Pacific Reserve Studies

Reserve Study Agreement

Pacific Reserve Studies appreciates the opportunity to present this reserve study proposal. Our reserve studies meet all of the requirements of the California Civil Code and the AICPA. Every report includes a 30 year cash flow projection.
Level 1: This is an initial report that requires taking detailed measurements and identifying all reserve components. • Level 2: Measurements and the list of reserve components are taken from a prior report. • Level 3: This is an update report. Measurements and the list of reserve components are taken from a prior report.
The Reserve Study will be available for review by the Client within _____weeks from date of receipt of the requested documents, information and materials. Our report will assume the most probable course of events based on information supplied by the board of directors, your management company, our research, and industry standards and guidelines.
Pacific’s principals, agents, and employees shall have the same limitation of liability as set forth in the paragraph above. This liability limitation applies to anyone who is damaged or is required to pay expenses of any kind because of omissions or mistakes in the Reserve Study. This liability limitation is binding on Client, members of Client’s association or other similar group, all spouses, heirs, principals, agents, designees, assigns thereof, and any other person or entity who may claim through Client. Client acknowledges and agrees that at Pacific’s option, it will either accept a refund of the fees as a full settlement of any claims which may arise from the Reserve Study or Pacific’s correction thereof. Client assumes the risk of all losses greater than the fee paid for the Reserve Study.
Director
Director
Print Name
Director
Print Name
Print Name

Documents, Information and Materials Requested:

A copy of the most recent prior full reserve study and any updates.

  • A copy of the association’s current year approved budget.

  • A copy of the association’s CC&Rs.

  • A copy of/or the temporary use of any existing as-built building plans. **

  • A copy of the plot map showing phasing details and building shapes or style, if available. **

  • The completed Pacific Reserve Studies Worksheet. To be provided.

  • Temporary use of keys, access devices or gate codes to enter upon the common areas, pool or recreation areas, and equipment or storage areas. **

  • If available: Copy of the DRE form 623 (original budget), including all worksheets providing the basis of measurements or quantities for replacement fund components.

  • A deposit equal to 50% of the total cost.

     ** These items are not required for a Level III Report.

Additional information which may be necessary, may be requested once we have started. Client is responsible for providing the basic information as noted above (if available). Procedures will include inquiry of Client’s personnel (if any) regarding replacement funding expenditures and the conditions of the physical components of the common areas.

 

Standard of Care

The Reserve Study will be prepared in a manner consistent with those levels of care and skill typical of those exercised by other members of the reserve study profession.

 

Dispute Resolution

In the event that any suit is instituted concerning or arising out of this Agreement, each party shall pay all of its costs, including, without limitation, the court costs and reasonable attorney fees incurred in each and every such action, suit or proceeding, including any and all appeals or petitions therefrom. Any suit filed shall be in the Superior Court of Los Angeles County or the Small Claims Court. Venue shall be the court closest to Pacific’s corporate office. Pacific and Client agree that it shall be a condition precedent to filing of any suit that it be filed within 60 days of Client receiving the reserve study prepared by Pacific. Neither party to this Agreement shall have any liability for consequential damages.

 

Limit of Liability

Pacific’s liability for omissions or mistakes in the preparation of the Reserve Study shall be limited to Pacific’s correction thereof or to a refund of the fees paid for said report, at Pacific’s sole option.

Pacific Reserve Studies
818-991-5200