Reserve Study in Construction

It is a matter of time before the significant components of your building envelope, such as the roof or siding, will deteriorate to the point that they are unable to perform their intended function. Replacement of these materials can be among the most significant costs to a homeowner or association. In many cases, the decision to perform needed replacement is deferred due to a lack of available funding. Long-term planning, which includes a reserve study, can identify funding strategies that plan for eventual replacements.   Moreover, the reserve study should be performed by a qualified professional that can identify deficiencies or improper installation practices that can shorten the life span of materials. It isn’t rocket science to know that reduced useful life means more frequent replacement, which results in higher maintenance costs in the long term.

For larger projects, funding through a financial institution may require completing a reserve study to obtain the needed approvals. Financial professionals advocate a reserve study updated regularly as it provides essential information to develop a healthy long-term plan to fund capital expenditures.   A lack of planning can suggest a higher risk to the lender, which could result in increased interest rates. Which again can add to these overall project costs.

Team Engineering offers Reserve Studies performed by qualified professionals, including professional engineers and reserve study specialists with credentials from the Community Associations Institute. If you or your organization needs assistance, please contact us.