What is Included in a Technical Due Diligence Survey Report?

What is Included in a Technical Due Diligence Survey Report?

The following sets out the typical contents of a technical due diligence survey report of a commercial property. 

Executive Summary

The executive summary will provide a brief overview of the contents of the report, focusing on items of significance which should provide a client with sufficient details to understand whether the proposed acquisition proposals a low, medium or high risk. 

The executive summary will include an overview and condition summary of the structure and fabric, and mechanical and electrical engineering services. A condition rating will often be applied to these elements to highlight the level of risk. It will also provide high level commentary on health & safety and compliance matters; energy performance and sustainability; deleterious materials; legal & title issues; recommendations for further investigation; estimated costs; and conclusion and suitability for purchase. 

Scope of Instruction and Brief

The introduction will set out the reason for the commercial property survey, the property address, and the name of the instructing party. It will also summarise the documentation which has been provided and reviewed as part of the process. It will also advise on any limitations of the survey and confirmation of other consultants involved in the process. 

Property Description  

The property description provides a summary of the building location, type, construction, use class, arrangement etc. 

Each element of the building is described in greater details under relevant sub-headings which are often: sub structure; superstructure (frames and walls); floor structures; roof and rainwater goods; external doors and windows; internal walls, ceilings, doors and finishes; staircases and cores; welfare accommodation; and external areas.

The mechanical and electrical report will also include a description of the various service installations. 

Building Condition 

Following the description of the building element will be commentary upon the condition of the various items. This section will highlight any defects identified and will provide recommendations for further investigation and remedial works. A condition rating will be applied to each of the issues highlighted which will assist with clarifying the significance and associated risk.

Legal and Statutory Issues 

A section will be included on legal matters which will advise upon any risk associated with works which may not have obtained planning consent or building regulations. It will also comment upon the Title, existing leases and their relevance, Wayleave agreements, rights of way, and Party Wall matters. There may also be a requirement to make comment upon contract and warranty documentation.

Environmental Matters

As a minimum, environmental matter will look at the EPC rating of the building and may also provide advice on energy improvements that could be made to the building. The report may also discuss issues surrounding environmental assessment criteria if the building was constructed or has undergone a refurbishment that obtained an accreditation. If an ecology report is provided as part of the technical due diligence process then a full Phase 1 report will likely be provided outlined risk in regard to contaminated land, flood risk, historic mining, soli conditions etc.

Deleterious/Problematic Materials 

Commentary will also be included regarding assumed and identified deleterious materials. Deleterious materials are those that pose a risk to the building, either due to the health and safety risk to occupants, structural instability, or lack of reliability/life span.

Reinstatement Cost Assessment 

A reinstatement cost assessment is often provided as part of a technical due diligence survey. The reinstatement cost assessment calculates the costs of reconstructing a commercial building should it be damaged by an insured risk 

Appendices

The appendices will often include a more detailed breakdown of the estimated repair and maintenance costs. It will also provide the workings and assumptions made as part of the reinstatement cost assessment exercise. A sample of photographs will be included for reference and a company’s terms and conditions will also likely be appended to the report. 

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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