Property Condition Assessments (PCA)
Intertek is a multinational inspection, testing, and certification company that provides various services across different industries. A Property Condition Assessment (PCA) is a walk-through survey of the physical condition of a property, typically conducted as part of the due diligence process for commercial real estate transactions, or as a guide during capital planning to understand the facility’s condition.
During a PCA, Intertek's team of experts, which may include architects, engineers, and construction quality control specialists, conduct an assessment of the readily accessible components of the systems within the property to provide opinions of their conditions. The assessment typically includes the following components:
Site Improvements: Identifies and observes the property's exterior areas, including the parking lot, landscaping, drainage systems, and other site features.
Structural Systems: identifies and observes the structural components of the building, including the foundation components, floors, walls, and roof components.
Building Envelope: Identifies and observes the building's exterior components, such as the roof, walls, windows, and doors.
Mechanical and Electrical Systems: identifies and observes the building's HVAC (heating, ventilation, and air conditioning) systems, plumbing, and electrical components.
Plumbing Systems: Identifies and observes the buildings plumbing systems, including: sanitary, storm, and supply water lines, fixtures, domestic hot water production, and any unique plumbing systems.
Life Safety and Fire Protection Systems: identifies and observes the life safety and fire protection systems, including fire alarm systems and related components, fire sprinkler systems and related components, fire extinguishers, smoke detectors, emergency lighting, etc.
Vertical Transportation: Identifies and observes the type, and the number of cabs or escalators. The overall condition is assessed as well as cab finishes, call and communication equipment, and whether or not there is a service contract in place.
Additional Considerations: Identifies and observes the property for compliance with applicable building codes and guidelines related to natural disasters, insect/rodent infestation, mold, environmental concerns, ADA/FHA, and indoor air quality..
Documentation Review: Intertek reviews available documentation related to the property, including maintenance records, permits, and previous inspection reports, to gain additional insights into the property's history and any ongoing issues.
Once the assessment is complete, Intertek provides a Property Condition Report (PCR) that outlines the observations and opinions developed during the assessment, including observed deficiencies, recommendations for repairs or further investigations.
It's important to note that the specific scope and depth of a Property Condition Assessment can vary depending on the client's requirements, the size and complexity of the property, and applicable industry standards or regulations.
The Need for Property Conditions Assessments
Property Condition Assessments (PCAs) provide valuable information to clients in support of general building maintenance and due diligence real estate transactions. Performed in accordance with ASTM E2018, PCAs are a baseline assessment of the developed property to determine the general condition and when capital expenditures will be required to maintain the property, both functionally and marketability for its intended use.
Owners, buyers, and lenders rely on PCAs to make informed decisions regarding the possible risk and liability issues associated with the high cost of repairing and/or replacing building components such as roofs, curtain walls, and pavements. Furthermore, the condition of the less visible, and sometimes neglected, mechanical, electrical, and plumbing systems of a facility can also have a significant impact on the value of the property.
Proper due diligence is not just a good idea, it is a necessity. With it, you have a better understanding of the situation, the risks, and solutions. Without it, you risk the unknown and future time, money, and headaches.
The Property Condition Assessments typically address the following areas:
- Structural Systems
- Roofing Systems
- Mechanical, Electrical, and Plumbing Systems
- Exterior Wall Systems
- Life, Safety, and Building Codes
- ADA Compliance
- Other considerations (natural disasters, mold, environmental concerns, etc.)
PCRs, provide an easy-to-use report detailing the property’s major building systems for current condition as well as the remaining useful service life, projected system maintenance and replacement costs. A PCR may also include remediation recommendations and options that enable owners to make an informed, value-based decision.
The typical scope of services includes:
- Review of available construction documents
- Visual observation of the buildings and grounds
- Photographic documents of general conditions
- Report of our findings and conclusions
- Tabulated analysis of immediate needs costs
- Capital reserves analysis
Our Clients Include:
- Lenders, Equity Partners, Buyers, Sellers, Owners and Developers
Third Party Reviews
Provided as an independent review of environmental documents prepared by others, we provide opinions on compliance with ASTM standards and if data and results are commensurate with the conclusions and recommendations.
Probable Maximum Loss (PML) Assessments
PML Assessments provide a risk factor for probable maximum loss (PML) in the case of earthquakes. Often done in conjunction with a PCA and regionally required, they are a routine part of PCAs in states where ground shaking is a common occurrence.
Depending on the client’s risk tolerance, Intertek also provides more enhanced assessment of the entire property or individual systems on a case-by-case basis. These may include enhanced building enclosure, MEP, vertical transportation, accessibility, energy audits, and climate risk assessments.