Our Depreciation Report (DPR, also known as a Contingency Reserve Fund Study in other regions of Canada) provides the anticipated Reserve Fund expenses and Reserve Fund contribution scenarios for a 30 year forecast period, tailored to the needs of the Strata. As of December 13, 2011, all Stratas greater than 4 units are generally required to have a common property Depreciation Reports completed by the end of 2013. A Strata may defer a report for up to 18 months by passing a 3/4 vote.
Our Depreciation Report provides a realistic assessment of the funds required for the purposes of undertaking major repairs to or replacement of the various common building components. The amounts to be contributed to the fund are calculated on the basis of life expectancy for components with life cycles in excess of one year, and expected repair and replacement costs. Since the report provides valuable facility condition and long range financial planning information to the Strata owners and potential buyers, we believe the Strata will be in a better situation with the report than without it.
Our services typically include:
- Review of the architectural, mechanical, electrical, and plumbing drawings.
- Review of the estimated year-end reserve fund balance, the most recent financial statements of the Strata, and a summary of the past renewal of the major building components.
- Preparation of an inventory in Uniformat II classification (a professional facility management standard) of all common and limited common property building components to be included in the reserve fund.
- Performance of a visual review of the inventory items to evaluate their expected remaining service lives.
- Provide quantity measurements and replacement or maintenance budgets for all major maintenance and renewal within the forecast period.
- Preparation of three Thirty-Year Cash Flow scenarios, with varying contribution rates, for the Strata Council’s consideration.
- A meeting with the Strata Council to discuss and fine tune the contribution schedules to the needs of the Strata. A final, professionally stamped and sealed DR report will be provided to the Strata.
- A Depreciation Report update with site review at the required 3 year interval.
With LDR, knowledgeable and experienced professional engineers will be preparing your Depreciation Report. It is essential that Depreciation Reports be prepared by qualified staff with experience in condition assessments and rehabilitation, as well as current knowledge of technical concepts, building codes, and industry standards. Only then can more accurate estimates of service lives and projected replacement costs be provided.
Our Depreciation Reports are customized to the needs of the Strata, educational, easy to read yet comprehensive, and presented in visually pleasing graphical format without reliance on volumes of text or spreadsheet type tables. Because report information can be summarized on a few visual charts, the information can easily be incorporated into the Form B disclosure statement for potential buyers.
There is a difference in the level of effort and expertise invested by various firms, and we recommend that Stratas review a sample report when considering Depreciation Report providers. We also recommend that Stratas retain Depreciation Report providers that are members of the Association of Professional Engineers and Geoscientists of BC (APEGBC) and carry Errors & Omissions Liability Insurance.
Regular and scheduled maintenance of a building asset is paramount to optimize the service life of a building. Our Maintenance Manual contains practical information to assist building owners in maintaining the building enclosure of their property. Prudent maintenance will help to ensure that the components and assemblies fulfill their intended functions and realize their intended service life.
Our Maintenance Manual typically includes:
- A description of the building enclosure components, materials or systems.
- Relative susceptibility to rain penetration and general weathering.
- Type of maintenance required.
- Frequency and preferred season to undertake maintenance review and work.
- A copy of warranties and guarantees if available.
- Select product literature if available.
If you are responsible for managing a building asset, our Maintenance Manual will provide the information you need to make today’s decisions about building maintenance, enabling you to maintain your building in good serviceable condition at minimum cost. We will work with you to understand your priorities, and give you viable options to meet your long and short term common property maintenance goals.