Why Do My Reserve Fund Projections not Match Reality?

Reserve Fund Projections in condominium communities can often differ from reality due to various factors. The current increase in construction costs and disruptions to global supply chains have led to unpredictability in project costs. Each project is unique, and site-specific parameters can significantly influence costs and timelines. Decision-making processes within the Board of Directors can also impact project timelines. Moreover, delays in decision-making and changes in philosophies may lead to cost variations. Scopes of work can also change during the project, causing cost adjustments. When comparing actual costs to Reserve Fund Studies projections, all relevant items must be considered, including contingencies. Inflation and interest rate projections are also factors to be mindful of in Reserve Fund Planning. It is crucial for Reserve Fund Planning to be a dynamic and constantly reviewed process, involving conversations with experienced practitioners to adapt to changing circumstances and trends.