A Full Reserve Study includes a Physical Analysis, which not only lists each individual component forming the basis of the study, but also includes the quantity, estimated replacement cost and estimated remaining useful life for each component. This then provides you with a basis for determining how much money your Association should be setting aside to repair or replace these items in future years.
One of the keys to the Full Reserve Study is the Financial Analysis, which includes a review of a 20-30 year projection giving the Association a true picture of their financial well being. By looking at both the immediate and long term, it is possible to establish a reserve funding policy which most accurately fits your specific needs. This projection gives the Association the necessary information to develop its yearly contributions based on an average over a number of years, and assists its investment strategy for the funds, because it identifies when they will actually be needed.
A Full Reserve Study includes the following Scope of Work:
- A review of the Association’s documents to determine which components make up the common and limited common elements (Component Inventory) as well as their quantities.
- A site visit to establish the current condition of all common elements in order to assign an estimated remaining useful life.
- Preparation of a Full Reserve Study, which includes a physical and financial analysis, including a 20-30 year funding plan and a threshold-funding plan.
In our Enhanced Reserve Study, our field inspection includes a more in-depth analysis of each of the Reserve Components. The Enhanced Reserve Study provides recommendations for ongoing maintenance of all systems as well as a condition evaluation of each. We may also consider options for improvements, enhancements, or compliance with newly enacted regulation.
The Enhanced Reserve Study comes with a complete Property Condition Report. Each building or property system is carefully evaluated and reported on in a separate section of our report. This includes, as appropriate, site and grounds, amenities, structural systems, roof and siding, mechanical, electrical, and plumbing systems, common interiors, and life safety, among others.
The benefits of an Enhanced Reserve Study include:
- Peace of mind knowing the actual condition of all building systems.
- A document to manage the physical property.
- Ongoing local support from our licensed Professional Engineers.
- Iterative funding options analysis.
Reserve studies should be updated every two to three years. The performance of building systems is difficult to predict as factors such as weather, use, and installation quality have dramatic effects on their durability. We can update any existing reserve study, whether we performed the original analysis or it was completed by another firm.
The difference between a Full Reserve Study and an Update with Site Visit is that in a Full Reserve Study, the schedule of quantities of all reserve items (i.e., roads, sidewalks) are determined and calculated, while in an Update, it is assumed that quantities and components shown in the existing reserve schedule are accurate, and therefore only an update of the unit costs and useful lives are required.
An Update with Site Visit includes the following Scope of Work:
- A site visit to establish the current condition of all common elements in order to assign an estimated remaining useful life
- Preparation of a Reserve Study, which includes a physical analysis and a financial analysis, including a 20-30 year funding plan and a threshold-funding plan