Alexander & Associates LTD

Reserve Studies Chicago Area, IL

  • Description

Scope of Services

Alexander & Associates, Ltd. has been performing reserve studies for condominiums of all sizes for over 25 years.  Condominium boards depend on their results to plan future projects and budget their reserves to avoid special assessments.  Currently Alexander & Associates, Ltd. has worked with over 70 condominium associations to complete their reserve studies.

 

The reserve study will begin with a review of all available construction documents, critical/ongoing examinations and past reserve studies.  Companion to this review, we will perform a complete visual inspection of the building and surrounding site.  Included will be interior common areas (lobby, hallways, garage) and exterior components (walls, balconies, roof) of the buildings.  Individual units will only be entered on a selective basis to gain a general understanding of the condition of the exterior walls and overall construction.  Our services will include the preparation of a draft report for review and discussion by the Association.  A single meeting with the Board to review this draft, make changes and explain the mechanics of the Study is part of our services.  The final report will follow. 

 

The Study will include a spreadsheet extending forward twenty (20) years, highlighting the necessary annual reserve amounts for each building component in 2007 dollars.  This spreadsheet is in addition to the Useful Life and Remaining Useful Life tables that are normally furnished in a study of this type.  Please note that the 20 year spreadsheet budgets reserves using two (2) methods: 1) projected reserves evenly distributed over 20 years and 2) projected reserves distributed in their entirety on the year they are scheduled to be implemented.

 

Our completed work product will be sufficient for developing reserve funding and will take into account historic trends in construction cost inflation.  The reserve study will also factor in the interest earned on reserves, assuming the account is fully funded.  The Study is intended to be used by your accounting or financial consulting firm to develop the various economic scenarios tailored to fit your specific situation.  Its value is very much related to their ability to project future economic trends specific to your Association.