From the Past
11 Spring 20
Fund Reserve
Studies:
an opportunity for quantity surveyors
By Lenny Simonelli, B.Arch.Sci.,M.Sc.,GSC,PQS
“You are a quantity surveyor? So you survey the land, right?” How many of us have been asked this question by an individual who has heard the term ‘quantity surveyor’ for the first time? Granted, the term, along with the professional designation, has been gaining momentum and recognition over the past several years due, in large part, to the efforts of several individuals of the Canadian Institute of Quantity Surveyors. The reality, however, is that there is still a great deal of collective effort required to clarify the term and enforce its importance to the built environment. The latest publication of Available Services & Finding, Selecting and Engaging a Professional Quantity Surveyor (available at www.ciqs.org) provides the following definition of this oft-confusing idiom: “A Professional Quantity Surveyor (PQS) is one who has dedicated his or her career to the practice of construction
economics and the management of construction through effective cost control.” While this broad definition bodes well in its attempt to generalize the work of a PQS, a more in-depth review of the booklet named above provides a wide range of potential services offered by individuals who have successfully completed the stringent academic and workexperience requirements to call themselves a Professional Quantity Surveyor. Among the common services provided by a PQS such as cost consulting, cost planning, estimating, value management, mortgage monitoring and life cycle costing, one little-known service (and one that is rarely provided by members holding the PQS designation) is that of Reserve Fund Studies. The Condominium Act provides a list of the individuals who are permitted to conduct a Reserve Fund Study to a registered condominium corporation. Did
you know that “…members of the CIQS holding the designation of Professional Quantity Surveyor…” are on the list!1 Great news, but what does that mean for me as a PQS? I do not even know what a Reserve Fund Study is, much less how to go about producing one! What is a Reserve Fund Study? A Reserve Fund Study is a budget planning tool that is created for the benefit of a property with multiple owners, such as a condominium corporation or association. It is an instrument that identifies the current status of the Reserve Fund and produces a stable and equitable Funding Plan to offset the anticipated future major common area expenditures. Reserve Fund Studies are, in essence, planning tools designed to help the Board anticipate and prepare for the property’s major repair and/or replacement costs.2 In the province of Ontario, Reserve Fund
Fall 2013 | www.ciqs.org | CONSTRUCTION ECONOMIST | 21
