FP+A Blog

The Value of Facility Condition Assessments – Part 3: Know your 4 Cs.

Facility Condition Assessments generally conform to requirements defined by ASTM E2018-08. This ensures a comprehensive and thorough review of building and site conditions. The inspection and analysis process has four components (the 4 Cs):

Condition – What is the deficiency or problem? Where is it located? How severe is the problem?

Cause – What is the reason the deficiency or problem developed?

Correction – What repair or replacement is required to correct the deficiency? How critical is the problem and when should the correction be done?

Cost – What will be the labor and materials required to correct the deficiency?

Based on this analysis critical facility decisions can be made, maintenance action plans and budgets developed, and capital planning undertaken based on the severity of the problems.

The value of Facility Condition Assessments – Part 2: Minimize risk in real estate acquisitions

Facility condition assessments for commercial properties are similar to but far more comprehensive than home inspections. Home inspections are done for the buyer’s benefit so that he or she knows the problems associated with a specific property and can use this information to negotiate repairs, replacements, or cost reductions. They are usually recommended for any real estate transaction, they are done by trained professionals, and they basically answer: “What problems exists that I do not know?” This process minimizes risk for the buyer.

For potential commercial transactions of existing properties a Phase 1 Environmental Site Assessment is usually done. This assessment examines public records for a past use which may indicate potential environment hazards, such as underground storage tanks or on-site industrial processes. A facility condition assessment complements Phase 1 studies. The knowledge of what is below ground and above ground combine to provide a comprehensive look at the problems of existing properties. Prospective owners can deal with these problems immediately and reduce their risk of ownership.