Professional Inspection Services

Also referred to as a Commercial Building Inspection.

A Property Condition Assessment (PCA) is a walk-through examination of the physical condition of a property, typically executed as part of the due diligence process for commercial real estate transactions or as a compass during capital planning to understand the facility’s condition. A PCA and PCR have varying degrees of comprehensiveness.

A Property Condition Report (PCR) outlines the observations and opinions generated during the PCA regarding discovered deficiencies and notes recommendations for repairs and further investigations.

What is the inspector’s process for a PCA and PCR?

• The inspector will interview the client; this may include management, maintenance teams, and property owners.

• The inspector will request and review all available construction, maintenance, and compliance documents.

• The inspector will research the property with local agencies to ensure compliance.

• The inspector will perform a physical walk-through and gather photographs of the property.

• The inspector will use the data from the PCA to write the PCR.

What does the inspector examine onsite during a PCA?

Ultimately, it is the client who decides the comprehensiveness of the assessment, it can be limiting and brief or comprehensive.

• Site Improvements: exterior areas, including the parking lot, landscaping, drainage systems, and other site features

• Structural Components: foundation components, floors, walls, and roof components

• Building Envelope: roof, walls, windows, and doors

• Mechanical and Electrical Systems: HVAC (heating, ventilation, and air conditioning) systems, plumbing, and electrical components

• Plumbing Systems: 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: life safety and fire protection systems, including fire alarm systems and related components, fire sprinkler systems and associated components, fire extinguishers, smoke detectors, emergency lighting, and other special equipment for protection purposes

• Vertical Transportation: type and number of cabs or escalators, overall condition, cab finishes, call and communication equipment, and service contracts

• Additional Considerations: compliance with applicable building codes and guidelines related to natural disasters, insect/rodent infestation, mold, environmental concerns, ADA/FHA, and indoor air quality

Note that considerations for WDO are not equivalent to ODAFF-1, and considerations for ADA are not equal to ADA Compliance and Accessibility Survey. Nor are considerations for mold and organic growth the equivalent of Mold Testing or an Air Quality Test. We will provide supplementary inspection and testing services to the PCA and PCR that can fulfill requirements for further reporting for these items; see secondary services below.

• Previous/Existing Documentation Review: maintenance records, permits, and previous inspection reports

Who should have a PCA completed on their commercial property?

Clients suited for a PCA and PCR are borrowers, lenders, owners and sellers, facility managers, and investors. Events triggering a PCA can include responsible and effective building management or a real estate transaction.

What types of buildings require a PCA and PCR?

Office buildings, apartment complexes, industrial warehouses, hotels, hospitals, schools, churches, retail spaces, commercial kitchens, and more are suited for a PCA and PCR.

For a more comprehensive inspection, consider additional services to the PCA and PCR.

• ADA Compliance and Accessibility Survey

• Air Quality Testing

• Radon Testing

• Mold Testing

• Water Testing

• Termite & WDO

• Sewer Line Scoping

•Virtual Property Tour

(See the additional services section above to reference further descriptions of each additional service.)

Also referred to as Facilities Operations Budget or Maintenance Plan.

A Maintenance Strategy Program is an additional service to the Property Condition Assessment and Property Condition Report and either a Cost to Cure Report or a Reserve Study.

The objective of a Maintenance Strategy Program is to guide a building owner through the budgeting, planning, and execution of maintenance inspections, repairs and replacements, and prevention of unnecessary catastrophic repair expenses.

A Maintenance Strategy Program offers a commercial building owner a more preventative approach to building maintenance by having a building inspection followed by cost estimates and further ongoing strategy and consulting.

What does a Maintenance Strategy Plan include?

The development of a Maintenance Strategy Program is a three-step process.

1. A Property Condition Assessment and Property Condition Report provides an overall baseline of the property’s condition.

2. A Cost to Cure Report or Reserve Study provides expense details outlining the immediate and or forecasted costs to repair and replace items listed within the PCR.

3. Details from the Cost to Cure Report or Reserve Study help to design an individualized Maintenance Strategy Program. All items fall into one of three classifications of maintenance.

(Note: A more comprehensive and long-term plan can include a Reserve Study, which forecasts the costs of improving building and property deficiencies for up to 30 years using useful life estimates and inflation as modifiers. Useful life estimates help organizations make decisions concerning whether to continue to maintain equipment or replace it.

Why is a Maintenance Strategy Program essential?

Neglecting maintenance items can have disastrous consequences, such as disrupting operations, harming productivity, and even contributing to customer and employee dissatisfaction. Prevent these consequences by implementing an appropriate maintenance strategy for your building and business type that fits your budget and time constraints. We highly recommend ongoing inspections to keep the Maintenance Strategy current.

How else can a Maintenance Strategy Program benefit a company’s bottom line?

Forecasting and planning for expenses are the most important reasons a company needs to consider a Maintenance Strategy Program. However, there are always surprise maintenance issues; many problems that develop in a commercial building are avoidable and even preventable.

A Maintenance Strategy Program can benefit a building or business owner by using it as a Pre-Loss Insurance Inspection report. 

The Maintenance Strategy Program is a great way to outsource the salary cost of a maintenance or facilities director. The program benefits small businesses needing guidance in maintaining their buildings, like doctors’ offices or daycares, but don’t have a maintenance worker on staff.

 A Maintenance Strategy Program helps keep the person who is fulfilling the maintenance position accountable. 

For a more comprehensive inspection, consider additional services to the PCA and PCR.

• ADA Compliance and Accessibility Survey

• Air Quality Testing

• Radon Testing

• Mold Testing

• Water Testing

• Termite & WDO

• Sewer Line Scoping

•Virtual Property Tour

(See the additional services section above to reference further descriptions of each additional service.)

Also referred to as a Reserve Analysis, Reserve Table, or Capital Reserve Study.

The Capital Reserve Forecast is an additional service to the Property Condition Assessment and Property Condition Report.

A Capital Reserve Forecast is a multiple-year plan that forecasts a property’s expected expenses in repairs, replacements, and enhancements by considering the current condition and remaining useful life based on the findings from a Property Condition Assessment. A five-, ten-, or fifteen-year analysis is most common, especially for small businesses.

What does a Capital Reserve Forecast include?

• Property Summary and Property Description

• Property Condition Assessment and Property Condition Report

• ADA Compliance and Accessibility Survey

• Code Compliance Research

• Replacement Reserves Table

Why is a Capital Reserve Forecast critical?

A Reserve Forecast is the first step to determining long-term maintenance costs because it helps determine what short-term repairs will cost and helps forecast a budget to account for future known and expected repairs and replacement expenses by evaluating the life expectancy of the systems within a property. For example, we can determine the cost to replace a malfunctioning hot water tank today and report the amount it will cost to replace it in two or four years by using inflation as a modifier. These services aid long-term planning, infrastructure maintenance, and regulatory compliance. All calculations have a 20% variance on actual labor, materials, and equipment prices. Estimations are from local sources and RSMeans Building Construction Costs Book.

Note: A Reserve Forecast is a great way to outsource a large portion of the cost of a facilities director, provide a roadmap for the facilities management team to implement, and avoid costly assessments throughout the years.

Who needs a Capital Reserve Forecast?

The ideal client for a Capital Reserve Forecast manages or purchases a commercial investment property that generates an income or requires an ongoing maintenance plan conducted by a facilities director. The owner may or may not be operating a business(es) within the buildings. Some states and municipalities require apartment communities to perform regular Capital Reserve Forecasts with rotating inspections. Finally, some boards of directors need ongoing Capital Reserve Forecasts to make informed decisions regarding distributing funds to the business entity.

Are there specific types of commercial buildings that should obtain a Capital Reserve Forecast?

Building types best suited for a Capital Reserve Forecast are multifamily residential complexes, income-generating commercial buildings like retail spaces, hotels and motels, schools and large churches, and office suites.

Where can I learn more about RSMeans and its relation to a Capital Reserve Forecast?

“The 2024 RSMeans Building Construction Costs Book continues to be the most used, quoted, and respected unit price guide for building construction estimators across North America. The Building Construction unit price book with RSMeans data contains over 23,000 lines of costing data that has been fully refreshed with the latest construction costs from our proprietary construction estimating database. The data contained in this book is meticulously assembled by industry-leading teams of cost researchers, project engineers and data scientists.” (RSMeans)

For a more comprehensive inspection, consider additional services to the PCA and PCR.

• ADA Compliance and Accessibility Survey

• Air Quality Testing

• Radon Testing

• Mold Testing

• Water Testing

• Termite & WDO

• Sewer Line Scoping

•Virtual Property Tour

(See the additional services section above to reference further descriptions of each additional service.)

Also referred to as a Cost to Cure Report.

An Opinion of Cost Report is an additional service to the Property Condition Assessment and Property Condition Report.

An Opinion of Cost report compiles cost estimates for immediate improvements and enhancements to the property based on the findings from a Property Condition Assessment. It helps determine the necessary funds to set aside to cover immediate expenses.

Why is an Opinion of Cost Report crucial?

An Opinion of Cost Report aims to provide the business owner or building owner with short-term budgetary estimations and determinations that will allow them to make an informed decision regarding purchase and construction. The opinion of cost is a 20% variance on current and actual labor, materials, and equipment prices gathered from local sources and RSMeans Building Construction Costs Book.

Who needs an Opinion of Cost Report?

Clients suited for an Opinion of Cost Report are building and business owners who may be doing any repairs and replacements at the property and are looking for real-time cost estimates, which will aid in creating budgets concerning improvements and enhancements.

Are there specific types of commercial buildings that need an Opinion of Cost Report?

All types buildings of commercial buildings are suited for an Opinion of Cost Report.

Note: clients making improvements and enhancements to a property should also consider an ADA Compliance Survey. If a property built before 1990 is to be upgraded and the purpose of business is to be altered, then state and local governments may now hold that property to current ADA standards.

Where can I learn more about RSMeans and its relation to an Opinion of Cost Report?

“The 2024 RSMeans Building Construction Costs Book continues to be the most used, quoted, and respected unit price guide for building construction estimators across North America. The Building Construction unit price book with RSMeans data contains over 23,000 lines of costing data that has been fully refreshed with the latest construction costs from our proprietary construction estimating database. The data contained in this book is meticulously assembled by industry-leading teams of cost researchers, project engineers and data scientists.” (RSMeans)

For a more comprehensive inspection, consider additional services to the PCA and PCR.

• ADA Compliance and Accessibility Survey

• Air Quality Testing

• Radon Testing

• Mold Testing

• Water Testing

• Termite & WDO

• Sewer Line Scoping

•Virtual Property Tour

(See the additional services section above to reference further descriptions of each additional service.)

Also referred to a Triple Net Lease Inspection or Net-Net-Net Lease Assessment.

A Triple Net Lease Assessment is an additional service to the Property Condition Assessment and Property Condition Report.

A Triple Net Lease Assessment is an inspection of a commercial building or property in which the tenant is responsible for the property’s expenses and must officially document deficiencies.

Why is a Triple Net Lease Assessment essential?

A Triple Net Lease Assessment aims to guide the landlord and the tenant within the scope of maintaining the property, reducing overall operating expenses by forecasting a budget, and protecting both parties from unnecessary and unforeseen risk and liability.

Who needs a Triple Net Lease Assessment?

Clients suited for Triple Net Lease Assessments are business owners renting a commercial space and landlords leasing a commercial space.

Are there specific types of buildings that require a Triple Net Lease Assessment?

We recommend this assessment at any time during the leasing process: before the lease is signed, during the lease, and at the end of the lease term.

For a more comprehensive inspection, consider additional services to the PCA and PCR.

• ADA Compliance and Accessibility Survey

• Air Quality Testing

• Radon Testing

• Mold Testing

• Water Testing

• Termite & WDO

• Sewer Line Scoping

•Virtual Property Tour

(See the additional services section above to reference further descriptions of each additional service.)

Also referred to as New Construction Phase Inspections.

Draw Inspections are a series of scheduled commercial building inspections that measure the progress and risks of new construction commercial buildings or major construction projects to ensure successful and timely underwriting and closing.

The “phases” of the inspections mirror the lending schedule so the lender can disburse the next funds to the contractor. The Draw Inspector determines whether the contractor is on time with the construction schedule, is adhering to the construction plan, and is using materials as agreed upon in the lending contract. In other words, the draw inspector is the onsite eyes and ears of the lender so the contractor can receive payment for their services.

A Draw Inspection typically includes:   

• Site visit and verification  

• Photos and documentation of the interior and exterior and all purchased and stored materials

• Detailed review of the AIA and project budget

• Confirmation of invoices and onsite materials 

• Documentation of concerns

• Estimate of percent complete 

Who should consider Draw Inspections?

Clients suited for Draw Inspections are most often lenders; however, several groups of professionals make Draw Inspections successful. The inspector, lender, borrower, owner, contractor, and construction team work together to ensure the project and funds operate on a strict timeline.

What types of buildings or projects require Draw Inspections?

Typically, new construction of any commercial building, for example, office buildings, multifamily complexes, industrial warehouses, hotels, hospitals, schools, churches, retail spaces, commercial kitchens, and more. The lender will likely require a third-party inspection company to complete the Draw Inspections to keep construction timelines tight. There are also times when significant renovations call for major construction teams, and lending is required to complete the project; in this instance, a lender might also require a third-party inspection company for Draw Inspections.

Also referred to as an Insurance Claim Assessment or Insurance Investigation Inspection.

An Insurance Loss Assessment evaluates and documents the damage(s) sustained on the commercial property or building reported to an insurance provider to file a claim. The inspection typically takes place within 48 hours of filing a claim. Some insurance providers require a 3rd party to perform the inspection.

What is the purpose of an Insurance Loss Assessment?

An Insurance Loss Assessment aims to provide an insurance adjuster with unbiased, first-hand knowledge of the property, the damage and how it occurred, and a determination of the cause. Ultimately, the adjuster wants to know if the account of what is being claimed by the building owner matches the damage.

Who should consider an Insurance Loss Assessment?

Any building owner or business owner filing an insurance claim regarding damage after a property damage, business interruption, theft, liability, or worker injury should consider having a third-party Insurance Loss Assessment to document the damage as quickly as possible.

1. Additional services business owners and building managers may consider are:

• ADA Compliance and Accessibility Survey

• Air Quality Testing

• Radon Testing

• Mold Testing

• Water Testing

• Termite & WDO

• Sewer Line Scoping

•Virtual Property Tour

(See the additional services section above to reference further descriptions of each additional service.)

Also referred to as a Pre-Insurance Policy Inspection.

A Pre-Loss Assessment evaluates a commercial property or building and documents specific details about the building and its contents to determine if the policyholder has enough insurance coverage and document any pre-existing building conditions.

What is the purpose of a Pre-Loss Assessment

Pre-existing damage is rarely covered. The same goes for building materials that are aged or neglected because insurance companies consider those items as a maintenance issue, which makes the financial responsibility of repair or replacement the policy owner’s responsibility.

A significant benefit of a Pre-Loss Assessment is the confidence to purchase adequate commercial building insurance. This assessment delivers the correct and most up-to-date data points for the insurance company; it serves as a baseline to prove that future damage is not pre-existing to a specific incident.

Insurance providers require the following details before developing an insurance policy: data points about the building and its systems, additions, furniture and fixtures, machinery and equipment, all personal property within the building, and tenant improvements and betterments. It’s also a good idea to know the age of various systems and whether those systems are up to code before deciding on how much insurance coverage to purchase. Since the insurance company only has to replace what is destroyed, they are under no obligation to upgrade the electrical and plumbing; the requirement is to rebuild a building of similar or comparable size, quality, and construction, meaning building owners or business owners may be paying out of pocket for the difference of those upgrades.

A Pre-Loss Assessment also aims to unveil any liabilities the building owner may have with responsibility for maintenance and building standard requirements. For example, if a fire occurred in a multifamily complex and many fire extinguishers have expired or the fire suppression system is out of compliance, the insurance provider may not respond to the claim in favor of the building owner and may even find the building owner at fault.

Who should consider a Pre-Loss Assessment?

Any building owner or business owner planning to, or in the process of, developing a commercial building insurance policy.

Additional services business owners and building managers may consider are:

For a more comprehensive inspection, consider additional services to the PCA and PCR.

• ADA Compliance and Accessibility Survey

• Air Quality Testing

• Radon Testing

• Mold Testing

• Water Testing

• Termite & WDO

• Sewer Line Scoping

•Virtual Property Tour

(See the additional services section above to reference further descriptions of each additional service.)