STANDARD FOR PROPERTY CONDITION ASSESSMENTS
In August of 1999, the American Society for Testing and Materials (ASTM) published a Standard E2018-99, which defined good commercial and customary practice for conducting a baseline Property Condition Assessment (PCA). This standard was specifically written for commercial real estate and largely intended for commercial real estate transactions. The Standard was last updated in November of 2015 and is now known as E2018-15.
This standard is the recognized protocol for due diligence building inspections. This protocol makes it easier for those involved with commercial real estate transactions, as the report contents and format have been well defined.
THE PCA IS DIVIDED INTO FOUR STEPS:
1. Perform document review (drawings, maintenance records, etc.).
2. Perform a visual, walkthrough survey of the property.
3. Prepare cost estimates for recommended major repairs or replacements.
4. Document findings and costs for recommended repairs in a written report.
As part of the PCA, the consultant should contact the local building department and local fire department to check for building or fire code violations, and to ensure that a certificate of occupancy was issued for the building.
RECOMMENDED REPORT CONTENTS INCLUDE:
- Opinions of probable costs only for repairs likely to exceed $3,000. These costs should be for repairs or replacements likely necessary over the next five years.
- Estimates of remaining useful life for building components.
- Photographs of typical building elevations, major systems and major deficiencies noted.
The entire Standard is 21 pages long and available from ASTM at their website, www.astm.org