Due Diligence – Why is it Important?
When it comes to breaking ground on a building project or home remodel, due diligence is a necessary component to make the project seamless without unexpected interruptions.
What is Due Diligence?
Due diligence is an investigation, audit, or review performed to confirm the facts of a matter under consideration. In other words, research the necessary departments that enforce the type of project you are considering. By understanding the multiple departments of the city and their specific building codes, you’ll have an easier time when it comes applying for a permit.
Best Way To Perform Due Diligence
The best way to perform due diligence is simply hire a professional. Taking the project on your own will likely cause delays as there are numerous departments to visit for a specific project, the need to perform a Property Condition Assessment (PCA) study on the space, checking off the requirements for the ASTM E2018 form, etc.
These hurdles when it comes to permitting are meant only to protect the inhabitants or visitors of said structure or building. Due diligence simply offers a procedural way on successfully handling the necessary requirements for future permit approval.
Alliance Permitting services begin with due diligence on building projects and projects’ feasibility. Our team will systematically handle the review of the property to understand the properties condition, any future occurrences and execution of a thorough PCA.
A standard review will cover some or all of the below bullet points:
• Electrical, mechanical, structural.
• Inspection reports (roofing, HVAC, seismic, soils).
• Structural, mechanical, code compliance and ADA compliance.
• Environmental reports and studies.
• Phase I Environmental Site Assessment.
• Recommend ordering current Additional Site Investigation (Phase II).
• Building permits, licenses, certificates of occupancy.
• Verify parking is adequate (i.e. governmental regulations, practical requirements, lease requirements).
• Verify approximate area of improvements.
• Utility site plan, verify adequate utility hook-ups, verify all utility hook-up fees paid, identify requirements for utility deposits.
• Energy usage reports; compare usage to expenses.
• Verify amount of available wattage psf and compare to market.
• Construction contracts/subcontracts.
• Building warranties/guarantees.
• List of personal property and trade/service names.
• Copies of liability, casualty and other insurance.
• Site plans, leasing brochures, maps and photographs.
Most likely there will be other due diligence inspections required based upon the requirements of the project, which may include the following:
- Alta Survey
- BIM Modeling of Existing Conditions
- Permitting / Regulatory Investigations
- ADA Compliance
Incorrect due diligence studies have led to the failure of many projects. As a home owner or commercial / retail project manager, it is critical that you study what your project requires and procure the proper due diligence studies for your project.