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Capital Needs Assessment & Plan

Criterium-Williams Engineers prepares Capital Plans designed to illustrate the long term (typically 10-30 year) capital expenditures required to maintain physical assets associated with a building or site. These plans are sometimes called a Capital Needs Assessment (CNA), Physical Needs Assessment (PNA), or a Facility Condition Assessment (FCA) depending on the end user and may be required to fulfill an underwriter or trustee’s fiduciary responsibility.

Entities that often benefit from a Capital Plan are:

  • Timeshares & Multi-family Properties
  • Worship Facilities
  • Private Clubs
  • Retreats or Camps
  • Schools
  • Municipalities

Our approach consists of two phases:

The first phase is to review the specific condition of assets to the extent where they are visually accessible. A licensed Professional Engineer will visit the property and develop an inventory of the existing major elements, evaluate their current condition, as well as quality of installation, and estimate expected remaining useful life of each major component. We will also review maintenance records, contractor bids, and interview knowledgeable personnel (staff and vendors).

Common Site Improvements Evaluated

Private Streets / Drives

Perimeter Fencing

Swimming Pools

Bridges

Ponds / Lakes

Lazy River

Sidewalks & Walking Trails

Fountains

Splash Pad

Parking Areas

Retention Basins

Playgrounds

Entrance / Exit Gates

Green Belts

Tennis Courts

Street Signs

Sewage Lift Stations

Basketball Courts

Street / Parking Lights

Retaining Walls

Picnic Tables / Benches

Entrance Monuments

Irrigation System

Laundry Facilitates

Mail Kiosks

Landscaping

Fitness Center

 

Common Building Improvements Evaluated 

Roofing / Gutters

Mechanical Systems

Interior Finishes

Exterior Siding / Veneer

Electrical System

Restrooms

Doors & Windows

Plumbing System

Common Appliances

Foundation / Structural

Elevators

 

 

In the second phase, we compile all data from our site investigation into a Component Inventory and project out long term Capital Expenditures (ie. non-annual replacement and/or repair costs). This provides a basis for modeling necessary annual contributions into a Reserve Fund of adequate size to take care of projected Capital Expenditures. This fund will take into considerate a reasonable return on invested monies and inflation for which we would expect you to consult with your accountant prior to finalizing the reserve budget analysis.

Sample Reserve Funding Forecast

 

We can prepare alternatives for reserve fund contributions based on fixed annual payments to the fund, uniform payments with periodic (eg. annual) escalation, and uniform payments with periodic special assessments. A sample Capital Study can be provided upon request.