RICS Technical Due Diligence Doc

Building surveys and technical duediligence of commercial property

RICS Practice Standards, UK

4th edition, guidance note

Building surveys and technical duediligence of commercial property4th edition, guidance note

The fourth edition of this guidance note aims to provide surveyors withinformation and guidance in respect of commercial property surveys.

It covers:

• taking instructions;• survey preparation;• inspection; and• reporting.

Also included are appendices comprising:

• a summary of insurance issues; • a summary of legal issues; and• useful sources of information and further reading.

GN 63/2010

rics.org/standards rics.org/standards

Building surveys and technical due diligenceof commercial property

RICS guidance note

4th edition (GN 63/2010)

Published by the Royal Institution of Chartered Surveyors (RICS)

Surveyor Court

Westwood Business Park

Coventry CV4 8JE

UK

www.ricsbooks.com

No responsibility for loss or damage caused to any person acting or refraining from action as a result of the material included in this publication canbe accepted by the authors or RICS.

Produced by the Building Surveying Professional Group of the Royal Institution of Chartered Surveyors.

First edition published 1983 (previous title Guidance note on structural surveys of commercial and industrial property)Second edition published 1998 (previous title Building surveys and inspections of commercial and industrial property)Third edition published 2005 (previous title same as second edition)

ISBN 978 1 84219 627 4

Royal Institution of Chartered Surveyors (RICS) November 2010. Copyright in all or part of this publication rests with RICS, and save by priorconsent of RICS, no part or parts shall be reproduced by any means electronic, mechanical, photocopying or otherwise, now known or to bedevised.

Typeset in Great Britain by Columns Design Ltd, Reading, Berks

Printed in Great Britain by Annodata Print Services, Dunstable, Beds

Contents

RICS guidance notes 1

Acknowledgments 2

1 Introduction 3

2 Taking instructions 42.1 Key items 42.2 Vendor surveys 52.3 Client requirements 52.4 The premises 72.5 Confirming the instruction 82.6 Third party consultants and their appointment 82.7 Scope of services and RICS appointment forms 92.8 Working in Europe 9

3 Preparing for the survey 113.1 General guidance 113.2 Administration 113.3 Equipment 123.4 Health and safety for the surveyor 12

4 The inspection 144.1 General principles 144.2 Inspection, note taking and reflective thought 144.3 Main building elements 154.4 Building services 184.5 External areas, outbuildings and boundaries 184.6 Health and safety considerations 184.7 Fire precautions 194.8 Accessibility 194.9 Environmental considerations 194.10 Deleterious and hazardous materials 204.11 Sustainability issues 204.12 Cultural heritage 204.13 Matters for the legal adviser’s attention 20

5 The report 225.1 General guidance 225.2 Report layout 225.3 Report contents 23

Appendices 26

A Insurance 26

A1 Compulsory professional indemnity insurance regulations 26A2 Merrett v Babb 26A3 Professional indemnity insurance 26A4 Private work 26

BUILDING SURVEYS AND TECHNICAL DUE DILIGENCE OF COMMERCIAL PROPERTY | iii

A5 Subrogation 26A6 Third party rights 26A7 Third party liability insurance 27A8 Working outside of the UK and Ireland 27A9 New legislation and disciplines 27

B Legislation and legal issues 28

B1 Duty of care 28B2 Negligence 28B3 Contract and limitation 28B4 Legislation 29B5 Civil Procedure Rules 29

C Useful information sources 30

C1 Links 30C2 Further reading 30

iv | BUILDING SURVEYS AND TECHNICAL DUE DILIGENCE OF COMMERCIAL PROPERTY

RICS guidance notes

This is a guidance note. It provides advice toRICS members on aspects of their practice.Where procedures are recommended forspecific professional tasks, these are intendedto embody ‘best practice’, i.e. procedures whichin the opinion of RICS meet a high standard ofprofessional competence.

Members are not required to follow the advice andrecommendations contained in the note. Theyshould, however, note the following points.

When an allegation of professional negligence ismade against a surveyor, the court is likely to takeaccount of the contents of any relevant guidancenotes published by RICS in deciding whether or notthe surveyor had acted with reasonablecompetence.

In the opinion of RICS, a member conforming tothe practices recommended in this note shouldhave at least a partial defence to an allegation ofnegligence by virtue of having followed thosepractices. However, members have theresponsibility of deciding when it is appropriate tofollow the guidance.

On the other hand, it does not follow that memberswill be adjudged negligent if they have not followedthe practices recommended in this note. It is foreach surveyor to decide on the appropriateprocedure to follow in any professional task.However, where members depart from the practicerecommended in this note, they should do so onlyfor a good reason. In the event of litigation, thecourt may require them to explain why theydecided not to adopt the recommended practice.Also, if you have not followed this guidance, andyour actions are called into question in an RICSdisciplinary case, you will be asked to justify thesteps you did take and this may be taken intoaccount.

In addition, guidance notes are relevant toprofessional competence in that each surveyorshould be up-to-date and should have informedhim or herself of guidance notes within areasonable time of their promulgation.

BUILDING SURVEYS AND TECHNICAL DUE DILIGENCE OF COMMERCIAL PROPERTY | 1

Acknowledgments

This guidance note was produced by the RICS Building Surveying Professional Group under the direction ofa working group. RICS would like to express its thanks to the following who contributed to its development.

Working group

Ian Bragg, BSc MRICS, GVA Grimley Ltd

Laura Brazil, RICS

Alex Charlesworth, BSc (Hons) MRICS, Cushman & Wakefield LLP

Nevin Hutchinson, BSc (Hons) MRICS, King Sturge LLP

David Mann (Chair), BSc (Hons) MRICS, Tuffin Ferraby Taylor LLP

Trevor Rushton, FRICS ACIArb FBEng, Watts Group plc

The working group expresses its thanks in particular to the following contributors:

Pat Coleman, Faber Maunsell | AECOM

Michael Earp, FINEX Global, Willis Limited

Jason Juden, SJ Berwin LLP

Glyn Thomas, Land Securities Properties Ltd

2 | BUILDING SURVEYS AND TECHNICAL DUE DILIGENCE OF COMMERCIAL PROPERTY

1 Introduction

This guidance note has been prepared to providesurveyors and clients with a source of informationand guidance in respect of commercial andindustrial property surveys. Such surveys may alsoinclude large residential apartment buildings.

This guidance is written to apply to England andWales, although much of its content is equallyapplicable elsewhere. It is operative from October2010 from which time the RICS publication Buildingsurveys and inspections of commercial andindustrial property, 3rd edition, ceases to be RICSguidance.

General guidance of this nature cannot cover allcircumstances and each property should beassessed on an individual basis having regard tothe specific needs of the client. The guidanceoffered is considered adaptable for all types ofcommercial and industrial property. It is acceptedthat surveyors may well have good reasons for notfollowing all aspects of this guidance note. It is forthe surveyor to decide upon such issues dependingon the individual circumstances, e.g. nature ofconstruction or site conditions.

This is not intended to be an instruction manual ora guide detailing a step-by-step process whichmust be followed. It aims to set out the generalprinciples which should be adopted whenundertaking a building survey.

RICS is concerned that members only holdthemselves out to be competent in fields for whichtheir training and background experience areappropriate and relevant. It is important thatsurveyors undertaking commercial and industrialbuilding surveys have relevant experience in thisfield, have appropriate knowledge of buildingconstruction and are sufficiently skilled to inspectand report on the particular property involved.

Surveyors providing commercial and industrialbuilding surveys and associated services areadvised to:

+ assess the needs of the client;

+ consider the extent of the investigations to bemade, advise on the limitations of the agreedinspection and obtain instructions from theclient for any additional services required (thelife cycle flow chart on page 6 refers to typicalbuilding survey types);

+ undertake an impartial and professionalassessment of the property and its condition,and report to the client in the detail and stylenecessary to provide a balanced professionalopinion to the extent required by the agreedinstructions; and

+ comply with the agreed instructions, whichshould have been confirmed in writing, andform the basis of the contract between theclient and the surveyor.

The benefits to the client of commissioning abuilding survey, whether a prospective purchaser,occupier or investor in property includes:

+ gaining an understanding of the condition anddesign of the property;

+ establishing the suitability of the property for itsintended use;

+ understanding the need for, and quantifying,future costs and other liabilities;

+ providing a level of protection for institutionalinvestors or funders; and

+ providing a basis for negotiation with thevendor or landlord.

This guidance note has been prepared by a groupof experienced surveyors connected with thecommercial property industry. A full list of thosecontributing to the guidance is shown in theacknowledgments section.


2 Taking instructions

2.1 Key items

It is important to remember that the client may notbe familiar with the range of services that thesurveyor is able to offer. When a client asks for asurvey, it is recommended that the surveyor asksquestions to ensure that the type of survey beingrequested is the right one for the circumstances.For example, if a client asks for a schedule ofcondition, the client may mean a buildinginspection report. The surveyor should assess theneeds of the client and advise on all of the servicesthat can be provided.

There are key items common to confirminginstructions no matter what the commission orscope of work. These are recommended as basicgood administration and may include confirming:

+ precisely who the client/other parties are, i.e.investors and occupiers;

+ precisely what service is to be provided;

+ precisely who the surveyor/surveying companyis;

+ what is not being provided (e.g. a valuation);

+ the detailed limitations on the scope of thesurvey and report;

+ the date of the instruction;

+ involvement of other consultants or contractorsand the extent of their appointment (e.g. onbehalf of the client);

+ the timescales for completing the instructionand any intermediate stages;

+ what the fee will be;

+ how variations to the instruction will beassessed;

+ specialist access required, access restrictionsand health and safety;

+ how the fee will be claimed/become payableand the charges for late payment;

+ how the fee will be calculated if the instructionsare aborted early;

+ whether disbursements are included or not, inparticular where access hoists are required;

+ include the surveyor’s standard terms ofbusiness; and

+ are there any pre-qualifications required (nondisclosure agreement, Criminal Records Bureauchecks, Official Secrets Act 1989, rail track sidetraining, etc.).

Depending on the particulars of the arrangements,the surveyor may also need to consider:

+ insurances (see also Appendix A, Insurance);

+ the client’s indemnification of the surveyoragainst damage caused if opening up isrequired as part of the survey;

+ the procedures to be followed in the event of adispute;

+ personal guarantees for payment from directorsof small companies;

+ advance payments;

+ additional charges for time spent attending postsurvey meetings;

+ an agreement with the client on the level ofreliance (i.e. assignment); and

+ depth of document review the surveyor is tocarry out.

The surveyor may consider capping the time spentreviewing the documentation and reserve the rightto charge additional fees. For example, thedocuments may be held at a different location, orthe surveyor may be required to locate relevantdocuments among boxes of associated propertyinformation.

It is important to make the client aware of thepractical limitations of any inspection or surveyexercise. In any building, but particularly largebuildings or complexes of buildings, there areliterally hundreds of items that may need to bechecked. Many of them will be hidden and/orinaccessible. Repetitive items (such as windows)will normally only be checked on a sample basis.However, a client will reasonably expect that allmajor defects (or potential major defects) andissues would be addressed.

In addition to what the surveyor considers to be apriority for the specific exercise being undertaken,


the client’s perception of what is important needsto be addressed. The perceived priorities may notbe the same. For example, the priorities will changewhere a client is purchasing a property for eitherinvestment purposes, or for its own occupation.

It is also recommended that the surveyor deals withthe issue of liability for the report – whether or notthe surveyor is willing for the liability to be passedto a third party. Therefore reference to, or exclusionfrom, the Contracts (Rights of Third Parties) Act1999 ought to be considered. The surveyor maywish to limit assignments to one or two partiesonly, subject to the surveyor’s insurance terms, witha requirement for further assignments to be subjectto written consent (and not be unreasonablywithheld). Surveyors should refer to theirprofessional indemnity insurance (PII) cover forspecific conditions. Refer to Appendix A forinsurance information.

Similarly, the surveyor is recommended to clarifythe extent of liability for specialist sub-consultantreports, whether or not the sub-consultants aredirectly engaged. It would be appropriate to ensurethat the level of detail included in the agreementwith the client is at least replicated in anyagreement with a specialist sub-consultant orcontractor. In circumstances where a sub-consultant is appointed on behalf of the client, thisought to be stated and that the surveyor is notresponsible for the content of the report.

Instructions may come from term commissionarrangements where contract details may havebeen agreed at some time in the past. These needto be reviewed, and in such cases care should betaken to ensure that the formalisation of individualinstructions under a term commission is completedin each and every case (for example, purchase/works orders and pro forma approvals). Thesurveyor should ensure that the instruction isproperly established and that a contract existsbefore starting the identified task.

Beyond these basic principles, it is advised thatfurther areas of detail particular to industrial andcommercial premises are confirmed at instructionstage. These generally relate to the client’sintentions for the premises, the physical andoperational particulars of the premises, and healthand safety issues. The divisions between theseareas can be blurred, but all of these items ought

to be investigated and included within theconfirmation of instructions.

2.2 Vendor surveys

Vendor surveys are undertaken with a view tocollating all due diligence documentation before theproperty goes to the market and benefit passes tothe purchaser. Vendor surveys avoid the need forsurveys by each purchaser’s team and enablesellers to ‘put their house in order’ should thereports identify issues. All potential purchasers willtherefore be basing their offers on the sameinformation and without the need for a ‘subject tosurvey’ condition. With regard to vendor surveys, itis worth considering the following.

The client’s report is likely to be assigned to thepurchaser following completion of the sale.Readdressing the report is unlikely to maintain thecontractual links, as the report would have beenprepared for the seller, not the purchaser.Subsequently, the surveyor is likely to be requiredto enter a third party agreement with the potentialpurchaser, which may also extend to the funders.This is usually undertaken in excahnge for anominal payment.

The surveyor’s instructions ought to be varied toinclude reference to the Contract (Rights of ThirdParties) Act and willingness for liability to bepassed to a third party. The surveyor may wish tolimit assignment to one or two parties only, subjectto the surveyor’s insurance terms, with arequirement for further assignments to be subjectto written consent (and not to be unreasonablywithheld).

The third party agreement is sometimes called the‘duty of care’ or ‘reliance’ letter. The wording canbe agreed at the time the surveyor is appointed toundertake the survey, and the content ought tocomply with the surveyor’s PII conditions. For moreinformation on duty of care and other legal issues,see Appendix B.

2.3 Client requirements

Having a clear understanding of the client’sintentions for the premises is important, as there isa range of survey types that could be undertaken.The life cycle flow chart (Figure 1) will offerdirection for the surveyor in this regard.


It is important to establish why the client requiresthe information and possibly guide a client that isnot fully conversant with the options for varioustypes of survey and professional services available.This may include specialist support from otherdisciplines. Where such specialists are to beappointed, their liability should be direct to theclient in order to secure privity of contract. Wherethis is not the case and the appointment is as asub-consultant direct to the surveyor, the matter ofliability needs to be clearly identified and defined.

2.3.1 Tenure information

The surveyor’s ability to provide a definitive reportmay be severely compromised without a full copyof the lease and/or other title documents. They arekey to determining the client’s liabilities with regardto the premises. Where documents are missing, thesurveyor ought to make reasonable assumptions orappropriate exclusions and state what these arewithin the report.

2.3.2 Proposed use

The surveyor is advised to try and determine theclient’s intention in acquiring the building and anyspecial requirements that the client may have. Thesurveyor should also understand how the client’sundertaking or operations will affect the premisesand surroundings. It may be appropriate to consultan operational specialist in the field (possibly fromthe client’s own staff) to assist in the survey andreport. If the client has intentions to physically alterthe building, this will affect the scope of the reportand will likely lead the surveyor to engage specialistengineering assistance.

2.3.3 Report format

The surveyor may consider showing the clientexamples of alternative report formats forconsideration, and the following questions couldalso be included.

+ Should photographs be included?

+ To reduce waste, can electronic copies beprovided in PDF format only? If the clientrequires paper copies, how many should beprovided?

+ Are any copies to be issued directly to otherparties authorised by the client, such as legaladvisers?


+ How should the report be delivered, e.g. bynormal post to an office address or by securedelivery to a named individual?

+ Are costs for works or repairs identified in areport to be included? If so, how detailed dothey need to be and on what basis are they tobe assessed – the use of schedules of rates, forexample?

2.3.4 Coordination

Commercial surveys will typically involve a team ofindividuals (surveyors, engineers, environmentalconsultants, etc.) contributing to a single report.Where these are appointed separately by the client,it is important to clarify with the client who will betaking the responsibility to coordinate theseindividuals to ensure that the information theyproduce is correct and delivered in a timely fashion.Whoever takes on this responsibility should expectthat the client will make this clear to all themembers of the team.

2.3.5 Time

In agreeing a timetable with a client, the surveyor isrecommended to detail the time necessary to:

+ carry out the various surveys;

+ complete research and tests; and

+ prepare and submit the report.

If the surveyor feels insufficient time is beingallowed, he or she should notify the client.

The surveyor needs to be aware that responsibilitywill remain with him or her when acceptinginstructions for quick ‘walk round’ surveys whichdo not allow sufficient time for a full evaluation.When accepting such instructions, surveyors oughtto ensure that clients are fully aware thatcompromising on the time allowed may result in alimited report. Balancing time, cost and quality inorder to achieve the client’s objectives is frequentlydifficult as they are often in conflict with oneanother, hence the necessity to establish prioritieswith the client when agreeing the brief. These canbe modified by agreement as the project proceeds.

2.4 The premises

2.4.1 Location and size

The importance of precisely identifying the areas tobe covered within the survey should not be

overlooked or underestimated. It should not beseen as unreasonable to expect a client to providean accurate detailed address, including a postcode.

The extent of the survey may also need to beconfirmed for large premises, where not all of thebuilding or site is to be included. Properties inmultiple occupancy, ill-defined industrial sites,outbuildings and yards are among those that canpose problems in this area. It is recommended thatthe surveyor asks the client to provide definitivedirection, usually by reference to a property titledocument. However, the surveyor should bring anyobvious areas of inaccuracy or uncertainty to theclient’s attention. Confirmation of instruction to theclient should also include a marked up plan orother written definition of the area to be surveyed.

2.4.2 Access

Confirmation that all areas of the building will beaccessible on the dates agreed for the survey(s) isadvisable. It is also important to check in advancewhether roof access is available from within thebuilding (i.e. roof hatches) for flat roof inspections,or whether separate ladder or platform access isrequired and needs to be organised, internally orexternally, via a caretaker or local contractor.

Tenant notice period or other access restrictionsalso need to be ascertained. The fee arrangementscould detail the costs of return visits to sites ifaccess is not available as expected.

When arranging the inspection, considerationshould also be given to section 3 of the Health andSafety at Work etc. Act 1974 regarding generalduties of employers and the self-employed topersons other than their employees.

2.4.3 Occupation

The surveyor will benefit from knowing what partsof the building will be occupied as this may restrictthe survey. For example, it may be that out-of-hours inspections will be needed for noisy orotherwise intrusive investigations. Similarly, theoperational processes or activities beingundertaken in the premises may bar the surveyorfrom specific areas at certain times.

The surveyor may benefit from knowing if thepremises, or parts thereof, are vacant. It is also


important to establish any requirements for privacyof any party, or a need for a confidentialagreement.

The fact that the property may still be underconstruction or subject to ongoing refurbishmentshould also reported to the surveyor.

2.4.4 Documentation

If available, copies of current statutory and otherdocumentation should be requested as part of theevaluation for the inspection or the report. It wouldbe prudent to request these at the outset if for noother reason than it may take some time to locatethe required documents. The following is a list oftypical documents which may be available (alongwith those listed in section 3.2.2):

+ health and safety file;

+ licences for alterations;

+ fire risk assessments/fire certificates;

+ planning approvals;

+ listed building or conservation area status;

+ building control approvals and completioncertificates;

+ asbestos documentation;

+ access audits;

+ Energy Performance Certificates (EPC) andDisplay Energy Certificates (DEC); and

+ existing survey reports.

The Internet is an excellent source of information,and a list of useful websites is included inAppendix C of this guidance note.

2.5 Confirming the instruction

The client’s instructions are often given bytelephone, and it is important that the basis of thecontract is agreed before the survey is undertaken.Whilst it is possible to establish a contract verbally,the surveyor is strongly recommended to ensurethat any instruction is formalised in writing. Email orletter is acceptable and should include all of thepoints covered in this section.

Confirmation should be sent out as soon aspossible, confirming the client’s instructionsincluding the terms, conditions and limitationswhich have been agreed, remembering that oncethese ‘terms of engagement’ have been decided,

they cannot be amended without the client’sapproval. It is not essential that the client providesconfirmation of acceptance of the conditions;however, it is advisable for the surveyor to requestthat the client signs and returns a copy of the letterof confirmation to show acceptance of the termsand conditions of the engagement.

Typically, a client’s phone call or email/letter invitesthe surveyor to undertake a survey but with nomention of terms. The surveyor’s return letter,setting out the terms, then constitutes the ‘offer’ inlegal terms, although the client may see it as anacceptance of the initial invitation. The surveyor isrecommended to press for and obtain formalacceptance of the offer. It may be easier if thesurveyor provides the client with a copy of theterms that can be readily signed and returned byway of acceptance.

Experience suggests that more often than notdisputes are based on there not being a clearunderstanding of the terms at the outset. Therefore,written confirmation of instructions is becomingmore of a requirement where court action isnecessary to recover debt. When instructions arereceived through a third party, the surveyor isrecommended to take all reasonable steps toensure that the confirmation of instruction isforwarded to the actual client in full.

In the absence of any clause to the contrary, thereis an implied term at common law in a contractbetween a professional and a client, that workshould be carried out with the skill and carereasonably to be expected of a competent personexercising the particular calling and profession andthe particular skill in question.

2.6 Third party consultants and theirappointment

Given the complex nature of commercial propertyinspections, appointing consultants from otherdisciplines may be required to help preparetechnical due diligence investigations – forinstance, mechanical and electrical consultants.Such specialists may be appointed in several ways,including those discussed in the following lists.

1 Direct appointment by the surveyor

+ The surveyor should ensure the cost for theconsultant is covered within the surveyor’sown appointment.


+ The level of the consultant’s own PII shouldbe checked. There may be a shortfallbetween the level agreed directly with theclient, which will leave the surveyor’s PIIexposed.

+ An agreement on a detailed scope ofservice, timescales and requirements shouldbe made between the surveyor and theconsultant.

+ The surveyor will be responsible forcoordination and delivery, as well as contentof the consultants report. Therefore,reviewing the report before delivering it tothe client is recommended.

2 Direct appointment by the client

+ In these circumstances, the client will beresponsible for payment of the consultant’sfees and briefing, as the contract will bedirectly between the client and consultant.

+ The surveyor may be asked to review theconsultant’s report.

3 Indirect appointment by the surveyor on behalfof the client

+ In many cases, the client would prefer thesurveyor to coordinate and organise all sub-consultants and act as lead during the duediligence process. As a result, the clientmay require the appointment of sub-consultants on his or her behalf.

+ If the surveyor chooses the consultant, thechoice should be clarified with the clientbefore appointment.

+ The surveyor should establish the terms ofthe sub-consultant’s appointment andobtain client agreement, together withconfirmation that payment of the sub-consultant’s fees will be covered.

+ The surveyor should confirm with the clientthat the former is not responsible for thecontent of the sub-consultant report.

The surveyor ought to ensure that all PII conditionshave been met in all circumstances. The surveyormay insert a copy of the consultant’s report into hisor her own report within the appendices, but itmust not be altered. Salient issues may beextracted and used in the surveyor’s report, thoughthe source should be quoted and whether it was a

direct or indirect appointment should be madeclear. The surveyor may also consider stating thathe or she cannot be held responsible for thereport’s content.

2.7 Scope of services and RICSappointment forms

Many surveyors and surveying firms have adoptedtheir own specific scope of services. Alternatively,the surveyor may wish to use standardappointment documents provided by RICS. Theseare available to RICS members to download fromthe RICS website (www.rics.org/site/scripts/documents.aspx?categoryID=454).

Surveyors may find it helpful to consult their PII forspecific conditions before any appointment.

2.8 Working in Europe

2.8.1 Key issues

The use of building surveyors within Europeancountries is gaining more popularity, so it isimportant that RICS addresses some of the issuesarising from this trend in order to maintain aconsistent level of service across Europe, MiddleEast and Africa (EMEA) region. Many clientsappoint building surveyors because they havecommercial awareness of what an investor, forinstance, is looking for and wants. Many clientsalso think of Europe as a single entity.

Whilst building surveying as a profession is gaininga reputation across EMEA, it is important forsurveyors to recognise that different countries havedifferent professions undertaking similar services.Indeed, some countries have several professionsperforming the same, or parts of the same, servicethat a building surveyor may offer.

There are a number of key issues that need to beestablished before taking instructions.

+ Clients require a consistent level of service inboth the UK and Europe. Surveyors should onlyaccept instructions if these can be adequatelyresourced and standards maintained.

+ Surveyors should assess each instruction andestablish whether limited local knowledge willbe a barrier.


+ Many countries have legal barriers to operation,so it may be helpful to research these beforeentering into a contract.

+ There are legal differences, not only in othercountries but also between federal states orregions within countries, and surveyors ought toacquaint themselves with each country’sspecific issues, preferably before acceptinginstructions.

+ Some clients want their buildings compared toUK standards and regulations to provide aconsistent benchmark.

+ Communication can be a clear barrier, andwhilst English is the accepted language ofbusiness, there are many instances where it isessential to communicate in the local languagein order to complete the instruction. Forinstance, to undertake an acquisition survey it

is important to speak to local personnel orfacilities managers, as well as looking at localdocumentation. Alternatively, some firms workwith local building experts to avoid theproblems of law and language.

+ Surveyors should be aware that local law andEU legislation are liable to change and keepthemselves fully up to date.

+ Value added tax (VAT) issues are complex, andUK VAT should always be considered accordingto the specifics of a transaction.

For further information on working withinContinental Europe please refer to the RICS bestpractice and guidance note for Technical duediligence of commercial, industrial and residentialproperty in continental Europe, 1st edition, to bepublished in 2011.


3 Preparing for the survey

3.1 General guidance

Preparation for a survey starts with obtaining theclient’s clear instruction, and with the surveyorunderstanding the client’s objectives in order toprovide useful advice that is targeted at addressingthe client’s future plans.

Industrial and commercial surveys usually involve ateam of surveyors and professionals fromassociated disciplines, often from differentpractices and/or businesses. Clear lines ofcommunication between members of the teamneed to be established at the outset, in order foreveryone to understand the context of their owncontribution and to prevent errors or duplication indata gathering.

3.2 Administration

3.2.1 Who, when and whereGetting the right person to the right place at theright time requires planning and forethought if thesurvey team is to be effective. Getting acombination of maybe five, six or more skilled andexpensive individuals to the same place at relativelythe same time can be difficult, particularly whenthey may be from different companies andgeographic regions and often are meeting atrelatively short notice. Furthermore, gettingeveryone to produce the correct information and inthe correct format, in time for it to be reviewed,collated and commented upon before the deliverydate expected by the client requires much effortand planning.

The surveyor is recommended to clarify with theclient on who has the responsibility to coordinateand instruct any specialist surveys and reportsassociated with the surveyor’s survey. If neitherhave been appointed as the coordinator, both thesurveyor and the client need to establish who thespecialists should report to with their contributions.

3.2.2 Occupiers – valuable sources ofinformationIt is recommended that surveyor establish goodrelations with individuals at the premises as they

are often willing to share, or even identify,background issues that might not be apparent fromspending a single day within the premises, butwhich might be useful for inclusion within reports.Advance contact by phone to arrange access andperhaps escorted inspections is the time to try tostrike up a friendly rapport.

When arrangements are being made to carry out aninspection of the property, especially when it isoccupied, it is important that these arrangementsare confirmed directly with the occupiers. Suchconfirmation may include the following (pending theclient’s privacy requirements):

+ confirmation of the surveyor’s appointment;

+ purpose of the survey (subject to clientconfidentiality);

+ dates and access arrangements and with whomthe arrangements have been made;

+ name(s) of the surveyor(s) and others who willbe involved;

+ an estimate of the time likely to be required forthe survey;

+ requirement of gaining access to all parts of thepremises, ensuring that keys and escorts, etc.are available;

+ a request for a letter of authority for access to asite where this is relevant;

+ a request for details of any known risks orhazards; and

+ clarification of requirements for a site induction.

Drawings are of great benefit but are not alwaysavailable or, if they are, site staff may not knowtheir whereabouts. If none are forthcoming, a goodtip is to seek out a fire safety plan. This will oftenbe available on site, and the surveyor may be ableto borrow it to copy or even photograph it. It maynot be dimensionally accurate but will give a goodoutline plan of the premises.

Any items of information that the client has notbeen able to provide may be available from theoccupiers. The surveyor ought to review what he orshe has and seek to update it. Enquiries may bemade on such matters as:


+ structural alterations or works for whichdrawings may be available;

+ guarantees in respect of the premises or itsservices;

+ local issues (e.g. flooding or boundarydisputes);

+ items of fixed equipment likely to be removedby the occupiers;

+ records of service agreements on items ofplant;

+ records of statutory undertaker’s accounts overa relevant period;

+ records of the testing of life safety systems;

+ health and safety matters;

+ water hygiene and Legionella reports;

+ planning and building control applications andapprovals;

+ operations and maintenance manuals;

+ asbestos registers;

+ access audits;

+ radon tests; and

+ high alumina cement (HAC) tests.

3.3 Equipment

Standard construction site personal protectiveequipment (PPE), such as hard hats and boots,may not be appropriate for survey work, but that isdependent on the activities at the premises. Itemstypically required for a survey include:

+ coveralls;

+ disposable class FFP2 face masks;

+ goggles;

+ gloves (latex and heavy duty); and

+ ear defenders/plugs.

If working in or around trafficked areas (goodsyards or loading bays, for example), wearing a highvisibility jacket and site boots will be required.

The surveyor is not expected to use cradles orother fixed access equipment including safetywires. However, if they are needed, the surveyorshould have proper training, be authorised to douse them and wear an appropriate safety harness.

It would probably be more appropriate to engage aspecialist to undertake tasks requiring the use ofsuch equipment.

3.4 Health and safety for the surveyor

It is advisable to undertake a risk assessment andto try to have a full understanding of the premisesand their current condition before embarking on thetask. The risk assessment can be in any form thatis appropriate for the task at hand, but it is stronglyrecommended that it is recorded and filed.

A brief inspection prior to commencing the surveyshould be performed in order to spot areas ofevident or potential danger. Familiarity with RICSSurveying safely (2006) publication is advisable andcan be supplemented with information about theparticulars of the subject premises.

3.4.1 The premises

The size of the premises (including surroundingareas and outbuildings), their height and extent canall be assessed prior to the survey, and the toolsand other required preparations arranged.

The presence of fragile surfaces should beidentified, along with the adequacy of items suchas walkways, roof edge protecting and asbestosencapsulation. A roof surface should always betreated as fragile and not walked upon, unlessknown to be otherwise (e.g. concrete slab).

If the premises, or parts thereof, have been vacantfor any length of time there may be a risk thatbuilding elements have failed or may be failing.Caution is recommended when entering suchareas.

3.4.2 Activities in and around the premises

The activities being undertaken in the premises (oron adjacent and nearby premises) may pose risksto the surveyor. Prior to the survey, the surveyor isadvised to find out the activities and any resultantnecessary precautions.

It is likely that heavy industrial, chemical,petrochemical and other well establishedmanufacturing processes will have detailedguidance for the surveyor to follow. In the absenceof such detailed guidance, the surveyor needs toestablish that the processes pose no risk.

Areas to be considered include:

+ working close to plant or machinery;

+ working at height;


+ working in confined spaces;

+ traffic movements;

+ excessive noise;

+ excessive heat or cold;

+ vibration;

+ presence of microwaves, radiation andelectromagnetic field;

+ chemical emissions;

+ increased hygiene needs (e.g. food preparationareas);

+ biohazards and asbestos containing areas;

+ time restrictions;

+ unoccupied areas and one-way opening doors;and

+ security areas.

It is worth considering what risk the surveyor’spresence may pose to the operation of thepremises. Will staff be aware of the surveyor’s

presence? Will the surveyor contaminate orotherwise damage the process or its product?

3.4.3 The surveyor

Much is presumed about a surveyor’s competencyto complete a survey safely. When being retained, asurveyor is often quizzed on technical andprofessional matters but rarely on practical issuessurrounding surveys. The employer has aresponsibility to ensure that the surveyor is not putat risk, but it is similarly the responsibility of thesurveyor to bring such limitations to the employer’sattention so that they can be addressed.

A surveyor lacking understanding or confidence inthese areas is recommended to read various Healthand Safety Executive (HSE) publications regardingthe use of ladders and working on roofs, andadvice from the Suzy Lamplugh Trust, which dealswith lone working issues. Refer to Appendix C forlinks to this Trust and other relevant organisations.


4 The inspection

4.1 General principles

The degree of inspection will depend on thepurpose of the survey, the practical limitations inundertaking it and the intent of the report. Areasnot inspected should be clearly identified within thereport. The client should also be made aware of thepractical limitations of any inspection or surveyexercise. Repetitive items (such as windows ordoors) will normally be checked only on a samplebasis. However, a client would reasonably expectthat all major defects (or potential major defects)and issues would be addressed. The surveyorshould establish the priorities of the client, as theymay not be the same as those of the surveyor.

The inspection requires a methodical approach tocollecting the data in as great a depth as ispracticable and appropriate under the conditionsfound on site. The surveyor should open unfixedhatches to the roof, ceiling and floor voids andservice risers, together with screwed down accesshatches (where this can be done without causingdamage, expending excessive time or requiringspecialist tools). Manual handling also needs to beconsidered – particularly in respect of heavy-dutymanhole covers. In large or complex properties, itis often necessary to undertake a preliminarysurvey in order to become familiar with the generallayout, form(s) of construction, means of access,inaccessible areas, and health and safety issues.

It is not the purpose of this guidance note todictate to a surveyor how to undertake aninspection, but whichever method is used, considerthe inter-relationship of building elements and trynot to treat them in isolation. This is particularlyimportant when inspecting a large building wheredifferent surveyors are responsible for inspectingdifferent elements. Checklists may prove useful.These may be based on general matters to inspectand test, or may be developed for the particularbuilding(s) being surveyed. It is not necessary tofollow checklists slavishly, nor should they beconsidered as comprehensive. Where used withcommon sense, the survey will be seen to havehad a logical basis.

4.2 Inspection, note taking andreflective thought

To comply with the terms and conditions ofengagement, the surveyor should inspect as muchof the property as is physically or safely accessible.A full inspection is often prevented by physicalconditions or restrictions imposed by the occupant.If so, it is recommended that an explanation for allsuch limitations be provided within the report. Thesurveyor should then make a professionalassessment based on what can be seen and adviseon the likelihood of a defect (or defects) beingpresent. In some situations, this may lead to arecommendation for further opening up orinvestigation works.

Where an area or location cannot be accessed orinspected adequately, presenting ‘best and worst’options can give the client a spectrum to consider,rather than leaving the matter unresolved. Theclient may appreciate an ‘educated guess’ ratherthan complete uncertainty, but where this approachis adopted, the surveyor should try to make it clearthat assumptions have been made and shouldalways separate fact from opinion when reporting.The surveyor should keep in mind that conditionson site may not be as previously remembered ormay have changed, and therefore should alwaysuse caution whilst carrying out the survey. If thereare changes in circumstances, then it may beappropriate to review and revise the riskassessment for carrying out the survey.

It is recommended that the surveyor always takesand keeps a permanent record of the site notes,sketch plans and photographs made at the time ofthe inspection. Dictating machines, if usedcorrectly, can provide an improved means of readilycollecting an increased amount of data comparedto written notes. It is advisable not to attempt towrite the final report during the inspection but toprepare it from the notes after appropriateconsideration. A copy of the original, unedited,dictated notes should be retained on file.

Because the building survey report is intended toreflect the considered professional opinion of the


surveyor, the edges of inspection, diagnosis andreporting often overlap. Each element of theproperty needs to be separately addressed anddescribed, the sequence depending upon thelogical format adopted. The following sectionsprovide a methodical approach for the collection ofdata for the survey, or equally a means to presentthe data within the report.

4.3 Main building elements

4.3.1 Roofs

The surveyor should inspect external roof areas asclosely as is feasible using the available equipmentand from safe vantage points. The interior ofaccessible roof voids or the ceiling void of the topfloor should also be inspected as far as possiblewith the equipment and access available.Inaccessible voids can be noted and an opiniongiven by inference, with recommendations forfurther investigations if appropriate.

Timbers or steelwork should be checked fordamage and/or deterioration, alignment, etc. Thetype and quantity of insulation provided should bedetermined wherever possible. The condition of theexternal surface, weathering details, poorworkmanship and/or detailing, and an assessmentof its age and life expectancy should be noted,along with the presence of fragile roof coveringsand asbestos cement sheeting. Subject to thefindings of the survey, further testing such asthermography or earth leakage testing may bedeemed appropriate. Any recommendations for aproposed renewal should ensure compliance withcurrent Building Regulations.

Rainwater goods may be considered as integral tothe roof, or as a separate heading (see 4.3.2), ascan elements such as roof windows, smoke vents,services extracts, parapets, flashings, fascias,soffits and barge boards. Depending on their sizeand form of construction, each roof requiresindividual inspection but may be reported uponseparately, in groups or as a whole. Balconies, roofterraces and external plant areas may also beconsidered separately or as part of the roof.

4.3.2 Rainwater goods

Rainwater goods should be inspected as closely aspracticable using the available equipment and

vantage points including the inside of gutters.Usually, the condition of downpipes can only beconfirmed by inspection if they are externallymounted or within accessible risers; otherwise theirinternal location should be checked for signs ofdamp. Comment should be made on the generalstandards of maintenance of the system. Thesurveyor should distinguish between gravity andsyphonic systems of rainwater disposal andidentify, from visual inspection, whether they appearto be working efficiently.

4.3.3 Walls and cladding

The exposed elements of all walls should bevisually inspected externally and internally whereunobstructed by heavy plant growth, fixed linings orfurniture. Flues and wall cavities cannot ordinarilybe inspected except from pre-formed accesspoints. Foundations are not normally exposedduring a building survey, unless there is a specificreason or instruction to do so. An assessment ofthe foundation is then usually undertaken by astructural engineer.

The effectiveness of damp-proof courses, cills,copings, cornices, brise soleil, flashings and similarcomponents require attention to confirm theirprotection against dampness and weatherconditions. External cladding should be inspectedfor degradation, movement, cold bridging, defectivesealants and coatings, fire stopping, cracking orcorrosion.

The surveyor should comment on the condition,extent and type of insulation where possible.Composite panel construction should behighlighted to the client, and advice from theclient’s insurers may be required. Evidence ofalterations or repairs can be noted and reviewed forlegal or structural implications.

Subject to the findings of the investigation, it maybe necessary to undertake invasive examination,e.g. opening up the structure or using anendoscope. This is over and above the scope of anormal survey, with a further visit and additionalcost being incurred, subject to the client andbuilding owner’s approval.

The need for specialist cladding or fenestrationconsultants should be considered and suitablerecommendations made for their appointmentwhere appropriate.


4.3.4 Windows, doors and joinery

Where accessible, these elements should bechecked from ground level externally and throughopen windows to upper floors where feasible; thisis to examine vulnerable areas at close quarters. Inlarge or complex buildings, it may be acceptable toinspect a representative sample of these elements,particularly when they are of similar constructionand design. Doors and windows should bechecked for timber decay, plastic creep or metalcorrosion. Opening lights and doors should betested for distortion or difficulties in opening andclosing. It is worth noting adequate detailing toensure the prevention of water ingress andsufficient drainage.

Failed double glazed units, gaskets and seals, orpoor insulation standards can be identified wherereasonably possible, but it may not be possible toidentify every individual case of a defect in typicalsample surveying procedures. Evidence of highhumidity levels can be noted where water or mouldis evident on internal cills and around the window.Where reasonably feasible to determine, glazing invulnerable locations and any shortfalls in health andsafety requirements should be advised. Thesurveyor should make reference to the provision,condition and adequacy of ironmongery, particularlyin respect of means of escape, security and ease ofuse by the disabled. External decoration hasparticular relevance in recommendations on thelongevity of elements and protection againstweathering and decay. Redecoration clauses in thelease may need to be noted.

4.3.5 Structural frame

The surveyor should inspect the effectiveness andcondition of the structural frame where reasonablyaccessible. A description, recording visiblefractures, decay, corrosion, spalling concrete,exposed reinforcement and distortion should beprovided, along with areas which have been alteredor damaged. The surveyor should also note thepresence of fire protection materials and, wherepossible, the likely fire resistance periods.

Further investigations may be required foridentifying causes of subsidence or failures ofconcrete, timber frames or steelwork. Clientapproval will be needed for the additional time andcost, which may include the assistance of a

structural engineer. An assessment of the building’sage and form of construction is essential, as thisoften provides an insight into typical defectscommon during a particular period or associatedwith a construction method.

Where it is appropriate for the report, the surveyorshould record the clear floor to eaves height to asteel portal frame for racking within a distributionwarehouse, as well as the required minimum floorloadings for a particular usage. If HAC (pre-1975) orcalcium chloride concrete additive (pre-1978) issuspected, the surveyor should caution the clientaccordingly and, if appropriate, recommendadditional testing to verify the existence of thesematerials. The surveyor should also beware of therisk of chloride attack by virtue of environmentalexposure to de-icing salts (buildings of any age)and, where attack is possible or suspected,recommend additional chloride and carbonationtests.

Multi-storey car parks demand special attentionbecause of their exposure to harsh environmentsand, particularly in older buildings, poorconstruction standards. In some cases, additionalengineering advice may be appropriate.

4.3.6 Substructure/basements

The surveyor should comment on the levels ofventilation, the presence of dampness and flooding,any drainage or plumbing arrangements, and thelikelihood of tanking (original or subsequent) beingpresent. Further investigations may be required byforming trial holes to confirm the presence of adamp proof membrane (DPM) to verify theconstruction of the walls below ground level and toestablish the height of the water table. Chemicalanalysis may also be used to establish the origin ofsalts in any water present.

4.3.7 Floors

The surface of floors not covered by floor coveringscan be inspected. In the case of timber floorboards,where possible and permitted to do so, looseboards should be raised to enable the constructionto be identified. The surveyor should check fordamage due to infestation, dampness or serviceinstallations. On timber floors, a heel drop test isdesirable. The surveyor should also comment on


excessive deflections, as well as general levels asan indication of whether joists are likely to beundersized or defective.

In the case of solid floors (particularly in industrialbuildings), the degree of ‘flatness’ should beassessed along with any significant surface defectsand the capacity of the floor finish or surface towithstand the anticipated traffic. Comments on theserviceability of the floor should be included, inparticular the existence of significant cracking andslab edge deterioration or visual evidence ofcurling. Where floor loadings are important orsuspected as being insufficient, details of thestructure can be taken to enable a suitable briefingto be given to an engineer for assessment. Unlessotherwise agreed, calculations of possible floorloading are outside the scope of a normal buildinginspection. However, the surveyor should seek todetermine data by referring to building operatingmanuals and similar documents.

The provision and condition of a raised access floorshould be confirmed, the depth of void establishedand the adequacy of fire barriers andcompartmentation checked, where possible. Thesurveyor should inspect floor trunking or serviceducts where accessible to determine the conditionand the space available for services installations.The fire resistance of elements of structure orcompartment floors, especially where suspendedceilings are used, should be considered. Sufficientdetails of the finishes, such as intumescent paints,may be necessary to recommend or obtainspecialist advice. Any problems with soundtransmission and/or vibration in composite floorscan also be noted.

4.3.8 Internal walls, partitions and doors

The constructional detail of the internal walls andpartitions can be established as far as possible bysurface inspection. If previous load-bearing wallshave been removed or altered, the surveyor cancomment on the apparent adequacy of thealternative support measures. Compartment wallscan be checked for fire separation, particularlywithin ceiling or floor voids where breaches mayhave been formed by services penetrations and notcorrectly fire stopped. Internal doors can bechecked for compliance with current legislation,including fire resistance, passage of smoke,

adequate widths, ironmongery, self-closingmechanisms, correct glazing, etc.

Comments may be made on the general extent,type and condition of demountable partitions orsubsequent alterations undertaken by tenants. Thismay have a bearing upon dilapidations advice,such as reinstatement upon termination of thelease, or relevance in respect of statutorycompliance, such as means of escape and traveldistances.

4.3.9 Finishes

The surveyor should note the general condition ofinternal finishes and decorations. Any defectivefloor screeds or finishes should be recorded, andpoor detailing and inadequate design for movementin floor and wall tiles highlighted. The ceiling heightshould be checked and the availability of voidsabove suspended ceilings examined to exposedefects in, or damage to, fire protection andcompartmentation. The void size for theaccommodation of services should be noted,particularly if the installation of air conditioning isbeing considered.

Internal circulation space may need comment,including flexibility of use, subdivision,cellularisation or returning to open plan. Joinery,kitchen cupboards and other fitted units requiregeneral comment, as do disability considerations,such as different textures to wall finishes.

4.3.10 Staircases

Where possible, checks can be carried out onstaircase width, the number and measure of goingsand risers, height of handrails and guardrails, andgeneral compliance with Building Regulations.Disability considerations will include contrastingcolour to nosings and different texture to floorsadjoining stairs.

4.3.11 Sanitary fittings

Where reasonably possible, sanitary fittings,associated taps, traps, waste pipes and valvesshould be visually inspected and tested by normaloperation only. Similarly and where reasonablypossible, checks should be carried out on commonwaste pipes and single stack plumbingarrangements for fall and efficiency, as well assigns of any obvious blockage or leaks. Sanitary


accommodation can be noted to enable thecapacity to be checked with relevant spacestandards and population densities. Where relevant,the review should include an assessment of thenumber and size of accessible toilets, their locationand the suitability of specialist fittings.

4.4 Building services

Under normal circumstances, the surveyor wouldnot be expected to carry out a detailed assessmentof the building services, as most of these wouldrequire a specialist. However, the surveyor shouldperform a visual appraisal of the services sufficientto form an overall opinion of the apparent visiblecondition and age and the need for furtherinvestigation. A disclaimer stating that only abuilding surveyor’s visual inspection has beenundertaken ought to be included in the surveyor’sreport. Specialist engineers will provide a moredetailed report on the condition of the services, andrecommendations for their appointment can begiven when appropriate.

4.5 External areas, outbuildings andboundaries

A brief general description of these features isusually required and visible defects should benoted. Matters such as safety and disabled accessrequire comment, as do those concerning theadequacy of car parking provision, lighting,signage, traffic calming, vehicle and pedestrianseparation, and surfacing. Vehicular and pedestrianaccess to the site should be reviewed, includingany estate roads, pavements, hardstandings,service yards, turning areas, etc. The drainage tosuch areas should also be assessed.

The general shape and form of the grounds andextent of trees should be identified. Whereidentifiable, a general description of boundaryfences, gates and other accesses, walls and otherstructures can be given. It is recommended thatparticular care is taken to identifying the presenceof Japanese Knotweed and Giant Hogweed, as wellas trees that on certain types of substrata couldcause subsidence or direct root damage. Whereappropriate, the surveyor can comment on thebiodiversity of the site and note the existence(where known) of protected species.

It is worth considering adjoining properties for partywall matters, unadopted road, shared or commonareas, easements, way leaves, nuisance,contaminative uses and potential conflicts (seesection 4.13). The existence of overhead powerlines or sources of electromagnetic radiation suchas telephone masts, communications systems, etc.,should be identified.

4.6 Health and safety considerations

The surveyor should be aware of relevant legislationthat might affect general health and safety withinthe building. Detailed compliance checking andauditing, or the preparation of risk assessments,are beyond the scope of a normal buildinginspection; however, it may help to give a qualifiedopinion on the most obvious points, such as:

+ slips, trips and fall hazards;

+ low head heights;

+ overloading, including crowd loadingrequirements (e.g. stadiums);

+ instability;

+ demolition hazards, presence of potentialasbestos containing materials (ACMs);

+ maintenance and other safe access issues;

+ confined spaces;

+ excavations;

+ falls, falling objects and fragile materials;

+ edge and barrier protection;

+ glazing;

+ fresh air, temperature and weather protection;

+ fire, fire detection and firefighting;

+ emergency routes;

+ welfare facilities;

+ vehicular hazards, traffic routes and workplacetransport hazards, issues around the perimeterof the building, vehicular access, deliveries, andloading and unloading operations;

+ hazardous operations or materials;

+ lighting levels; and

+ electrical installations.

When dealing with buildings constructed orrefurbished after 1994, where available, a copy ofthe health and safety file under the Construction(Design and Management) Regulations 1994 shouldbe requested for information and comment. If not


available on site, the surveyor should give arecommendation for further enquiries.

A request to review any asbestos register should bemade. If none is available, the surveyors shouldmake a note of this along with the likely risk of anyACMs being present within the property and theneed for a specialist survey, if appropriate.

4.7 Fire precautions

The surveyor should aim to inspect any availablefire risk assessments and statutory approvals,particularly when alterations have been made. Anydiscrepancies with the fire certificate or non-compliance with fire safety regulations, buildingregulations and the Fire Precautions Act 1971should be noted. Consideration of fire precautionsfalls into three main categories:

+ fire resistance, separation, smoke ventilationand compartmentation;

+ means of escape, escape routes, signage andemergency lighting; and

+ protection including detection, alarms,sprinklers and extinguishers.

Where specialist and/or proprietary systems of fireprotection are used, the surveyor should considerwhether to recommend specialist advice, especiallyif inadequacies are noted. In complex buildingssuch as shopping centres or sports stadiums, itmay be necessary to involve a fire engineer tocomment fully. The fire log or records of the regulartesting and servicing of fire alarms, emergencylighting, fire extinguishers, sprinklers, smoke vents,fire curtains or shutters, etc., can also be reviewed.Testing does not usually form part of a standardbuilding survey unless requested by the client.

4.8 Accessibility

The Disability Discrimination Act 1995 and 2005duties have been incorporated into the Equality Act2010, which came into force on 1 October 2010.This aims to protect aims to protect disabledpeople from discrimination in all aspects ofeveryday life, particularly in employment, access togood and services, and buying, letting andmanaging premises. In addition, as part of anydevelopment work, Part M of the BuildingRegulations requires reasonable provision to bemade for people to gain access to, and use, thebuilding and its facilities.

Many factors contribute to accessibility, but themost obvious is the built environment, whichincludes fixtures, fittings, furniture andequipment. Although it should be made clear thatan access audit is not being undertaken, it isprudent to identify barriers to access that becomeapparent during the course of an inspection, asthey may have an impact upon the commercialvalue of the premises.

4.9 Environmental consideration

4.9.1 Orientation and exposure

The surveyor should consider the orientation of thebuilding to identify the possible effects of exposureto the prevailing winds or sunlight, as these couldaffect the performance and durability of the fabricof a building. Exposure to other factors, such assalt spray in a coastal location or industrialpollution, may also have a profound influence onthe life or performance of the fabric and should beidentified where particular risks exist.

4.9.2 Thermal insulation and energyefficiency

The surveyor should describe the thermal shell ofthe building including external walls, windows,roofs, exposed floors and ground floors, and takeinto consideration the layout, location andorientation of the property. The nature of theheating and cooling systems and controls shouldbe considered and recommendations made inconjunction with a services engineer (if appointed)for suitable improvements. The surveyor shouldprovide advice on practical and relevant methodsof upgrading insulation, and on measures to reduceany associated risk of condensation.

4.9.3 Noise and disturbance

It is worth considering the effect of noise fromexternal sources on activities within the subjectproperty and its grounds. Noise (e.g. from aircraft,rail, traffic, adjoining properties and other sources)can be noted if it is significant at the time ofinspection or could, from inspection, reasonably beanticipated. The sound insulation qualities of partystructures may also need to be considered.

Provisions and facilities that could cause occupierannoyance, e.g. heat rejection fans, should be


considered. Noise from the subject property to theoutside may also be noted as a potential nuisanceto adjoining properties and sites. This is particularlyrelevant to industrial premises. Any other possiblenuisances (e.g. smells that are known to exist orhave become apparent whilst carrying out theinspection) should also be reported.

4.9.4 Land contamination andenvironmental controls

The surveyor should consider whether anenvironmental consultant is needed and adviseaccordingly. Where appropriate, the followingshould be also considered and the client advisedon these matters:

+ whether a remediation certificate exists for thesite (e.g. newbuild on a previouslycontaminated site);

+ through local authority searches, whether theproperty is likely to be affected by significantadjacent public or private developments;

+ whether a mining search is required;

+ risk of flooding or erosion;

+ gases, such as methane or radon;

+ electromagnetic fields due to proximity toelectrical substations or pylons, mobile phonemasts or satellite transmitters;

+ radiation;

+ activities of site that may involve or generatepotentially contaminative materials;

+ buried or above-ground fuel oil tanks, vehiclerefuelling stations and vehicle washes;

+ waste management on site;

+ fly-tipping;

+ chemical and other storage including bundedenclosures;

+ pest control;

+ invasive vegetation;

+ protected species;

+ risk of arson and vandalism or terrorism; and

+ occupier housekeeping.

4.10 Deleterious and hazardousmaterials

The surveyor should identify, from visual inspection,materials that are generally considered in the

property and construction industries to behazardous or deleterious and, where appropriate,make recommendations for further inspection ortesting. A balanced opinion should always be givenas to the severity or otherwise of the use of thesematerials in the building.

4.11 Sustainability issues

Bearing in mind the Sustainability and the RICSproperty lifecycle (2009), the surveyor should reviewthe various aspects of the building in the light of itsposition in the property life cycle and makerecommendations based upon sustainable practice.Sustainability issues are likely to become morestringently applied as new legislation is introducedto action carbon reduction commitments and toreflect specific client requirements.

4.12 Cultural heritage

The surveyor should identify whether the building isof historic importance, is listed or is located withina conservation area or other controlled estate.Attention should also be drawn to restrictions onrepair or redevelopment, extension orrefurbishment; the need for sympathetic repair; andnon-interventional or reversible alterations.

4.13 Matters for the legal adviser’sattention

The client’s legal adviser (if known, or otherwise theclient) should be alerted to issues that could affectthe property that may need investigation orclarification. Where the inspection reveals areas ofparticular concern or relevance, these ought to behighlighted as early as possible. The followingparagraphs give examples of matters that might bereferred to the legal adviser for consideration andfurther enquiry, though the lists are not exhaustive.

4.13.1 Statutory

Examples of statutory matters applicable inEngland and Wales might include:

+ buildings which might be listed or situatedwithin a conservation area;

+ where trees are present that might be thesubject of tree preservation orders;

+ planning consents and Building Regulationapprovals, i.e. original compliance and/or


consent for conversions, extensions, alterationsor change of use, and any particular worksevident on inspection for which planningpermission may have been required;

+ Party Wall etc. Act 1996, that is, any knownproposed works, extensions or repairs to thesubject property; works in progress on adjacentland; and the need for the legal adviser toestablish the existence of any party wallagreements and/or schedules of condition,where appropriate, referring back to thesurveyor as appropriate; and

+ accessibility inclusion.

4.13.2 Rights of way, easements andshared services

Examples of issues to be described might include:

+ tenure;

+ flying or submerged freeholds;

+ evidence of multiple occupation, tenancies orsublettings;

+ indication of possible trespass;

+ suggestion of possible rights of way;

+ arrangements in respect of private services;

+ adoption status of all abutting roads andfootpaths;

+ status of the rights of way and all maintenanceand repairing liabilities, where private accessroads or footways are present;

+ common or shared areas and services that maybe the landlord’s responsibilities, but aresubject to a service charge or management fee;

+ availability and status of all service connections;

+ rights of light; and

+ restrictions to occupation.

4.13.3 Boundaries

Boundary matters might include:

+ evidence of poorly defined site boundaries;

+ riparian rights (relating to banks of rivers orwaterways); and

+ responsibility for maintenance.

4.13.4 Guarantees and warranties

Examples of the content might include:

+ the availability and transferability of guarantees,e.g. in respect of:

– underpinning, timber and/or damp treatmentworks;

– cavity wall tie replacement works;

– double glazing;

– cavity wall insulation;

– flat roofing;

– remedial works to service installations,including re-lined drains, recent rewiring,replacement boilers, etc.; and

– recent significant building repairs;

+ collateral warranties from the originalconstruction and design teams; and

+ previous technical reports that may beassignable to the purchaser, i.e. siteinvestigations, environmental assessments,defects diagnosis, asbestos surveys/registers.

4.13.5 Leasehold and repairing liabilities

The level of detail reported in this section willdepend on what has been agreed with the client onthat particular transaction. Although the client’slegal team will most likely be reporting on thelease(s) and liabilities of the parties, this sectionmight include:

+ confirmation (or otherwise) that the repairing,redecorating and yielding up obligations aredrafted in standard terms;

+ comments on the implications of any non-standard repairing and related obligations;

+ whether there are any explicit exclusions onrepairing liability, e.g. inherent defects;

+ existence and effectiveness of any schedules ofcondition;

+ whether there are unlicensed alterations or anyparticularly onerous reinstatement provisions;

+ the landlord’s ability to recover repair costs, orto enforce repairs and recover costs (as a debtor otherwise); and

+ if the lease is considered to be a ‘green lease’guidance as to the practical implications of thevarious obligations, e.g. in relation to carbonreduction, energy management and othersustainability issues.


5 The report

5.1 General guidance

It is recommended that the surveyor clearly locatesand describes all the defects found during thesurvey, as well as highlights any compliance issuesthat may affect the client’s interest in the property.A summary of the client’s instruction can beincluded within the report, providing a usefulreminder to the surveyor and client of the legalobligation to provide a specific survey type asagreed in the instruction.

It is helpful to cross-reference photographs with thelist of defects for ease of reference and prepare thereport layout in a concise, accurate and simplemanner. All verbal or executive summary reportsgiven prior to publication of the full report may havelegal implications. Such reports can be given on theclear proviso that the preliminary opinions areprovided subject to the opinions expressed in thefinal report. The report ought to present a balancedview of the property’s condition and differentiatebetween fact and the surveyor’s opinion.

In determining the limitation of the inspection, thesurveyor should bear in mind the final report, whichaims to inform the client inter alia of the following:

+ what, if anything, is wrong;

+ why it is wrong;

+ what damage has occurred;

+ how serious this is;

+ what is needed to put it right;

+ how much this is likely to cost;

+ when the remedial work should be carried out;

+ who is responsible for rectification works; and

+ what further action is to be taken by the client.

5.1.1 Time frame

It is generally accepted in the property industry thattime periods are identified as follows:

+ Immediate: within one year

+ Short term: one to two years

+ Medium term: three to five years

+ Long term: six to ten years.

Definitions of the time frames used in the reportneed to be identified to avoid any doubt.

When providing advice for remedial works, theircost and the anticipated period of expenditure, thesurveyor should take into account the purchaser’sintention for the property, as established at the briefstage.

5.1.2 Risk ratings

Risk ratings involve balancing liabilities andopportunities, both in terms of capital and lifecosts, and hence are an integral part of technicaldue diligence. A risk can be defined as the chanceof something happening that will have an impactupon the objectives for the building’s use orinvestment profile. Risks and response to them canbe classified as follows:

+ Extreme: immediate action required

+ High: senior management attention needed

+ Moderate: management responsibility must bespecified

+ Low: management by routine procedures.

Risk management can be qualitative and/orquantitative, enabling the client to better identify,analyse, monitor, report on and respond to risks.For technical due diligence, this can assist indetermining what responses the surveyor shouldrecommend to the client and which risks to avoid,transfer, mitigate or accept. Such decisions arelinked to the future management of the building.

5.2 Report layout

An executive summary of principal considerationsis often provided at the start of the report. Themain body includes a description, with commentson the condition of all building elements, plus anyfindings, a conclusion and recommendations.Photographs and/or plans may be required andsupporting specialist reports would normally beappended to the report. Section 5.3 includes atypical list of main headings included in thecontents page, with commentary. Different types ofsurvey and individual surveyors may give rise todeviations from the suggested list.


When carrying out due diligence of a propertyoutside the UK, it is worth considering local statuteand compliance issues. When instructed by a UKbased client, the surveyor should considerhighlighting where UK and local construction and/orcompliance issues differ. Further guidance isprovided in section 2.8.

5.3 Report contents

5.3.1 Contents page

Reports on commercial and industrial premises maycontain several specialist reports, along withphotographs, leases, plans, etc. The inclusion of anindex would be beneficial.

5.3.2 Executive summary

The executive summary provides the main findings,including recommendation for further tests,budgets, programming future repairs and anyissues pertinent to the client’s investment in theproperty. Reference should be made to the mainbody of the report, any appended specialistreports, costings and additional analysis asnecessary.

The summary provides clear, logical, simple andreadable advice to the client, with reference todetailed information within the main body of thereport. The principal considerations may include:

+ the nature of the property, its construction ageand design;

+ the adequacy of the structural framework andfabric;

+ the adequacy of services;

+ a comparison of the condition of the subjectproperty with others of similar age and style;

+ conformity with modern requirements, includingstatute, civil and lease obligations;

+ special client requirements;

+ main areas of concern;

+ reference to any repairs, further investigationsor statutory inspections; and

+ estimated costs of remedial works orrecommended actions.

The summary should highlight any further tests orinspections to be undertaken before legalcommitment is made by the client.

5.3.3 Introduction

The client’s instruction should be repeated in thereport alongside, details of the date of inspection;surveyor(s)/specialists involved in the survey;weather conditions; occupancy at the time ofinspection and names of persons providinginformation during the inspection.

Limitations, including copyright and conditionsnoted in the terms of engagement, are repeated. Itmay be helpful to list those parts of the building notaccessed during the inspection and providerecommendations for future access (including therisk of not gaining access). Restrictions caused byfinishes, fitted or heavy furniture, etc., should benoted.

It should be made clear in the introduction that inview of the complexity of most buildings, thesurveyor does not guarantee to have seen eachand every defect/deficiency that may exist in theproperty. However, the surveyor expects to haveseen all the major items relating to the brief andmany/most of the lesser ones.

All areas of the building need to be clearlyidentified and illustrated by photographs, plans orgrid references, or alphabetical or numericalsystems, as applicable. Location and/or lease planscan be included, indicating the extent of thedemise. It is also prudent to include the full postalproperty address and client details on each page ofthe report.

Other points that may be included are:

+ whether all photographs taken are included inthe report, or if others exist, how long they willbe retained on the surveyor’s files;

+ any limitations by the surveyor for the transferof liability to third parties; and

+ whether any discussions were held with theclient, owner(s), tenant(s) or others at the timeof the visit and/or immediately afterwards, aswell as cooperation received from those partiesin facilitating the survey.

5.3.4 Description of the property

An adequate description of the property is providedhere, including type, general design, principalelements of construction, age, date of substantialmodifications, listed status and current use. A


general description of the building installationservices may also be provided.

Accommodation should be briefly described toinclude current use of the building, broken downinto specific areas as necessary. A list ofapproximate floor areas may be included asappropriate. Reference may be made to the currentedition of RICS Code of Measuring Practice.

For leasehold property, the tenure should bedescribed, including the extent of the term, anypassing rental figure, service charge and repairingobligations.

The location of the property within the road,shopping centre, industrial estate, etc., should benoted, including comment on any conservation orregeneration areas; main physical features of thesite; and outbuildings, landscaping and boundaries.The description should include the full address ofthe property.

5.3.5 Elemental condition

This is the main section of the report and detailsthe condition and significant defects. A descriptionof condition and extent of defects may besupplemented with photographs and sketches.Technical language is used to express the findingsclearly.

The surveyor should consider formatting thesections in the same sequence as the inspection,previously detailed in sections 4.3–4.5 andsummarised below:

+ roofs

+ rainwater goods;

+ walls and cladding;

+ windows, doors and joinery;

+ structural frame;

+ substructure/basements;

+ floors;

+ internal walls, partitions and doors;

+ finishes;

+ staircases;

+ sanitary fittings;

+ building services; and

+ external areas, outbuildings and boundaries.

An assessment of the building type may beincluded, as well as the construction and materials

of the property. Materials and building practicesspecific to the locality of the property may bereported.

The structure may be described in detail, includingtype of frame (reinforced concrete, steel or timber)as applicable, a description of main supportingmembers from roof to foundations and how theload is transferred through the building to theground. Comment may include the effect ofalterations on the structure, any movement andfuture risks.

Each element (e.g. floors, walls, doors) is separatelydiscussed, including a description, currentcondition and explanatory note of the cause ofdefect. Legislation, health and safety, fireprecautions, energy conservation, fitness forpurpose, insurance, security and other pertinentissues may be listed. Questions for the client’s legaladvisers may be highlighted, for exampleclarification of demise, construction warrantiesavailable and other matters.

5.3.6 Conclusion and recommendations

The conclusion provides a balanced assessment ofthe property ascertained as from the survey,including a list of recommended repairs and actionstaken from the main body of the report.

Recommendations may be shown under a separateheading, where the conclusions are extensive, andbudget costs may be included within them or asseparate appendices.

5.3.7 Certification/quality assurance

The report should be signed and dated by thesurveyor who undertook the survey and completedthe report. It is also recommended that a record ofthird party (internal peer) checking has beenundertaken. All appended specialist reports shouldbe certified.

5.3.8 The appendices

The appendices may form a significant part of thereport, subject to the client’s requirements.Photographs are generally included. Theappendices may also comprise othersupplementary information, such as:

+ schedule of defects and/or repairs with budgetcosts;


+ reinstatement cost assessment;

+ specialist reports, including material testing,structural engineer’s report and report on theinstallations of services;

+ phase one environmental assessment;

+ copies of previous reports;

+ fire risk assessment;

+ schedule of accommodation or tenants;

+ asbestos survey;

+ extracts from leases, covenants, etc.;

+ agent’s details;

+ maps, drawings and layout plans; and

+ maintenance records.


Appendix A: Insurance

RICS requires its members to maintain professionalindemnity insurance (PII) for claims arising frombreaches of contract and professional duties.Surveyors should ensure that adequate protectionis in place to cover the work they are undertaking.

A1 Compulsory professional indemnityinsurance regulations

Compulsory professional indemnity insuranceregulations (CPIIR) require principals andconsultants in private practice in the UK and Irelandto carry PII, in accordance with RICS regulation.Evidence that this obligation is being adhered to isrequired during the time the member is in practice.When a firm winds up it must maintain run-offcover for a period of at least six years, althoughthis cover may not be possible in some cases dueto financial circumstances. Where run-off cover isnot maintained, this could lead to formeremployees being exposed to claims.

A2 Merrett v Babb

In the case of Merrett v Babb (2001) EGLR 145, anRICS member was personally sued following thebankruptcy of the firm for work he undertook whilstemployed. The firm had cancelled the PII cover andleft the surveyor exposed to claims.

A3 Professional indemnity insurance

PII is provided on a claims-made basis, whichmeans that the member will be protected only ifcover is in place at the time a claim is made, ratherthan when the relevant advice was given. This iswhy RICS regulations require run-off cover to beprovided where a member ceases to trade as aprincipal or consultant in private practice.

The amount of cover depends on the size of thefirm’s income; however, there are minimumamounts of cover required under RICS rules. RICShave introduced a low fee-earners scheme to helpprovide cover.

Where an employee is not a principal of a firm (i.e.a partner, director or consultant), then it is

advisable to find out what arrangements have beenmade by the employer to protect the employeeagainst claims.

An RICS policy automatically covers employees aspart of the ‘insured’, whilst other PII policies (not inaccordance with RICS rules) may not provideautomatic cover.

A4 Private work

Work undertaken in a private capacity is subject toCPIIR, and so insurance cover will be required. Asurveyor may be asked to provide advice to localcharities, schools, churches and other non-profitorganisations for no charge. It is unlikely that theinsurance a surveyor has for normal course ofemployment will have adequate protection, soseparate arrangements will need to be made by theindividual.

If it is not possible to obtain written confirmationfrom an employer that work of this nature fallswithin the scope of the surveyor’s employment, itmay be possible to obtain an undertaking from the‘client’ that the latter will not take any action inrelation to the advice given. The surveyor must alsoobtain from RICS a waiver exempting the need tomaintain PII.

A5 Subrogation

Having paid a claim, insurers have the right torecover the amount paid if the surveyor whocaused the claim was not insured under the policy.This is known as subrogation.

RICS minimum cover includes all employees asinsured, but where members are not covered by anRICS policy they should ensure that their employershave negotiated a waiver of the right of subrogationwith the insurer.

A6 Third party rights

The law states that a contract is an agreemententered into by two parties, where considerationhas passed between the parties and where theterms of the contract are enforceable. The surveyor


and firms entering into the contract with a client willbe liable to the client for breaches of the contract.It is not unusual for surveyors and their firms to beliable to third parties for breaches of contract.

The Contract (Rights of Third Parties) Act, broughtonto the statute books in 1999 and updated in2001, confers third party rights in some cases,namely where the contract contains an expressterm to that effect, or where it is apparent that thecontracting parties intended to confer such abenefit. Surveyors should be aware, however, thatmany contracts – including most professionalindemnity policies – are amended to exempt themfrom the provisions of this act.

It should be noted that where advice is being givenby an employee on behalf of the employer, then thecontract will generally be between the employerand client. It is therefore advisable to sign reportsor letters ‘for and on behalf of’ the employer ratherthan in a personal capacity.

A7 Third party liability insurance

It is also recommended that insurance cover istaken out to provide against third party claims forphysical loss ‘caused by damage or injury topersons or their property’, which could occur whenundertaking a survey or inspection of a property.

These are also known as public liability or generalliability policies. Surveyors are advised to checkthat the necessary insurance is in place and thatthey are covered by the policy.

A8 Working outside of the UK andIreland

When working outside the UK and Ireland,surveyors are advised to check with their insuranceproviders that they are covered. Certain overseas

territories may require locally arranged cover, thussurveyors may not be able to rely solely upon apolicy placed in the UK or Ireland – even thoughthe territorial limits may be ‘worldwide’.

RICS regulations do not apply to work overseas,but RICS members should replicate their coveroverseas to the same extent as available in the UKand Ireland. For example, it is very difficult toobtain cover on a ‘civil liability’ basis, and certainexclusions (i.e. toxic mould) may be applied byinsurers. In summary, an insurance policy for workoverseas is often not as broad as required byregulations in the UK.

A9 New legislation and disciplines

The introduction of new property legislation hascreated opportunities for surveyors to assist clientsin fulfilling their obligations (i.e. Financial Servicesand Markets Act 2000, Housing Act 2004, Controlof Asbestos Regulations and the DisabilityDiscrimination Act). It is recommended surveyorsseek specialist knowledge and review the PIIprovisions with their insurance provider prior toundertaking new types of appointments.

There are also developments in the area of disputeresolution and expert witnesses, whereby barristerscan be appointed by professions other thansolicitors, which could confer new disciplines uponsurveyors. Lay advocacy is another area whichcould attract surveyors, but it is important that anysuch advice is qualified to ensure it is being givenin their capacity as surveyors, and not as lawyers.Again, surveyors need to seek specialist knowledgeand review the PII provisions with their insuranceprovider prior to undertaking this work.

For further information please refer to RICSProfessional Regulation and Consumer Protection.August 2002.Chartered surveyors in employment,Professional liability guidance for members.


Appendix B: Legislation and legal issues

B1 Duty of care

The surveyor not only owes a duty of care to theclient under the terms of engagement, but may alsoowe a common law duty to the client and otherparties. The surveyor’s report may be relied uponby another party close to the contract (HedleyByrne & Co Ltd v Heller & Partners Ltd [1964]AC 465).

The surveyor’s actions during the survey may causedamage or injury to the client or another party. Inorder for the duty of care to exist, the client or thirdparty must be able to show that the surveyorshould have reasonably foreseen that a personcould have suffered an injury or damage as aconsequence of the surveyor’s report. Either mustalso exhibit that the surveyor was aware that thereport would be relied upon, and that it is just andreasonable to impose a duty of care in theparticular circumstances.

It would be unreasonable for a claim to be made bya party that the surveyor has no knowledge of atthe time of the inspection and preparation of thereport. The surveyor will be expected to undertakeall duties to a reasonable standard recognised forthe profession.

B2 Negligence

The surveyor need to be aware of the significantamount of legislation now applicable to propertyand may refer the client to the relevant expertwhere the surveyor has been able to establishthrough inspection that a legal point needs to bereviewed. The surveyor may be restricted by theinformation made available during the inspection.

A surveyor will be negligent if a client or third partycan establish that a duty of care was owed toeither, that the surveyor breached that duty andthat the breach has resulted in the client or thirdparty suffering harm. For example, where a defectwas in existence and visible at the time of theinspection but was not reported to the client, thiswould be described as an omission on the part ofthe surveyor. It is recommended that the surveyornot only note the defect but also advise on the

likely future consequences of failure. Likewise, it isunreasonable for a surveyor to be found negligent ifthe latter could not have reasonably foreseen aconsequence at the time of the inspection.

The surveyor needs to ensure that he or she hasadequate experience and knowledge to undertakethe survey. Equally, the client needs to determinethat the surveyor being appointed has suitableknowledge and experience, reflected by the level offee incurred for the survey. The survey should bethorough and should concentrate on the client’srequirements.

The report should be expressive and should focuson all matters that may cause injury or damage tothe client or another party close to the contract.Evaluation of the findings should be undertakenand all considered issues identified to the client.The surveyor should clearly specify any limitationsof the report due to poor access, lack ofdocumentary evidence or the need to undertakespecialist investigations, but should not use this asjustification for an omission or failure to spendadequate time on the inspection.

The surveyor should not provide legal or specialistadvice if unqualified to give this, but canrecommend that further enquiries be made withsuitably qualified specialists. It is recommendedthat the surveyor understands the framework of thelegal liabilities which surround this type of work.

B3 Contract and limitation

The terms of engagement should be agreed withthe client prior to undertaking the survey to clarifythe scope of the professional duties owed to theclient. The surveyor should clearly state the client’srequirements, the extent of the survey and type ofreport to be prepared.

The terms of the contract can be both express andimplied. For example, in contracts for serviceswhere a professional is acting in the course of abusiness, it will be implied that the service will becarried out with reasonable care and skill. Suchimplied duties can be excluded or limited by theterms of engagement, in accordance with the UnfairContract Terms Act 1977.


Limitations may also be put into the terms ofengagement to cover high-level access or exposureof the structure where damage may be caused, orunreasonable costs may be incurred by thesurveyor. Unfair terms would not be acceptedwithout evidence that such a term had been agreedby the parties, or if the term had a detrimentaleffect on the rights of one of the parties to thecontract. The Contracts (Rights of Third Parties) Act1999 should also be noted as excluded from theterms of engagement to avoid the surveyor owingany contractual liability to a third party. The termsof engagement should always be appended to thereport.

It is recommended that the surveyor endeavours toensure adequate planning of the survey andsufficient allocation of time for:

+ the survey;

+ a detailed recording of the findings; and

+ a review prior to preparing a clear and precisereport.

B4 Legislation

The surveyor may find it helpful to consider theimplications of property-related legislation duringthe inspection. Any issue noted during theinspection can be advised to the client, which canbe referred to a specialist or legal expert.

B5 Civil Procedure Rules

The Civil Procedure Rules will be particularlyrelevant to inspections and subsequent reportswhen a surveyor is acting for one party claimingcompensation for damages against another. Formore information on the Civil Procedure Rules, seewww.dca.gov.uk/civil/procrules_fin/index.htm.


Appendix C: Useful information sources

C1 Links

Association of European Building Surveyors andConstruction Experts (AEEBC): www.aeebc.org

Advisory Committee for Roofwork:www.roofworkadvice.info

British Cement Association:www.cementindustry.co.uk

British Standards Institution: www.bsi-global.com

Building Control: www.buildingcontrol.org

Building Research Establishment: www.bre.co.uk

Building Services Research and InformationAssociation: www.bsria.co.uk

Centre for Accessible Environments:www.cae.org.uk

Chartered Institution of Building ServicesEngineers: www.cibse.org

Concrete Repair Association:cra.associationhouse.org.uk/cra_index.htm

Concrete Society: www.concrete.org.uk

Construction Industry Research and InformationAssociation: www.ciria.org

Corrosion Prevention Association:www.corrosionprevention.org.uk

Fire Protection Association: www.thefpa.co.uk

Glass and Glazing Federation: www.ggf.org.uk

Institution of Structural Engineers:www.istructe.org.uk

International Lead Association: www.ldaint.org

Isurv: www.isurv.com

Mastic Asphalt Council:www.masticasphaltcouncil.co.uk

Radiation Protection Division of the HealthProtection Agency: www.hpa.org.uk/radiation

Radon Centres Ltd: www.radon.co.uk

Stone Federation Great Britain: www.stone-federationgb.org.uk

Suzy Lamplugh Trust: www.suzylamplugh.org

The Survey Association: www.tsa-uk.org.uk

Timber Research and Development AssociationBookshop: www.trada.co.uk

C2 Further reading

Asbestos: and its implications for members andtheir clients (2nd edition), RICS guidance note,RICS, Coventry, 2009.

Building Surveys of Residential Property (2ndedition), RICS guidance note, RICS, Coventry,2004.

Code of Measuring Practice: A Guide for Surveyorsand Valuers (6th edition), RICS code of practice,RICS, Coventry, 2007.

Contamination, the environment and sustainability:their implications for chartered surveyors and theirclients (3rd edition), RICS guidance note, RICS,Coventry, 2010.

Dilapidations (5th edition), RICS guidance note,RICS, Coventry, 2008.

Guide to carrying out reinstatement costassessments (under review), RICS guidance note,RICS, 1999.

Party Wall Legislation and Procedure (revised5th edition), RICS guidance note, RICS, Coventry,2007.

Sustainability and the RICS property lifecycle(1st edition), RICS guidance note, RICS, Coventry,2009.

Surveying safely, RICS Corporate, London, 2006(accessed at www.rics.org/surveyingsafely inAugust 2010).


Building surveys and technical duediligence of commercial property

RICS Practice Standards, UK

4th edition, guidance note

Building surveys and technical duediligence of commercial property4th edition, guidance note

The fourth edition of this guidance note aims to provide surveyors withinformation and guidance in respect of commercial property surveys.

It covers:

• taking instructions;• survey preparation;• inspection; and• reporting.

Also included are appendices comprising:

• a summary of insurance issues; • a summary of legal issues; and• useful sources of information and further reading.

GN 63/2010

rics.org/standards rics.org/standards

Documents

RICS Technical Due Diligence Doc