Building Advisory

PEP’s team of Building Advisors offer a complete Technical Due Diligence package to investors, developers, agents and owners involved in property transactions.  We are experienced in providing sound advice on all technical aspects of commercial, industrial, retail, residential and portfolio property, highlighting key issues to ensure you are well placed to make informed decisions about potential investments.  Our team structure and standard procedures have been designed to suit client time frames.  Property inspections can be undertaken at short notice, with a ‘key issues’ email outlining any potential deal-breakers, relayed within the early stages.  Our detailed report will generally be provided within 10 working days of inspection.

Our investigations focus on key areas including:

• Building Structure
• Building Fabric
• Capital Expenditure and Rectification Cost Schedules
• Building Services
  •  Mechanical
  •  Electrical
  •  Fire Protection
  •  Hydraulic
  •  Vertical Transportation

We also offer reporting on a number of other important areas, including:

• Environmental Reviews
• Hazardous Materials Assessments
• Building Code of Australia (BCA) Review
• Town Planning Advice
• Site Identification and Boundary Surveys
• Flooding Reviews
• Façade Inspections
• Energy Efficiency Assessments (i.e. NABER / Greenstar / BEEC)
• Heritage Building Advice
• Tax Depreciation Analyses

We appreciate that no two clients or properties are the same,  so we are flexible in our approach and happy to tailor our reporting to your particular requirements.

Our Vendor Reports offer a highly useful tool to any owner or agent proposing to dispose of  property assets.  These reports identify any technical issues in the early stages of the sale process, allowing the building owner the opportunity to rectify any issues upfront or position the asset in the marketplace accordingly – in either case the vendor has greater control over the sale process and negotiations as all issues are known to all sides involved.

In a competitive market place our vendor reports offer potential purchasers a clear and concise review of the current condition of the Building Structure, Fabric and Services.  Additional optional investigations can be included such as Environmental and Hazardous Materials Assessments; Building Compliance Assessments; Town Planning Advice; Site identification Surveys; Flooding Reviews; and Façade Inspections.

PEP provides expert assessment of the likely cost to reinstate a property in the event the building suffers total destruction.  Reinstatement Cost Assessments (RCA’s) are generally compiled for insurance purposes and include allowances for:

• Demolition;
• Cost to re-build;
• Construction cost escalation;
• Professional and Local Authority Fees.

PEP ensures the accuracy of our reporting by undertaking a site inspection, reviewing available plans and other construction documentation – ultimately providing a detailed document that you and your insurer can rely upon.

Our constant involvement in construction activity allows PEP to assess current costs and future escalation expectations.

PEP‘s experienced Building Consultancy team offer Terminal and Interim Make Good Schedules for both Landlords and Tenants.  Our expertise allows us to fully understand the requirements of a commercial lease, ensuring the Make Good Schedule is accurate and reflective of the lease requirements.  This approach reduces negotiation time between Landlord and Tenant, with an aim to promote efficient and co-operative resolution.  As well as offering this service at the end of a lease period, we can provide our assessment at any point during a lease as this can be useful in a number of situations, such as:

• Assisting a Landlord with enforcement of a particular lease clause or requirement of the Tenant;
• Where either party is forward planning financial commitments and requires an advanced estimate of likely risk; or
• Where a party proposes to purchase a business and requires an estimate of likely future risk.

Whatever the reason, PEP is well qualified to assist you with any Make Good matters.

A Photographic Condition Report is most useful at commencement of a new lease.  This report comprehensively records the condition of a property or asset, highlighting any areas of damage or disrepair at the commencement of a Lease with the sole aim of reducing the likelihood of protracted arguments between a Landlord and Tenant at Lease end.  Our detailed inspections ensure all areas of a property are photographed, and categorised for easy future reference.  Our report also contains descriptive text detailing the fixtures and fittings present at the time of our inspection, with ownership indicated if required.  The report has a Declaration page, signed by both parties, which can be referenced within and appended to a lease.  We can also offer a reduced ‘photographic only’ report where budget or time constraints apply.

As an alternative to the above, our photographic condition reports can be utilised by developers and contractors where a construction contract dictates that a record of condition is required prior to commencement of the works, or as an independent record of condition at the project completion date.  Our detailed reports provide an accurate record, thus reducing the potential for third party claims for unspecified damage to property.

Accurately identifying the causes of a building defect is one of the key issues of property ownership and management.  Time and expenditure can be misspent without effective methods of identifying the causes of a defect.  Our team of Building Consultants efficiently identify the causes of a wide range of building defects, to ensure the most effective and viable solutions are implemented to rectify the issue.  We can manage the entire process from initial investigations through to any design and tendering period, management of the rectification works and successful completion.

Our knowledge in all technical and financial aspects of commercial and residential property ensures we are well placed to provide advice on future Capital Expenditure (CAPEX) and Planned Maintenance.  It may be that you have acquired an asset, taken over management of a new building, or are looking to forward plan future improvement works and the associated financial outlay.  Following client briefing, review of all available documentation and site inspection, our team can provide detailed reports identifying future requirements for CAPEX and Planned Maintenance, and likely expenditure over a set time frame (usually a 10 year period).

Where a third party has an interest in construction or fit out works, but does not have direct involvement in the process, our team can assist by performing a Project Monitoring role.  We can act as your representative, closely monitoring contractor progress, contract issues and the quality of the works, ensuring you are fully aware of any issues which may affect your interest in the property.  The following are typical examples of where we can assist:

• If you are a bank or financier to a project, you may have no direct control over the project however you have invested capital – ensure your capital is being expended in the agreed manner, to an acceptable standard and in accordance with the agreed programme.
• If you are a Landlord, and a Tenant within your property is planning to undertake fitout or make good works – ensure the works are completed in accordance with the specified plans and are not detrimental to the base building or any other Tenant.
• If you are a Tenant, and your Landlord is completing fitout works or constructing a purpose built facility for your occupation – ensure the works are completed in accordance with the specified plans and are able to meet your requirements as an occupier.

If you are in a similar position to any of those described above our Project Monitoring services can assist to you.