Maintenance Replacement Projects
Large replacement projects such as having a communities roofs replaced, siding replaced, streets repaved, or various other replacement projects can involve very complex decisions that can impact the community for years after the work has been completed. There are many considerations that should go into the final decision. Materials and cost are certainly not the only aspects that need to be considered, but they typically are among the larger factors in making a final decision. While looking at both the materials and costs we need to focus on how the durability, upkeep and the life cycle can affect the decisions. We will use a siding project for our examples, but keep in mind that the same types of considerations can be used for other replacement project.
Finding the right materials and products for your replacement project can affect the HOA, not only in the short term, but for years or even decades to come. For most projects there will be a variety of material types and qualities. For example, there are several different types of siding material (Masonry, Wood, Fiber Cement, Wood Composite, or Vinyl) that can be used for re-siding buildings and there are variations of qualities within each of the material types that should be considered. While considering what materials to use for a replacement project, we need to look at the durability, upkeep, and the length of the lifecycle of each product. Some materials may be inexpensive up front, but the cost of high upkeep and/or a short lifecycle may mean the project could become even more costly over time, than going with a more expensive material up front that has lower upkeep and a longer lifecycle. A good way to compare material types for your project is to look at the manufacturers recommendations of the different products you may be considering. The manufacturer's warranty is a consideration for their products, but it is also a good idea to look at the manufacturers recommendations for how long their products should last before they need to be replaced again and also their recommendations on how to maintain their product over its useful life cycle. Once you have this information it will be easier compare all of the products and materials you are considering to determine what material types and/or qualities will be best suited for your replacement project.
The cost of a replacement project is certainly one of the key elements to be considered. The HOA should consider not only the upfront cost for the project, but also the lifecycle cost or cost over time. Typical, the more durable a product is, the more it will cost up front, and the less it will cost over time. Using a less durable product may be less expensive upfront, but could be more expensive to maintain over time. An example would be the cost of a Fiber Cement siding vs a cost of Wood Composite siding. The initial cost of Fiber Cement is more than the initial cost of the Wood Composite, but the upkeep cost of painting, caulking and repairing the Wood Composite every few years along with a shorter life cycle can cost considerable more over the life cycle than the cost of upkeep for Fiber Cement which requires less upkeep and has a much longer life cycle. The Fiber Cement siding also has some additional benefits that can be taken into consideration such as being termite and rot resistant among other things. If the costs of upkeep over time are not considered, the HOA could spend much more for a project over its life cycle than the HOA had anticipated. On the other hand, more expensive cost upfront may be more than the HOA has to spend for the project or the aesthetics of a certain product type may be a better fit for the community, so it can be in the HOA's best interest to take on the lower cost up front with more upkeep costs over time. Each HOA has to weigh their individual circumstances and needs to determine what is best for their community.
The best way to address you maintenance replacement projects is to start preparing now for what is ahead, and one of the best ways to do that is to have a Reserve Study for your HOA. Reserve Studies are typically done through a Reserve Study Specialist. They will give the HOA an unbiased, professional opinion on how long it should be before replacement projects need to be addressed. It will also show approximately how much the replacement project should cost long before the project becomes due and how much the association needs to start putting into reserve funds now, in order cover the replacement costs when the time comes to start on your replacement project. It will give you an unbiased view into your community's future and professional guidance to help your HOA meet its goals.
Be financially prepared, weigh your options for the materials or products, and understand the full life cycle costs so that your community will be prepared for its next Maintenance Replacement Project.
