Reserve Sinking Fund Study

Reserve Sinking Fund Study

A Reserve or Sinking Fund Study is a budget planning tool that identifies the current status of the reserve fund and establishes a stable and equitable funding plan to offset the anticipated future major common element repairs or common area expenditures.

Reserve Sinking Fund Study – There are many benefits to having a Reserve or Sinking Fund Study done. First, it meets legal and professional requirements – RERA and Dubai Law Requirements. It provides funding plans for future repairs, maintenance or replacements of major common elements or common area components and it reduces the need for Special Assessments. And lastly, it enhances resale values through Replacement Fund.

One of the main responsibilities of an Owner Association is maintaining and preserving the property values of the Association’s common element of common area which results in protecting individual owner’s property value.

The environment in UAE is harsh on the assets typically in buildings in the UAE. In addition, the level of maintenance may also vary greatly. This means that local knowledge will be needed to assess the remaining life.

Since the RFPs are the responsibility of the association manager, using the below scope to assist in developing the RFP will provide the opportunity to receive proposals that can be easily compared. Contact us for a detailed scope of work. This may eliminate a rejection of the budget that is based upon the Reserve Study and the expense of redo. Snag & Inspect is one of the inspection companies in Dubai approved by RERA (Real Estate Regulatory Agency), which assures professionalism and excellent service.

Scopes of Work Will Include:

  • Reserve Methodology and Scope
  • Reserve Fund Principals and Concepts
  • Analysis of Inflation Factors and Interest Rates
  • Underlying Assumptions
  • Property Description and Statistical Data
  • Component Description and Quantification
  • Reserve Fund Component Cost Estimates
  • Component Life Cycle
  • Reserve Fund Benchmark Calculations
  • Deficiency Analysis
  • Financial Analysis of Reserve Fund Operations
  • Analysis and Estimate of Reserve Fund Adequacy
  • Analysis of Reserve Fund Contributions and Expenditures
  • Recommendations
  • Reserve Fund Cash Flow Projection
  • Reserve Fund Surplus Shortfall Analysis
  • Deliverables
  • Documents required from the Client
  • Reserve Fund Building Condition Audit

 

RESERVE FUND BUILDING CONDITION AUDIT MASTER CATEGORIES

Reserve Fund Study Coverage:

BUILDING ENVELOPE     

  • Roof
  • Exterior Surfaces & Areas
  • Lightning Protection
  • Interior Space
  • Lifts / Escalators
  • Retail Units

SAFETY & SECURITY        

  • Means Of Egress
  • Fire Alarm System
  • Fire Sprinkler System
  • Fire Fighting
  • Fire Safety
  • Smoke Management
  • Emergency Lighting
  • Emergency Power
  • Security Systems
  • BMS      

UTILITY SERVICES            

  • Water Systems
  • Power Distribution
  • Lighting
  • LPG Distribution
  • Sewer & Drain System
  • Air Conditioning

RECREATIONAL AREAS & AMENITIES       

  • Swimming Pool & Jacuzzi + Plant Room & Equipment
  • Sauna & Steam Room
  • Other Outside Areas

SUPPORT DOCUMENTATION      

  • O & M Manuals
  • Maintenance Records
  • Building Management statement (if applicable)
  • Declaration of Joint Ownership of Property
  • Service Contracts
  • BOQ
  • As Built
  • Common Area Plan