Technical due diligence is one of our professional services to assist the complete of asset transaction. This exercise is to over-sight the major technical issues found in the real estate asset such as building blocks, apartment, carpark space, facilities or even open-space.
The technical issues can be considered in multiple-fold expertise knowledge. This covers the compliance issues, user operational safety, maintenance and upkeep issues, building structural issue, hygienic performance, existing usages issues and building performance such as energy consumption, Indoor air quality, water proofing and thermal proofing. Each individual aspects can be further drilled to become specialist’s attention . Nevertheless, a judgement call is needed to balance the depth of research and the purpose of this TDD services.
In reality, there is no building comes with perfect. Even a brand new building does carry some issues or problems. Thus , a Professional Surveyor needs to consider the weighting of each observation an explain clearly the gravity of each observation in relation to the asset performance.
In commercial world , the straight and simple way to present the importance and weighting of each issues is by means of CAPEX. This is the capital expense which may be spent on it to fix the issues if needed or if the issues become profoundly importance. Again ,the CAPEX estimation is quite tricky and demands the judgement calls. In the course of TDD, we shall examine the planned maintenance program and identify the upcoming possible repair or replacement works. We also check the maintenance logbook to find the clues about some issues like water seepage. Unfortunately, not all the buildings are well maintained with paper record nor being under the planned maintenance program. An experience curve is thus built up for formulation the judgement calls in the right and more predictive way when we need to present the CAPEX.