The ABCs of Property Condition Assessments (Infographic)

A Property Condition Assessment (PCA) provides real estate business owners and investors with a complete and detailed view of a property’s condition. While the process can be time-consuming and requires significant planning, it can deliver significant advantages such as reduced financial risks, timely execution of repair and maintenance programs, and reduced risk of non-compliance with building codes and regulatory standards.

Property Condition Assessment in NJ is indeed a major project often undertaken to guide property owners and other stakeholders with the actions they must implement before they invest heavily in a property. At the core of a PCA is Assessing Building Condition (ABC), also called Building Condition Assessment, which is the systematic inspection, review, and report on the state of a property’s structure and systems. But this definition is just the surface of what ABC is all about, and there are more important aspects of it that many real estate owners and investors should understand before they initiate one.

What is a Building Condition Assessment?

Often compared to home inspection, a BCA provides more detailed information and is necessarily more technical due to the complex nature and requirements for commercial real estate properties. Assessing the building’s condition usually begins with a detailed inspection of the building’s:
• Structural components, including walls, floors, windows, and doors
• Systems, including HVAC, plumbing, and electrical
• Exterior and interior components such as finishes, fixtures, site grading, drainage, roadways, and service infrastructures.

It is because of this scope that ASTM E2018 requires the BCA to be conducted by an individual with a “general, well-rounded knowledge of pertinent building systems and components.” Complex and large-scale properties in the Garden State may require the expertise of building inspection engineers, especially those that are knowledgeable in structural engineering.

Process of a Building Condition Assessment

1. Data Collection and Asset Categorization
A professional engineer hired to conduct a BCA often starts the BCA process with data collection and constructing an asset list, where they gather photos, measurements, descriptions, and information of property’s systems and components. After such data are collected, they evaluate it and categorize all the inspected assets because a building is usually divided into many systems and components. Asset categorization also allows professional engineers to determine the inspection level and technique they should use during the actual inspection process.

2. Data Analysis
Once the data on the structure, systems, and components are verified and categorized, they will be analyzed to determine the potential issues that may have been impacting the overall performance of the property.

3. Field Inspection
The third step requires the professional engineer to conduct a field inspection to detect and verify the defects and measure their severity and impact on the structure, components, and systems.

4. Facility Condition Grading
Lastly, the condition grade of the inspected structure, components, and systems will be rated and calculated by considering their current condition and their gross replacement cost. A low Facility Condition Index (FCI) means that the assessed components are in good to excellent condition, whereas a high grade means that some of the components are in a poor to very poor condition.
The following table provides an outline of the condition grades developed by American Society of Civil Engineers (ASCE)

ID Grade Description

1 Very Good a Fit for purpose
The infrastructure in the system or network is generally in excellent condition, typically new or recently rehabilitated, and meets capacity needs for the future. A few elements show signs of general deterioration that require attention. Facilities meet modern standards for functionality and are resilient to withstand most disasters and severe weather events.

2 Good a Good, Adequate for Now
The infrastructure in the system or network is in good to excellent condition; some elements show signs of general deterioration that require attention. A few elements exhibit significant deficiencies. Safe and reliable, with minimal capacity issues and minimal risk

3 Fair – Mediocre, Requires Attention (C)
The infrastructure in the system or network is in fair to good condition; it shows general signs of deterioration and requires attention. Some elements exhibit significant deficiencies in conditions and functionality, with increasing vulnerability to risk.

4 Poor – Poor, At Risk (D)
The infrastructure is in poor to fair condition and mostly below standard, with many elements approaching the end of their service life. A large portion of the system exhibits significant deterioration. Condition and capacity are of serious concern with strong risk of failure.

5 Very Poor – Failing/Critical, Unfit for Purpose (E)
The infrastructure in the system is in unacceptable condition with widespread advanced signs of deterioration. Many of the components of the system exhibit signs of imminent failure.

Based on the BCA inspection, the professional engineer delivers a report which includes the following:
• Description of each building component inspected.
• Issues or deficiencies identified in the inspected component.
• The Probable Cost/Replacement table, which lists all the immediate, short-term, and long-term repair costs and capital outlays that the client will incur to repair or replace damaged systems in the structure.
Importance of BCA in Property Condition Assessment

When conducted by a licensed professional engineer in NJ, the BCA aspect of a PCA can help the property owners and investors with a complete picture of how their property ages and how its systems work. Without such information, the stakeholders and the occupants of the building can do nothing but observe as the structural components break down due to years of neglect and lack of maintenance.

By knowing the severity of the wear and tear, as well as the age of the property, the property owners can take the proactive approach and initiate a repair and maintenance program in advance. Doing so will not only ensure that the building can function in optimal condition, but will also help reduce the complaints from people who use the facilities.

The outcome of a thorough BCA also allows for prioritization. The building inspection engineer explains in the report the scope and complexities of repair and maintenance work required for the facility’s structure and systems. With this information, the property owners and stakeholders can develop a long-term plan, develop a budget, and prioritize the items that need to be addressed first.

Lastly, a detailed BCA can also help the property owners meet their regulatory obligations. A professional engineer’s expertise in building inspection engineering can uncover areas where the owners are near or already out of compliance, and take timely action to meet those obligations before they turn into expensive and dangerous problems.

This is especially important for public structures such as schools, hospitals, and other community buildings that are required to comply with accessibility laws such as the Americans with Disabilities Act (ADA).

There are many benefits when hiring a professional engineer to assess a building’s condition. Lockatong Engineering is a team of professional engineers in NJ that possesses a strong understanding of how buildings work and how they can be maximized for efficiency, safety, and design for both aesthetics and function.
For more information about our property condition assessment services, visit www.lockatong.com today.