The role of Technical Due Diligence, or TDD, has shifted from its original form as a building survey. No longer is it sufficient to purely report on the condition of the building. Today’s more rigorous and commercial environment calls for TDD to become a key risk management tool to help you identify the limitations and opportunities of an investment in order for an informed decision to be made. Bringing real insight to minimise risk and future-proof the investment.
TDD has changed in line with emerging trends of shorter leases, green leases, sustainability and more stringent legislation, all demanding a wider viewpoint. Opportunities may need to be considered such as the feasibility of adding an extra floor. Landlord and tenant issues may need to be resolved from a neutral standpoint. Extensive M&E systems such as heating and cooling, ventilation ductwork, BMS and drainage often present greater issues than the building fabric itself – although the problems are often not visible.
And the emerging problems of building obsolescence means that longer-term viability is firmly on the agenda with energy and environmental concerns making some buildings potentially unlettable with catastrophic effect on value.
You need an integrated and vigorous approach to all these issues to identify potential liabilities, pragmatic advice on correcting deficiencies. Armed with cost liabilities and risks, will support the negotiation process and your subsequent transaction decision.