Property Condition Assessments

Property Condition Assessments

Authors: Sam Kubba

Published: October 2007

eISBN: 9780071596114 0071596119 | ISBN: 9780071498418

Contents

Foreword

Acknowledgments

Introduction

Chapter 1: Need for a Condition Assessment Program

1.1 General

1.2 Why a Condition Assessment Program

1.3 Rules of Engagement

1.4 Organization, Roles and Responsibilities

Chapter 2: Property Condition Assessments (PCA)

2.1 General

2.2 The Property Condition Assessment (PCA)

2.3 The Financial Industry, Due Diligence, and Use of PCAs

2.3.1 Securitization

2.3.2 Refinancing

2.3.3 Underwriting

2.3.4 Disclosure

2.3.5 Acquisition

2.4 Levels of Due Diligence

2.4.1 Level I: Evaluation

2.4.2 Level II: Evaluation

2.4.3 Level III: Evaluation

2.5 Risk and Liability

2.5.1 Legal Overview

2.5.2 Legal Services

Chapter 3: Property Condition Assessments (PCA) Survey Guidelines

3.1 General

3.1.1 Factors That Impact Time to Produce PCA

3.1.2 Categories of ‘Investment Grade’ Real Estate

3.2 Survey Procedures—Methodology

3.2.1 Property Survey

3.2.2 Research

3.2.3 Review of Documents

3.2.4 Representative Sampling

3.2.5 Photographs

3.3 Conducting PCA Surveys

3.4 The PCA Report

3.5 PCA Commentary

3.5.1 Documentation & Photography

3.5.2 Condition & Age Assessments

3.5.3 Deficiencies & Remedies

3.5.4 Estimating Techniques

3.5.5 Cost Schedules (Estimates) to Remedy Deficiencies

3.5.6 Reserves

Chapter 4: Professional Standards & Methods

4.1 General

4.2 Qualifications of the Consultant

4.2.1 General

4.2.2 Consultant Qualification Requirements

4.2.3 Staffing of the Assessor/Field Observer

4.2.4 Independence of the Consultant

4.2.5 The Assessor/Field Observer and the PCR Reviewer

4.3 Typical Sequence of Events Upon Being Awarded a Building Inspection Assignment

4.3.1 Project Preliminaries

4.3.2 Mobilization Documents

4.3.3 Interviews

4.3.4 Site Visit/Inspection

4.3.5 Organizing to Write the Report

4.3.6 Report Form and Content

4.3.7 Photographs

4.3.8 Report Review

4.3.9 Production & Distribution

4.3.10 Client Follow up & Closeout

4.4 Quality Control/Quality Assurance

4.4.1 Roles & Responsibilities

4.4.2 Quality Review

4.4.3 Feedback & Methods Improvement

Chapter 5: Developing a Condition Evaluation Program & Strategy

5.1 General

5.2 Property Condition Evaluation Criteria Overview

5.3 The Benefits of Evaluating Building Systems

5.4 The Role of a PCA in Acquisition

5.4.1 Overview of the Acquisition Process

5.4.2 When a PCA Should Occur

5.4.3 The Limitations of Acquisition Studies

5.4.4 Effects of Current Real Estate Climate on Assessments

5.5 Types of Assessments

Chapter 6: Elements of Property Condition Evaluations

6.1 Types of Evaluations

6.1.1 Variations of Scope in Evaluations

6.1.2 Levels of Effort in Evaluations

6.2 Types of Testing: Destructive vs. Non-Destructive

6.2.1 Non-Destructive Testing (NDT)

6.2.2 Non-Destructive Testing Equipment

6.2.3 Destructive Testing

6.3 Formulating a Preventive Maintenance Program

6.4 Compliance with Building Codes

6.5 Construction Claims and Litigation

Chapter 7: The Building Site

7.1 General

7.2 Components to be Evaluated

7.2.1 Topography

7.2.2 Storm Water Drainage

7.2.3 Access & Egress

7.2.4 Paving, Curbing & Gutters

7.2.5 Parking

7.2.6 Utilities

7.2.7 Irrigation Systems

7.2.8 Landscaping

7.2.9 Stairs & Ramps

7.2.10 Loading Areas

7.2.11 Signage & Light Bases

7.2.12 Ponds & Reservoirs

7.3 System Diagnostics

Chapter 8: Structural Systems

8.1 General

8.2 Building/Structural Types

8.3 Structural Elements

8.3.1 Below Grade Elements

8.3.2 Wall Systems

8.4 Seismic Considerations

8.4.1 General Considerations

8.4.2 Seismic Analysis (Probable Maximum Loss)

8.4.3 Seismic Code Compliance

8.5 Typical Deficiencies

8.6 System Diagnostics

Chapter 9: Roofing Systems

9.1 General

9.2 System Types and Specifications

9.2.1 Built-up (Multi-ply) Roofing

9.2.2 Single-ply Roofing

9.2.3 Shingles & Tiles Roofing

9.2.4 Metal Panels Roofing

9.2.5 Other Roofing Systems

9.3 Components to be Evaluated

9.4 Typical Deficiencies

9.5 System Diagnostics

Chapter 10: Heating, Ventilating, and Air Conditioning (HVAC) Systems

10.1 General

10.2 Refrigerants: Hydrochlorofluorocarbons (HCFCs) & Chlorofluorocarbons (CFCs)

10.3 Types of HVAC Systems

10.3.1 Heating Systems

10.3.2 Ventilation

10.3.3 Air Conditioning

10.4 HVAC System Requirements

10.5 Types of Deficiencies

10.6 HVAC Equipment Components and Systems

10.6.1 Basic Components of an HVAC System

10.7 System Diagnostics

Chapter 11: Electrical & Lighting Systems

11.1 General

11.2 Some Definitions: Amps, Volts & Watts

11.3 Components to be Evaluated

11.3.1 Service Connections

11.3.2 Switchgear & Switchboards

11.3.3 Panelboards

11.3.4 Aluminum Components

11.3.5 Service Outlets

11.3.6 Switches & Controls

11.3.7 Emergency Power & Emergency Lighting

11.3.8 Transformers

11.4 Building Automation

11.5 Lighting & Other Systems

11.5.1 Interior Lighting

11.5.2 Exterior Light Types

11.5.3 Additional Components

11.6 Harmonics Distortion

11.6.1 Overview

11.6.2 Elements & Equipment that Create Harmonic Distortion

11.6.3 Cause of Harmonic Distortion

11.6.4 Reduction of Harmonics

11.7 System Diagnostics

Chapter 12: Plumbing Systems

12.1 General

12.2 Cold Water Distribution

12.3 Hot Water Distribution

12.4 Plumbing Fixtures

12.4.1 Tank Water Heaters

12.4.2 Lavatories & Sinks

12.4.3 Toilets (Water Closets)

12.4.4 Tubs and Showers: Grout and Caulk

12.4.5 Clothes Washers and Dishwashers

12.5 Natural Gas & Fuel Oil Distribution Systems

12.6 Sanitary Sewer System

12.7 Storm Drain System (Rainwater Sewer)

12.8 Fittings and Valves

12.9 Backflow Issues

12.10 System Diagnostics

Chapter 13: Vertical Transportation Systems

13.1 General

13.2 Elevator Systems

13.2.1 Drum Elevators

13.2.2 Hydraulic Elevators

13.2.3 Traction Elevators

13.2.4 Freight Elevators and Lifts

13.3 Escalators

13.4 Moving Walks & Ramps (Inclined Moving Walks)

13.5 Building Codes and ADA Compliance

13.6 Basic Component Groups to be Evaluated

13.6.1 Machine Room

13.6.2 Hoistway (Elevator Shaft)

13.6.3 Pit Area

13.6.4 Cab and Equipment

13.6.5 Floor Landings and Equipment

13.7 Typical System Deficiencies

13.8 System Diagnostics

Chapter 14: Interior Systems

14.1 General

14.2 Floors

14.3 Walls

14.4 Interior Doors

14.5 Stairs

14.6 Finishes: Floor, Wall & Ceiling

14.6.1 Floor Finishes

14.6.2 Wall Finishes

14.6.3 Ceiling Finishes

14.7 System Diagnostics

Chapter 15: The Building Envelope

15.1 General

15.2 Exterior Wall Systems

15.2.1 Masonry Wall Systems

15.2.2 Stone Wall Systems

15.2.3 Concrete

15.2.4 Exterior Insulation and Finish System (EIFS)

15.2.5 Curtain Wall

15.2.6 Siding

15.2.7 Exterior Doors, Windows and Glazing

15.3 Weatherproofing

15.3.1 Air Barriers

15.3.2 Control/Expansion Joints, Sealants and Caulking

15.4 Typical Deficiencies

15.5 System Diagnostics

Chapter 16: Building Codes

16.1 General

16.2 Building Codes Today

16.3 Model Codes Organizations

16.3.1 ICC (International Code Council)

16.3.2 BOCA (Building Officials & Code Administrators International, Inc.)

16.3.3 ICBO (International Conference of Building Officials)

16.3.4 SBCCI (Southern Building Code Congress International, Inc.)

16.3.5 CABO (Council of American Building Officials)

16.4 Institutes & Standards Organizations

16.5 Code Elements & Applications

16.5.1 Miscellaneous Issues

Chapter 17: Barrier Free Design–ADA Requirements

17.1 General

17.2 Americans with Disabilities Act Review

17.3 Typical Deficiencies

17.4 System Diagnostics

Chapter 18: Life Safety Systems

18.1 General

18.2 Components to be Evaluated

18.2.1 Sprinkler Systems

18.2.2 Fire-Hose & Standpipe Systems

18.2.3 Hand-held Fire Extinguishers

18.2.4 Smoke and Heat Detection Systems

18.2.5 Fire Doors

18.2.6 Fire Exits and Stairs

18.2.7 Fire Stopping

18.2.8 Alarm Systems and Notification Systems

18.3 System Diagnostics

Chapter 19: Property Security

19.1 General

19.2 Types of Security Threats

19.2.1 Loss from Natural Disasters (Fire, Floods & Earthquakes)

19.2.2 Terrorism/Explosive Threats

19.2.3 Biochemical Terrorism

19.3 Defining Security Needs

19.4 Types of Access Control Systems

19.5 Miscellaneous Issues

19.5.1 Egress Planning and Emergency Management

19.5.2 The Parking Problem

19.5.3 New GSA (General Services Administration) Standards

19.5.4 Legal & Liability Issues

Chapter 20: Indoor Air Quality (IAQ), Environmental & Pest Control

20.1 Interior Air Quality and Environmental Issues

20.2 Insect, Rodent and Pest Control

20.2.1 Rodents

20.2.2 Insects

Chapter 21: Business Development

21.1 General

21.2 Preparing a Business Strategy and Plan

21.3 Start-Up Costs and Setting the Budget

21.4 Licenses, Permits and Insurance

21.5 Basis for Property Condition Assessment (PCA) Fees

Chapter 22: Selling Yourself—Sample Letters, Brochures, and Websites

22.1 General

22.2 Creating a Professional Image—Sample Letters and Brochure

22.3 Identify Sources for Leads

22.4 Selling Yourself

22.5 The Website

Appendix

Acronyms & Glossary

A

B

C

D

E

F

I

L

M

N

O

P

R

S

T

V

W

Z

Bibliography

Index