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The roof replacement that cost $400,000 in 2019 now costs $600,000+. The building envelope rebuild that was a $2.5M project is now $3.5M. Plumbing repipes have nearly doubled. Construction costs in BC for the categories of work strata corporations commission have outpaced inflation by a wide margin since 2019.
Why costs have risen so much
- Materials. Lumber, steel, asphalt, concrete, copper: all up substantially since 2019.
- Labour. BC trades have been at near-full capacity for several years.
- Code upgrades. Newer building code requirements (energy, seismic) add scope.
- Insurance and bonding. Contractor overhead is up; that flows into bids.
The plan-ahead discipline
1. Update the depreciation report's cost assumptions
If your last report is more than 3 years old, the cost numbers are wrong. Cost-only updates are typically $1,500–$3,500.
2. Stretch the planning horizon
A roof replacement should be on the council's radar 3–5 years before execution.
3. Tender properly
For projects over $250,000, a structured tender process is mandatory. Engineering consultant produces detailed scope and specifications; corporation invites 4–6 qualified contractors; bids reviewed for financial qualification, references, bond capacity; legal counsel reviews contract documents.
4. Hire a project manager
A paid project manager (typically 5–8% of project cost) generally pays for themselves through tight scope discipline, active contractor management, change order discipline, and schedule adherence.
Phasing as a tool
Some major projects can be split across years to spread cost: building envelope (phase by elevation), plumbing repipe (by riser group), parkade rehabilitation (by level), window replacement (over 2–3 years).
Financing options
- Strata loans: specialized lenders, 5–20 year terms, rates 1–3% above prime.
- Levies with payment plans: owners opt into installments over 1–3 years.
- Phased levies: multiple smaller levies over project duration.
- Reserve fund draw plus levy: partial reserve draw, partial levy.
Communication: the underrated cost lever
Stratas that handle inflation well communicate cost trends 1–2 years before any levy, walk owners through the depreciation report and cost basis, provide multiple funding options, and send post-meeting summaries with clear timelines.
Common cost-management mistakes
- Multiple uncoordinated trades on a major project
- Lowest-bid awards on complex work
- Underspecified scope
- Skipping engineer/consultant for "small" projects
- Treating change orders as inevitable
For the broader financial planning context, see our reserve fund planning guide and special levies guide.