Property condition assessment versus the due diligence report
A property condition assessment (PCA) includes a review of a commercial building’s systems to evaluate deferred maintenance items that can materially affect the operation and value of a property. Building systems that may be assessed include the foundation, roof, HVAC, electrical, plumbing, vertical transportation, accessibility features, landscaping, paving, fire safety features and building envelope (windows and walls). The report that comes out of this assessment can help the client understand how the condition of the building will impact the asset's financial performance. A property condition assessment is appropriate for real estate transactions that are larger in nature, such as a warehouse, office space or apartment complex.
BE Structural offers property condition assessment reports per the ASTM E 2018 standard, which defines good commercial practice in the United States of America for conducting a baseline property condition assessment. The report consists of a walk-through survey that includes extensive photo documentation, a document review and interviews to augment the survey. It also includes opinions of probable costs for suggested remedies of the physical deficiencies identified. The report does not identify minor repairs or maintenance items which are part of the property owner’s current operating budget, as long as those items appear to be taken care of on a regular basis. Instead, the report addresses infrequently occurring “big ticket” maintenance items that normally involve significant expense or outside contracting.
In contrast, the due diligence assessment that BE Structural can provide to property buyers focuses on the evaluation and condition appraisal of structural symptoms. It is more appropriate for residential or smaller commercial transactions, or in non-real estate transactions when an issue is suspected. A due diligence assessment is often requested after a home inspector examines a property and recommends hiring an engineer to further investigate a suspected issue. Sometimes, an astute homeowner will notice a potential issue and request a due diligence assessment to examine it further. Some of the concerns addressed in a due diligence report may include damage from wind and water, foundation damage, cracks in the floor of walls, visible aesthetic concerns.
BE Structural can offer you an assessment that is appropriate to your situation, regardless of the size of the transaction. Contact us today to discuss your needs and concerns, and work out an appropriate solution.