Reserve Fund Studies

Trust the specialists at CDW Engineering for unbiased professional, informative and accurate studies

In Canada, the condominium corporation (or strata corporation if residing in British Columbia) is the legal entity representing the collective interests of the unit owners.

A corporation’s reserve fund is an account that can only be accessed for major repairs and replacements of the common elements and assets.

The majority of governing acts and regulations mandate that the corporation carry out regular studies to ascertain whether the reserve fund balance and the total amount of contributions received by the corporation are sufficient to cover the anticipated expenses of major maintenance and replacement of the corporation’s assets and common areas.

CDW Engineering reserve fund studies and depreciation reports abide by provincial Acts and Regulations.

The three classes of reserve fund studies

In Ontario, the Condominium Act and regulations define three different classes of reserve fund studies:

1. Comprehensive study  

The first reserve fund study that would be carried out on the condominium property. This study includes a site review to quantity and assess the remaining life expectancy of each of the common element components.

2. Updated study based on a site inspection

As the name implies, an updated study based on a site inspection is a study that updates an existing study, so that it is current as of the date of the update. As part of this update, a site review is necessary in order to verify the condition and remaining life of the components.

3. Updated study not based on a site inspection

An updated study not based on a site inspection is also an updated study, but a site visit is not undertaken as part of the update. This update involves primarily updating component and financial information in the study based on information provided by the condominium corporation. Other items that would be updated would include cost estimates for the replacements, assumed inflation rates, and interest rates for the reserve fund investments.

Required contents of a reserve fund study

A Physical Analysis

A Financial Analysis


In Ontario, reserve fund study updates are to be performed every three years. The first update can be not based on a site inspection. The second update however, must be based on a site inspection. Thus, a site review would be carried out every other update, or every six years.

We feel it is practically impossible for us to perform an update of an existing reserve fund study prepared by another firm. Validation of the information in the initial study, as well as issues copying the data, or the use of proprietary software for the initial calculations, present too many challenges to overcome. Therefore, the first reserve fund study we conduct for any corporation will be a comprehensive study.

When requesting proposals for a comprehensive reserve fund study, it is important to ask the reserve fund study provider what the future update costs will be, as well as the cost for the preparation of a Notice of Future Funding (Form 15).

Notice of future funding

Notice of Future Funding, formerly known as Form 15, is a plan that the Board is required to propose to the unit owners within 120 days of receiving a reserve fund study. Within 15 days of proposing the plan, the Board is required to provide unit owners a notice containing a summary of the study, a summary of the proposed plan and a statement indicating the areas, if any, in which the proposed plan differs from the study. The Board is also required provide the auditor with a copy of the study, a copy of the proposed plan, and a copy of the notice sent to the owners. Further, the Board is required to implement the proposed plan within 30 days of when the notice was sent to the owners.

CDW will prepare a DRAFT version of the Notice of Future Funding for the Board. Much of the information in the Notice of Future Funding comes directly from the Reserve Fund Study.

Why choose CDW Engineering

Consulting Engineers

CDW Engineering has the expertise that will provide the professional advice you can trust and depend on.


CDW Engineering has decades of experience helping directors make informed and correct decisions.


CDW Engineering specializes in Property Condition Assessments and Reserve Fund Studies. No contracting services are provided, thereby ensuring unbiased professional information with no conflict of interest.


CDW Engineering has built a reputation on prompt, professional service, preparing accurate and informative studies. Contact us today to partner with CDW Engineering or to learn more about our reserve fund study services.