Tell me about Technical Due Diligence in Commercial Property 2020
- New guidance note that intends to standardise the technical due diligence reports across the globe.
- Requires members identify and make recommendations in relation to any technical risks associated with the investment.
What is in the Technical Due Diligence guidance note?
- Types of Technical Due Diligence
- Taking Instructions
- Inspections
- Reports
What are there four different types of technical due diligence?
- Acquisition
- Occupation
- Disposal
- Refurbishment
What are the things you will need to consider when undertaking technical due diligence?
- Inspect all the building fabric
- Health and safety considerations - report defects to client
- Fire precautions - have regard to combustible cladding and make recommendations to seek specialist advice if needed
- Request copies of statutory documents (asbestos register, fire risk assessment and statutory certificates).
What does Technical Due Diligence require you to do for Health and Safety and Fire Safety?
Due diligence reports should identify defects that require immediate action or if they pose a risk to life.
What is VPS 2 and VPGA 8 about?
VPS 2 is a mandatory requirement where members must inspect the property that is professionally adequate for the purpose of the valuation and to document any limitations in relation to the inspection and any assumptions / special assumptions in the ToE and Valuation report.
VPGA 8 provides additional guidance in relation to matters which may impact the valuation following a physical inspection and the appropriateness of any assumptions being made.
What is RICS Surveying Safely 2018?
Guidance note which sets out principles for the management of health and safety for members and firms.
What are the 9 topics included in the RICS guidance note for Surveying Safely?
- Corporate responsibilities for RICS firms and personal responsibilities for RICS members
- Relevance to RICS professional groups
- Assessing hazards and risks
- Workplace regulations
- Occupational health and hygiene
- Visiting premises and or sites
- Fire safety
- Residential property surveying
- Procurement and management of contractors
What are the corporate responsibilities for firms?
Should have a management process designed to identify risks to health and safety, and what measures they will put in place to minimise these risks to ensure the firm can operate safely.
What should the management process include?
- A recognised management structure to manage and monitor health and safety
- Policies and procedures to ensure employees are free from risk, or if the risk cannot be eliminated, that it is understood, managed and minimised.
What are the personal responsibilities for members?
Direct responsibility to ensure that they comply with corporate health and safety policies effectively and competently.
What is the Safe Person concept under RICS Surveying Safely?
Each individual assumes responsibility for their own, colleagues and others health and safety while at work.
What must firms do to ensure the Health Safety and Welfare for employees at work?
They must provide and continuously monitor
- Safe working environment
- Safe working equipment
- Safe systems of work
- Competent staff
What does the guidance note say on fire safety?
It outlines the risks of the fire in commercial and residential premises and stresses the importance to identify and reduce risks.
It provides guidance on the things to consider when evaluating the risk of fire, such as construction, insulation, cladding, use of the property and whether there is means of fire escape
What should you do before taking instructions for an inspection?
- Confirm the purpose of the inspection
- Conflict of interest check
- Carry out a risk assessment to identify any hazards or risk that need to be mitigated before the inspection.
What should you include in your terms of engagement?
- Details of the surveyor
- The client
- Identification of premises
- Access requirements
- Scope of instruction
- What is not being provided (valuation)
- Health and safety issues
- Limitations on the scope and survey of the report
