OSBB backup power project cost estimate: how to draw it up and approve it
Author: Svitlo-Lux editorial team. Published , updated . Review (legal): approved (Project owner).
Facts on this page were checked against official sources as of ; next check by . Terms change: open the official source before making a decision.
An OSBB (condominium association) backup power cost estimate answers the question of how much we are collecting and for what, before residents make a decision. The law clearly separates the roles: the board prepares the cost estimate, and the general meeting approves it.
Who prepares and approves it
Preparing the cost estimate, balance sheet and annual report is within the board’s competence. Approving the cost estimate falls within the exclusive competence of the general meeting. The charter must define the procedure for adopting the cost estimate and creating funds, including reserve funds. For a decision approving the cost estimate, the vote threshold in the charter may not exceed 67% of all co-owners’ votes.
After approval, the board manages funds in line with the cost estimate, and at the end of the year the OSBB is required to report to the meeting on its execution.
What a project cost estimate consists of
We do not publish prices: they depend on your equipment and supplier. The structure, however, is the same for most buildings, and it is useful to show it to residents in a table.
| Item | Source of data | Who confirms |
|---|---|---|
| Survey and design | Designers’ offers | Engineer; an engineering calculation is required |
| Equipment | At least several commercial offers | Board, comparison table |
| Installation and commissioning | Contractors’ offers | Qualified contractor, certificate of completed work |
| Connection and coordination with the grid operator | Operator’s conditions | Operator, documents |
| Contingencies | Meeting decision on a reserve | Meeting |
| Maintenance reserve | Maintenance schedule from the datasheet | Board |
Versions and changes
- Draft for discussion. Send out the draft before the meeting notice so that co-owners can ask questions.
- Approved version. The meeting votes on a specific dated version. Attach it to the minutes.
- Change. Put a material change of purpose or amount to a new vote rather than making it unnoticed.
- Report. Compare actual spending with the approved cost estimate and show the differences.
How to compare offers for the cost estimate
Offers can be compared only when they are calculated against the same technical specification. Make a table where each row is the same component and the columns are suppliers. Empty cells will show what exactly is not included in the price: installation, cabling work, configuration, staff training, warranty service.
- power and capacity must match your calculation, not a “promotional” bundle;
- the offer must list models, not just general words about a “system”;
- warranty and service terms are stated in writing;
- delivery times and payment stages are compared in the same way as price;
- an offer from a platform partner is not mandatory and has no advantage.
What to ask the engineer before approval
- which consumers are included in the project and what their power is per the datasheet;
- what starting currents the elevator has: this depends on the drive, see the datasheet;
- what autonomy is built in and under what assumptions;
- which works require coordination with the grid operator;
- where the equipment will be placed and which parts of this concern common property;
- what limits the condition of the electrical room and wiring imposes.
The engineer’s answers are worth adding to the draft cost estimate as a short technical note. It reduces the risk that the amount will have to be revised after the vote.
How to present the cost estimate to residents
A cost estimate that is hard to read does not collect votes. Present it on two levels: a one-page summary with the purpose, items and the way contributions are split by area, and an annex with the calculations. For each item add the source of the data: an offer, an engineer’s calculation or an equipment datasheet.
What the cost estimate summary should contain
- project name and version date;
- the list of consumers powered by the system;
- expense items with no hidden “miscellaneous”;
- the way costs are split among co-owners;
- who is responsible for execution and the report;
- a note that the calculation is approximate.
Reserve and contingencies
Equipment projects rarely finish without changes: wiring is clarified, the location changes, supplier prices are updated. So the meeting should decide in advance whether a reserve is built into the cost estimate and who may dispose of it. Record in the decision the maximum share of the reserve, the procedure for using it, and a rule that the report shows each use on a separate line. This way residents see that the reserve does not turn into an opaque item.
Frequently asked questions
- Who approves the cost estimate in an OSBB?
- The general meeting of co-owners; the board only prepares it. The procedure for adopting the cost estimate must also be described in the charter, so check both documents.
- Can the cost estimate be changed after the vote?
- Material changes of purpose or amount go to a new meeting decision. Minor clarifications within the approved items should be agreed with a lawyer and reflected in the report.
Next steps
Sources
- Law of Ukraine “On Associations of Co-owners of a Multi-apartment Building” (No. 2866-III, current version), Verkhovna Rada of Ukraine (official source), accessed
- Law of Ukraine “On Amendments to Certain Laws of Ukraine Regarding the Simplification of Management of Multi-apartment Buildings” (No. 3270-IX), Verkhovna Rada of Ukraine (official source), accessed
This material is for general information only and is not a power supply design, legal or financial advice. Calculations are indicative; installation and protection selection must be done by qualified specialists only. The platform does not accept or hold funds.