A point-in-time tally for all condo | strata corporations that are responsible for scheduling major repairs and replacements of their common assets.
A benchmark first illustrates the current fiscal-year cost to replace components – the only time this will happen is if an earthquake destroys the development or if it is terminated. Yet this is the best way to get to a comparable across developments.
Current replacement requirements are calculated based on the age and condition of components, and in terms of the actual renewal of the components – the current cost is multiplied by the observed condition age and both are divided by the expected lifespan of the component, producing a result that is usually less than the current costs.
Using the benchmark’s current requirement numbers provides a direction for contributions to ensure that owners pay their fair-share of their use of the common assets, on a fiscal-year basis.
The benchmark numbers will rarely be implemented as-is as they are for one-iteration-of-each-expenditure. The reserve fund planning happens in the projection of scheduled expenditures where some components appear once, some several times, and some not at all.
The benchmark comparable across developments calculations provide a sense of what funds are required today, and of what is the optimal regular contribution amount that the strata corporation should set aside in the next fiscal-year in light of the construction, maintenance, major repairs and replacements history of the development.
Two of the benchmark numbers – the current replacement requirements and the current annual allocation – are carried over into the projection and into the scenarios of a depreciation report. This is done to measure a strata corporation’s finances in terms of their current position and cumulative standing.