Enhanced Maintenance Plan

 

Winters can be hard in Maine. They can be hard not just on people and automobiles but also on buildings. When condo components begin to wear out sooner than expected and need replacement, this capital cost is often not anticipated by the condo’s reserve fund study. This traditional tool has served well for many associations but more and more associations are now using a more sophisticated maintenance plan, namely, an enhanced reserve fund study. 

 

In the past, boards once sought only the counsel of accountants and attorneys for their reserve fund needs. Now more boards than ever are seeking help from engineers, architects, and contractors as well. The purpose of this expanded or broadened search for information is to add consultants who know what needs to be done to maintain a building - and most importantly, how to get it done at the right price. In addition, with the use of an enhanced reserve study the board has more than a replacement in kind option to consider but also upgrades to take advantage of modern materials or more energy efficient components.

 

Routine maintenance is something many of us put off until it's too late. Whether it be your own car or even your own body, it is easier to procrastinate and tend to things only when they are significant problems. The same is true for condominium associations. The pressure to keep maintenance expenses down, coupled with delinquent members or vacant units, means routine maintenance is often neglected. 

 

However, since the board has a fiduciary responsibility to manage reserve funds wisely, maintenance items should not be overlooked. Proper maintenance can often dramatically extend the life of common element building components. A few examples come to mind.

 

 

Because maintenance has such a significant effect on the useful life of building components, it becomes an important consideration in the reserve study. So called "useful life" tables are helpful, but only provide average values for components. Proper maintenance can affect the useful life of some components by 50 percent or more. 

 

This variability must be incorporated into any properly done reserve study. If building elements are to wear out prematurely, there may not be enough money to cover their replacement. The implications of underfunding are obvious. 

 

Similarly, if these same elements are expected to last longer than the average, the reserve may be overfunded. Overfunding is almost as troublesome as underfunding. It represents less than optimum use of association members personal resources. Property values may decline if maintenance costs are unrealistically high. The money saved through proper funding may actually pay for the reserve study - and then some.

 

A competently prepared reserve study can do more than prevent over or underfunding. Enhanced analysis includes options for modernization, maintenance, and repair planning. It means, although roofs may have an average 20 year useful life, certain exposures (e.g. southern) may cause those surfaces to wear more rapidly than others. It may be more economical to schedule replacement in phases, thereby minimizing the outlay in any one year.

 

An enhanced report will also contain suggestions for routine maintenance that will extend the useful life of various components. This can be developed into a complete maintenance plan, in coordination with management and maintenance personnel. Proper maintenance and appropriate reserves are intimately connected. Be sure your engineer or reserve consultant understands this relationship.

 

Though it may seem obvious, the most important aspect of a well-developed reserve study and its resultant maintenance plan, is that it is used. Both the board and the unit owners need to buy into it and use it as a planning tool and a transition guide for future board leadership.  Part of this process is to make the plan visible. Some associations post the plan on their web sites.

 

One association I know created a poster maintenance schedule with bar charts graphically illustrating the plan’s various line items to communicate the status of all of the capital projects. The schedule is posted in the common laundry room for all to see. As projects begin, the progress is demonstrated by coloring in the bars so all can see and the work of the board and management company is equally visible. As in any plan, good communications can be the most important element. 

 

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