Reserve Studies
BA Burns Associates - Engineers
Consultants to the Condominium Community
Our Interactive Approach....
An initial "kick-off" meeting allows the client to convey to us their expectations for their reserve study. Those expectations will allow us to direct the study in such a way that the work product addresses all the reasons why the Board initiated the study.
In collaboration with the client, we research all past work performed on all common area components. Our experience tells us that every association is unique in its construction materials, past maintenance and how it's specific configuration interacts with its environment. Should we see unusually high or repetitive costs for maintaining a specific component we will discuss that closely with the client.The result is a benchmark database for the components.
During our Condition Survey of all common area components, we compare our observations with the benchmark data for the component. Analyzing how well the component in a specific environment has reacted to the known maintenance provides us with a rational basis for predicting the future performance of the component.
After analyzing the accumulated data, a Replacement Schedule for all common area components is prepared specifying their remaining service lives, and cost of replacement. We maintain routine contact with the suppliers of major construction products such as bituminous concrete and roofing to stay up to date on current costs and likely trends. Other costs may come from our own database or bids the client may have in hand.
An Analysis of Present Funds (APF) is prepared in spreadsheet format. This is the key finding of the study. It tells us how well the amount now in your reserve fund will support the Replacement Schedule. Any shortfall becomes apparent. We meet with you to explain our findings and review our recommendations. We offer our engineering judgment as to what increment of component performance is worth what level of investment in it.
A Financial Analysis supplies details supporting the conclusion of the APF. It recommends those actions that need to be taken to be able to capitalize the future replacement of your common area components in a manner that will preserve the value of your community. This is where the expectations the client provided during the kick-off meeting play a key role in structuring the recommendations behind a Cash Flow Analysis for the coming 20 - 30 years. Using this you can design the reserve portion of your budget.
A Commentary Section is provided which presents the findings of the Condition Survey as rationale for the recommendations of the Financial Analysis and the Cash Flow Analysis.The work product is delivered in draft form for client review.
The final work product comes with Reserve Manager embedded in it. Exclusive to Burns Associates – Engineers, Reserve Manager takes your reserve study to the next level. It converts your reserve study into an interactive tool for future management of your capital reserve fund. You are now able to test virtually unlimited options for funding reserves using your reserve study as a base. The reserve fund plan for your condominium association or HOA will always be current.
All our work is performed or reviewed by a CAI credentialed Reserve Specialist (RS) and Licensed Professional Engineer (PE)
A Capital Reserve Fund Study:
- Inventories the common area components of your condominium or HOA..
- Determines how well they have and will continue to perform their designed functions.
- Designs a schedule of when those common area components need to be replaced.
- Looks at the amount you now have in your reserve fund and provides an opinion of how well that amount will support the replacement schedule.
- Provides a plan for capitalizing the replacement schedule over the next 20 - 30 years in terms of annual contributions to your reserve fund. Using this you can set the reserve portion of the budget for your condominium or HOA..
- Includes Reserve Manager that facilitates continuous updating of your study while helping track all your maintenance.
