Current Replacement Requirement(s)
The benchmark analysis produces the current estimated monies number required to cover the major repairs and replacements of components from construction of the development to the date of the analysis.
This number factors in fiscal-year based inflation, interest, transfers and expenditures from construction.
Replacement requirements are usually a combination of prescriptive requirements that spell out exactly how something is to be done and performance requirements that outline what the required level of performance is and is to be.
Historically, the replacement requirements have been reactive to when a problem occurred or the building codes changed.
In recent years, and with reserve fund planning, there has been a move to fewer prescriptive and more performance requirement measurements.