Inspection Flashcards
What are the main RICS guidance docs regarding inspection ?
- Surveying assets in the building environment - GN - 1st Ed 2017
- Technical due diligence of commercial property 1st edition,
- Surveying Safely: health and safety principals for property professionals - 2nd edition 2018
What are the main stages of the contracting process for surveys?
What is the purpose of a reinstatement cost assessment survey?
- Used to calculate the potential cost to rebuild a structure and provide a ‘day one reinstatement’ figure, also known as the declared value.
What is a technical due diligence survey?
- Technical due diligence of property, when carried out by an RICS member or RICS registered firm, consists of the systematic review, analysis, discovery and gathering of information about the physical characteristics of a property and/or land (the property).
- The RICS member or RICS registered firm then undertakes an impartial and professional assessment of the property and provides a balanced and professional opinion of the condition of the property in the form of a technical due diligence report.
- This enables a prospective purchaser, occupier or financier of the property to make an informed assessment of the risks associated with the transaction from a technical perspective.
What are the main stages in a property life cycle when a TDD survey may be instructed by a client?
- For acquisition - a purchaser’s survey.
- Occupation and operation.
- Disposal - vendors’ survey.
- For refurbishment and development.
Why may a client require a purchaser’s TDD survey undertaking? What would the associated report include / consider?
- When an investor wishes to purchase the whole or part of a property.
- The report will consider:
- Whether significant defects exist in the structure, fabric and services installations (the latter if instructed to be undertaken by a specialist) of the property.
- Whether there are legal implications of the defects or other deficiencies such that the property does not comply with statutory obligations or if there are any illegal works present.
- Risk associated with the tenancies in relation to recovery of capital expenditure and operational expenditure and future reinstatement liabilities.
- Whether the property is suitable for the client’s intended use (if known).
- Whether there are any apparent life safety issues.
Why may a seller require a vendor’s TDD survey undertaking? What would the associated report include / consider?
- Vendor’s technical due diligence survey before a proposed sale is to identify significant physical defects or any statutory non-compliances that may affect the value of the property on the open market.
- A vendor’s technical due diligence survey may precede a valuation, such that the valuation can then provide an opinion on the value of the property having regard to its condition. However, a vendor may undertake a technical due diligence survey as a standalone process so that information on the physical condition of a property can be made available to prospective purchasers in an attempt to expedite the sale process.
- It is typical for the client to request that a vendor’s report be assignable to the purchaser. In these circumstances, the RICS member or RICS regulated firm should make sure that their (and their subconsultants’) professional indemnity insurance provider is satisfied with such an arrangement, and any conditions are clearly stated on instruction of such an assignment.
- A vendors’ report should include the same issued as a purchaser’s report including:
- Significant physical defects in the structure, fabric and services components and associated cost for remedial works.
- Issues relating to statutory and legal non-compliance that may prevent occupation or affect the value of the property.
- Costs relating to shortfall in tenancy repair, decoration and reinstatement obligations.
- Review of documentation with the intention to identify relevant data, locating obvious missing information, such as that listed in section 4.4.
What are the key stages to undertaking a TDD survey according to the RICS guidance note - Technical Due Diligence of Commercial Property?
- Taking instructions
- Establish if there are any conflicts of interest. If so inform all parties to which the conflict of interest concerns, explain the repercussions and obtain informed consent that they wish for you to proceed with the instruction.
- Undertake appropriate anti-money laundering risk assessment.
- Issue services and terms of engagement (services to be provided, contracting parties, payment provisions and all limitations).
- Confirm standard terms of business: limitations and scope of the survey, level of liability including confirmation that the firm / surveyor has appropriate PII, involvement of other consultants, timescales for report turnaround, whether disbursements will be included in the fee, whether specialist means of access required (MEWP etc).
- Request access / location of data room.
- Prepare a risk assessment and ask the client if they are aware of any site specific risks.
- The Inspection
- Note whether an area cannot be accessed and present worst / best scenarios for associated outcomes.
- If any on site health and safety risks are identified, confirm them to the client, building owner of property manager as soon as practical.
- Make enquiries on site: ask to see all documents held on site (asbestos register, fire risk assessment, statutory test certs O&Ms for as built drawing to confirm concealed construction).
- Undertake elemental breakdown of the building fabric: roofs, rainwater goods, walls and cladding, windows and doors, structural frame etc.
- Undertake visual inspection of building services (if specialist not appointed), but only note visual condition and age of installations and confirm that further investigation is required - this should be stated in the report.
- Description of external areas - determine accessibility, vehicular and pedestrian access, drainage provisions, external grounds (trees, invasive plants and boundaries etc), review property in context of surroundings - shared access roads, contamination issues, and access for third parties such as UKPN.
- Fire precautions - need to visually inspect and recommend whether specialist will need appointment, should comment on things such as combustible cladding etc.
- Deleterious materials.
- Legal and title issues - boundary issues etc.
- Review of leasehold and repairing liabilities - Unless otherwise agreed, the RICS member or RICS regulated firm is not expected to undertake a detailed review of the lease(s) or leasehold structure. However, the RICS member or RICS regulated firm should state any assumptions that have been made as to recoverability of costs or other relevant matters. It may also be appropriate to comment on the landlord’s or tenant’s compliance with repairing obligations and reinstatement provisions at lease-end, having regard to the client’s brief.
What is the RICS guidance note Technical due diligence of commercial property?
- A RICS professional guidance note that outlines the types of technical due diligence, why it is needed and also guidance on how to take instructions, complete the inspection and produce a TDD report to the professional standard expected of RICS members and firms.
What is the safe person concept (surveying safely)?
- Each individual assumes individual behavioural responsibility for their own, their colleagues’ and others’ health and safety while at work.
What are the responsibilities of a RICS related firm with regards to H&S?
- RICS-regulated firms are obliged to ensure the health, safety and welfare of people at work by providing, monitoring and maintaining:
- a safe working environment
- safe work equipment
- safe systems of work and • competent staff.
What equipment may you take on site to aid an inspection?
- Borescope
- Protimeter
- Torch
- Speedy carbide test.
- Disto.
- Measuring tape.
- Camera
- Phone
- Portable charger.
If you identify movement in a building, what further investigations might you wish to undertake?
- Environmental matters, i.e. trees in close proximity
- Neighbouring dwellings
- Engineers structural survey
- CCTV Drainage survey
What might you include in your desktop investigations?
Review of alterations carried out, check on planning authority, if the building is listed, check its listed status on historic England and English heritage. I will ask the client to provide me with any plans or brochures of the property and ask them generic safety questions to ensure that it is safe to survey.
Are you qualified to use a cherry picker?
I am not qualified to use a cherry picker or harness myself up. When I made the enquiry to book the cherry picker, I informed the company that I would need a competent operator that was also able to safely harness me and secure me to the safety rails and that the machine was safe to use in the event of windy conditions. When I arrived to site, I checked that the ID of the operative matched the name given by the company and provided on the license.
What do you need to consider before going to site to carry out an inspection?
- Am I competent to undertake the inspection
- Am I properly insured
- Has an agreement been signed
- What are the risks involved
- What kind of survey is it,
- Review all relevant existing building information, leases.
- What equipment will be required to carry out the survey
How do you undertake an inspection?
- Personally I would prefer to undertake an inspection of a building from the top down.
- I would normally walk around the building externally a couple of times first to get my bearings and get an initial understanding
- I would look for an indication of age, construction and additions etc.
- Then I would start the inspection externally and inspect each elevation in turn looking and the roof, elevations, windows, doors, drainage and rainwater goods. Then I move inside and again start from the roof space and move down through the floors.
What kinds of risks do you consider?
- Lone working
- Asbestos
- Accessing roofs and roof spaces at height
- Hazards associated with derelict/empty properties
- Confined spaces
What are the key building elements you would look to survey?
- Roofs
- Walls & Cladding
- Rainwater Goods
- Windows, Doors and Joinery
- Structural Frame
- Substructure / basements
- Floors
- Finishes
- Internal Walls, Partitions
- Staircases
- Sanitary Fittings
- Building Services
- Out Buildings
What do you need to consider before going to a site to carry out an inspection?
- If I am competent to undertake the inspection
- Am I insured?
- Is there a formal letter of engagement
- What are the risks?
- What type of survey am I carrying out?
- Have I been provided with the relevant documents
What does the RICS guidance note on surveying safely cover?
- Personal and corporate responsibility
- Legal considerations and duties
- Assessing hazards and risks
- Property professionals places of work
- Occupational health
- Visiting premises and sites.
What is a hazard?
Something with the potential to cause harm to someone. The harm could be an injury or ill health.
What is a risk?
A combination of the likelihood of the harm being realized and the severity of the harm if realised.
What is a schedule of condition?
A schedule of condition (SOC) is a factual record of the condition of a property, normally prepared for legal or contractual reasons. Schedules of condition can be prepared for either residential or commercial buildings.
They create a complete record of the condition of the property on a particular date that can be used as a benchmark against which its condition can be assessed in the future and any changes identified.
What is a risk assessment?
- An assessment of identifying risks, determining their likelihood and severity and then eliminating or mitigating those risks to reduce their likelihood and severity if they do occur.
- 3 key processes:
- Identify all risks.
- Decide the likelihood and severity of each risk.
- Take action to eliminate the hazard or if not possible put in procedures to control the risk.
What is the risk control hierarchy in relation to risk assessments?
- Elimination - redesign the activity or substitute so that the hazard is removed or eliminated e.g use drone for roof inspections to prevent need to work at height.
- Substitution - Replace the materials used or the proposed work process with a less hazardous one. For example, use pre-prepared components rather than fabricating/cutting on site.
- Engineering controls: Use work equipment or other measures to prevent falls where you cannot avoid working at height. Install or use additional machinery such as local exhaust ventilation to control risks from dust or fumes.
- Administrative controls - Identifying and implement the procedures needed to work safely. For example, reducing the need for lone working or ensuring the work is completed in daylight; reducing the time workers are exposed to hazards (e.g. by job rotation); prohibiting use of mobile phones in hazardous areas.
- Personal protective clothes and equipment - After all the previous measures have been tried and found ineffective in controlling risks to a reasonably practicable level must personal protective equipment (PPE) be used. For example, where you cannot eliminate the risk of a fall, use work equipment or other measures to minimise the distance and consequences of a fall.
What CCTV drainage repairs were noted at Brent? How were they / would they be carried out?
