Your new office building is beautiful and includes new features that are meant to last for many years. You have chosen top-of-the-line furnishings and structural options that should withstand just about anything. However, over time, these things will endure wear and tear, and it is inevitable that you will need to replace or repair some of these items. Did you plan for a reserve fund to help you pay for these repairs and replacements?
Reserve fund studies can help your business plan ahead for the inevitable cost of repairs and replacements and, in the end, help you save quite a bit of money. Here’s what most reserve fund studies entail:
- The condition of the components that may need to be repaired or replaced is assessed.
- The building’s as-built drawings, bylaws, and plans are reviewed to determine what future repairs and replacements might look like, as well as future growth opportunities.
- The different replacement costs for common components are reviewed based on different market information.
- The current reserve fund is reviewed and compared to what the expected repair costs will be over time.
- Different funding scenarios are outlined to determine which one will work best.
By taking assessments of what will require repairs or replacements and planning ahead for these costs, you will be less likely to find yourself in a financial bind when your company suddenly needs to spend a significant amount of money on an upgrade or a total replacement. By looking at drawings and building plans, future growth is also accounted for so future costs for new equipment are manageable.
After we conduct a reserve fund study at your building, our team here at Belanger Engineering would be more than happy to discuss our findings with your board. Please contact us today to find out more about reserve fund studies and why they are beneficial.