What is a PCA?
Property Condition Assessments (PCAs) are due diligence level surveys of structures that provide clients with conditions of building components, estimated useful life, and replacement and repair costs over an established assessment term. They can be completed in concert with a Phase I ESA during a traditional due diligence period of a real estate transaction or they can be completed as a stand-alone study to evaluate the current condition of a building and to estimate future capital expenditures and maintenance costs.
Who needs a PCA?
PCA reports are often required by commercial mortgage lenders as part of real estate transactions but are also used by owners and facility managers.
In a real estate transaction, a PCA can often be used by a buyer to identify expensive building deficiencies and negotiate lower purchase prices or warranties from an owner. The report can also be used by a seller to demonstrate the good overall maintenance history and condition of a property when it is put on the market. Building owners and facility managers can use PCA reports to identify possible liabilities such as code violations and slip, trip, and fall hazards, or as a starting point in preparing a formal building capital expenditure and maintenance program.
The scope of a PCA can be modified to include various other additional items such as American Disability Act (ADA) surveys, pipe inspections, moisture intrusion surveys, building envelope studies, and seismic analysis.
What does a PCA Involve?
A conventional PCA will be conducted in accordance with ASTM E2018. However, some lenders have specific requirements above and beyond the ASTM standard. The PCA will involve a building assessor (engineer or architect) reviewing existing building plans, maintenance records, historical repair costs, and building permit information. The PCA also includes a visual survey of the property where site, building envelope, structural, pavement, roofing, mechanical, plumbing, electrical, vertical transportation, fire life safety, and building finish systems are visually assessed for deficiencies and to establish an estimated useful life for each building system component. For items that will require repair and/or replacement during the assessment term, a schedule of costs associated with repair and replacement is included to establish an estimated cost per square foot per year.
To learn more above property condition assessments, please call us at 562-495-5777 or email our building condition and assessment experts:
Eric Fraske, PE, can be reached via email at firstname.lastname@example.org