Engineering due diligence is an important part of the property transaction process. Like environmental due diligence, there are a variety of engineering due diligence products to assist in evaluating an asset. Engineering due diligence can provide a wealth of knowledge about the physical condition of a property. During a Property Condition Assessment, the building systems are evaluated for short and long term expenditures. This assessment can give the buyer or lender a clearer understanding of the expected short and long term investments needed to maintain a property. In some cases, the PCA report can provide insight into whether or not an acquisition is prudent. If the expected costs are too high, the buyer may choose to seek out alternative investments.
Other engineering due diligence products include streamlined or more comprehensive Property Condition Assessments, as well as seismic risk evaluations. It is important to understand what due diligence products are available, what is included and the benefits of each, in order to understand what due diligence is most appropriate for your needs.
Partner’s Jenny Redlin and Joe Derhake discuss both the environmental and engineering due diligence products during their presentation Due Diligence 101: Third Party Reports from A-Z. This presentation was recently aired by GlobeSt.com and is offered on demand until July 2nd, 2013. Registration