Due Diligence Services
Technical Due Diligence Covers
- Building Structure and Fabric – An inspection of the building structure, its facades and roofs, the wider external areas and internal areas including common and tenanted areas, in order to identify risk areas and quantify the related cost implications.
- Building Services – A full examination of the condition and life-cycle of vertical transportation, air-conditioning units, electrical services, hydraulics, building maintenance systems, fire services, and security. This is the area where most “hidden costs” are found during the process of technical due diligence.
- Regulatory – A review of the statutory regulations to ensure the building complies with the Building Code of Australia. Where shortfalls are present then costs for remedial works are usually included.
- Environmental – A comprehensive investigation to uncover any potential environmental liabilities or hazards such as asbestos, underground storage tanks, CFC’s and other chemicals, hazardous or deleterious materials which may pose a valuation/ asset risk.
- Depreciation – Critical for the after-tax return on investment, a review of all building, plant and equipment is undertaken to produce an asset register and depreciation schedule.
- Capital Expenditure and Maintenance Forecasts – These will provide cost information over a period usually between 10 – 15 years of the likely expenditure required to maintain and keep the building in a working, usable condition.
The Benefits of Technical Due Diligence
- You gain an understanding of the design and physical condition of the property.
- You establish the suitability of the property for its intended use.
- Quantifying future costs and other liabilities.
- You have a solid foundation for price negotiations and allocation of risk.
- You maximise tax depreciation and capital allowance entitlements.
How much does a Technical Due Diligence Report Cost? The cost will vary depending on the type of property, location, size, and detail required.