Capital Replacement Studies

Capital Replacement Studies involves the identifying, inspection and evaluation of a building's major components and systems to provide the building owner or Property Manager with a comprehensive report listing the future repair or replacement costs of the building's major components or systems.

In order to prepare the Capital Replacement Study report, the following four steps are followed:

  1. A Review of all Documentation - this includes:
    • as-built drawings (architectural, structural, mechanical, electrical, site services);
    • repair and maintenance records;
    • any previous investigation reports or studies; and
    • any existing warranties, guarantees and service contracts for major components.
  2. Site Inspection - this includes:
    • discussions with on-site Property or Maintenance Manager regarding building operations;
    • producing an itemized list all of the building's major components and systems;
    • a visual inspection of the building's major components and systems;
    • a condition and description of the major components and systems, noting any deficiencies or deferred maintenance items; and
    • providing a visual record of the conditions, deficiencies and deferred maintenance items.
  3. Physical Analysis - the physical analysis of the building's major components and systems include:
    • estimated or actual year of acquisition;
    • estimated or present age;
    • normal life expectancy and remaining life expectancy; and
    • estimated cost of major repair or replacement

    The Physical Analysis takes into consideration the results of the Site Inspection in determining when major repair or replacement would be required.

  4. Financial Analysis - the financial analysis includes:
    • capital replacement budget plan for a 10, 20 or 30 year period;
    • inclusion of annual inflation increases;
    • if requested, a recommended Capital Budgeting Plan.

Our methodology for conducting Capital Replacement Studies will provide you with the "bottom line" financial figures for future planning of your building.

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