Project
Approach
HUGHES
RESERVES will, in conjunction with the association's
representative, request and review pertinent governing documents
to establish and identify reserve components. Likely documents to
be reviewed would include:
Original Construction Contract Documents (Plans-
Specifications-etc.)
Most recent component study prepared, if available.
(Prior year component studies are used strictly as a reference
tool to assess that all components the association is reserving
for are in fact, on the property. As well as to add or delete
components, which the Board approves. HUGHES RESERVES does not
rely on any other consultant’s reports or information as a
substitute for our physical on site inspection and funding
calculations).
Maintenance records and vendor warranties
3.02
Quantify Major Components
The
site will be inspected to obtain an approximate quantity of each
major component, noting in the process the component type, general
condition and anticipated service life remaining.
3.03
Estimate the Economic Life of Major Components
All
components of a development have an "anticipated service life"
defined as the time in which the major building components (i.e. roof,
paint, paving, etc.) will need replacement or restoration.
HUGHES
RESERVES will further review in-house records to determine the useful life
and replacement cost of each component.
3.04
Estimate Remaining Life of Each Major Component
The
site inspection will reveal the current condition of the major components,
which, when considered along with past, present and future maintenance
methods, will provide the necessary information to allow HUGHES RESERVES to
make calculations to determine the remaining life of each major component.
As with 3.03 above, the remaining life will be entered on the matrix.
3.05
Estimate the Replacement Cost of Major Components
HUGHES
RESERVES may reference actual construction trades as well as trade
publications to compute the replacement costs of major component
replacements.
Hughes
Reserves
& Asset Management
