Q.
What is the firm's background and experience?
A. Reserve Advisors is the leading engineering consulting firm specializing
in Reserve Study services in the United States. You're assured of
the highest industry standards because our principals are founders
of CAI's Reserve Committee (Community Associations Institute) and
have served as officers with APRA (Association of Professional Reserve
Analysts).
Q. What portion of
the firm's business relates to Reserve Studies?
A. Our business relates primarily to serving community associations
and conducting Reserve Studies. We do not manage capital projects,
preferring to offer objective, independent opinions.
Q. How many staff
will participate in our assignment?
A. Reserve Advisors has one of the largest staff with professional
reserve specialist designations (RS and PRA) focusing exclusively
on Reserve Study services.
Several staff members collectively review and analyze each assignment
Our collective analysis identifies successful repair & replacement
solutions proven with our other clients
Our staff considers various alternatives to create a funding
plan tailored to your Board's long term goals
Q. How accessible
will the firm's personnel be to us?
A. While we may not have an office near you, we're pleased to discuss
any questions with you throughout and after the Reserve Study this
year or in years to come for FREE.
Q. Are both the engineering
and financial components of the Reserve Study included?
A. Yes. Our on site analysis, measurements and cost engineering
become the foundation for various funding options to recommend adequate
but not excessive reserve funding to maintain a consistent, stable
financial environment for years to come.
Q. How do you estimate
the useful lives?
A. Determining an accurate life expectancy and the remaining useful
life of property components are the most important facets of our
analysis. Experience, on-site examination by our engineer or architect,
and a historical analysis are keys to determining accurate remaining
useful life estimates. As Reserve Study specialists (RS and PRA),
we determine accurate remaining useful lives for thousands of building
and site elements like yours each year. We derive our expertise
from conducting hundreds of new Reserve Studies each year, plus
updates of existing reserve studies. Our historical analysis considers
past and future maintenance policies, quality of construction materials
or equipment, age, condition, and relevant climate conditions. Realistic
(not text book) estimates of useful lives are the foundation of
fair and equitable reserve contributions for present and future
owners.
Q. What is your basis
for estimates of replacement cost?
A. We use only local costs to determine accurate
reasonable estimates of replacement cost. You're assured accuracy
through our use of engineering expertise, local contractor information
and several databases containing thousands of building material
and labor costs specific to your city. Reserve Advisors uses such
nationally renowned firms as R.S. Means and Marshall Valuation,
all specialists in construction materials and labor rates.
Q. Which method do
you use for funding reserves?
A. Reserve Advisors uses the proven cash flow funding method to
compute reasonable reserve contributions. This method, developed
by our experts, puts your reserves to work where and when they're
needed. The cash flow method considers your current fund balance,
interest earned, and projected expenditures to determine the adequate
but not excessive reserves necessary to maintain your property for
years to come.
Q. Does the Reserve
Study comply with the AICPA Audit Guide and relevant state statutes?
A: Simply, our reports comply. You fulfill your fiduciary responsibility.
You'll benefit by being in compliance because your accountant will
not have to qualify your report regarding reserves, which in turn
becomes a strong selling point to your prospective buyers.
Q. What does your
report contain besides the numbers?
A. You'll receive two easy-to-use Preliminary Reports and two Final
Reports. Clients like how our reports read without the dozens of
confusing charts and graphs found in other reserve studies. The
Reserve Advisors Reserve Study uses only a few clear and concise
graphs and chart that tell the whole story at a glance. Your Reserve
Funding Plan appears on one page. Similarly, we present a concise
forecast of the future capital expenditures with quantities and
remaining lives, usually in one large table, not dozens of pages.
The Reserve Advisors Reserve Study comes with an easy-read narrative
of 30 pages or more, discussing facts (quantities, condition and
history) about your property, our observations, explanations or
our opinions, and useful insight into how a contractor should conduct
a major replacement or project. The narrative empowers management
and the board to obtain consistent bid proposals from contractors,
saving valuable time in meetings. Only our narratives focus on specific
problems with the property elements, saving the board time and the
association money, all at no extra charge. The Reserve Advisors
Reserve Study Report becomes your navigation chart for the life
of your property.
Q. Timing - How
long it will take to complete the study?
A. Reserve Advisors believes in being responsive to you - from the
on-time delivery of the initial proposal to the Board through the
Final Report delivery. You'll receive your Preliminary Report within
four to six weeks of our inspection. You'll receive the Final Report
within two weeks of receiving any changes from you. Simply, Capital
Budgeting made easy year after year.
Q. When and why
should we update our Reserve Study?
A. We recommend economical updates of a study every two to four
years. A Reserve Study Update (with or without site visit) will
adjust for all local changes in the replacement costs, actual and
expected dates of replacement and incorporate any changes in future
reserve contributions. These changes occur from delayed or accelerated
projects, extraordinary maintenance, extreme weather, advancements
in construction methods and materials, and additions and deletions
to the property.
Q. What organizations
does the firm use to further its experience and knowledge to conduct
Reserve Studies?
A. You'll benefit from the latest engineering technology and financial
analyses through our participation in ...
CAI Community Associations Institute
ACI Association of Construction Inspectors
AACE American Association of Cost Engineers
ASHRAE American Society of Heating, Refrigerating and Air-Conditioning
Engineers
APRA Association of Professional Reserve Analysts
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