Establishing a preventive maintenance schedule
• • discussion of material issues which, if not disclosed, would
cause a distortion of the association’s situation
• • reliable information provided by the association’s official
Preventive maintenance is done for two primary reasons:
representative regarding financial, physical, quantity or
•
historical issues.
If associations do not maintain the components on the
reserve schedule, they will not attain their full useful life.
Consequently, the components will need to be replaced
The reserve study process consists of four stages, namely: earlier and the replacement cost will need to be collected
• • determining a reserve schedule over a shorter period of time. This could result in special
• • establishing a preventive maintenance schedule
levies being imposed.
• • selecting a funding plan
•
• • developing an investment policy
If associations do not maintain the components that are
not included in the reserve schedule, they may require
replacement, whereas if they were maintained, they would
not.
Determining a reserve schedule
The flowchart below describes a preventive maintenance
A reserve schedule is the financial summary of the reserve
study. Its format depends on the funding method used, but its
development will usually follow the steps detailed in the figure
below.
Step 1 - Review community
documents to determine: Is the
component part of the common
elements?
NO
NO Step 2 - Is the component covered
under a maintenance contract? YES
NO Step 3 - Is the component included
in another part of the budget? YES
YES Step 4 - Is the component a piece
of mechanical equipment? NO
YES
NO
Step 5 - Is the useful life of the
component within the selected
time window?
Step 6 - Is the replacement cost
below the operating budget
threshold?
This item is a reserve item
FLOWCHART FOR PREVENTIVE MAINTENANCE
SCHEDULE
YES
SELECTING RESERVE SCHEDULE COMPONENTS
YES
schedule.
Step 2 - Is the component covered
under a maintenance contract? YES
NO Step 3 - Is the component included
in another part of the budget? YES
YES Step 4 - Is the component a piece
of mechanical equipment? NO
NO
YES
Step 5 - Is the useful life of the
component within the selected
time window?
Step 6 - Is the replacement cost
below the operating budget
threshold?
This item is a reserve item
This item is not a reserve item
NO
NO
YES
NO
Step 1 - Review community
documents to determine: Is the
component part of the common
elements?
NO
YES
This item is not a reserve item
This item should be on a preventive maintenance schedule
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