Article provided by: Newbanks Inc
Comprehensive due diligence is crucial in any commercial construction project to protect your investments and mitigate any risks, whether you’re a contractor or lender. Our consulting company, New Banks, offers commercial real estate due diligence services such as:
- Documentation and cost reviews
- Property condition assessments and
- Complete analysis and cost quotes
The importance of proper due diligence analysis
Any large-scale construction projects will showcase all kinds of risks and problems that could affect the success of your project. Hence, the quality of due diligence carried out on your project can either make or break the project. In construction projects, even small undetected problems can lead to significant losses, so they should be identified as early as possible with mitigation strategies in place.
In construction, due diligence means assessing the quality of a property or land to ensure a successful outcome for your project. It involves reviewing documents and costs to ensure a project’s schedules and budgets are feasible. Property condition assessments are also an essential part of due diligence, to verify the property’s physical condition and its suitability for a good outcome on the project.
Property condition assessments will identify any potential problems or risks in a property and will provide strategies to mitigate any of those risks. This is crucial because it reviews the structural integrity of a property. Not doing this properly leaves room for hazards in the future that could endanger lives and cost you more money down the line.
Commercial real estate documentation
For commercial real estate due diligence, we conduct comprehensive documentation and cost reviews. In this process, we look at every project holistically, analyzing every aspect that may come into play.
We review things related to the property itself, such as drawings, permits, specifications, and geotechnical reports. Then we assess aspects relating to the project, such as milestone or construction schedules, and budgets. We identify risks and provide strategies to mitigate them.
What happens in a property condition assessment?
In a property condition assessment, our team of consultants will visit the property and liaise with the property’s management team to evaluate the physical integrity of the property. Before visiting the site, the property’s management will need to fill out a Property Condition Questionnaire that provides background information about the building. We will further request building or site plans, work orders, and recent capital expenditure records to review construction and maintenance work on the building.
Our team will interview the property’s management personnel and construction professionals to learn about the quality of property management and any crucial issues or defects in the property. We will then conduct visual inspections of the property to examine the integrity of electrical work, roof, foundation, and other mechanical or structural aspects of the building. We will ensure that the property adheres to any relevant building codes and regulations.
Are you looking for a consultancy firm to carry out commercial real estate due diligence? New Banks has over 50 years of experience advising various clients from numerous industries, on projects worth billions of dollars.
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