DMG Corporate - Property Condition Assessments

Commercial Building Inspections, Engineering Services, Real Estate Development

Commercial Building Inspections and Testing

PCAs are often required prior to the purchase, sale or refinancing of a property.

A PCA includes a visual assessment of the conditions of the property elements, building(s) and related structures (i.e., structural and roofing systems, electrical/mechanical systems, paved areas, architectural finishes, drainage, fire protection, etc.).

Approximate cost estimates for repairs, upgrading and replacement are provided. Some clients also require anticipated capital needs for major replacements and repairs over the life of the mortgage.

DMG’s PCA will include but not be limited to the following work scope:

Walk-Through Survey:

Objective: The objective of the walk through survey is to visually observe and obtain information on materials systems and components of the general condition of the subject property. This is intended for the purposes of providing a brief description, identifying physical deficiencies to the extent that they are observable, and obtaining information needed to address the format of the Property Condition Report.

Photographs: Consultant will document representative conditions with photographs and use reasonable efforts to document typical conditions present including material physical deficiencies, if any. Photographs will include as a minimum: front and typical elevations and exteriors, site work, parking areas, roofing, structural systems, conveyance systems, life safety systems, representative interiors and special or unusual conditions present.

Observations of the site to include:

Topography: Observe the general topography and any unusual or problematic features or conditions.

Storm Water Drainages: Observe the storm water collection and drainage system and note the presence of on-site surface waters, and retention or detention basins.

Ingress and Egress: Observe the major means of ingress and egress.

Paving, Curbing and Parking: Observe the material paving and curbing system. Identify the types of parking, that is, garage, surface, subsurface, etc., the number and type of parking spaces, and the reporting inadequacies.

Flatwork: Observe sidewalks, plazas, patios, etc.

Landscaping and Appurtenances: Observe landscaping (tress, shrubs, lawns, fences, retaining walls etc.) and material site appurtenances (irrigation systems, fountains, lighting, signage, ponds, etc.)

Recreation Facilities: Observe on-site recreations facilities.

Utilities:

Observations: Identify type and provider of the material utilities provided to the property (water, electric, natural gas, etc.)

Special Utilities System: Identify the presence of any material special on-site utilities systems such as water or waste treatment systems, special power generation systems etc. Identify material system information, such as system type, manufacturer, system capacity, system age, system operator, etc.

- Out of Scope issues: Operating conditions of any systems or accessing manholes or utility pits.

Structural Frame and Building Envelope:

Observations: Observe the building substructure, including the foundation system (noting the presence of cellars, basements, or crawl spaces) buildings superstructure or structural frame (floor framing system and roof framing system), building envelope including facades or curtain wall system, glazing system, exterior sealants, exterior balconies, doors, stairways, parapets, etc. Observation of the buildings exterior is generally to be limited to vantage points that are on-grade or from readily accessible balconies or rooftops.

Out of Scope issues: Entering of crawl or confined space areas (the consultant will observe conditions to the extent easily visible form the point of access to the crawl or confined space areas).

Roofing:

Observations: Identify and observe the material roofing systems (exposed membrane and flashing) including, parapets, slope, drainage, etc. Observe for evidence and/or the need for material repairs, evidence of significant pounding, or evidence of roof leaks. Inquire as to the age of the material roofing system(s) and whether a roof warranty or bond is reported to be in effect.

Plumbing:

Observations: Identify and observe the material plumbing systems including piping (sanitary, storm and supply water) fixtures, domestic hot water production, and note any special or unusual plumbing systems.

Heating:

Observations: Identify the material generating and distribution systems and the apparent or reported age of the equipment, past material component replacements/upgrades, the apparent level of maintenance exercised, and whether a maintenance contract is reported to be in place. If heating equipment is shutdown or not operational at the time of inspection, the consultant will provide an option of the condition to the extent observed. Observe any special or unusual heating systems or equipment present, such as solar heat.

- Out of Scope issues: Observation of flues or interior of chimneys.

Air Conditioning and Ventilation:

Observations: Identify the material air-conditioning and ventilation systems including cooling towers, chillers, packaged units, split systems, air handlers, thermal storage equipment, material distribution systems, etc. Identify the apparent or reported age of the material equipment, past material component upgrades/replacements, apparent level of preventive maintenance exercised, and whether a maintenance contract is reported to be in place. If air conditioning and ventilation systems are shutdown or are not operational at the time of inspection, the consultant will provide an opinion of the condition to the extent observable. Identify any special or unusual air conditioning and ventilation systems or equipment, such cold storage systems, special computer cooling equipment, etc.

Electrical:

Observations: Identify electrical service provided and observe the electrical distribution system including distribution panels, transformers, meters, emergency generators, general lighting systems, and other such equipment or systems. Observe general electrical items such as distribution panels, type of wiring, energy management systems, emergency power, lighting protection etc.

Vertical Transportation:

Observations: Identify equipment type, number of cabs, capacity, etc. Observe cabs, finishes, call and communication equipment, etc. Identify whether a maintenance contract is in place and if so identify the service contractor.

- Out of Scope Issues: Examining of components in the elevator pit or shaft.

Life Safety/Fire Protection:

Observations: Identify and observe life safety and fire protection systems, including sprinklers and standpipes (wet or dry) fire hydrants, fire alarm systems, water storage, smoke detectors, fire extinguishers, emergency lighting, etc.

Interior Elements:

Observations: Observe typical common areas including but not limited to, lobbies, corridors, assembly areas and restrooms. Identify and observe typical finishes that is flooring, ceilings, walls etc.

UBC Codes:

Observations: assessment in accordance to all local UBC codes for Compliance

Seismic Designations:

Observations: Visual summary of building(s) for all retrofitting in accordance to earthquake compliance. View all local and regulatory agencies for structural violations

Options of Probable Cost to Remedy Physical Deficiencies:

Purpose: Based upon the walk-through survey general scope opinions of probable cost are to be prepared for the suggested remedy of the material physical deficiencies observed. These options of probable cost are to assist the user in developing a general understanding of the physical condition of the subject property.

Scope: Opinions of probable cost will be provided for material physical deficiencies but not for repairs or improvements that could be classified as: (1) cosmetic or decorative (2) building renovation or tenant improvements/finishes (3) enhancements to reposition the property in the market place (4) warranty transfer purposes (5) routine or normal preventative maintenance, or a combination thereof.

Actual Cost: Options of probable cost should only be construed as preliminary budgets. Actual cost most probably will vary from the consultants’ options of probable cost depending on such matters as type and design suggested remedy; quality of materials and installation, manufacture and type of equipment or system selected, quality of contractor, market condition and weather competitive pricing is solicited, etc.

Property Condition Report Writing Protocols:

Suggested Remedy: For each material or physical deficiency, the consultant will provide a suggested remedy, which will include a suggested remedy, which may include recommending further research or testing, or both, if appropriate in the consultants’ option.

Documentation: The PCR will include pertinent documentation such as photographs, copies of material building department records, material fire department records and building code violations notices to the extent reasonable, certificates of occupancy, copies of repair cost documentation submitted by owner or owners representative, contractors or agents. All photographs will be labeled or correlated to the PCR’s text. The PCR will also provide written comprehensive and photographic findings which includes a description, condition, life expectancy and cost summary on all major building components for the following:

Visual assessment and physical inspection are based on the components operational use during the time of the inspection and is conducted in accordance with the proposed work scope. Hidden or concealed defects cannot be included in this report. No warranty is either expressed or implied. The report is not an insurance policy, nor a warranty service.