What is a Property Condition Assessment?
The purpose of a baseline Property Condition Assessment (PCA) is to help commercial property owners, sellers, investors, lenders, and other stakeholders gain a better understanding of a subject property by revealing design or construction problems, including structural issues, code violations, poor quality or workmanship, and inadequate systems.
Unlike a Phase I Environmental Site Assessment (ESA), a PCA covers a wide range of potential problems with a property.
Property Condition Assessments (PCA) discuss all major building systems and site improvements and include a Replacement Reserve Table and an Immediate Repairs Table. The Immediate Repairs Table identifies capital needs and prices all failing or damaged building systems and life safety issues.
The Replacement Reserves Table identifies long-term capital expenses (typically within the next 12 years) that are typically based on the expected useful life of the building systems and components. Examples of replacement reserve items include pavement seal coating and striping, exterior painting, or HVAC system replacements.
The Immediate Repairs Table identifies short-term capital needs (recommended within the next 90 days), deferred maintenance, and all failing or damaged building systems and life safety issues, as well as opinions of probable costs to correct the items identified. The Immediate Repairs Table highlights items that require immediate action due to existing or potential unsafe conditions, building code or fire code violations, or conditions that if left uncorrected could result in critical failure or significant costs. Examples of immediate repairs include a lack of fire extinguishers, a failing roof system, or structural damage.
A typical PCA contains the following scope:
- Site Assessment
- City Building Department
Building Systems Evaluated
- HVAC Systems
- Data and Telephone
- Fire Suppression Systems
- Roof Diaphragm
- Interior Finishes
- Building Envelope
Site Improvements Evaluated
- ADA Access