How do you decide the phase order?
Order phases by risk, not by convenience. The buildings or elevations with the worst moisture intrusion, rot, or failing material go first; the soundest go last. Within that, give priority to elevations that take the most wind-driven rain and freeze-thaw — typically the weather-facing sides. A condition assessment, ideally tied to the reserve study, should rank the buildings so the order is defensible to owners who wonder why their building is in year three.
Factors that should drive phase order:
- Severity of current failure (active leaks, rot, swelling board).
- Exposure — weather-facing and high-moisture elevations first.
- Reserve study condition ratings per building.
- Any insurance or warranty deadlines on specific structures.
What are the risks of phasing?
The main risks are cost escalation, mismatched appearance, and ongoing damage to unaddressed buildings. Material and labor prices rise between phases, so year-three work costs more than year-one. Color and product lines can change, leaving phases that do not match. And buildings waiting their turn keep deteriorating, sometimes enough to grow their scope. Each risk is manageable with planning, but ignoring them turns phasing into a series of escalating surprises.
How do you lock scope and pricing across phases?
Protect against escalation by negotiating the full multi-phase project as one scoped program, even if funded year by year. Lock the material, color, and line-item scope up front so every phase bids against the same specification, and ask whether the contractor will hold or index pricing across the phases. A comparable scope is also what keeps later phases from quietly dropping tear-off, flashing, or rot allowances. See what a real multifamily siding bid must include.
Whether a contractor will guarantee or index multi-year pricing varies by firm and market — confirm in the agreement before relying on it.
How does phasing fit Minnesota’s reserve rules?
Phasing aligns naturally with Minnesota’s reserve framework. Minn. Stat. § 515B.3-1141 requires associations to fund replacement reserves toward useful life and reevaluate adequacy at least every three years; a phased plan lets the board match each phase to a reserve cycle and a manageable assessment. The statute even notes that components funded by special assessment need not be separately reserved for, which gives boards flexibility in structuring the phases.
A board’s phasing checklist
- Get a community-wide condition assessment. Rank every building by failure risk.
- Scope the whole program once. Lock material, color, and line items across phases.
- Sequence by risk and exposure. Worst and weather-facing first.
- Match phases to funding. Tie each phase to a reserve cycle and assessment.
- Address pricing escalation. Negotiate held or indexed pricing in the agreement.
FAQ
Will phasing cost more than doing it all at once? Usually somewhat more, because material and labor prices rise between phases and mobilization repeats. The trade-off is affordability and matching funding to reserve cycles. Locking pricing across phases narrows the gap.
How do we keep the buildings matching? Lock the exact material, profile, and color across the whole program up front, and confirm the product line will remain available. Buying or reserving material for later phases can also protect the match.
Won’t the unaddressed buildings keep failing? Yes, which is why phase order should put the worst-failing buildings first and why phasing suits staged, not uniform, failure. Interim maintenance can slow deterioration on waiting buildings.
Does Minnesota law allow funding a project over several years? Yes. The reserve framework in § 515B.3-1141 supports multi-year funding, and the statute notes components funded by special assessment need not be separately reserved.
How many phases is too many? There is no fixed limit, but more phases mean more escalation and matching risk. Most communities balance affordability against those risks by keeping the program to a few well-defined phases.
Statute text was amended in 2026 — verify the current language before relying on it.
Related reading: How big will our siding special assessment be? · Reserves vs. special assessment vs. loan · What a real multifamily siding bid must include