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Technical Due Diligence

Technical Due Diligence is the process of systematic review, analysis and discovery in which a prospective purchaser or a property acquirer gathers information about the physical characteristics of the property/asset in order to enable them to make an informed assessment of the risks associated with the transaction. Fairwood PMC also provides comprehensive services in the area of technical due diligence, especially for mergers and acquisitions.

Fairwood PMC, provide specialists who provide comprehensive advice to the client, which is reviewed, analyzed and compiled into a report providing the client with a summary of key issues to be considered through the development process. Engaged directly by the client, Fairwood PMC gives a descriptive overview on the following components of technical due diligence:

  • Stability of structural components through visual inspections and analysis through key software like STAAD PRO for the property in review.
  • An opinion on the fitness of property for its intended purpose having regards to factors such as workmanship and condition. Recommendations are given for repair or replacement of items/structures due to maintenance shortfalls and damage/misuse.
  • Concise overview on the building envelope which encompasses roofs, facades and parts of interiors.
  • Inspection of areas within the curtilage of the property, including condition of hard and soft landscaped surfaces, smaller outbuildings, access roads, etc.
  • Assessment of building services that account for a major proportion of the property life cycle costs as they will be required to be upgraded periodically – including HVAC, Electrical, Communication, BMS, Plumbing & Fire Fighting, Vertical Transportation, etc.
  • Environmental issues –Identification of requisite environmental clearances that have been already taken from the authority and the balance which is mandatory to be obtained.
  • Statutory Compliance review – An explanation is given on whether the applicable building code have been followed on the related property. Suggest if any periodic or annual certifications are required and check whether evidence of approval to occupy is available.
  • Cost assessment – Through a simplistic approach, the cost assessment is carried out to estimate cost to complete (CTC) of buildings to be constructed, buildings under construction and repairs for the already constructed buildings, taking cost escalation also into account.
  • Risk Management - Identify the possible risks pertaining to construction contracts, coming on to the client because of takeover / purchase of property in review. We recommend the client on which risks to avoid, mitigate or accept and implement accordingly.