Technical due diligence (TDD) within the construction sector is one of the key steps undertaken at the start of any project, both for pre-acquisition and asset disposal.
At Naismiths, we pride ourselves on thorough, comprehensive auditing and reporting that distills all the details minus the industry jargon. Combined with our extensive risk assessment service and project management, we cover all the opportunities, potential pitfalls and solutions to give our clients peace of mind.
What is technical due diligence and why is it important?
Technical due diligence is a crucial part of all property transactions and developments. A site is thoroughly analysed by chartered professionals to determine its long-term value, its suitability for a project and whether the potential risks involved make it unfeasible. The technical due diligence report will outline any aspects such as the condition of the building or documentation that might affect the property as an asset or investment. The report is an essential part of the process of risk mitigation. It can also affect the buying process as some investors may choose to negotiate on price further to a report.
What does technical due diligence cover?
Due diligence reporting is an in-depth process that covers all aspects of the condition of the building, identifying risks and limitations and potential investment opportunities. It can be as comprehensive as required by the funder and will differ depending on the site.
Within the assessment of the site itself, specialists will report on the structure and fabric of the building, building services, statutory compliance and any contamination issues. All the relevant documentation and certifications will be collated, ready for review. Any estimations will also be made to calculate the funds required to invest in upgrades, maintenance or improvements.
The due diligence checklist will most often be broken down into the following sections;
Site information
Essential details including the site location, contact details, access arrangements, site logistics and security.
Legal searches
All the necessary legal documents including deeds and ownership information, appraisals and surveys and any associated restrictions.
Surveys
This section covers all surveys done on the property, from contamination to air quality and ecology surveys. It will also include the building survey evaluating the structure and condition of the site.
Site services
Evaluating the infrastructure of the electrical, gas, water supply, sewer and drainage systems of a site is a key element of due diligence reporting. This section will also cover telecommunications and wireless network capabilities.
Planning
Any applications for planning and approvals, including and attached conditions.
Get expert due diligence advice today
As part of our building consultancy and business review solutions, our experts offer technical due diligence for pre-acquisition and disposal and technical due diligence around asset recovery, including new lend, existing lend, M&A, MBO and Company Health Checks. We have an extensive network of specialist consultants to deliver assessments and appraisals that are tailored to every client’s needs.
Get in touch with our specialist teams to find out more about how we can help. Our nationwide company has regional offices all over the UK, offering national reach with local expertise.