Identifying the risks associated with buildings, projects or land, including assessing the feasibility of building modifications, operational efficiency and energy performance of the building, through to adaptation options and achieving the objectives of your ESG strategy. These are the objectives of the discipline called Technical Due Diligence (TDD). What are the benefits of TDD and what to look out for when creating an assignment?
Technical Due Diligence identifies risks associated with buildings, land or construction projects. It can therefore apply to properties at any stage of development, construction and operation over their lifetime.
The TDD specialists will study all available documents and warn the investor about possible risks associated with e.g. with the structure and envelope of the building, internal technologies, fire safety, communications, connections, easements or necessary permits for the use of the property.
TDD helps to quickly navigate the topics of energy performance, sustainability and ESG. In agreement with the investor, the TDD analysis may also include an assessment from the perspective of:
As with any analysis, the volume and content of the evidence provided is crucial for TDD. When discussing collaboration, we will guide you and prepare a list of documents that we need to carry out the TDD. We will highlight the areas that are key and those for which there will be insufficient information to assess.
The role of the TDD is to highlight any risks that can be identified from existing evidence. Our specialists actively seek information from publicly available databases, property inspections and ask all relevant stakeholders.
Specialists will assess the risks associated with the acquisition of land and existing or under-construction buildings. Their insight will also facilitate your decision-making during the preparation of the project in the study phase and documentation for planning permission or building permits. A common assignment is to assess the impact of renovation, change of use or expansion of existing buildings.
If you are buying a property that you want to change the use of (e.g. from offices to flats), a renovation feasibility audit is just one of the documents you should be interested in. The reason? Since the acquisition of the building, you as the new owner are responsible for the operation of the building. Therefore, if you intend to lease it to existing entities until the renovation preparations are complete, have the current condition and operation of the property assessed as part of the TDD.
If you are selling or acquiring a property, if you are preparing reconstruction or change of use, if you are buying land or a larger area (brownfield), then you need to know the possible risks and limits of the feasibility of the project. Technical Due Diligence will provide you with accurate technical and economic information, enabling you to make the right decision and reducing the risk of future unpleasant surprises.
If you as an investor embark on a construction without a general contractor (GC), you will usually save 10-20% of the cost just by doing this. However, there are other benefits to well-done construction management (CMA), especially for complex construction projects or renovations.
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