The development’s common assets are laid-out in the reserve fund study | depreciation report’s physical analysis’ benchmark, as listed components following the Uniformat II classification system.
The benchmark component inventory forms the basis for point-in-time reserve fund planning over a 30 year projection.
The projection is the same in all scenarios with the individual components having no, unique or multiple expenditures sequenced, repeated or phased.
The benchmark provides the building block for reserve fund planning, and the projection builds on the benchmark that is comparable across developments.
Component expenditures have to be scheduled and sequenced according to actual renewal work practices: make sure that you review repeated scheduled expenditures – such as re-painting every eight (8) years; scheduled inter-related component replacements – windows are replaced before or at the same time as the siding, not after; large component expenditures are perhaps phased over several fiscal-years – windows replaced one building at a time over several years etc.
Beware of reports that only project the benchmark component inventory and do not repeat specific expenditures, that present expenditures in a manner that does not respect construction-based sequencing, or that input non-inflated expenditures in the projection.