Construction

Preparers of Reserve Study: Professional Engineer Vs. Reserve Specialist

The tragic collapse of the 12-floor Champlain Towers South condominium serves as a critical reminder of the importance of regular property assessment and maintenance in avoiding disasters. While some associations may think of these activities as the least of their priorities,  delays in detecting and addressing structural issues can lead to serious consequences.

A reserve study NJ is one of the solutions that can help associations manage their capital assets. It functions as a budgeting tool that forecasts the financial requirements necessary for the timely repair and improvements of capital assets. The process involves assessing the physical condition of common elements, identifying future maintenance needs, and planning budgets appropriately. 

In New Jersey, a recently ratified legislation mandates that homeowner’s associations and cooperatives conduct a reserve study for their residential multi-family and other buildings every five years. This law, known as NJ S2760, aims to improve the safety and condition of buildings in the state. Not following this rule can lead to the loss of a Certificate of Occupancy.
When conducting a reserve study, the qualifications of the professionals involved are paramount to its success. While association boards may have members with various experiences in engineering or construction, that does not make them suitable for performing a reserve study. This critical task should be entrusted to qualified professionals with the specialized expertise required for conducting comprehensive evaluations. Two professionals authorized to carry out reserve studies are reserve specialists and professional engineers.
A reserve specialist (RS) is certified by the Community Associations Institute (CAI) and has extensive experience in conducting reserve studies. RSs have a degree in engineering, architecture, or construction management and have completed a minimum of 30 reserve studies within three years. Their focus is often on the financial aspects, determining when major repairs are needed and planning the reserve fund accordingly. Reserve specialists also have skills in financial modeling, which helps in budgeting.
Conversely, a professional engineer (PE) offers a more technical approach. They are licensed by the state, which requires completion of an accredited engineering program and passing PE examination requirements. NJ structural engineers conduct thorough evaluations of a property’s condition, focusing on key areas such as roofs, HVAC systems, plumbing, and the building’s overall structure. Their inspection reports describe the current condition of these components and provide recommendations for repairs or replacements based on engineering standards.

Engaging qualified experts allows associations to make informed decisions and strategically manage their resources effectively. With proper guidance, associations can build a solid foundation for their financial planning, keeping their properties safe and well-maintained for years to come.

To learn more about choosing a reliable reserve study that supports effective property maintenance and safety, check out this infographic from Lockatong Engineering. 

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