Technical Due Diligence

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Technical Due Diligence is a comprehensive research and analysis process that provides the prospective owner, possessor or investor with detailed information about the physical and technical condition of an asset.

Through an independent third-party assessment, TDD allows the buyer to identify any potential risks that may arise during the project, as well as estimate future asset management, maintenance and repair costs.

Technical Due Diligence includes:

Reviewing and analyzing available documents;
Analyze the current condition of the asset to identify any discrepancies, problems and defects that may affect the operational efficiency or structural integrity of the property;
Evaluation of executive drawings and design documents of the facility to determine their compliance with construction standards and regulations;
Assessing whether the asset meets the client’s requirements, objectives and goals;
Determining the cost of future capital expenditures for repairs, necessary improvements and maintenance of the facility;
Comprehensive assessment of the feasibility of acquiring the asset;
Writing a detailed report with findings and recommendations.

Services depending on the object

The range of Technical Due Diligence services may vary depending on the type of property:

Stage

EXISTING BUILDINGS

NEW EARTH

Stage 1

EXISTING BUILDINGS

Collection and analysis of documents

NEW EARTH

Collection and analysis of documents

Stage 2

EXISTING BUILDINGS

Inspection of architectural and exterior work

NEW EARTH

An assessment of the potential and existing constraints of the site

Step 3

EXISTING BUILDINGS

Inspection of construction works: assessment of the quality of the building and verification of the load-bearing capacity of the building structure

NEW EARTH

Site condition survey and engineering infrastructure assessment

Step 4

EXISTING BUILDINGS

Mechanical and electrical inspections: HVAC, fire protection, plumbing systems and more

NEW EARTH

Preparation of preliminary design materials: preliminary master plan, plan of building location on the site, definition of building spot and architectural plan of premises, potential plan of engineering communications location on the site

Step 5

EXISTING BUILDINGS

General Environmental Assessment

NEW EARTH

Topographic surveys and delineation of site boundaries

Step 6

EXISTING BUILDINGS

Capital Cost Estimates

NEW EARTH

Flood Risk Assessment

Step 7

EXISTING BUILDINGS

Support the client with project management and construction supervision as required

NEW EARTH

Conducting geotechnical inspections at the site

Step 8

EXISTING BUILDINGS

BREEAM in Use certification of the property

NEW EARTH

Assessment of site potential and utilization (Best use analysis)

Why conduct Technical Due Diligence?

The condition and utilization conditions of real estate properties are major factors in ensuring their long-term commercial profitability. Insufficient attention to technical nuances can lead to a loss of asset value and poor investment returns. Technical Due Diligence plays a key role in minimizing risks in real estate transactions.

This type of real estate analysis provides clients with timely and objective access to information about the technical condition of a building or land plot, by thoroughly analyzing documents and evaluating the following important aspects:

For existing buildings:

Assessing the suitability of the building;
Verifying that the building complies with local building codes and standards;
Identification of defects affecting building performance in the short, medium or long term;
Determining whether defects due to lack of maintenance, misuse or other causes need to be repaired.

For new land parcels:

An assessment of the suitability of the land for the proposed use;
Identification of the negative impacts of location and environment on project development;
Assessment of the availability of infrastructure and utilities for project implementation.