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Replacement Cost

The estimated cost for replacing, repairing, or restoring a reserve component to its functional condition based on current market pricing and work conditions.

We believe that costing that comes close to actual cost by a factor of plus or minus 15 percent within a three-year window is achievable and realistic.

A replacement cost reflects remediation and as such, actual construction experience and completion of projects equips a reserve fund writer with the most accurate costing.

Beware of original or as-new pricing and of opinion of probable cost classes for costing, as these may have replacement costs inflated or deflated past the point of usability.

About Author: Jean-François

With experience gained in construction, project management, field reviews, inspections, report writing and as strata president, J.-F. has cross-industry expertise guaranteeing that you will participate in a process geared to improving the corporation's finances and to setting the condo | strata board | council's planning to stand the test-of-time.