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.