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Physical Analysis
The portion of the reserve study (depreciation report) where the following consulting services are performed:
The purpose of the physical analysis is to determine lifecycles that form the realistic foundation for the reinvestment requirements for the building.

This represents one of the two parts of the reserve study – the other being the financial analysis.


Steps in the Physical Analysis


Assumptions in the Physical Analysis
The physical analysis is underpinned by assumptions on the following:

Methodology in the Physical Analysis
The physical analysis is based upon a deterioration model such as:
Data is collected through a variety of techniques, including:

Physical Analysis Reports (Deliverable)
Listed below are some of the key output reports from the financial analysis:
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Fig. Flow chart to graphically illustrate how the Physical Analysis (green box) serves as the foundation of the Financial Analysis (red boxes)

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Fig. Illustration of some of the key elements of the physical analysis relative to a roof.

steps in the physical analysis
Fig. Key steps in the physical analysis


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Fig. The three key technical documents used to generate the physical analysis: a) drawings; b) prior investigations; c) manufacturer literature


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Fig. Service life summary in the physical analysis that graphically illustrates the effective age of the assets using a horizontal orange bar.

Compare with:
Compare with:

If the physical analysis is realistic and the financial analysis is defensible, then all stakeholder interests are served.
Fig. If the physical analysis is realistic and the financial analysis is defensible, then all stakeholder interests are served.

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