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NAVIGATION MENU |
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MEMBERS LOGIN |
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| FREQUENTLY ASKED QUESTIONS |
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• How to choose a reserve study provider? How does Reserve Consultants Ltd. match up?
• What is the Fully Funded Balance and how does it affect me?
• How often do reserve studies need to be updated?
• What types of studies satisfy the reserve study update with site visit?
• What is a Reserve Specialist and what does it entail?
• What is your delivery turnaround?
• What are your charges for the mandatory Level 1 and 2 Reserve Studies?
• What are the options for the annual updates?
• What comes with the study?
• What is your charge for coming to speak with an association? |
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How to choose a reserve study provider? How does Reserve Consultants Ltd. match up?
Many companies started offering reserve studies since obtaining and updating a reserve study became mandatory for residential condominiums in 2008. We appreciate the concerns that clients face in choosing the right company from to prepare this important budgeting tool for their property. Here is what we recommend that you look into when comparing providers: |
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1.1- What is the company’s track record and experience?
We have been writing reserve studies in Washington since 1992, long before the mandatory requirements were established. We have extensive field experience with individual components from our construction oversight work. We update our unit cost estimates regularly to reflect current conditions. |
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1.2- Who prepares the reserve study?
For our standard reserve studies, we use a mix of Community Association Institute (CAI) certified Reserve Specialists (RS) and a combination of professional Engineers, Architects, and project managers to prepare them. (See what is a Reserve Specialist and what does it entail?) Both the specialist and the professional take part in the site visit at the association.
For our statutory minimum reserve studies, one of our reserve study professionals performs the site visit as he was taught to do them under the Reserve Specialist. These are the same professionals that would be assisting the Reserve Specialist on our standard reserve studies. |
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1.3 - How familiar are they with legal requirements or national standards?
We are very familiar with both. We regularly take part in industry events, both where current standards are discussed, and where classes are taught for using a reserve study effectively.
Ken Harer is a practicing attorney working with community associations on a wide range of issues. He participates in the Washington State Chapter of CAI’s Legislative Action Committee which offers legislation to advance the needs of Community Association members. He also contributed to the enacted Reserve Study amendment to the Washington Condominium Act.
Bob Steimer worked with the National CAI members in establishing the national standards for Reserve Specialists. |
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1.4 – Where do your estimates come from?
Our estimates for life expectancy and repair frequency come from working with numerous associations since 1992 and seeing how their components age in our climate. Cost estimates come from bids an association has actually received, our construction oversight for comparable associations in the area, or what we know other clients have paid for similar services. When we encounter a building component for which we have no pricing baseline for, we rely on the RS Means Construction Cost Estimating Manual which tracks national pricing trends. |
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1.5 - Will I be able to use the report given to me?
Every study we produce contains a single page executive summary with the details on what the contribution to reserve funds needs to be next year to meet the association’s funding goals. It also contains other information on the background and financial health of the association. This is ideal for handing out to homeowners without having to recreate the entire study.
For our statutory minimums, we include a clear fully funded balance table that tallies up each component’s contribution to the fully funded balance.
For our standard studies, we take the analysis further. We provide additional spreadsheets which expand and visualize the existing analysis. Components are given individual worksheets with information about them, including cost estimates and any repair notes about their current condition. More introductory information is provided to help explain what the reserve study is, and how to work with it. |
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1.6 - What other services does the company provide?
At Reserve Consultants, we do more than just reserve studies. We believe in a comprehensive care for properties. If we spot problems that need to be corrected, we have licensed Architects to write design specifications to correct them. When it is time to repair a building, we have skilled professionals to manage the bid process or oversee the project as the association needs them. Once the repair’s warranty is close to ending, we can perform a warranty inspection where any issues with the work that have occurred can be corrected. |
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1.7 – What sort of relationship do you have with your clients?
We have worked with many of our clients for more than a decade. We keep their reserve studies up to date so they have the funds to maintain their buildings. We write the scope of work and repair specifications for when it comes time to do repairs. Once the repairs are underway, we work with the contractor, making sure that the scope is being followed, and their work is up to par. It’s a competitive world, and we keep our clients through integrity, patience and our ability to solve problems creatively. |
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What is the Fully Funded Balance and how does it affect me?
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How often do reserve studies need to be updated?
Reserve Studies are living documents and need to be updated annually to keep pace with inflation, repairs, and problems. If the association is incorporated as a condominium and contains at least one residential unit, then the annual reserve study update is required by law. Additionally, every three years, it must be updated with a site visit by a reserve study professional. We recommend that other types of community organizations also have a site visit done every three years. |
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What types of studies satisfy the reserve study update with site visit?
We have two offerings that will satisfy the site visit requirement. The first is a new full study. This should be considered when the original full study is more than 10 years old, or if the association has undergone a major renovation project such as a new building envelope. The second is a reserve study update with a site visit. |
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What is a Reserve Specialist and what does it entail?
A Reserve Specialist is a Community Association Institute designation recognizing individuals who have been writing reserve studies for at least 3 years, hold a college education in a related field or have extensive experience, and follow national standards of how a reserve study is written. |
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What is your delivery turnaround?
Our delivery backlog varies with the season. Spring and autumn are the busiest times, when our backlog is typically eight to twelve weeks. In summer and winter, our backlog is typically four to six weeks. We encourage associations to schedule their studies once a decision has been made to ensure expected delivery time. However, if timing is a problem, you call us to see how we can best accommodate your needs and establish alternate scheduling.
The delivery backlog for annual updates is typically within three weeks of the information to complete them being submitted. |
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What are your charges for the mandatory Level 1 and 2 Reserve Studies?
Our charges vary depending on location, the number of units, the number of building components, and sub-groups that require individual reserve analysis.
Please request a bid for pricing. |
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What are the options for the annual updates?
We offer two types of annual updates without site visits, the standard and the statutory minimum reserve study. The statutory minimum provides a new executive summary with recommended reserve contribution, an updated fully funded balance table, and an updated expense/contribution spreadsheet with inflation. The standard study provides everything from the statutory minimum, plus the other graphs and spreadsheets (constant dollar, visual representation of the fully funded balance, funds over time), a narrative of the changes made to the components in the update, and explanations in using the reserve study.
The standard study would be $600 and the statutory minimum reserve study would be $300. If the association is looking for a new contribution to include in next year’s budget, and something to include in their resale certificates, the statutory minimum will meet both of these requirements. |
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What comes with the study?
For standard studies: One original color study in a three-ring binder with a one page executive summary of the report and a CD with PDFs suitable for printing or emailing to homeowners. For an additional cost, we can provide additional prints of the report ($75 each), additional funding scenarios ($100 each or hourly), AICPA Supplemental Audit Forms ($200), and general maintenance/repair notes ($250).
For statutory minimum studies: One original color study in a comb binding with a one page executive summary of the report. A single PDF suitable for printing is emailed to the homeowner’s contact. Additional prints are available for $25 each. Any additional services are performed at our hourly rate. |
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What is your charge for coming to speak with an association?
Presentations at board or annual meetings typically cost $250, depending on the distance from Seattle. This would include presenting the findings of the study to the association, and taking questions from the audience.
If phoning into a meeting is acceptable, we will waive the travel portion of this fee, typically cutting it in half.
If the association is willing to meet with us at our office during normal business hours, we will generally waive this fee. We are also available at the time of the site visit to meet with board members without charge. |
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