The 5 lifecycle stages of buildings,
which are identified as follows:
The first life
stage of a building occurs up to the end of the first or second year,
on the types of warranties on the project.
- Maintenance. The
primary focus at this stage is to
conduct the prescribed maintenance to preserve the warranties on the
assets, which also includes inspections to identify any warranty
During this stage, some young strata corporations struggle to establish
appropriate maintenance procedures, including a full slate of
service contracts and maintenance log-books to demonstrate that the
due diligence is being done.
- Repairs. Under normal
circumstances, the owners should not be incurring
any significant costs for repairs during this very young stage of the
building’s life. When repairs are necessitated, they can be
may result in disputes with the developer and other parties over
whether or not
these are covered by the warranties. It is important that the owners
advice from their consultants on how to differentiate between
warranty defects, normal wear and tear and other such matters.
- Renewals. Barring any unusual
circumstances, there should not be any asset
replacement projects during this early stage in the life of the
building. If an
asset requires replacement then it has likely occurred as a result of
failure, misuse or abuse by the owners, force majeure or perhaps some
“pre-natal” stage essentially ends when the initial one-year, 15-month,
two-year warranties have expired. The additional longer-term
as five- and ten-year warranties, are addressed as part of the
transitions into the “childhood stage”.