Schedule of Condition vs Condition Survey – What is the difference?

Schedule of Condition vs Condition Survey – What is the difference?

What is a Condition Survey (Schedule of Condition)? 

A condition survey can go by many names, sometimes referred to as a technical due diligence survey, a building survey, pre-acquisition or pre-lease commencement survey. No matter the name, the intention of the survey is to provide your client with a holistic overview of the condition of the property including other associated matters.   

In contrast, a schedule of condition is drafted to create a precise record of the building fabric and associated elements, specifically looking at the condition of the building at that precise moment. Schedules are often produced before the start of a lease term to reduce a tenant’s lease obligations/liability; or preceding works to a building, often in association with agreement of a Party Wall Award.

What is included in a Condition Survey?

A condition survey report will include a summary of the specific property, including its location, layout, use class, and overview of the buildings construction. A condition survey will include an executive summary which highlights any significant issues with the building fabric, mechanical and electrical systems, legal matters, environmental issues and any other relevant matters. The main body of the condition report will expand on the construction and condition of the property, providing the instructing party with greater detail on the issues raised. Other sections will also include a summary of legal matters, such as existing tenants, rights of way, compliance with statutory regulations etc. More often than not a reinstatement cost assessment is produced as part of the instruction which is a calculation of the cost to re-build the whole property following destruction (by fire or another form). The appendices will incorporate a costed schedule summarising the repair and statutory compliance items which need to be completed over the coming 10 years. 

A schedule of condition report will include a concise overview of the building including the location, construction, use class, layout, size etc. and a brief summary of the condition. The schedule also defines the condition ratings which are used as a benchmark for defining the condition in the main body of the report. These are often defined as very poor, poor, reasonable, good and very good condition. The main body of the schedule will provide a description of the particularly building component, summarise the condition with an appropriate rating and include photograph of the element referred to. 

When do I need a Condition Survey and why?

A schedule of condition is required before the commencement of either a lease, or building works. The purpose is to limit a certain party’s liability so they are not responsible for putting an element of the building into any better state of repair than referenced in the schedule. The schedule will need to be drafted by one of the parties representatives although should be checked, approved and signed by all relevant parties. The schedule should be produced as close to the commencement of either the works or the lease to ensure the items recorded are as accurate a reflection of the condition as possible. Sufficient detail should be incorporated into the schedule to enable the contents to be checked following lease expiry or completion of the works which could be a significant time after the schedule has been prepared. 

Condition surveys are most often undertaken as part of prospective buyer’s pre-purchase assessments when they are in the process of procuring a commercial building. They can also be undertaken on the behalf of incoming tenants before leasehold occupation. Although not as common, the vendors of a building sometimes have a report produced which sets out the condition of a building. They can then pass this to prospective buyers which assist with showing them any major issues before interest is declared. The surveys should be undertaken at the earliest possible opportunity to enable due consideration to be given to the findings of the report. 

How much does a condition survey cost?

The cost of either instruction will be dependent upon a number of factors including the size, type and intricacy of the property. A schedule of condition can cost between £750.00 – £7,500.00. A condition system is likely to cost between £1,000-£10,000 for a commercial building surveyor and then additional costs for other relevant consultants, which could add another £1,000.00 – £8,000.00. Normally surveys will require the use of a MEWP to obtain access to the roof. 

At Commercial Building Surveyors, we offer condition surveys in the following locations: Condition Survey Bristol, Condition Survey London, Condition Survey Manchester, Condition Survey Cardiff