The Impact of New Tariffs on Construction Costs in Quebec and the Importance of Updating Your Contingency Fund
The recent tariffs imposed by the United States, including a 25% surtax on steel and aluminum, are having a significant impact on the construction industry in Quebec. These measures are leading to an increase in material costs, directly impacting the budgets of current and future projects.
Increasing Costs of Construction Materials
The 25% tariffs on steel and aluminum imported into the United States, effective March 12, 2025, have led Canada to impose similar counter-tariffs on certain American products. These measures have caused a significant increase in the prices of essential construction materials, directly impacting project budgets.
Consequences for condominiums and contingency funds
This increase in costs has a direct impact on condominiums. Condominium fees are expected to increase, particularly due to the legal obligations arising from Bill 16, which imposes increased contributions to contingency funds. Furthermore, condominium associations must now have contingency fund studies conducted by professionals to estimate the costs of major repairs and replacements of common areas.
Why update your contingency fund?
It is essential that condominiums adjust their contributions to the contingency fund based on the actual costs of the work to be planned. Limiting themselves to the legal minimum of 5% of common expenses can result in insufficient funds to cover major expenses, leading to unforeseen special contributions.
Our commitment to you
Faced with these challenges, our team of professionals is available to:
Conduct in-depth studies of your contingency fund, in accordance with legal requirements.
Update your price lists to take into account market fluctuations.
Provide personalized advice to ensure the financial sustainability of your condominium.
Contact us today to schedule a consultation and ensure effective management of your contingency fund in the face of market changes.
