Technical Due Diligence

Technical Due Diligence is a process that includes performing an objective inspection and evaluating the technical condition of a property. Whether you are an investor, a developer, a corporate organization, a landlord, a tenant, a property manager or a seller, having comprehensive knowledge of the actual condition of your target property allows you to identify technical risks and defects that are hidden from plain sight, which will help you to assess what impact these deficiencies may have on the operating costs and useful lifetime of the property.

Our high level of technical expertise enables us to review and assess a property’s actual technical condition, outline a cost estimate to remove defects, create investment budgets to make potential renovations and reconstruction works, perform CAPEX calculations, review statutory permits and approved design documentation, review compliance of the property’s actual usage, weigh the impacts of neighbouring properties and infrastructure, and review contractual warranties.

Type of Property

Office and multi-functional buildings (TFA)
Manufacturing and Logistics facilities (BUA)
Hotels (TFA)
Apartment buildings and Private residences (TFA)
Infrastructure and Transport (BUA)

Basic

Undertake a visual, non-intrusive and non-destructive inspection of the property and for each key element of the Property describe the nature, precise location and provide a photograph of any defects discovered and of any deleterious or hazardous materials discovered.
Make recommendations for any special testing, more intrusive inspections, or inspections by specialists that may be required to determine the nature of potential defects that can not be fully accessed by visible inspection only.
Provide an outline cost estimate for any major defects identified and a recommended time frame for undertaking the repairs.
Identify any neighbouring land or buildings that are used in the operation of the Property but not owned by the Property, or any encroachments by neighbours on land owned by the Property, that should be the subject of easement agreements. (Checking of easement agreements will be part of the legal due diligence)

Design

Review the Environmental Impact Assessment (EIA) statement, Planning permit, Construction Permits, Occupancy Permit, and any permits issued for post-occupation alterations, made available to us, and report on any conditions or restrictions on current or future use.
Provide an assessment of the flood risk for the property.

Permits

Review the available design documentation relating to the construction of the Property and any subsequent reconstructions, alterations and fit-outs for completeness only.
Review the Building Energy Certificate, if it exists, and summarise the key points.
Review any existing recognised independent sustainability accreditation, such as LEED or BREEAM, and summarise the key points.

Property and Facility Management extent A

Review any Facility Management records made available and:
- Review the service plan for all technological, mechanical and electrical equipment being regularly maintained and serviced and comment on its completeness and fitness for purpose.
- Review the initial and periodical revision reports, test certificates and certificates from expert inspections for technological, mechanical and electrical equipment and technical plant rooms that require regular statutory revisions, tests and inspections. Undertake and report on a random check to verify that the revision reports, test certificates and certificates from expert inspections are valid and have been correctly issued.
- Review the system for reporting and remedying breakdowns and defects. Report any abnormal building maintenance issues that are not consistent with the age of the property or not related to normal wear and tear.

Property and Facility Management extent B

Review the code compliance certificates or declarations of performance for technological, mechanical and electrical equipment. Undertake a random check to verify completeness.
Review the operation and maintenance manuals for technological, mechanical and electrical equipment. Undertake a random check to verify completeness.
Review the maintenance staff training certificates to verify that they are appropriately qualified to carry out the maintenance activities that they are undertaking.
Review the Staff Health and safety training protocols and Staff Emergency procedures training protocols and comment on their completeness.
Review the building users’ manual and comment on its fitness for purpose.
Review the emergency plans and comment on their completeness and fitness for purpose.
Confirm whether an inventory of all “moveable” items (FF&E) in addition to the real estate asset exists or not.

Optional additional services

Organising any special testing, more intrusive inspections, or inspections by specialists that may be required to determine the nature of potential defects that are not fully identifiable by visible inspection only. It is understood that ordering of such inspections is not subject to Client´s prior approval and is fully upon reasonable consideration of Consultant. However Consultant is obliged to inform Client about such orders and about objective reasons prior to the arrangement of such inspections.
Checking compliance of construction with the as-built design.
Technical advisory provided after issuance of the Red Flag or Final Reports, including assisting the Client with negotiations to reach agreement on the remedy of technical issues or appropriate financial compensation for their remedy at a later date.

Technical Due Diligence