Per ASTM E 2018-01

The purpose of the Physical Needs Assessment is to assess the general condition of the buildings, site, and other improvements at the referenced location. The report will identify those areas that will require remedial repair work and will assign them an associated estimated remedial cost.

Threshold amounts were adopted from ASTM “Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process” (ASTM E 2018-01).

This report shall be based on a site visit, in which BEPC performed a visual, non-intrusive and non destructive evaluation of various external and internal building components. These systems included the roof, foundations, structural frame, building envelope, heating, electrical, and plumbing.  The inspection also includes ancillary items such as site drainage, pavement, sidewalks, and landscaping.  The Physical Needs Assessment is not a building code, safety, regulatory or environmental compliance inspection. 

BEPC shall observe the interior spaces to determine its general character and condition. During the site visit we shall interview the available site personnel and/or property managers to add or confirm information. 

Photographs will be taken to provide a record of general conditions of the facility, as well as the specific deficiencies observed.

This report shall be based on the evaluator’s judgment of the physical condition of the components, their ages, and their expected useful life (EUL).  It is understood that the conclusions to be presented shall be based upon the evaluator’s professional judgment. The actual performance of individual components may vary from a reasonable expected standard and will be affected by circumstances that occur after the date of the evaluation.

The report shall not identify minor, inexpensive repairs or maintenance items which are clearly part of the property owner’s current operating budget so long as these items appear to be taken care of on a regular basis.  The report shall address infrequently occurring “big ticket” maintenance items, such as exterior painting, deferred maintenance, and repairs and replacements that normally involve significant expense or outside contracting.

Based upon observations during our site visit and information received from our interviews with building management and service personnel, which, for the purpose of this report, was deemed reliable, BE Structural, PC prepared general-scope, preliminary cost estimates complete with an appropriate remedy for the deficiencies noted. Such remedies and their associated costs were considered commensurate with the subject’s position in the market and prudent expenditures.  These estimates are for components of systems exhibiting significant deferred maintenance, and existing deficiencies requiring major repairs or replacement.  Repairs or improvements that could be classified as (a) cosmetic, (b) decorative, (c) part or parcel of a building’s renovation program or to reposition the asset in the marketplace, (d) routine or normal preventative maintenance, or (e) that are the responsibility of the tenants who were not included. 

Worthy of note, it is the intent of this report to reflect material physical deficiencies and the corresponding opinion of probable costs (a) to be commensurate with the complexity of the subject property; (b) not be minor or insignificant; and (c) serve the purpose of our client in accordance with their risk tolerances.  Opinion of probable costs that are either individually or in the aggregate less than a threshold amount of $3,000 for like items are to be omitted from our review.  If there are more than four separate items that are separate items that are below this threshold amount, but collectively total over $10,000, such items will be included. 

Threshold amounts were adopted from ASTM “Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process” (ASTM E 2018-01).

Replacement and Repair Cost estimates are based on approximate quantities. Information furnished by site personnel or the property management, if presented, is assumed by BE Structural PC to be reliable.  A detailed inventory of quantities for cost estimating is not a part of the scope of this report.

BE Structural PCs’ cost estimates were allocated to the following categories:

• Immediate: Expenditures that require immediate action as a result of (a) existing or potentially material unsafe conditions, (b) material adverse physical deficiencies impacting existing tenancy (c) material building code violations, (d) poor or deteriorated condition as of a critical element or system, (e) a condition that if left “as-is”, with an extensive delay in element or system failure within one (1) year or a significant escalation in its remedial cost.
• Deferred maintenance or deficiencies that fall into the category of chronic maintenance/replacement problem.  Physical deficiencies that may not warrant immediate attention but require repairs or replacement that should be undertaken on a priority basis over routine preventative maintenance work.
• Components or systems that have realized their typical useful expected life and where continued performance should not be relied upon or anticipated.
• Replacement Reserves: Replacement Reserves are recommended for recurring major capital expenditures that are reasonably predictable both in terms of frequency and cost.

Typical examples of this are roofing, parking, appliances, etc., which have a predictable expected useful life and replacement cost.  Replacement Reserves may also include components or systems that have an indeterminable life but nonetheless have a potential liability for failure within an estimated time period.

Determining whether some expenditure should be categorized as an operational and maintenance expense, capital reserve expenditure, or excluded altogether as a result of such costs being a tenant responsibility is sometimes subjective.  Since such cost classifications may have a major impact on the allocation of funds for replacement reserve and therefore on Net Operating Income (NOI), efforts were made to minimize such subjective determinations.  Such efforts consisted of reviewing historical replacement cost data, if provided by the owner/management, and discussions with the property management pertaining to historical failure rates, replacement programs, tenant responsibilities and categorization of such items, etc.

Estimated costs presented in this report are from a combination of sources.  The primary source is from National Construction Estimator, as well as BE Structural PCs’ past experience with construction projects.  When appropriate BE Structural PC solicited and obtained local sub contractor pricing, or utilized historical cost data provided by the property manager.  Replacement and Repair Cost estimates are based on approximate quantities.  Information furnished by site personnel or the property management, if presented, is assumed by BE Structural PC to be reliable.  A detailed inventory of quantities for cost estimating is not a part of the scope of this report.
 

BARRIER-FREE ACCESSIBILITY (ADA)

Background

Title III of the Americans with Disability Act (ADA has a provision for “places of public accommodation”.  In reference to this site, the provision requires the entrance, public areas and corridors to comply with the ADAcompliant with ADA requirements.  requirements.  Any “place of public accommodation”, which is designed and constructed for first occupancy after January 26, 1992 is required to be

Subpart C also requires an owner and/or tenant of a public accommodation, regardless of its age, to remove architectural barriers in existing facilities, including communication barriers that are structural in nature, where such removal is readily achievable, i.e. easily accomplishable and able to be carried out without much difficulty or expense.  The lease or other contract may determine allocation of tenant/owner responsibility.

Steps to comply with these ADA requirements will vary depending on the situation.

Readily achievable” is relative to the owner and/or tenant’s ability to accomplish it without undue burden.  Factors to consider include the overall financial resources of the site or sites; the overall size of the parent organization; and the nature and cost of the remedial action.

The ADA requires that any alteration to the subject site after January 26, 1992 be made to the maximum extent feasible to ensure facility access and usability by a disabled person. 

“Alteration” includes remodeling renovation, rehabilitation, reconstruction, historic renovation, and changes in structural elements or walls.  Normal maintenance, reproofing, painting or wall papering, asbestos removal, or changes to mechanical or electrical systems are not alteration unless they change the usability of the facility.

Considerations

The completed buildings were designed and constructed after the implementation of the Americans with Disabilities (ADA) and were designed to comply with this requirement.   Our survey of the Subject Property did not constitute an American with Disabilities Act (ADA) audit.  However, BEPC noted twenty handicap-designated parking spaces present on the Subject Property and 13 units that are ADA accessible.

Future additions, renovations, fit-outs, or alteration of the Subject Property may require proportional compliance with ADA requirements.  This determination should be made by the local governing authority when permit acquisition for renovations or additions are made.

QUALIFICATIONS         

Limiting Conditions

The recommendations submitted for the subject project are based on available information and details furnished by the maintenance and leasing office.  The observations andrecommendations presented in this report are time dependent, and conditions will change.  The findings in this Report are not based on a comprehensive engineering study.  During the site visit BEPC did not gain access to all areas, perform any destructive tests, or operate any specific equipment.

BEPC warrants that these findings have been promulgated after being prepared in accordance with generally accepted practice of the construction industry.  No other warranties are expressed or implied.  Our observations and resulting report are not intended to warrant or guarantee the performance of any building components or systems.

The representations regarding the status of ADA Title III compliance were based on visual observation and without any physical measurement and, thus are only intended to be a good faith effort to assist the client by noting non-conforming conditions along with estimates of costs to correct and are not considered to be based on an in-depth study.