How do you benchmark and compare your reserve fund study with industry standards and best practices?

A reserve fund study (RFS) is a comprehensive assessment of the current and future condition of your facility's assets, such as roofs, elevators, HVAC systems, and parking lots. It helps you plan and budget for the maintenance, repair, and replacement of these assets over a long-term period, usually 25 to 30 years. But how do you know if your RFS is accurate, realistic, and aligned with industry standards and best practices? In this article, we will show you how to benchmark and compare your RFS with other facilities in your sector and region, and what factors to consider when evaluating your RFS results.

1 Why benchmark your RFS?

Benchmarking your RFS means comparing your facility's assets and reserve fund projections with those of similar facilities in terms of size, age, location, function, and design. Benchmarking can help you identify gaps, risks, opportunities, and best practices in your RFS process and outcomes. It can also help you communicate and justify your reserve fund needs and decisions to your stakeholders, such as owners, tenants, board members, and regulators.

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2 How to find benchmark data?

There are several sources of benchmark data for your RFS, depending on your facility type and sector. For example, if you manage a condominium, you can use the Condominium Authority of Ontario's (CAO) online RFS comparison tool, which allows you to compare your RFS data with the average data of over 11,000 condominiums in Ontario. If you manage a public sector facility, such as a school, hospital, or library, you can use the Facility Condition Index (FCI) database, which measures the physical condition of over 50,000 public buildings across Canada. You can also use industry associations, consultants, or peer networks to access benchmark data and reports for your facility type and region.

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3 How to analyze benchmark data?

Once you have obtained the benchmark data for your facility type and region, you need to analyze it and compare it with your RFS data. Various metrics and indicators can be used for this purpose, such as the asset inventory, which is a list of assets included in your RFS with their quantity, age, condition, and replacement cost. You can also compare your replacement reserve with the benchmark data to determine if you are underfunding or overfunding your reserve fund. Additionally, comparing your funding plan with the benchmark data can help you understand how your reserve fund balance and adequacy change over time and how sensitive they are to inflation, interest rates, and contingency factors.

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Karl Rueca

Delivering ML & GenAI data centers in new regions
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Too generic. This is an important step yet lacks specific direction vice the section above that mentions Ontario and others’ RFS tools. Needs more specific direction.

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4 How to improve your RFS?

Based on your benchmark analysis, you may find areas where you need to improve your RFS. Updating your asset inventory and condition assessment every three years, or more frequently if there are significant changes, is recommended. Additionally, adjusting your replacement reserve and funding plan to reflect the current and projected needs of your facility's assets, as well as the financial capabilities and preferences of your stakeholders, should be considered. Implementing preventive maintenance and asset management practices can help to prolong the useful life and optimize the performance of your assets, which can reduce the frequency and cost of repairs and replacements, as well as improve safety and comfort.

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5 How to monitor your RFS?

Benchmarking and comparing your RFS is not a one-time exercise. You should monitor your RFS regularly and update it as needed to ensure that it remains accurate, realistic, and aligned with industry standards and best practices. You should also track and report on your RFS performance and outcomes, such as the condition of your assets, the adequacy of your reserve fund, and the satisfaction of your stakeholders. By doing so, you can demonstrate your accountability and transparency, and improve your facility management practices.

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Michael J. Gaudet, PMP, CSM

Operations Program Manager @ US Army | Improving Operational Efficiency
(edited)
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I'd suggest adding a 'best practices' to this suggestion, and possibly even a link to a guide to help get FMs on the right track with getting started. Blanket statements like this are exceptionally infuriating when posed as a 'good thing to do' or even a 'recommended action'. Define 'regularly' for this massive, strategic, and very complex document. This is aking to telling schools to 'regularly update' their accreditation applications. Helpful advice, but not offering anything in way of substance or leads to help get it accomplished.

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How do you benchmark and compare your reserve fund study with industry standards and best practices?

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1 Why benchmark your RFS?

2 How to find benchmark data?

3 How to analyze benchmark data?

4 How to improve your RFS?

5 How to monitor your RFS?

Facility Management (FM)

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How do you benchmark and compare your reserve fund study with industry standards and best practices?

1

2

3

4

5

1 Why benchmark your RFS?

2 How to find benchmark data?

3 How to analyze benchmark data?

4 How to improve your RFS?

5 How to monitor your RFS?

Facility Management (FM)

Rate this article

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