Buying commercial property is a significant commitment of money and time. BC Warner Inspections provides Property Condition Assessment (PCA) services based on a client’s risk tolerance level, budget, and transaction time constraints. Such services may range from conducting an ASTM E2018 baseline, walk-through survey to an enhanced due diligence approach encompassing a team of technical specialty consultants and professionals.
To ensure a potential property is a worthwhile investment a “PCA” evaluates the overall condition of the building(s) and site improvements, key building systems, and mechanical/electrical components. When requested, the PCA may also report on associated short and long-term maintenance costs or recommendations. PCA’s assist lenders or buyers in understanding how the condition of the building and site improvements will impact the asset’s final financial performance.
In general the Property Condition Assessment includes three main components:
The walkthrough or site visits:
The walkthrough portion identifies needed maintenance items, physical deficiencies, and long term maintenance requirements. It involves the visual examination of many elements including mechanical, air handling, plumbing and electrical systems, building shell and structural members, and exterior site improvements and systems.
Interviews with key site personnel:
Interviews with key personnel (when permissible) can provide crucial information regarding the age, condition, and maintenance history of significant building and property components such as roofs, exterior, and mechanical systems.
Examination of documents:
Document reviews can help identify the age of the building and site improvements, repairs or upgrades to the improvements, building or fire code violations, physical deficiencies, and any efforts to improve, investigate or remediate deficiencies. Document reviews are important to validate information gathered from interviews and confirm observations made during the site visit.
While all three components are important to provide clients with objective and critical information about the subject property, interviews and document reviews are often omitted for various reasons including time constraints, limited cooperation from key personnel, and poor record keeping practices. As such, the site visit becomes the prime component for accurate and detailed observations. The inspector’s experience, observation, and reporting skills become key to discovering important issues that may be present.
What Do You Receive After a PCA?
The commercial building inspector will gather a significant amount of data during the commercial inspection. The inspector will then analyze and transcribe that data into a Property Condition Report or “PCR” (otherwise known as a Commercial Inspection Report). The PCR features immediate repair and deferred maintenance items, along with recommendations for action. The PCR highlights items requiring immediate action to correct existing or potential unsafe conditions, building code or fire code violations, or conditions that may result in critical failure or significant costs if left uncorrected.
Examples of immediate repair and deferred maintenance items would be a failing roof system, electrical hazards, or structural damage. The PCR may also be included as part of a Capital Replacement Reserve Costs Table or other type of summary which discusses long term maintenance expenses that are typically based on the expected useful life of the building systems and components. This type of reporting is considered a “technically exhaustive due diligence” type of report and usually entails a higher cost to the client. A typical user of this service would be a coalition group. Examples of replacement reserve items include pavement seal coating and striping, exterior painting, HVAC system replacement, roof maintenance and repairs, etc.
We Network with Specialists When Needed!
BC Warner Inspections is knowledgeable and skilled in commercial property inspections. On the occasion we may find that our particular knowledge or skill level is just not enough for the subject property or requested services, we maintain relationships with a network of expert specialists in every building system to ensure our clients achieve their goals in gathering the information required. When specialists are utilized, the specialist reports can then be folded into the Property Condition Report.