The Different Types of Technical Due Diligence Surveys

The Different Types of Technical Due Diligence Surveys

Technical due diligence surveys are the overriding name given to building surveys which are undertaken to assist clients with acquiring, occupying or selling property. The phrase technical due diligence is sometimes used in reference to other surveys which tackle a specific issue such as defect diagnosis, or non-standard instructions which require analysis and evaluation of a property related issue. 

Pre-Acquisition Surveys 

Pre-acquisition surveys are the most common type of technical due diligence survey undertaken on commercial buildings. A pre-acquisition survey is undertaken on behalf of a client as part of their acquisition/purchasing process. A pre-acquisition survey will provide a description of the property and its construction. It will assess the condition of the property, looking at the short, medium and long term repair and maintenance items, and also advise on likely costs associated with these items. A pre-acquisition survey of a commercial building will also look at the various legal matters including existing leases, compliance with statutory regulations, health and safety issues and energy performance. 

The survey may also make comment on the performance and functionality of the building and potential asset management considerations. Depending on the complexity of the building and the clients requirements, other specialist consultants may be engaged to provide commentary on their area of expertise including mechanical and electrical consultants, cladding consultants and environmental consultants. 

Pre-Lease Condition Survey

A pre-lease condition survey is undertaken on behalf of a prospective tenant prior to them agreeing/finalising a lease. As with a pre-acquisition survey a pre-lease condition survey will review the condition of the premises, maintenance requirements etc. The main difference is that the survey and report will give greater emphasis on items which may impact the occupation of the tenant, and items which are likely to have more short term significance. 

A pre-lease condition survey of a commercial building should also consider the incoming tenants specific lease terms, as this will help determine the significance of the issues raised. Sometimes a pre-lease condition survey will also be undertaken in conjunction with a schedule of condition, or may lead to the requirement for a schedule of condition to be appended to the lease. It is of benefit that a commercial building surveyor understands how a specific tenant may operate and their particular fit out requirements as this can provide added value to the survey report. 

Vendor Surveys 

Vendor surveys are instructed and undertaken on behalf of the seller of a property. The purpose of a vendor survey report is to provide prospective buyers with an overview of the property which should sufficiently inform the likely purchaser to the extent that they understand the issues of significant with the property which will then enable them to take a considered approach to the acquisition process. This should lead to a more robust and credible list of prospective purchasers as opposed to those who may pull out of an acquisition owing to concerns raised later on in the process. The contents of commercial building vendor survey report should be similar to that of a pre-acquisition survey, although the level of detail may be less dependent on the clients approach. 

Defects Diagnosis 

Defects diagnosis surveys are sometimes referred to separately from technical due diligence surveys although some commercial building surveyors include them under the umbrella of technical due diligence. Defect diagnosis surveys are a specific instruction to assess the cause of a building defect, and to advise upon further investigation and testing requirements to ascertain the exact cause, and to then provide recommendation for remediation. 

Other/ Instruction Specific 

Owing to commercial building surveyor’s expertise in relation to property, sometimes clients will require a specific report or survey which falls outside of the more common service lines. This may be to assess a specific issue with a property such as compliance with fire safety provisions; reviewing the quality and workmanship of works undertaken and managed by others; assessing the condition and compliance of a property in accordance with specific client guidance (more common with government departments) and many other client specific instructions. These generally fall under the technical due diligence umbrella. 

We hope you found this building surveying blog helpful, at Commercial Building Surveyors, we offer Technical Due Diligence surveys in the following parts of the UK: Technical Due Diligence Bristol, Technical Due Diligence Manchester, Technical Due Diligence London, Technical Due Diligence Cardiff

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