Comprehensive Report on Conditions

What Is the Intended Use of Facility and How Will It Affect the Client’s Business Operation?
March 30, 2016
Site, Mechanical (HVAC, Electrical, Plumbing, Sprinkler System), Structural, Roof, Interior, Exterior, Life Safety
March 30, 2016
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Property Condition Report

Producing a property condition report is a crucial due diligence tool in construction management. A commercial property needs to be accurately evaluated to assess the conditions that may need improvement or system changes.

A comprehensive report on these conditions will inform the property investor what is wrong with the asset and what sort of capital improvements may be required in the near future. Without such a report, from a professional commercial building consultant or Construction Manager, the property investors or lenders are left to conduct this due diligence on their own.

These property condition reports should be conducted before the building is acquired so that the investor fully understands the financial investment that will have to be made in the commercial building. When a building, a significant asset, is put on the market, the seller will be reviewing offers from a large number of potential buyers.

This is a very competitive process, and a pre-sales property condition report gives you the data you need to base your offer on. If the report hits on many of the asset’s issues and faults, that gives you a bargaining tool during negotiations. Sellers won’t find it easy to raise their price if you have evidence that the building is just not worth the additional money.

In this instance, the pre-sale report is handed over to the building owner, who then needs to address and fix the buildings deficiencies. They can choose to address the faults in a variety of ways; by reducing the asking price, by physically having the building issues fixed, or by arranging a warranty with the new buyer.

These comprehensive property condition reports are vital to that initial phase of property assessment, negotiation, and sale. For any property or real estate investor, having a commercial building consultancy on hand to perform these essential assessments is just good business.

As you can imagine, the pre-sale property condition report is quite similar to the buyer’s Equity Property Condition Report. In these detailed reports, multiple teams or inspectors are sent in to properly evaluate each specific building system to make sure that it’s functioning as it should be and that there are no issues.

A good example is sending in a specialist plumber to inspect the piping and plumbing systems in the building. Then at the same time, the Construction Manager will send in a team of roof specialists to assess the roofs and create a detailed report on those. Eventually, all of the specialist evaluations will be consolidated and will become the property condition report.


With a comprehensive property condition report in hand, the property investor will be able to negotiate a better deal based on evidence, which will accelerate the talks and result in a swifter, neater settlement.

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