How to compare reserve study proposals
Boards usually collect three proposals and find that they quote three different jobs. The fee is the last thing worth comparing. The table below is the order to read them in, with what a good answer looks like on each line.
What three proposals differ on
Read down each column before you look at the bottom line.
| Line | A thin proposal | A sound proposal | Ask |
|---|---|---|---|
| Level of service | Not stated, or an update where the last study is five or more years old. | Names the CAI level: a Level I full study for a first study or after a long gap; Level II or III updates in between. | Which level is this, and why that one for us? |
| Site visit | None, or a drive-by. | A walk of every building and common area, with time on site stated and access to roofs, mechanical rooms and elevators arranged. | Who visits, for how long, and what do they open? |
| Who does the work | Unnamed staff. | A named analyst with a credential (RS, PRA, PE or RA), and the person who signs the report. | Who signs, and what are they licensed or certified in? |
| Component list | Roofs, paving and paint. | Every common element the association must repair or replace above the threshold the firm uses, with the threshold stated. | What is your threshold, and can we see a sample inventory? |
| Funding goal | One number with no basis. | Says whether the plan aims at full funding, a threshold, or a baseline that never goes below zero, and shows all three if asked. | Which goal does the plan use, and what does each mean for our assessments? |
| The report | A spreadsheet. | A narrative report the board can hand to an owner, a lender or an insurer, with the percent funded, the plan and the assumptions written out. | Can we see a redacted report from a similar community? |
| State law | Silent. | States which statute applies, how often the study must be repeated and what the board must disclose. | Does this study satisfy our state's requirement, and which section? |
| Fee | A single figure. | A fee tied to the level, the number of buildings and the site time, with the price of a future update quoted now. | What would next year's update cost? |
Why the level decides the fee
A Level I study builds the component inventory from scratch: every element is measured, counted and photographed, and its condition, remaining life and replacement cost are set by the analyst on site. That is where most of the fee goes, which is why a full study runs $2,000 to $8,000 for a community of 50 to 150 units while firms quote an update with a site visit at about 50 to 80 percent of a full study and an update from the desk at 25 to 50 percent of a full study, often under $1,000 for a small community. The cost page breaks the figures down by community size.
The wrong economy is buying a Level III update when the last study is old or was done by someone else. The new report inherits every error in the old inventory and the fee saved is spent several times over at the next special assessment.
Questions to ask before you sign
- How many associations of our size and type have you studied in this state in the last two years?
- Will you attend a board meeting, in person or online, to present the report?
- What do you need from us before the visit: plans, past studies, invoices, the maintenance log?
- How long from the site visit to the draft, and from our comments to the final report?
- Is the report ours to share with owners, buyers, lenders and insurers?
proposals, each quoting the same level of service for the same component list.
years is the funding plan a sound report projects.
named, credentialed person who walked the property and signed the report.
Tell us the community's size and state and we will find a firm that can quote the right level of study.
Get a quoteQuestions boards ask about proposals
How many reserve study proposals should a board get?
What is the difference between a Level I, II and III reserve study?
Should the cheapest proposal win?
Does the person who visits the property matter?
What should the report include?
Where this information comes from
Related pages
- What a reserve study costsBy study type and community size.
- Requirements by stateWhich states require a study and how often.
- Firms by stateWho works where, with credentials.
- How firms are listedThe rules for a listing.
Request proposals for your reserve study
The community ZIP code, how to reach you, then a few taps about the association. About a minute, and nothing is sent to a firm until you say so.
This is a free introduction service, not a reserve study provider. We find one firm that works in your state and tell you its name before anything is shared. Nobody contacts you until you say yes.
Thank you. Your request is logged.
- We look for a reserve study firm that covers your state and does the kind of study you described, then email or call to tell you which firm it is.
- Your details reach that firm only if you say yes.
- The firm sends a written proposal with the scope, the level of service and the fee. No marketing from us, ever.