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Replacement Reserve

The schedule of the costs to replace all (or a group of) the assets in a building, which is derived from calculations of their respective remaining service lives and current funding levels.  

The replacement reserve is determined by the following:
  • Reserve study
  • Replacement analysis
A replacement reserve should be supported by a replacement policy.
I. Care is trying to ensure that inflows match outflows, but this requires cooperation and teamwork
Fig. I. Care is trying to ensure that inflows match outflows, but this requires agreement on long-range stewardship, cooperation and teamwork.


"I. Care" is trying to raise funding levels but this may be quicker than the owners can sustain
Fig. "I. Care" is trying to raise funding levels but this may be quicker than the owners can comfortably sustain.

See also:


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