capital reserve study

With aging buildings, tough competition, and increasing operating expenses, capital reserve planning is critical. zumBrunnen’s capital reserve studies deliver thorough assessments, expert guidance, and are powered by easy-to-use proprietary software to create smart, disciplined, rolling capital reserve plans.

know your future. manage your reserves.

we offer two capital reserve study options to fit all client needs.

capital reserve studies help you prepare for the future

Capital Reserve Analysis (CRA)

The Capital Reserve Analysis service is a “value proposition” service that provides management with comprehensive inspection services, and a dynamic process, and the tools necessary to forecast future capital replacement needs of a facility for its remaining useful life.

Powered by zumBrunnen’s proprietary FacilityForecast® software, this easy-to-use capital reserve study solution allows users to drill down or slice and dice data. For example, users can easily vary inflation rates, interest rates, alter report terms in years, filter or combine any number of budgets, cost categories, budget item classifications, set minimum unit cost values, and calculate facility condition indexes.

zumBrunnen construction capital reserve study

Strategic Capital Replacement Budget™ (SCRB™)

The SCRB™ is designed to respond to a Client’s specific reporting need(s) at the lowest possible cost; i.e. to meet a reporting requirement of a bond covenant.

The SCRB is a limited-scope budget report where report parameters are clearly defined (limited) by the client as to the number of years; items critical to maintaining the building envelope, critical systems, and major fixed equipment only; minimum replacement cost of $15,000 to $20,000 per budget item, etc. This capital reserve study solution offers a cost-effective tool to make smart business and building-related decisions.

“zumBrunnen helped us update our 20-year plan. They saved us time in the collection of data, and Doug McMillan’s knowledge and expertise, as it relates to the industry as a whole, is where we felt zumBrunnen brought the most value.”

William Anna
Director of Plant Services (former) - The Cedars of Chapel Hill

capital reserve study best practices.

Identify Your Immediate & Long-Term Needs

The best practice in executing a Capital Reserve Study is to first identify immediate and long-term needs by commissioning a comprehensive facility assessment of all fixed and movable assets (an assessment). Although not a mandate of NRSS, Capital Reserve Studies should be performed by an independent consultant in accordance with the American Society for Testing and Materials (ASTM) e2018-2008 Standard Guide for Property Condition Assessments.

One of our experienced consultants will identify critical repairs, deficient and poorly executed construction details, and not only include them in the budgets but also provide various options to complete or correct. Additionally, recommendations for improvements will be provided to improve marketability, safety, and efficiencies.

Ensure Your Data is Accurate

The subsequent budgets and funding plans of a Capital Reserve Study are entirely founded on the assessment data. Unfortunately, many Capital Reserve Study service companies elect to utilize junior staff members to conduct the field inspection/assessment, which is then reviewed in the corporate office by the more experienced staff member. This is a cost-saving technique for the service company that may result in substandard results for the client.

The quality of a Capital Reserve Study correlates directly to “experience-experience-experience.” To get the most accurate data, we ensure the consultant conducting the field assessment has years of relevant field experience in construction, inspection, and assessment. We use engineers with a minimum of 20 years of directly related experience. Due to time and budget constraints, the consultant typically has just one opportunity to spot and recognize a problem. They will rely on their years of training, experience, and intuition, to know what areas of a building and systems to focus on, and most importantly, what exactly to look for to help you protects your project and investors.