CVL Engineers is proud to offer services to Condominiums across Canada. We support condominium corporations by preparing Reserve Fund Studies and Depreciation Reports.
These reports are used to ensure regulatory compliance, but CVL Engineers goes above and beyond for our clients by providing additional support. We ensure corporations have the tools they need to use their reports for decision-making and planning.
What are Reserve Fund Studies and Depreciation Reports?
Reserve Fund Studies and Depreciation Reports are valuable tools used to determine the condition of current assets, while also estimating upcoming needs (such as repairs or replacements) in terms of practical timelines and costs.
What is Included in Reserve Fund Studies and Depreciation Reports?
When you hire CVL Engineers Inc. to prepare your Reserve Fund Study or Depreciation Report, you can expect to be provided with the following:
- Review any pertinent drawings relating to our review of the subject corporation.
- Review any pertinent financial information to be included within our analyses.
- Complete a visual site review and building condition assessment (if required), which is intended to provide an overview of the relative condition of the common elements of the corporation, including but not limited to:
- Structure,
- Roofing,
- Building envelope components,
- Site finishes,
- Mechanical and electrical systems,
- Conveyance (elevators, etc.)
- Create a schedule of anticipated capital repairs and replacements.
- Determine the monetary contributions required to offset the anticipated repairs anticipated based on the assessment.
- Summarize related findings in a DRAFT report for the board’s consideration, including at least three separate funding options.
- Supporting the board through its review of the DRAFT report, through meetings, regular correspondence.
- Revising the study as required to adjust “discretionary” elements (timings, or budgets, as deemed safe and practical) to align with the board’s maintenance philosophies and building standards.
- (In Ontario) finalizing the study with a Notice of Future Funding that satisfies
Condominium Act and Condominium Authority of Ontario requirements.
For all reports, cost estimates are projected over a period of not less than 30 years. We also include financial calculations that ensure there is adequate funding to offset related costs. These can be in the form of contributions to the reserve, special assessments, levies, or lending scenarios, depending on which act and/or regulation applies.
Why Choose CVL Engineers for Your Reporting?
The scope of work noted above is not uncommon in the industry, as the applicable legislation has the same requirements of any service provider to fulfill. While regulatory compliance is important, we believe that these services should also serve the corporation directly.
CVL Engineers Inc. has created additional benefits for corporations that are automatically
included in our services:
- Unambiguous reporting – All terms are clearly defined. You do not need to be an engineer or lawyer to read and use the reports we prepare!
- Unparalleled support – With 10+ years of experience in the condominium/strata industry, and a combined 30+ years in the building restoration and construction industries, CVL can help condo owners and board members understand their corporations better, particularly as they continue to age. If required or desired, we will attend Annual General Meetings. We can also attend special information sessions, in which we present our findings and answer questions from the floor.
- Sensible approach – We cannot guarantee that your strata/condo fees will be reduced or even stay the same by adopting CVL’s suggested approach for your corporation. What we can do is demonstrate how the regular contributions to the reserve are ‘adequate’ and ‘sufficient’ for the intended purposes of the fund. We will only recommend the corporation contribute the funds that we see the corporation eventually spending, as outlined in our report – no more, and no less!
We trust that your experience with CVL will not simply be a matter of regulatory compliance, but a valuable assessment that will help your corporation succeed and thrive. To discuss your corporation and capital planning requirements, please don’t hesitate to contact the CVL Engineers team for a proposal.
