acknowledgement (see next paragraph on page 42).
• Technical and financial references.
• Authorization to perform reference and credit checks.

(You’ll find a sample form on page 73 in the appendix.)

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If appropriate, hold a mandatory site information meeting with all bidders present
to discuss expectations for the contract. Provide a sign-in sheet to record the names
and addresses of the companies attending. Companies that do not attend a manda-
tory site meeting are not eligible to submit a bit. Sometimes questions raised at a site
meeting require an addendum to clarify a particular section of the tender specifi-
cations. Issue the addendum to all bidders who attended the site information
meeting. An addendum should not be issued later than four days before the tender
closing date. If an addendum is needed after that time, the tender closing date must
be extended to allow four business days before tender closing.

c) TENDER OPENING
Record the date and time on the tender envelopes when they are received, and place
them in a locked tender box. Do not accept any tender submitted after the specified
closing time. If a tender arrives after tender closing, stamp the time and date
received, and return it to the bidder unopened.
Have three representatives of your organization present when you open a public
tender, one to chair the meeting, one to read out the tender price, and one to record
the bid results. Invite all bidders to the opening so they can be present when the
tenders are opened, if they decide to attend. The chair should read out the tender
number, title of the work to be performed, project location, and be responsible for
opening the submissions. Do not debate a tender submission or the tendering
process at a tender opening. The person reading the submissions should:
• Read the company name and bid prices, if applicable (see contracts below).
• Advise whether all addendums have been acknowledged (if applicable).
• Ensure the correct bid bonding is in place.
• Verify that an authorized representative of the contractor has signed the submission.
Your meeting secretary should record each bid, showing the company name, type
of bid deposit, and total tender price, with all taxes included.
• For Stipulated Price Contracts, the bidders name, bonding details, acknowledgement
of addendum(s), if applicable, and total bid price (all taxes included) should be
read.
• For Unit Price Contracts, the bidder’s name, bonding details, and acknowledgement
of addendum(s), if applicable, should be read. No unit prices will be read or released.
After awarding the contract, release only the successful bidder’s estimated contract
value, upon written request.

Refer to page 45 for an explanation of the CCDC-2 and CCDC-4 contracts.

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d) PRE-QUALIFYING A CONTRACTOR
Establish a team to evaluate submissions according to the criteria you set for the
project. Some criteria for a new development could include:
• How much work or experience does the consultant/contractor have in your
development sector?
• What projects of comparable complexity and size has the candidate recently
completed?
• What is the candidate’s track record in maintaining budgets? How will costs be
controlled, from preliminary estimates through construction?
• What knowledge and relationships does the candidate have in the construction
industry?
• What knowledge does the candidate have of local conditions affecting the project?
• How will the candidate ensure architectural, mechanical, electrical and structural
coordination?
Complete a reference check to ensure the contractor’s quality of work performance
and reputation. Establish a set of questions to ask each reference. If you’re unable
to reach a reference or feel the references provided by the contractor are not for
similar projects, ask for additional references. Record your findings from the reference
checks, in case you decide to disqualify a bidder based on a poor reference check.
BC Housing will conduct credit checks for contracts worth $30,000 and up. Call our
Purchasing Department at 604-433-1711 for assistance.
If the low bid is significantly different from the others, check with the bidder prior
to awarding the contract to ensure all the specifications were understood. For
example, someone who put in a very low bid may have misunderstood the tender
and left out part of the job.
Never tell a contractor they probably have the job and then advise them later that
they have not been successful because part of the bid did not measure up. It is legally
binding to accept a bid verbally or in writing, so make sure you are satisfied with
all aspects of a bid submission before you offer either kind of acceptance.
Choose the lowest qualified bidder whenever possible. We recommend you award
all contracts in writing, so you have a record.
You can use the CCDC-11 Pre-Qualification Statement to pre-qualify general contractors
who are interested in tendering for minor or major contracts. In addition, the Home
Protection Office maintains a list of licensed general contractors who are eligible for
third-party warranty insurance, which indicates they are reputable and have
already been pre-screened. Contact the HPO at 604-646-7055 or 1-800-407-7757 for
information, or visit the HPO website at www.hpo.bc.ca.

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Make sure your directors do not have a conflict of interest with any
company you hire. Refer to the Governance Guide for detailed informa-
tion on conflict of interest guidelines.

Setting Up Contracts
a) NOTICE OF AWARD LETTER
Use a “Notice of Award” letter to accept the lowest qualified bid. A sample letter is
included on page 86 in the appendix. The letter confirms your acceptance of the
contractor or supplier’s bid, subject to receiving some or all of the following documents,
within 10 business days:
• Proof of current Workers’ Compensation Board coverage.
• Proof of current Comprehensive General Liability insurance for not less than $2,000,000,
showing the society/co-op as the Additional Insured.
• Proof of Third Party Legal Liability Insurance covering the duration of the project (Insurance
Corporation of BC form APV47).
• Names of subcontractors and a description of the work they will perform, or
confirmation that no subcontractors will be involved in the project.
• A Schedule of Work. (This information is only required on construction projects where
the work may take an extended period.)
• At least two copies of the contract document for the contractor to sign.
• Performance, and Labour and Material Bonds, if applicable.
• Business Number (BN) for GST registration.

Your contract administrator should select the appropriate documents from this list
to include in your Notice of Award letter. If the contractor/supplier will be entering
your work site, ensure their Workers’ Compensation Board and liability insurance
are kept current during the whole term of the contract.

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One of the following types of contracts should accompany the letter of award:

1) Purchase Order
BC Housing issues a purchase order for non-construction contracts such as:
• Waste removal.
• Heating, ventilation and air conditioning (HVAC) services.
• Snow removal.
• Gardening and landscaping.
• Pest control.
• Appliance services.

2) Service Contract
We use service contracts to hire professional services such as:
• Lawyers.
• Consultants.
• Accountants.
• Engineers.
• Architects.
BC Housing defines professional services as any profession requiring post-secondary
training to achieve a designation. Identify the work to be performed and a fee
structure. When the work can be defined, obtain a lump sum quote. If it isn’t
possible to define the scope of work, request an hourly or per diem rate and define
a maximum price. Allowable expenses should not exceed current government
rates for mileage, hotels, meals, travel, photocopying, car rentals, etc.
The appendix contains samples of a Purchase Order on page 90 and a Service Contract
on page 91.

3) CCDC-2 or CCDC-4
These documents are used for larger construction projects with a value greater than
$50,000, and are the accepted contract documents within the construction industry.
You can also use these contracts for projects with lower values, if you prefer. There
are two types of CCDC contracts:
• CCDC-2 Lump Sum or Stipulated Price Contract ~ Used for all-inclusive bids to cover
a specific service or task, for example, “To construct a 4-bedroom group home.” There
are two versions of Supplementary Conditions used with this contract. Although
similar, the 10-page version should be used for renovations or changes to an existing
building, while the 11-page version is used for constructing new buildings.
• CCDC-4 Unit Price Contract ~ Used when a series of individual or unit prices are
required for specific tasks or products, such as “Move-Out Painting,” or “Glass
Replacement.”

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BC Housing’s policy for CCDC contracts worth between $30,000 and $50,000
(excluding GST) is to obtain either:
• A Performance Bond for 50 per cent of the contract value before taxes, or
• A Performance Security in the form of a certified cheque, irrevocable letter of
credit, or a bank draft for 10 per cent of the tender price, before taxes.
For contracts worth between $50,000 and $150,000 (excluding GST) BC Housing
obtains either:
• A Performance Bond, and a Labour and Material Payment Bond, each in the amount
of 50 per cent of the contract value, when the contract is awarded, or
• A Performance Security, and a Labour and Material Security in the form of a certi-
fied cheque, irrevocable letter of credit, or a bank draft for 10 per cent of the contract
value.
And for contracts worth greater than $150,000, we obtain both a Performance
Bond, and a Labour and Material Payment Bond, each in the amount of 50 per cent
of the contract value.
You may set differing amounts that are more suitable for your organization for these
requirements. Stipulate the bonding requirements in the original tender document.
The purpose of bonding is to give you the financial resources to arrange for the
contract to be completed, if the contractor defaults. Bonds are in force for two years
after the final invoice is paid, then they are returned to the contractor.

You can visit the CCDC website at www.ccdc.org to purchase a registration

number needed to download the CCDC contract documents. Canadian
Construction Association documents are also available through the:
• Vancouver Regional Construction Association, at 604-294-3766 in
Vancouver.
• Vancouver Island Construction Association, at 250-388-6471 in Victoria.
• Mid Island Construction Association, at 250-758-1841 in Nanaimo.
• Northern British Columbia Construction Association, at 250-563-1744
in Prince George.
• Southern Interior Construction Association, at 250-372-3364 in
Kamloops.

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The contractor should always sign at least two copies of the contract. The original
copy will be countersigned by someone authorized to sign for your organization,
and becomes the contractor’s copy. The countersigned photocopy becomes your file
copy. Both copies of the contract should have original signatures.

b) NOTICE TO PROCEED LETTER

Issue a “Notice to Proceed” letter when the contractor has signed and returned the
contract copies and provided the required documents. This letter:
• Identifies who will administer the contract on your behalf.
• Asks the contractor to confirm that all permits are in place.
• Tells the contractor where to send invoices, either to the consultant overseeing the
project for you, or the contract administrator in your organization.
Attach the following to the notice:
• An original copy of the countersigned contract.
• A photocopy of the contractor’s original price page from the bid.
• A return of the bid deposit.
• A copy of the Statutory Declaration 9A form. See page 48 for information on how
this form is used.
Do not give contractors access to the jobsite until they receive the Notice to Proceed,
which will ensure the necessary Workers’ Compensation Board and insurance
coverage are in place.

Monitoring Contracts
Assign a property manager, consultant, director or someone else on staff to act as
the contract administrator. The contract administrator needs to maintain contact with
the contractor or a representative to oversee the contract and periodically review the
work.
A pre-construction meeting is usually held to launch a contract and provide orientation
for all parties involved in the project. Confirm a checklist of logistical concerns at
this meeting to ensure everyone has a common understanding of the sequence and
scope of the work.
Establish a bring-forward system to monitor any contractor renewal dates for
WCB and liability insurance to ensure the coverage is kept current for the full
contract term.
Document any concerns with the contractor’s performance in writing. This information
will be important if you need to terminate a contract or to determine whether past
performance warrants future work.

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Record any deficiencies in an Inspection Report, and establish a date with the contractor
for correcting the deficiencies. If tender specifications still aren’t being met, send a
“Letter of Notification” to advise the contractor in writing and set a time for rectify-
ing the problems. If the contractor fails to resolve the issue within this time frame,
issue a “Notice of Default,” clearly stating the contractor’s obligations, and reference:
• Section GC 7.1 of the General Conditions, where a CCDC-2 contract is being used; or
• Section GC-5, where a CCDC-4 contract is being used.
Give the contractor five business days to correct the deficiencies. If the deficiencies
cannot be corrected within this period, establish a time frame that is mutually
agreed to by both parties. Follow up after the appropriate time to ensure the work
has been completed. If not, you are now in a position to terminate the contract. (A
sample Letter of Notification and Notice of Default are included on pages 92 and 93 in
the appendix.)
If you identify a need for changes to the original contract, complete a Contemplated
Change Order and have the contractor submit a cost estimate for the work. Once approved,
transfer the information to a Change Order, give it a sequential number, and authorize
the contractor to proceed with the work. You can obtain an alternate quote from
another source, if you’re not satisfied with the contractor’s price. Keep a copy of all
change orders with the original contract. Copies of the Contemplated Change Order
and Change Order are included on pages 95 and 96 in the appendix.
When the contract is complete, ensure the contractor provides you with any
warranties and guarantees that were specified in the contract, prior to releasing the
final payment.

You can use the sample Contractor Performance Report on page 100 in the
appendix to evaluate a contractor’s work.

Paying Contractors
Contract work is not paid for in advance. Generally, contracts are paid in instalments
as the work progresses, or in full if the work is completed within 30 days. Specify
the terms and conditions for payment in the original bid document.
On large construction projects, most contractors will request payment through a series
of ‘progress draws.’ A sample Progress Invoice is included on page 98 in the appen-
dix. Your contract administrator should ensure the value of each invoice matches the
percentage of work completed. Compare the percentage of work completed to the
Schedule of Work given to your organization at the Notice of Award. If there are any
deficiencies, deduct double the estimated value from the invoice. The contractor must
submit a signed Statutory Declaration 9A form for the second and all subsequent progress
draws and when the builder’s lien holdback is requested. When the contractor signs
a Statutory Declaration confirming labour and supplier bills have been paid, you limit
your liability for unpaid contractor accounts.

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When a construction project reaches substantial completion, your contract administrator

should conduct a complete inspection and report all deficiencies, with an estimated
value for the deficiencies. A sample Inspection Report is included on page 97 in the
appendix. Give the contractor the deficiency list with a time frame for correcting them.
Attach a copy to the Certificate of Completion, and deduct two times the value of the
estimated deficiencies from the progress invoice. The contractor can declare total
performance of the contract when all deficiencies have been corrected and any
uncompleted work is finished. Your contract administrator should conduct a final
inspection before approving the final invoice for payment. The contractor can then
submit the final invoice along with a Statutory Declaration 9A, requesting the balance
of any outstanding payment and the deficiency holdback, which starts the 55 day
period for returning the lien holdback.
Substantial completion is declared when the outstanding balance payable on the
contract reaches an amount based on the following calculation from the Builders Lien
Act:
• 3 per cent of the first $500,000.
• 2 per cent of the second $500,000.
• 1 per cent of the balance of the total contract price.

Example calculation
Total Contract Value = $1,025,647
3% of first $500,000 = $15,000.00
2% of next $500,000 = $10,000.00
1% of the balance, or $25,647 = $256.47
Substantial completion declared when
outstanding amount payable = $25,256.47

Add three change orders to this contract, which increase the total contract value:
Additional Contract Value
Work $1,025,647.00
Change Order #1 $2,876.50 $1,028,523.50
Change Order #2 $4,769.75 $1,033,293.20
Change Order #3 $87,399.40 $1,120,692.60

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Revised Total Contract Value = $1,120,692.60

3% of first $500,000 = $15,000.00
2% of next $500,000 = $10,000.00
1% of the balance, or $120,692.60 = $1,206.92
Substantial completion declared
when outstanding amount payable = $26,206.92

Assume your consultant finds deficiencies totalling $1,839.46 when you inspect the project
before certifying substantial completion. Twice this amount would be deducted from the amount
payable on the progress invoice. But if the outstanding amount payable on the contract after
deducting this progress invoice is less than $26,206.92, the project must be declared substantially
complete:

Progress Invoice Balance

Progress Invoice #1
10% of work completed $112,069.26
Balance of Contract Payments Outstanding $1,008,623.40
Progress Invoice #2
40% of work completed $336,207.78
Balance Outstanding $672,415.70
Progress Invoice #3
65% of work completed $280,173.15
Balance Outstanding $392,242.55
Progress Invoice #4
85% of work completed $224,138.52
Balance Outstanding $168,103.89
Progress Invoice #5
Substantial Completion Declared $145,690.00
Two times the value of deficiencies
identified at substantial completion - $3,678.95
Revised Progress Invoice #5 $142,011.05
Balance Outstanding $26,092.98
Calculated Value of Substantial Completion $26,206.20

Even though the inspection at substantial completion identified $1,839.46 in

deficiencies in this example, the outstanding balance to be paid on the contract of
$26,092.84 is less than the calculated value for substantial completion. As a result,
substantial completion would be declared and the 55-day holdback period begins.
Refer to page 13 for information on the holdback period.
Most contractors bill for materials as they are incorporated into the project. If a
smaller contractor in a rural area requests a deposit or advance for materials,
contact your Property Portfolio Manager.

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