Before buying, renovating, refurbishing or taking over an existing building, it is important to understand its actual engineering and construction condition.

A property may look fine during a general site visit, while underlying issues with its structure, MEP systems, waterproofing, finishes or previous construction work may require significant attention and investment.

At Ten Fold, building due diligence involves assessing the existing condition of a building, identifying defects and technical concerns, determining appropriate engineering and construction solutions, and preparing estimates for the required works.

Here are the key areas to consider when carrying out a building due diligence assessment.

1. Start with a Detailed Building Inspection

The first step is to understand the building’s current physical condition.

Depending on the property and scope of assessment, the inspection may cover:

• Structural elements
• Civil and architectural works
• Walls, floors and ceilings
• Roof and façade
• Waterproofing
• Doors and windows
• Internal and external finishes
• Mechanical systems
• Electrical systems
• Plumbing and drainage
• HVAC systems
• Fire protection systems
• Common areas and external works

The objective is to identify visible defects, deterioration, poor workmanship and areas that may require further technical investigation.

A building inspection should not simply document what looks damaged. It should help establish the overall condition of the building and the work required to bring it to the desired standard.

2. Assess the Structural Condition

Structural assessment is one of the most important parts of building due diligence.

Depending on the building, the assessment may include:

• Columns
• Beams
• Slabs
• Structural walls
• Foundations, where accessible
• Cracks
• Settlement
• Concrete deterioration
• Corrosion of reinforcement
• Structural modifications
• Signs of movement or distress

Not every crack or defect indicates a structural problem. However, its location, size, pattern and surrounding condition can determine whether further investigation is required.

Where necessary, specialist testing or additional structural assessment may be recommended.

Red flag: Significant cracking, concrete spalling, exposed reinforcement or signs of structural modification should be technically assessed rather than treated as a cosmetic issue.

3. Review the Building’s MEP Systems

Mechanical, electrical and plumbing systems can have a significant impact on a building’s functionality, maintenance requirements and future expenditure.

The technical assessment may cover:

• HVAC systems
• Electrical installations
• Distribution boards
• Generators
• Plumbing systems
• Water supply
• Drainage
• Pumps
• Fire-fighting systems
• Fire alarm systems
• Building management systems, where applicable

The objective is to understand the current condition and identify systems that may require:

• Repair
• Replacement
• Upgrade
• Maintenance
• Further technical assessment

For an older building, this can also help identify major systems that may require replacement in the near future.

4. Check Waterproofing and Moisture-Related Issues

Waterproofing problems can become expensive if they are not properly identified and addressed.

The assessment may include:

• Roofs
• Terraces
• Bathrooms
• Wet areas
• Basements
• Swimming pools
• Water tanks
• External walls
• Expansion joints

Look for signs such as:

• Water seepage
• Dampness
• Staining
• Peeling paint
• Efflorescence
• Mould
• Damaged finishes

However, identifying the visible symptom is only the beginning.

The important question is:

Where is the problem coming from, and what is the appropriate solution?

For example, repainting a water-damaged ceiling may hide the visible problem temporarily, but it will not resolve the underlying source of water ingress.

5. Identify Construction Defects and Poor Workmanship

Existing buildings may contain defects resulting from the original construction, previous renovation work or subsequent modifications.

The assessment can identify issues such as:

• Poor workmanship
• Improper installations
• Defective finishes
• Construction defects
• Damaged materials
• Incorrect detailing
• Improper repairs
• Deterioration caused by age or environmental conditions

Understanding the nature of the defect helps determine whether the appropriate response is repair, replacement, refurbishment or further investigation.

6. Assess Previous Renovation and Repair Work

Previous repair or renovation work can provide important information about the building’s current condition.

Where records are available, review:

• Previous renovation works
• Structural modifications
• Waterproofing works
• MEP upgrades
• Major repairs
• Equipment replacement
• Maintenance records
• Recurring defects

Repeated repairs in the same area may indicate that the underlying problem has not been properly resolved.

A technical assessment can help determine whether previous solutions remain effective or whether a more comprehensive intervention is required.

7. Identify the Required Engineering and Construction Solutions

Building due diligence should go beyond identifying problems.

Once defects and technical concerns have been assessed, the next step is to determine the appropriate solution.

Depending on the findings, recommendations may include:

• Structural repair
• Structural strengthening
• Waterproofing repair or replacement
• MEP repair
• MEP upgrades
• Replacement of damaged equipment
• Refurbishment
• Reinstatement
• Repair of finishes
• Preventive maintenance
• Further specialist investigation

The recommended solution should consider the building’s existing condition, intended use, technical requirements and expected performance.

8. Prepare Estimates for the Required Works

One of the most important outcomes of technical due diligence is understanding the potential cost of addressing identified issues.

Once the required works have been identified, the scope can be developed and estimated.

For example:

Area	Issue Identified	Recommended Solution	Estimated Cost
Roof	Waterproofing deterioration	Repair/replacement of waterproofing	AED X
HVAC	Ageing equipment	Repair or replacement	AED X
External walls	Cracking/deterioration	Repair and reinstatement	AED X
Electrical	Damaged/outdated components	Upgrade/replacement	AED X
Plumbing	Leakage	Repair/replacement	AED X

This gives the property owner or investor a clearer understanding of the financial requirement associated with the building’s technical condition.

9. Consider Future Maintenance and Capital Expenditure

Technical due diligence should not focus only on problems that exist today.

Some building components may still be functioning but could require major expenditure in the future.

Consider the condition and age of:

• HVAC equipment
• Waterproofing systems
• Electrical infrastructure
• Plumbing systems
• Fire protection systems
• Lifts
• Façade elements
• Major building finishes
• Other critical building systems

Identifying these requirements early allows owners to plan future expenditure rather than dealing with unexpected failures.

10. Assess the Building Before Refurbishment or Modification

If the property is being considered for renovation, refurbishment or a change in its use, technical due diligence becomes even more important.

Before starting construction, assess whether the existing building can accommodate the proposed changes.

This may involve reviewing:

• Existing structural capacity
• Electrical load
• HVAC capacity
• Plumbing infrastructure
• Fire and life-safety systems
• Existing MEP services
• Existing layouts
• Previous modifications
• Areas requiring repair before new construction begins

This can help identify technical limitations before they create problems during the construction phase.

11. Prioritise the Required Works

Not every identified issue requires immediate intervention.

A technical due diligence assessment should help classify works according to their priority.

Immediate Works

Issues that may require urgent attention because of safety, functionality or the risk of further damage.

Major Works

Significant repairs, replacements or upgrades that may require substantial investment.

Routine Works

Minor defects or maintenance requirements that can be addressed as part of planned maintenance.

Future Works

Items that are currently functional but may require replacement or major intervention in the future.

This prioritisation helps property owners plan the required works more effectively.

12. Build a Clear Technical and Cost Picture

The purpose of building due diligence is ultimately to connect the condition of the building with the work required and its potential cost.

A useful assessment should answer:

• What is the current condition?
• What defects have been identified?
• What is causing the problem?
• Which areas require further investigation?
• What solution is recommended?
• What work needs to be carried out?
• How should the work be prioritised?
• What could the required work cost?
• What future expenditure should the owner plan for?

This provides a practical basis for making decisions about repair, refurbishment, investment and construction.

What Should a Building Due Diligence Report Include?

Depending on the project and scope, a technical due diligence report may include:

• Executive summary
• Building inspection findings
• Structural observations
• MEP assessment
• Civil and architectural observations
• Defect identification
• Photographic documentation
• Severity and priority classification
• Recommended remedial solutions
• Scope of required works
• Preliminary cost estimates
• Future maintenance requirements
• Capital expenditure considerations
• Recommendations for further investigation

The aim is to give the client a clear understanding of the building’s current condition, required interventions and estimated investment.

A Practical Building Due Diligence Framework

A simple way to approach technical due diligence is to ask five questions:

Area	Key Question
Condition	What is the current condition of the building?
Defects	What problems or technical issues have been identified?
Solution	What engineering or construction solution is required?
Cost	What is the estimated cost of the required work?
Future	What maintenance or capital expenditure may be required later?

The process can essentially be viewed as:

Inspect → Identify → Assess → Recommend → Estimate

Final Thoughts

A building can look perfectly acceptable during a general site visit while still having underlying engineering and construction issues.

Building due diligence helps uncover these issues before they become larger problems or unexpected costs. By assessing the existing condition, identifying defects, determining appropriate solutions and estimating the required works, property owners can develop a clearer understanding of what the building needs and what investment may be involved.

Whether you are evaluating an existing property, planning refurbishment or preparing for major construction work, a detailed technical due diligence assessment can give you a clearer understanding of what needs to be done, how it should be done and what it may cost.

Disclaimer: This article is intended for general informational purposes and should not be treated as engineering, construction, legal or financial advice. The scope of technical due diligence will vary depending on the building, its age, condition, intended use and project requirements. Appropriate professional assessment should be undertaken for the specific property and project.