A Reserve Fund Study is more than a 30-year spreadsheet. Reliable long-term planning combines professional judgement, site condition, realistic costs, risk-based priorities and meaningful communication with condominium boards.
For condominium corporations in Edmonton, Calgary and across Alberta, understanding how each assumption is developed helps make long-term capital decisions more defensible. The following 20 considerations are adapted from Kalham Consulting’s supplied illustrated guide.
View Kalham’s original illustrated article
Five-page illustrated guide — corrected October 2026 publication copy. The original submitted file is preserved.
Why professional judgement matters
A mathematically accurate projection built on incomplete inventory or unrealistic assumptions can still produce an unreliable funding plan. The physical assessment and the financial model need to support one another.
Understanding and assessing a property
01Understanding the property and the corporation’s responsibilities
A reliable study starts with the property’s characteristics, shared assets and the condominium corporation’s obligations. The scope should reflect those responsibilities.
02Identifying and inventorying major components
Building and site components need to be identified, inventoried and appropriately categorized so important assets are not overlooked.
03Assessing actual physical condition
A professional site assessment helps determine each component’s actual condition and how that affects future work.
04Establishing effective age and remaining service life
The expected life of a component depends on condition, history and professional judgement, not only its original installation date.
05Establishing accurate component quantities
Quantities and measurements affect repair and replacement estimates; incorrect assumptions can distort future budgets.
Performance, costing and project strategy
06Developing realistic repair and replacement cost estimates
Costing draws on market prices, site conditions, industry experience and component-specific factors.
07Determining appropriate repair versus replacement strategies
Options should consider current condition, remaining service life, risk, cost and the benefit of targeted repairs versus full replacement.
08Reviewing Maintenance History and Previously Completed Capital Work
Available records help assess how assets have performed and what major work has already occurred.
09Understanding relationships between building systems
Roofing, walls, windows, balconies and waterproofing interact; coordinated planning can reduce future costs and disruptions.
10Prioritizing building protection and preventing water infiltration
Preventing water damage is a critical risk-management priority for the building envelope and associated assets.
Risk, scope and long-term planning
11Recognizing risks and establishing capital expenditure priorities
Projects are prioritized by potential consequences, urgency and risk, not simply by the age of components.
12Recognizing Professional Limitations and Knowing When to Recommend Other Professionals
A Reserve Fund Study is not a comprehensive building-condition or engineering investigation. Specialist advice may be needed for structural, mechanical, environmental or legal questions.
13Establishing a logical coordinated replacement schedule
Work should be sequenced with system life cycles and interrelated projects in mind, limiting disruption and improving efficiency.
14Reviewing the corporation’s financial position
Reserve balances, contributions and financing constraints inform a practical funding strategy.
15Selecting reasonable inflation and interest assumptions
Long-range forecasts require carefully assessed and periodically reviewed economic assumptions.
Funding, communication and ongoing management
16Developing sustainable reserve fund contribution strategies
Recommendations balance future expenditures, available reserves, affordability and the condominium corporation’s risk tolerance.
17Evaluating Loan Repayment and Future Funding Requirements
When borrowing is part of a funding plan, the study should consider repayment schedules and the effect on future contributions.
18Maintaining communication with boards and property managers
Clear communication supports collection of records, ongoing questions and an understanding of the assessment.
19Presenting Findings and Financial Recommendations to Boards and Owners
A useful report explains building condition, anticipated repairs and costs, funding recommendations and practical next steps.
20Supporting Ongoing Reserve Fund Management and Updating Financial Projections
The study supports continuing decisions. Kalham’s supplied guide recommends regular updates, typically every three to five years, to reflect changed property conditions, completed work, inflation, and new information. Forecasts should be revisited as circumstances change.
Planning a Reserve Fund Study in Alberta?
Kalham Consulting supports condominium boards with Reserve Fund Studies, lifecycle costing and practical long-term capital planning. For a property-specific scope, contact the team.
Related resources: Reserve Fund Study costs in Alberta and Alberta Reserve Fund Study timing and requirements.
Based on the original illustrated guide prepared by Shantel Kalakalo, President & Partner, Kalham Consulting Ltd. Original illustrated guide dated October 2026 is available below; the original source file remains archived.