Due Diligence

Due diligence means a detailed assesment of the existing project status. A Due Diligence Assesment evaluates the progress of the building works, the technical delivery of the structures and the condition of the works completed to date. Due diligence also considers the rate of progress with the works, especially compared with the expected rate of sub-contractor payments, proposes modifications of technologies (if cost reduction is required) and reviews other aspects which are important for the potential refurbishment/purchase of the project.

Why due diligence?

No matter ho much any potential property purchase may appear too present a bargain, a thorough due diligence exercise to check the technical/legal status is always very important and can save further finance spend unexpected issues, such as ongoing maintainance, restricions of future development or property ownership.

Examples of particular activities within due diligence

  • Elaboration of the project due diligence including potential risk assessment
  • Evaluation of the structural and technological condition of the property
  • Evaluation of the standards used for materials and technologies
  • Evaluation of the actual and anticipated status of the warranty defects
  • Legal appraisal (permits/licences/certificates issued)
  • Energy consumption passport
  • Liabilities of general contractor (e.g. warranty period)
  • Checking of the as-built documentation status
  • Checking of the O&M (operation and maintenance) documentation status
  • Evaluation and recommendation of potential future building modifications and upgrades
  • Photo-passport and snagging list