ASTM E2018-24

Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process

SIGNIFICANCE AND USE
4.1 Use—This guide is intended to reflect a reasonable baseline process for the completion of PCAs for use on a voluntary basis. No implication is intended that use of this guide be required to have conducted a PCA in a commercially prudent and reasonable manner. The baseline process described in this guide is subject to a moderate level of uncertainty. Because the objectives, risk tolerance, schedule, and budget of users can be dramatically different there are varying levels of PCA and due diligence that can be exercised that are both more and less comprehensive than this guide that may be appropriate to meet the objectives of the user. In accordance with ASTM protocols, this guide does not recommend a specific course of action or scope of work. Users should consider their requirements, the purpose that the PCA is to serve, and their risk tolerance to refine the scope of assessment and consultant qualifications in order to establish appropriate objectives for the assessment.  
4.2 Clarification of Use of Assessments:  
4.2.1 Specific Point in Time—A user should only rely on the PCR for the point in time that the observations and research were conducted.  
4.2.2 Site-Specific—The PCA prepared in accordance with this guide is site-specific in that it relates to the physical condition of primary improvements on a specific parcel of commercial real estate. Consequently, this guide does not address many additional issues in commercial real estate transactions such as economic obsolescence, the purchase of business entities, or physical deficiencies relating to off-site conditions.  
4.2.3 Specific Objectives—PCAs are completed to address specific objectives identified to the consultant by the user. The consultant should be consulted prior to use of the PCA to address any other objective.  
4.2.4 Intended Users—PCAs are typically completed for use by contracting parties. In some cases, the use of or reliance on reports may be extended to additional parties by mutua...
SCOPE
1.1 Purpose—The purpose of this guide is to provide a framework for conducting a property condition assessment (PCA) of the primary improvements at commercial real estate properties by performing a walk-through survey and conducting research as outlined within this guide.  
1.1.1 Physical Deficiencies—The goal of the baseline process for property condition assessments is to identify and communicate material physical deficiencies to a user.  
1.1.2 Walk-Through Survey—This guide outlines procedures for conducting a walk-through survey to identify physical deficiencies, and recommends various building systems and building components that should be observed by the field observer.  
1.1.3 Document Reviews and Interviews—The scope of this guide includes document reviews, research, and interviews to augment the walk-through survey to assist with understanding the subject property and identification of physical deficiencies.  
1.1.4 Property Condition Report—The work product resulting from completing a PCA in accordance with this guide is a property condition report (PCR). The PCR incorporates the information obtained during the Walk-Through Survey, the Document Review and Interviews sections of this guide and includes opinions of costs for suggested remedies of observed physical deficiencies.  
1.2 Objectives—Objectives in the development of this guide are to: (1) provide a framework for conducting a property condition assessment (PCA) of the primary improvements located on a parcel of commercial real estate; (2) facilitate consistent and pertinent content in PCRs; (3) develop pragmatic and reasonable recommendations and expectations for site observations, document reviews and research associated with conducting PCAs and preparing PCRs; (4) establish reasonable expectations for PCRs; (5) assist in developing an industry standard of care for appropriate baseline observations and research; and (6) recommend protocols for th...

General Information

• Status: Published
• Publication Date: 31-Dec-2023
• ICS: 13.040.20 - Ambient atmospheres
• Technical Committee: E50 - Environmental Assessment, Risk Management and Corrective Action
• Drafting Committee: E50.02 - Real Estate Assessment and Management

Relations

• Replaces: ASTM E2018-23 - Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process
• Effective Date: 01-Jan-2024
• Referred By: ASTM E3224-19 - Standard Guide for Building Energy Performance and Improvement Evaluation in the Assessment of Property Condition
• Effective Date: 01-Jan-2024
• Referred By: ASTM E3035-15(2020) - Standard Classification for Facility Asset Component Tracking System (FACTS)
• Effective Date: 01-Jan-2024
• Referred By: ASTM E2797-22 - Standard Practice for Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction
• Effective Date: 01-Jan-2024
• Referred By: ASTM E3026-23e1 - Standard Guide for Readily Observable Moisture Affected Materials and Conditions Conducive to Elevated Moisture in Commercial Buildings: Limited Moisture Assessment Process
• Effective Date: 01-Jan-2024

Overview

ASTM E2018-24: Standard Guide for Property Condition Assessments – Baseline Property Condition Assessment Process provides a comprehensive framework for evaluating the physical condition of primary improvements on commercial real estate properties. Issued by ASTM International, this standard outlines best practices for conducting property condition assessments (PCAs) through walk-through surveys, document reviews, and interviews. The process is designed to identify material physical deficiencies and gather information essential for sound decision-making in real estate transactions, property management, and due diligence.

Key Topics

• Purpose and Scope: ASTM E2018-24 establishes guidelines for performing baseline PCAs, emphasizing visual, non-intrusive surveys of commercial properties to assess physical deficiencies.
• Walk-Through Survey: The guide details procedures for a walk-through survey, which is the cornerstone of the assessment and involves observing building systems and components that are readily accessible and easily visible.
• Document Reviews and Interviews: It recommends reviewing relevant documents and interviewing knowledgeable individuals to enhance the understanding of the subject property and validate field observations.
• Property Condition Report (PCR): The end product of the PCA process is a comprehensive property condition report, which incorporates observations, cost estimates for remedies, and supporting research.
• Site-Specific and Temporal Nature: The assessment findings are specific to the particular property and the point in time at which the assessment is conducted.
• Consultant Qualifications and User Input: The standard clarifies the roles and qualifications of consultants conducting the assessments and emphasizes the importance of defining objectives, risk tolerance, and scope in collaboration with the user.
• Not Technically Exhaustive: The baseline process is not intended to be a technically exhaustive evaluation but provides a reasonable balance between thoroughness, time, and cost.

Applications

ASTM E2018-24 is a valuable tool for stakeholders involved in commercial real estate, including:

• Property Buyers and Investors: Supporting informed purchase decisions by identifying material physical deficiencies and estimating the costs of required remedies.
• Lenders and Insurers: Facilitating risk assessment by providing transparent, baseline documentation of a property’s physical condition.
• Property Owners and Managers: Aiding in budgeting, maintenance planning, and ongoing asset management by highlighting deferred maintenance and capital needs.
• Consultants and Assessors: Offering a consistent methodology and reporting framework for completing PCAs and producing PCRs.
• Legal and Financial Advisors: Ensuring due diligence is conducted in line with industry-recognized standards in property transactions.

The standard is especially relevant in real estate transactions, refinancing, and portfolio management where consistent, credible property condition reports are necessary for prudent business decisions.

Related Standards

ASTM E2018-24 frequently interacts with and references several other industry standards and regulatory resources, including:

• ASTM E1527: Standard Practice for Environmental Site Assessments – Phase I Environmental Site Assessment Process, addressing environmental due diligence.
• ASTM E2026: Guide for Seismic Risk Assessment of Buildings, for properties in earthquake-prone regions.
• ASTM E2797: Practice for Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction.
• ADA and FHA Guidelines: Americans with Disabilities Act (ADA) Standards and Fair Housing Act (FHA) Design Manual for accessibility considerations.
• Local Building and Fire Codes: Important for regulatory compliance as part of document review and site assessment.

Conclusion

By adhering to ASTM E2018-24, commercial real estate stakeholders can achieve a standardized, efficient, and credible approach to property condition assessment. The guide’s practical framework ensures the identification and communication of key physical deficiencies, facilitates thorough due diligence, and supports the preparation of reliable property condition reports necessary for informed decision-making in the commercial property sector.

Standards Content (Sample)

This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E2018 − 24
Standard Guide for
Property Condition Assessments: Baseline Property
Condition Assessment Process
This standard is issued under the fixed designation E2018; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope* and research; and (6) recommend protocols for the consultants
for communicating observations, opinions, and recommenda-
1.1 Purpose—The purpose of this guide is to provide a
tions in a manner meaningful to the user.
framework for conducting a property condition assessment
(PCA) of the primary improvements at commercial real estate 1.3 Out of Scope Considerations and Excluded Activities—
The use of this guide is strictly limited to the scope set forth
properties by performing a walk-through survey and conduct-
herein. Section 12 and Appendix X1 of this guide identify, for
ing research as outlined within this guide.
informational purposes, certain considerations and physical
1.1.1 Physical Deficiencies—The goal of the baseline pro-
conditions that may exist on the subject property, and certain
cess for property condition assessments is to identify and
activities or procedures (not an all-inclusive list) that are
communicate material physical deficiencies to a user.
beyond the scope of this guide but may warrant consideration
1.1.2 Walk-Through Survey—This guide outlines procedures
by parties to a commercial real estate transaction to enhance
for conducting a walk-through survey to identify physical
the PCA. Users should work with a knowledgeable consultant
deficiencies, and recommends various building systems and
to identify additional considerations and concerns to be evalu-
building components that should be observed by the field
ated. The decision to inquire into out-of-scope considerations
observer.
or extend the assessment to include excluded activities is to be
1.1.3 Document Reviews and Interviews—The scope of this
made by the user. No assessment of out-of-scope consider-
guide includes document reviews, research, and interviews to
ations is required for a PCA to be conducted in conformance
augment the walk-through survey to assist with understanding
with this guide.
the subject property and identification of physical deficiencies.
1.1.4 Property Condition Report—The work product result-
1.4 Organization of This guide—This guide consists of
ing from completing a PCA in accordance with this guide is a
several sections, an Annex and two (2) Appendixes. Section 1
property condition report (PCR). The PCR incorporates the
is the Scope. Section 3 on Terminology contains definitions of
information obtained during the Walk-Through Survey, the
terms both unique to this guide and not unique to this guide,
Document Review and Interviews sections of this guide and
and acronyms. Section 4 sets out the Significance and Use of
includes opinions of costs for suggested remedies of observed
this guide, and Section 5 describes the User’s Responsibilities.
physical deficiencies.
Sections 6 through 11 provide guidelines for the main body of
the PCR, including the scope of the walk-through survey,
1.2 Objectives—Objectives in the development of this guide
preparation of the opinions of costs to address physical
are to: (1) provide a framework for conducting a property
deficiencies, and preparation of the PCR. Section 12 provides
condition assessment (PCA) of the primary improvements
additional information regarding out-of-scope considerations,
located on a parcel of commercial real estate; (2) facilitate
activities, and procedures (see section 1.3). Annex A1 provides
consistent and pertinent content in PCRs; (3) develop prag-
guidance relating to specific asset types that are considered as
matic and reasonable recommendations and expectations for
integral to this guide. Appendix X1 describes additional
site observations, document reviews and research associated
concerns a user may consider in modification of the scope of
with conducting PCAs and preparing PCRs; (4) establish
the PCR. Appendix X2 and Appendix X3 outline an approach
reasonable expectations for PCRs; (5) assist in developing an
to limited accessibility screenings.
industry standard of care for appropriate baseline observations
TABLE OF CONTENTS
1 Scope
This guide is under the jurisdiction of ASTM Committee E50 on Environmental 1.1 Purpose
1.2 Objectives
Assessment, Risk Management and Corrective Action and is the direct responsibil-
1.3 Out of Scope Considerations and Excluded Activities
ity of Subcommittee E50.02 on Real Estate Assessment and Management.
1.4 Organization of This guide
Current edition approved Jan. 1, 2024. Published January 2024. Originally
1.5 Multiple Buildings
approved in 1999. Last previous edition approved in 2023 as E2018– 23. DOI:
1.6 Safety Concerns
10.1520/E2018-24.
*A Summary of Changes section appears at the end of this standard
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
E2018 − 24
3 Terminology Appendix FAIR HOUSING ACT (FHA) ABBREVIATED FHA SCREENING
3.2 Definitions X3
3.3 Abbreviations and Acronyms
1.5 Multiple Buildings—If the subject property is comprised
4 Significance and Use
of multiple buildings, it is the intent of this guide that all of the
4.1 Use
4.2 Clarification of Use of Assessments
primary improvements are discussed in one PCR.
4.3 Principles
4.4 Prior PCR Usage 1.6 This standard does not purport to address all of the
4.5 Use of Prior PCR Information
safety concerns, if any, associated with its use. It is the
4.6 Actual Knowledge Exception
responsibility of the user of this standard to establish appro-
4.7 Contractual Issues
priate safety, health, and environmental practices and deter-
4.8 Rules of Engagement
5 User’s Responsibilities
mine the applicability of regulatory limitations prior to use.
5.1 Objectives and Scope of Assessment
1.7 This international standard was developed in accor-
5.2 Point of Contact
5.3 Access dance with internationally recognized principles on standard-
5.4 User Disclosure
ization established in the Decision on Principles for the
6 Property Condition Assessment
Development of International Standards, Guides and Recom-
6.1 Objective
6.2 PCA Components mendations issued by the World Trade Organization Technical
6.3 Coordination of Components
Barriers to Trade (TBT) Committee.
6.4 Consultant’s Duties
7 The Consultant
2. Referenced Documents
7.1 Qualifications of the Consultant
7.2 Staffing of the Field Observer
2.1 ASTM Standards:
7.3 Independence of the Consultant
E1527 Practice for Environmental Site Assessments: Phase I
7.4 Qualifications of the Field Observer
7.5 Qualifications of the PCR Reviewer
Environmental Site Assessment Process
7.6 The Field Observer and PCR Reviewer May Be a Single Individual
E1528 Practice for Limited Environmental Due Diligence:
7.7 Not a Professional Architectural or Engineering Service
8 Document Review and Interviews Transaction Screen Process
8.1 Objective
E2026 Guide for Seismic Risk Assessment of Buildings
8.2 Verification of Information Provided by Others
E2557 Practice for Probable Maximum Loss (PML) Evalu-
8.3 Accuracy and Completeness
8.4 Government Agency Provided Information ations for Earthquake Due-Diligence Assessments
8.5 Pre-Survey Questionnaire
E2797 Practice for Building Energy Performance Assess-
8.6 Owner/User Provided Documentation and Information
ment for a Building Involved in a Real Estate Transaction
8.7 Interviews
9 Walk-Through Survey E3026 Guide for Readily Observable Moisture Affected
9.1 Objective
Materials and Conditions Conducive to Elevated Moisture
9.2 Frequency
in Commercial Buildings: Limited Moisture Assessment
9.3 Photographs
9.4 Scope Process
9.5 Additional Considerations
E3224 Guide for Building Energy Performance and Im-
10 Opinions of Costs to Remedy Physical Deficiencies
provement Evaluation in the Assessment of Property
10.1 Purpose
10.2 Scope
Condition
10.3 Opinions of Costs Attributes
2.2 Other Publications:
11 Property Condition Report
Fair Housing Act
11.1 Format
11.2 Writing Protocols
The Fair Housing Act Design Manual
11.3 Documentation
28 CFR Part 36 Nondiscrimination on the Basis of Disability
11.4 Executive Summary
by Public Accommodations and in Commercial Facilities
11.5 Purpose and Scope
11.6 Walk-Through Survey
ADA Accessibility Guidelines (ADAAG)
11.7 Document Reviews and Interviews
ADA Standards for Accessible Design
11.8 Additional Considerations
11.9 Qualifications
11.10 Limiting Conditions 3. Terminology
11.11 Exhibits
3.1 This section provides definitions, descriptions of terms,
12 Out of Scope Considerations
12.1 Activity Exclusions
and a list of acronyms, where applicable, for the words used in
12.2 Warranty, Guarantee, and Code Compliance Exclusions
12.3 Additional/General Considerations
13 Keywords
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
Annex A1 GUIDANCE AND ENHANCED DUE DILIGENCE SERVICES
contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
A1.1 Multifamily Properties
Standards volume information, refer to the standard’s Document Summary page on
A1.2 Commercial Office Buildings
A1.3 Retail Buildings the ASTM website.
Department of Justice/Civil Rights Division, https://www.justice.gov/crt/fair-
Appendix GUIDANCE AND ENHANCED DUE DILIGENCE SERVICES housing-act-1.
X1
https://www.hudexchange.info/resource/5933/fair-housing-act-design-manual/
X1.1 Qualifications
Available from U.S. Government Publishing Office (GPO), 732 N. Capitol St.,
X1.2 Modifications to the Baseline Process
NW, Washington, DC 20401, http://www.gpo.gov.
Appendix AMERICANS WITH DISABILITIES ACT (ADA) ABBREVIATED ADA
https://www.access-board.gov/ada/
X2 SCREENING 7
https://www.ada.gov/law-and-regs/design-standards/
E2018 − 24
this guide. The terms are an integral part of the guide and are 3.2.13 commercial real estate transaction, n—a transfer of
critical to an understanding of this guide and its use. title to or possession of improved real property or receipt of a
security interest in improved real property, except that it does
3.2 Definitions:
not include the transfer of title to or possession of improved
3.2.1 actual knowledge, n—information that is possessed by
real property with respect to an individual dwelling or building
an individual, as distinguished from information that is
containing four or less dwelling units.
suspected, or would have been expected to be known.
3.2.14 consultant, n—the entity or individual that is con-
3.2.2 appropriate inquiry, n—a request for information
tracted by a user and responsible for completion of the tasks
conducted by verbal, or written, or electronic request including
outlined in this guide.
a good-faith effort conducted by the consultant to obtain the
3.2.15 dangerous conditions, n—conditions that may pose a
information considering the time constraints to prepare and
threat or possible injury to the field observer, and that may
deliver the PCR.
require the use of special protective clothing, safety equipment,
3.2.3 architect, n—designation reserved by law for a person
access equipment, or any other precautionary measures.
professionally qualified, examined, and registered by the ap-
3.2.16 de minimis, n—any consideration, finding or condi-
propriate governmental board having jurisdiction, to perform
tion that, in the sole opinion of the consultant, does not
architecture.
represent an imminent threat of physical harm to occupants,
3.2.4 architecture, n—professional services conducted by an
and (1) can be remedied through routine maintenance or (2)
architect.
where the cost of corrective action is expected to be below the
agreed reporting threshold.
3.2.5 base building, n—the core (common areas) and shell
of the building and its systems that typically are not subject to
3.2.17 deferred maintenance, n—physical deficiencies that
improvements to suit tenant requirements.
could have been remedied with routine maintenance or similar
action.
3.2.6 baseline, n—the minimum level of observations, due
diligence, inquiry/research, documentation review, and opin-
3.2.18 dismantling, n—to take apart, move, or remove any
ions of costs to remedy material physical deficiencies recom-
component, device, or piece of equipment that is bolted,
mended to satisfy the intent of this guide.
screwed, held in-place (mechanically or by gravity), secured,
or fastened by other means.
3.2.7 building codes, n—rules and regulations adopted by
the governmental authority having jurisdiction that govern the 3.2.19 due diligence, n—the process of inquiring into the
design, construction, alteration, and repair of commercial real characteristics of commercial real estate, usually in connection
estate. with a commercial real estate transaction.
3.2.19.1 Discussion—The degree and type of the assessment
3.2.8 building component(s), n—a portion of a building
may vary for different properties, different user purposes, and
system, piece of equipment, or building element.
time allotted.
3.2.9 building department records, n—those records of the
3.2.20 easily visible, adj—describes items, components, and
local government agency in which the subject property is
systems that are conspicuous, patent, and that may be observed
located related to permission of the local government to
during the walk-through survey without: intrusion, relocation
construct, alter, or demolish improvements on the subject
or removal of materials, exploratory probing, or use of special
property.
equipment or protective clothing.
3.2.10 building envelope, n—the outer elements of a
3.2.21 effective age, n—an opinion representing the differ-
building, both above and below ground, that divide the external
ence of the expected useful life and the remaining useful life.
from the internal environments; commonly included are exte-
3.2.21.1 Discussion—The opinion of effective age may be
rior walls, windows, doors, roofs, and subfloors.
more or less than the actual age and can vary significantly
3.2.11 building system(s), n—interacting or independent
based upon maintenance history, location, weather conditions,
building components or assemblies, that form integrated units
and other factors.
that comprise a building and its site work, such as, pavement
3.2.22 engineer, n—designation reserved by law for a per-
and flatwork, structural frame, roofing, exterior walls,
son professionally qualified, examined, and licensed by the
plumbing, HVAC, electrical, etc.
appropriate authority having jurisdiction to perform engineer-
3.2.12 commercial real estate, n—improved real property, ing services.
except a dwelling or property with four or less dwelling units
3.2.23 engineering, n—analysis or design work conducted
exclusively for residential use; including, but is not limited to,
by an engineer.
improved real property used for industrial, retail, office,
3.2.24 expected useful life (EUL), n—the average amount of
hospitality, agriculture, other commercial, medical, or educa-
time in years that a building system or building component is
tional purposes; property used for residential purposes that has
estimated to function without material repair when installed
more than four residential dwelling units; and property with
new and appropriate maintenance is performed.
four or less dwelling units for residential use when it has a
commercial function, as in the operation of such dwellings for 3.2.25 field observer, n—the individual that conducts the
profit. walk-through survey.
E2018 − 24
3.2.26 fire department records, n—records maintained by or building components. Such opinions commonly employ terms
in the possession of the local fire department having jurisdic- such as good, fair, and poor; though additional terms such as
tion over the subject property. excellent, satisfactory, and unsatisfactory may also be used,
provided that the utilized terms are defined within the PCR.
3.2.27 guide, n—a series of options and instructions that do
3.2.39.2 good condition—in working condition and does not
not recommend a specific course of action.
require immediate or short term repairs above an agreed
3.2.28 immediate costs, n—opinions of costs to correct
threshold as discussed in section 10.3.1.
physical deficiencies that require immediate action as a result
3.2.39.3 fair condition—in working condition, but may
of any of the following: (1) conditions that the consultant
require immediate or short term repairs above an agreed
concludes represent an imminent life-safety issue, (2) condi-
threshold.
tions that if left uncorrected would be expected to result in or
contribute to building system or building component failure or
3.2.39.4 poor condition—not in working condition or re-
result in a significant escalation of its remedial cost, or (3)
quires immediate or short term repairs substantially above an
recorded or reported violations of building codes or fire codes.
agreed threshold.
3.2.29 interview(s), n—discussions with those knowledge-
3.2.39.5 Discussion—Where used to describe the physical
able about the subject property.
condition of a subject property, building system, or building
3.2.30 long-term cost(s), n—opinions of cost for anticipated
component the opinion is intended to reflect the predominant
replacement of building systems and building components over
condition. For example, an air conditioning system may be in
an evaluation period defined by the user.
good condition despite a requirement to replace a limited
3.2.30.1 Discussion—Long-term costs are generally based
number of units. Alternatively, a range of conditions may be
on the findings of the PCA and are frequently presented in
described by combining terms such as “good to fair”, or “fair
tabular format. Unless expressly agreed between the user and
to poor.” Where conditions are not uniform, an explanation of
consultant, long-term costs are not intended to represent
the various disparate conditions shall be included in the report.
enhancements or upgrades to the subject property. Refer to
Terms not defined above should be defined in the report or
Section 10 for additional discussion of opinions of cost.
agreement for services.
3.2.31 material, adj—that which is pertinent to the objec- 3.2.40 physical deficiency(ies), n—easily visible defect or
tives of the assessment and which a reasonable observer would
deferred maintenance of material building systems or building
expect to influence the judgments and actions of any party to components as identified during completion of the PCA.
the assessment.
3.2.40.1 Discussion—This definition specifically excludes
conditions that are de minimis or may be remedied with routine
3.2.32 observation, n—the act of observingbuilding systems
maintenance, miscellaneous minor repairs, normal operating
and building components that are readily accessible and easily
maintenance, or similar action, and excludes de minimis
visible.
conditions.
3.2.33 observe, v—to collect information by visual,
3.2.41 point of contact (POC)—owner, owner’s
auditory, and olfactory means while performing the PCA
representative, or other person or persons identified to the
within the context of easily visible and readily accessible.
consultant as knowledgeable about the physical characteristics,
3.2.34 obvious, adj—that which is plain, evident; a condi-
maintenance, and repair of the subject property.
tion easily visible or fact could not be ignored or overlooked by
a reasonable observer. 3.2.42 practically reviewable, adj—describes information
that is readily available and provided in a manner and form
3.2.35 opinions of cost(s), n—preliminary, order of
that, upon review, yields information relevant to the subject
magnitude, budgetary projection to assist the user in develop-
property without the need for significant analysis,
ing a general understanding of the physical condition of the
measurements, or calculations.
subject property.
3.2.43 primary improvements, n—the site work, structures,
3.2.36 owner, n—the entity holding the title to the commer-
building systems and building components that are of funda-
cial real estate.
mental importance with respect to the subject property; exclud-
3.2.37 owner’s representative(s), n—the person or entity
ing ancillary buildings that provide support uses such as
authorized by, and acting on behalf of, the owner to provide
maintenance sheds, security booths, utility garages, pool filter
information regarding and/or access to the subject property.
and equipment buildings, and similar elements.
3.2.38 PCR reviewer, n—the individual that exercises re-
3.2.44 property condition assessment (PCA), v—the process
sponsible control over the field observer and reviews the PCR
by which a person or entity observes a subject property,
prior to delivery to the user.
conducts interviews, and reviews available documentation for
3.2.39 physical condition, n—the physical state of a subject
the purpose of developing an opinion and preparing a PCR.
property, building system or building component.
3.2.45 property condition report (PCR), n—a written report,
3.2.39.1 Discussion—Within the context of the assessment, prepared in accordance with the recommendations contained in
the consultant may offer opinions of the physical condition of this guide, documenting the findings and opinions developed
the subject property, or of observed building systems or during completion of the PCA.
E2018 − 24
3.2.46 publicly available, adj—describes information to 3.2.58 subject building(s), n—referring to the primary build-
which the source allows access to anyone upon request. ing or buildings on the subject property, and that are within the
scope of PCA.
3.2.47 readily accessible, adj—describes areas of the sub-
3.2.59 subject property, n—the commercial real estate con-
ject property that are made available for observation by the
field observer at the time of the walk-through survey and do not sisting of the site and primary improvements that are assessed
require the removal or relocation of materials, such as in completion of the PCA.
furniture, floor, wall, or ceiling coverings, equipment, or
3.2.60 suggested remedy, n—an opinion as to a course of
personal property.
action to remedy or repair an observed condition.
3.2.48 readily available, adj—describes information that is 3.2.60.1 Discussion—Such an opinion may also be to con-
easily and promptly provided to the consultant upon making a
duct further research or testing for the purposes of discovery to
request through appropriate inquiry and without the need for gain a better understanding of the cause or extent of a physical
researching archive files.
deficiency (whether observed or highly probable) and the
appropriate remedial or reparatory response. A suggested
3.2.49 reasonably ascertainable, adj—information that is
remedy may be preliminary and does not preclude alternate
(1) publicly available, (2) obtainable from its source within
methods or schemes that may be more appropriate to remedy
reasonable time and cost constraints, and (3) is practically
the observed condition or that may be more commensurate
reviewable.
with the user’s requirements.
3.2.50 remaining useful life (RUL), n—a subjective opinion
3.2.61 survey(ed), n—observations made by the field ob-
of the number of remaining years that an item, component, or
server during a walk-through survey to obtain information
system is estimated to be able to function in accordance with its
concerning the readily accessible and easily visible building
intended purpose before warranting replacement.
systems and building components.
3.2.50.1 Discussion—An opinion of remaining useful life is
affected by the initial quality of an item, component, or system, 3.2.62 technically exhaustive, adj—describes the use of
measurements, instruments, testing, calculations, exploratory
the quality of the initial installation, the quality and amount of
preventive maintenance exercised, climatic conditions, extent probing or discovery, or other means to discover, or a combi-
nation thereof, or troubleshoot physical deficiencies or develop
of use, and other factors, and is not a guarantee of the
remaining service life. findings, conclusions, suggested remedies, or recommenda-
tions.
3.2.51 representative observations, n—the survey of a rea-
3.2.63 timely access, n—entry provided to the field observer
sonable number of samples of repetitive systems, components,
at the time of the site visit.
and areas, that is conducted by the field observer during the
walk-through survey.
3.2.64 user, n—the entity or individual that retains the
3.2.51.1 Discussion—The concept of representative obser-
consultant to complete the tasks outlined in this guide.
vations extends to all conditions, areas, buildings, building
3.2.65 walk-through survey, n—nonintrusive observations
systems and building components to the extent that they are
of readily accessible, observable property improvements.
similar and representative of one another.
3.3 Abbreviations and Acronyms:
3.2.52 routine maintenance, n—an activity that can be
3.3.1 ADA, n—The Americans with Disabilities Act
conducted within the budget and skill set of typical mainte-
3.3.2 ASTM, n—ASTM International
nance staff and does not require specialized equipment, pro-
fessional services, or contractors.
3.3.3 BOMA, n—Building Owners and Managers Associa-
tion
3.2.53 short-term costs, n—opinions of costs to remedy
physical deficiencies that may not warrant immediate attention
3.3.4 FEMA, n—Federal Emergency Management Agency
but require repairs or replacements that should be undertaken
3.3.5 FHA, n—Fair Housing Act
on a priority basis.
3.3.6 HVAC, n—Heating, Ventilating and Air Conditioning
3.2.54 shutdown, adj—building systems or building compo-
nents that are not operating at the time of the walk-through
4. Significance and Use
survey.
4.1 Use—This guide is intended to reflect a reasonable
3.2.55 site visit, n—the visit to the subject property during
baseline process for the completion of PCAs for use on a
which observations are made pursuant to the walk-through
voluntary basis. No implication is intended that use of this
survey section of this guide.
guide be required to have conducted a PCA in a commercially
3.2.56 specialist(s), n—individuals or entities with detailed,
prudent and reasonable manner. The baseline process de-
specialized knowledge and experience in the fields of archi-
scribed in this guide is subject to a moderate level of
tecture or engineering, or with the design, evaluation,
uncertainty. Because the objectives, risk tolerance, schedule,
operation, repair, or installation of any specific building sys-
and budget of users can be dramatically different there are
tems or building components.
varying levels of PCA and due diligence that can be exercised
3.2.57 structural frame, n—the building system that sup- that are both more and less comprehensive than this guide that
ports the structural loads of a building. may be appropriate to meet the objectives of the user. In
E2018 − 24
accordance with ASTM protocols, this guide does not recom- 4.3.3 Not Technically Exhaustive—The PCA is not intended
mend a specific course of action or scope of work. Users to be construed as technically exhaustive. There is a point at
should consider their requirements, the purpose that the PCA is which the cost of information obtained, or the time required to
to serve, and their risk tolerance to refine the scope of conduct the PCA and prepare the PCR, may outweigh the
assessment and consultant qualifications in order to establish usefulness of the information and, in fact, may be a material
appropriate objectives for the assessment. detriment to the orderly and timely completion of a commercial
real estate transaction. It is the intent of this guide to attempt
4.2 Clarification of Use of Assessments:
to identify a balance between limiting the costs and time
4.2.1 Specific Point in Time—A user should only rely on the
demands inherent in performing a PCA and reducing the
PCR for the point in time that the observations and research
uncertainty about unknown physical deficiencies resulting from
were conducted.
completing additional inquiry.
4.2.2 Site-Specific—The PCA prepared in accordance with
4.3.4 Representative Observations—The purpose of con-
this guide is site-specific in that it relates to the physical
ducting representative observations is to convey to the user the
condition of primary improvements on a specific parcel of
expected magnitude of commonly encountered or anticipated
commercial real estate. Consequently, this guide does not
conditions. Recommended representative observation quanti-
address many additional issues in commercial real estate
ties for various asset types are provided in Annex A1; however,
transactions such as economic obsolescence, the purchase of
if in the consultant’s opinion, the recommended representative
business entities, or physical deficiencies relating to off-site
observations are unwarranted as a result of homogeneity of the
conditions.
asset or other reasons deemed appropriate, the field observer
4.2.3 Specific Objectives—PCAs are completed to address
may survey sufficient units, areas, buildings, building systems,
specific objectives identified to the consultant by the user. The
and building components so as to comment with reasonable
consultant should be consulted prior to use of the PCA to
confidence as to the representative presence of physical defi-
address any other objective.
ciencies at such repetitive or similar areas, building systems,
4.2.4 Intended Users—PCAs are typically completed for
and building components. If there is more than one building on
use by contracting parties. In some cases, the use of or reliance
the subject property, and they are homogeneous with respect to
on reports may be extended to additional parties by mutual
approximate age, use, basic design, materials, and systems, it is
agreement of the contracting parties. Use of or reliance on
not a requirement of this guide for the field observer to observe
PCAs by others may violate the rights of contracting parties
the building systems and building components within each
and fail to satisfy the objectives of such unauthorized parties.
individual building to describe or comment on their condition
4.3 Principles—The following principles are an integral part
within the PCR. The descriptions and observations provided in
of this guide. They are intended to be referred to in resolving
the PCR are to be construed as representative of all similar
ambiguity, or in exercising discretion accorded the user or
improvements.
consultant in conducting a PCA, or in judging whether a user
4.3.4.1 User-Mandated Representative Observations—A
or consultant has conducted appropriate inquiry or has other-
user may mandate the representative observations required for
wise conducted an adequate PCA.
a given subject property or a particular building system or
4.3.1 Uncertainty Not Eliminated—No PCA can wholly
building component. Such representative observations may be
eliminate the uncertainty regarding the presence of physical
more or less detailed than this guide’s recommended represen-
deficiencies and the performance of building systems or build-
tative observations as provided in Annex A1.
ing components. Preparation of a PCR in accordance with this
4.3.4.2 Extrapolation of Findings—Consultant may reason-
guide is intended to reduce, but not eliminate, the uncertainty
ably extrapolate representative observations and findings to all
regarding the potential for building system or building compo-
typical areas or systems of the subject property for the
nent failure and to reduce the potential that such building
purposes of describing such conditions within the PCR and
system or building component may not be initially observed.
preparing the opinions of costs for suggested remedies.
This guide also recognizes the inherent subjective nature of
4.3.5 Level of Due Diligence is Variable—Not every subject
reported opinions as to such issues as workmanship, quality of
property will warrant the same level of assessment. The
original installation, and estimating the RUL of any given
appropriate level of assessment is guided by the purpose the
component or system. Users should work with their consultant
PCA is to serve; type of subject property; age of the improve-
to consider modifications to the scope of the PCA that may
ments; expertise and risk tolerance of the user; and time
reduce uncertainties.
available for preparing and reviewing the opinions contained in
4.3.2 Suggested Remedies—The guide recognizes that a
the PCR.
suggested remedy may be determined under time constraints,
formed without the aid of engineering calculations, testing, 4.4 Prior PCR Usage—This guide recognizes that PCRs
exploratory probing, the removal or relocation of materials, prepared in accordance with this guide may include informa-
design, or other technically exhaustive means. Furthermore, tion that subsequent users and consultants may want to use to
there may be other alternatives or more appropriate schemes or avoid duplication and to reduce cost. Therefore, this guide
methods to remedy a physical deficiency. The suggested includes procedures to assist users and consultants in deter-
remedies are generally formed without detailed knowledge mining the appropriateness of using such information. In
from those familiar with the historical or actual performance of addition to the specific procedures contained elsewhere in this
the building system or building component. guide, the following should be considered:
E2018 − 24
4.5 Use of Prior PCR Information—Information contained to modify the scope of assessment to satisfy those objectives.
in prior property condition reports may be helpful to assist in In the absence of other notation in the PCR the objective
understanding the subject property and planning the walk- should be assumed to be the identification of physical deficien-
through survey and research for the completion of a current cies to support continuation of the current use of the subject
PCR. Such information should serve only as an aid to a property without rehabilitation, change of use, or other modi-
consultant in fulfilling the requirements of this guide and to fication.
assist the field observer in the walk-through survey, research,
5.2 Point of Contact—Prior to the start of work the user
and the field observer’s understanding of the subject property;
should identify a person with good knowledge of the physical
and should be verified during the completion of a current
characteristics, maintenance, and management of the subject
assessment.
property to arrange access and coordinate information to
4.5.1 Comparison with a Previously Prepared PCR—
facilitate the PCR.
Discrepancies between a PCR and a previously prepared PCR
5.3 Access—User should arrange for the field observer to
are not indicative that either PCR is deficient. User require-
receive timely complete, supervised, and safe access to the
ments and objectives, the purpose of the PCR, qualifications
subject property (including roofs). In addition, timely access to
and experience of the assessment team, time available to
the subject property’s POC, staff, vendors, and appropriate
complete the PCR, access to and availability of information,
documents should be promptly provided by owner, owner’s
hindsight, new or additional information, enhanced visibility
representative or made available by the user, or a combination
because of improved weather or site conditions, equipment not
thereof. In no event should the field observer seek access to any
in a shutdown mode, specific building systems and building
portion of the subject property, interview property manage-
components observed, and other factors may significantly
ment staff, vendors, or tenants, or review documents, if the
impact the findings and opinions of the PCR. It should not be
owner, user, or occupant objects to such access or attempts to
concluded or assumed that a previous PCR was deficient
restrict the field observer from conducting any portion of the
because the previous PCA did not discover a certain physical
walk-through survey, research or interviews, or taking of
deficiency, or because opinions of costs in the previous PCR
photographs. Any conditions that significantly impede or
are different. Because a PCR contains a representative indica-
restrict the field observer’s walk-through survey or research, or
tion of the condition of the subject property at the time of the
the failure of the owner or occupant to provide access,
walk-through survey and is dependent on the information
information, or requested documentation should be communi-
available to the consultant at that time, the PCR should be
cated to the user in a timely manner. If such conditions are not
evaluated on the reasonableness of judgments made at the time
remedied, the consultant should document all such limiting
and under the circumstances in which they are made.
conditions that would be expected to significantly impact their
4.5.2 Conducting Current Walk-Through Surveys—At a
ability to satisfy the objectives of the assessment.
minimum, for a PCR to be consistent with this guide, a new
walk-through survey, interviews, and solicitation and review of 5.4 User Disclosure—The user should seek to obtain rel-
building and fire department records for recorded material
evant information to assist in completion of the PCR and
violations should be performed.
disclose all relevant information in the user’s possession that
may assist the consultant’s efforts. The user should not with-
4.6 Actual Knowledge Exception—If the user or consultant
hold any pertinent information that may assist in satisfying the
conducting a PCA has actual knowledge that the information
assessment objectives including, but not limited to, previously
from a prior PCR is not accurate, or if it is obvious to the field
prepared PCRs; any study specifically prepared on a building
observer that the information is not accurate, such information
system, building component or the subject property; any
from a prior PCR should not be used.
knowledge of actual or purported physical deficiencies; or any
4.7 Contractual Issues—This guide recognizes that contrac-
information such as pending proposals or costs to remedy
tual and legal obligations may exist between prior and subse-
known physical deficiencies.
quent users of PCRs, or between users and consultants who
performed prior PCRs, or both. Consideration of such contrac-
6. Property Condition Assessment
tual obligations is beyond the scope of this guide. Furthermore,
6.1 Objective—The purpose of the PCA is to observe and
a subsequent user of a prior PCA should be apprised that the
report, to the extent feasible pursuant to the processes pre-
report may have been prepared for purposes other than the
scribed herein, on the physical condition of the subject prop-
current desired purpose of the PCR and should determine the
erty.
contractual purpose and scope of the prior PCA.
6.2 PCA Components—The PCA should have four compo-
4.8 Rules of Engagement—The contractual and legal obli-
nents:
gations between a user and consultant (and other parties, if
6.2.1 Documentation Review and Interviews—Refer to Sec-
any) are outside the scope of this guide. No specific legal
tion 8.
relationship between the user and consultant was considered
6.2.2 Walk-Through Survey—Refer to Section 9.
during the preparation of this guide.
6.2.3 Preparation of Opinions of Costs to Remedy Physical
5. User’s Responsibilities Deficiencies—Refer to Section 10.
6.2.4 Property Condition Report—Refer to Section 11.
5.1 Objectives and Scope of Assessment—The user should
identify the objectives of the PCA and work with the consultant 6.3 Coordination of Components:
E2018 − 24
6.3.1 Components Used in Concert—The Documentation reviewer. Therefore, each PCR should include as an exhibit a
Review, Interviews, and Walk-Through Survey components of statement of qualifications of both the field observer and the
this guide are interrelated in that information obtained from PCR reviewer.
one component may either indicate the need for more infor-
7.2 Staffıng of the Field Observer—This guide recognizes
mation from another or impact the preparation of Opinions of
that for most of the commercial real estate subject to a PCA,
Cost to Remedy Physical Deficiencies.
the field observer assigned by the consultant to conduct the
6.3.2 Information Provided by Others—The consultant
walk-through survey most likely will be a single individual
should note in the PCR the sources of information that were
having a general, well rounded knowledge of pertinent build-
used in identifying any physical deficiencies of the subject
ing systems and building components. However, a single
property that were not observed by the consultant or that
individual is not likely to have knowledge, expertise, or
supplemented the consultant’s observations.
experience with all building codes, whether such codes are
nationally or locally accepted, building systems, building
6.4 Consultant’s Duties:
components, and asset types. The decision to supplement the
6.4.1 Who May Conduct Portions of the PCA—The docu-
field observer with specialists, mechanics, specialized service
mentation review and interviews, walk-through survey, and
personnel, or any other specialized contributor to the PCA,
preparation of opinions of cost to remedy physical deficiencies,
should be a mutual decision made by the user and consultant
and the writing of the PCR may be performed by the
prior to engagement. This decision should be made in accor-
consultant, field observer, members of the consultant’s staff, or
dance with the requirements, risk tolerance, and budgetary
third party contractors engaged by the consultant.
constraints of the user, the purpose the PCA is to serve, the
6.4.2 Responsibility for Lack of Information—The consul-
expediency of PCR delivery, and the complexity of the subject
tant is not responsible for providing or obtaining information
property.
should the source contacted fail to respond, respond only in
7.3 Independence of the Consultant—This guide recognizes
part, or fail to respond in a timely manner.
that the consultant normally is a person or entity, acting as an
6.4.3 Opinions of Costs Contingent on Further Discovery—
independent contractor, who has been engaged by the user to
The consultant is not required to provide opinions of costs to
conduct a PCA. In the event the consultant, the field observer,
remedy physical deficiencies that may require the opinions of
the PCR reviewer, or members of the consultant’s staff are
specialists or the results of testing, intrusive evaluation, ex-
employees of, or subsidiary of, the user, such affiliation or
ploratory probing, or further research to determine the cause of
relationship should be disclosed in the Executive Summary of
the physical deficiency and the appropriate remedy, scope, and
the PCR.
scheme for repair or replacement unless user and consultant
have agreed to such an expansion of the scope of work.
7.4 Qualifications of the Field Observer—Refer to X1.1.1
for guidance on the qualifications of the field observer.
6.4.4 Representative Observations—The field observer is
not expected to survey every recurring component or system
7.5 Qualifications of the PCR Reviewer—Refer to X1.1.2
during a walk-through survey. For example, it is not the intent
for guidance on the qualifications of the PCR reviewer.
to survey every HVAC unit, balcony, window, roof, toilet room
7.6 The Field Observer and PCR Reviewer May Be a Single
facility, utility closet, every square foot of roofing, etc. Only
Individual—The PCR reviewer also may act as the field
representative observations of such areas are to be conducted.
observer and conduct the walk-through survey. In such an
The concept of representative observations extends to all
event, the PCR reviewer should identify such dual responsi-
conditions, areas, buildings, building systems and building
bilities and sign the PCR indicating that they have
...

This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation: E2018 − 23 E2018 − 24
Standard Guide for
Property Condition Assessments: Baseline Property
Condition Assessment Process
This standard is issued under the fixed designation E2018; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope*
1.1 Purpose—The purpose of this guide is to provide a framework for conducting a property condition assessment (PCA) of the
primary improvements at commercial real estate properties by performing a walk-through survey and conducting research as
outlined within this guide.
1.1.1 Physical Deficiencies—The goal of the baseline process for property condition assessments is to identify and communicate
material physical deficiencies to a user.
1.1.2 Walk-Through Survey—This guide outlines procedures for conducting a walk-through survey to identify physical
deficiencies, and recommends various building systems and building components that should be observed by the field observer.
1.1.3 Document Reviews and Interviews—The scope of this guide includes document reviews, research, and interviews to augment
the walk-through survey to assist with understanding the subject property and identification of physical deficiencies.
1.1.4 Property Condition Report—The work product resulting from completing a PCA in accordance with this guide is a property
condition report (PCR). The PCR incorporates the information obtained during the Walk-Through Survey, the Document Review
and Interviews sections of this guide and includes opinions of costs for suggested remedies of observed physical deficiencies.
1.2 Objectives—Objectives in the development of this guide are to: (1) provide a framework for conducting a property condition
assessment (PCA) of the primary improvements located on a parcel of commercial real estate; (2) facilitate consistent and pertinent
content in PCRs; (3) develop pragmatic and reasonable recommendations and expectations for site observations, document reviews
and research associated with conducting PCAs and preparing PCRs; (4) establish reasonable expectations for PCRs; (5) assist in
developing an industry standard of care for appropriate baseline observations and research; and (6) recommend protocols for the
consultants for communicating observations, opinions, and recommendations in a manner meaningful to the user.
1.3 Out of Scope Considerations and Excluded Activities—The use of this guide is strictly limited to the scope set forth herein.
Section 1112 and Appendix X1 of this guide identify, for informational purposes, certain considerations and physical conditions
that may exist on the subject property, and certain activities or procedures (not an all-inclusive list) that are beyond the scope of
this guide but may warrant consideration by parties to a commercial real estate transaction to enhance the PCA. Users should work
with a knowledgeable consultant to identify additional considerations and concerns to be evaluated. The decision to inquire into
out-of-scope considerations or extend the assessment to include excluded activities is to be made by the user. No assessment of
out-of-scope considerations is required for a PCA to be conducted in conformance with this guide.
This guide is under the jurisdiction of ASTM Committee E50 on Environmental Assessment, Risk Management and Corrective Action and is the direct responsibility
of Subcommittee E50.02 on Real Estate Assessment and Management.
Current edition approved June 1, 2023Jan. 1, 2024. Published January 2024. Originally approved in 1999. Last previous edition approved in 20152023 as E2018– 15. DOI:
10.1520/E2018-23.– 23. DOI: 10.1520/E2018-24.
*A Summary of Changes section appears at the end of this standard
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
E2018 − 24
1.4 Organization of This guide—This guide consists of several sections, an Annex and two (2) Appendixes. Section 1 is the Scope.
Section 23 on Terminology contains definitions of terms both unique to this guide and not unique to this guide, and acronyms.
Section 34 sets out the Significance and Use of this guide, and Section 45 describes the User’s Responsibilities. Sections 56
through 1011 provide guidelines for the main body of the PCR, including the scope of the walk-through survey, preparation of the
opinions of costs to address physical deficiencies, and preparation of the PCR. Section 1112 provides additional information
regarding out-of-scope considerations, activities, and procedures (see section 1.3). Annex A1 provides guidance relating to specific
asset types that are considered as integral to this guide. Appendix X1 describes additional concerns a user may consider in
modification of the scope of the PCR. Appendix X2 and Appendix X3 outline an approach to limited accessibility screenings.
TABLE OF CONTENTS
1 Scope
1.1 Purpose
1.2 Objectives
1.3 Out of Scope Considerations and Excluded Activities
1.4 Organization of This guide
1.5 Multiple Buildings
1.6 Safety Concerns
2 Terminology
3 Terminology
2.2 Definitions
3.2 Definitions
2.3 Abbreviations and Acronyms
3.3 Abbreviations and Acronyms
3 Significance and Use
4 Significance and Use
3.1 Use
4.1 Use
3.2 Clarification of Use of Assessments
4.2 Clarification of Use of Assessments
3.3 Principles
4.3 Principles
3.4 Prior PCR Usage
4.4 Prior PCR Usage
3.5 Use of Prior PCR Information
4.5 Use of Prior PCR Information
3.6 Actual Knowledge Exception
4.6 Actual Knowledge Exception
3.7 Contractual Issues
4.7 Contractual Issues
3.8 Rules of Engagement
4.8 Rules of Engagement
4 User’s Responsibilities
5 User’s Responsibilities
4.1 Objectives and Scope of Assessment
5.1 Objectives and Scope of Assessment
4.2 Point of Contact
5.2 Point of Contact
4.3 Access
5.3 Access
4.4 User Disclosure
5.4 User Disclosure
5 Property Condition Assessment
6 Property Condition Assessment
5.1 Objective
6.1 Objective
5.2 PCA Components
6.2 PCA Components
5.3 Coordination of Components
6.3 Coordination of Components
5.4 Consultant’s Duties
6.4 Consultant’s Duties
6 The Consultant
7 The Consultant
6.1 Qualifications of the Consultant
7.1 Qualifications of the Consultant
6.2 Staffing of the Field Observer
7.2 Staffing of the Field Observer
6.3 Independence of the Consultant
7.3 Independence of the Consultant
6.4 Qualifications of the Field Observer
7.4 Qualifications of the Field Observer
6.5 Qualifications of the PCR Reviewer
E2018 − 24
7.5 Qualifications of the PCR Reviewer
6.6 The Field Observer and PCR Reviewer May Be a Single Individual
7.6 The Field Observer and PCR Reviewer May Be a Single Individual
6.7 Not a Professional Architectural or Engineering Service
7.7 Not a Professional Architectural or Engineering Service
7 Document Review and Interviews
8 Document Review and Interviews
7.1 Objective
8.1 Objective
7.2 Verification of Information Provided by Others
8.2 Verification of Information Provided by Others
7.3 Accuracy and Completeness
8.3 Accuracy and Completeness
7.4 Government Agency Provided Information
8.4 Government Agency Provided Information
7.5 Pre-Survey Questionnaire
8.5 Pre-Survey Questionnaire
7.6 Owner/User Provided Documentation and Information
8.6 Owner/User Provided Documentation and Information
7.7 Interviews
8.7 Interviews
8 Walk-Through Survey
9 Walk-Through Survey
8.1 Objective
9.1 Objective
8.2 Frequency
9.2 Frequency
8.3 Photographs
9.3 Photographs
8.4 Scope
9.4 Scope
8.5 Additional Considerations
9.5 Additional Considerations
9 Opinions of Costs to Remedy Physical Deficiencies
10 Opinions of Costs to Remedy Physical Deficiencies
9.1 Purpose
10.1 Purpose
9.2 Scope
10.2 Scope
9.3 Opinions of Costs Attributes
10.3 Opinions of Costs Attributes
10 Property Condition Report
11 Property Condition Report
10.1 Format
11.1 Format
10.2 Writing Protocols
11.2 Writing Protocols
10.3 Documentation
11.3 Documentation
10.4 Executive Summary
11.4 Executive Summary
10.5 Purpose and Scope
11.5 Purpose and Scope
10.6 Walk-Through Survey
11.6 Walk-Through Survey
10.7 Document Reviews and Interviews
11.7 Document Reviews and Interviews
10.8 Additional Considerations
11.8 Additional Considerations
10.9 Qualifications
11.9 Qualifications
10.10 Limiting Conditions
11.10 Limiting Conditions
10.11 Exhibits
11.11 Exhibits
11 Out of Scope Considerations
12 Out of Scope Considerations
11.1 Activity Exclusions
12.1 Activity Exclusions
11.2 Warranty, Guarantee, and Code Compliance Exclusions
12.2 Warranty, Guarantee, and Code Compliance Exclusions
11.3 Additional/General Considerations
12.3 Additional/General Considerations
12 Keywords
13 Keywords
Annex A1 GUIDANCE AND ENHANCED DUE DILIGENCE SERVICES
A1.1 Multifamily Properties
A1.2 Commercial Office Buildings
E2018 − 24
A1.3 Retail Buildings
Appendix GUIDANCE AND ENHANCED DUE DILIGENCE SERVICES
X1
X1.1 Qualifications
X1.2 Modifications to the Baseline Process
Appendix AMERICANS WITH DISABILITIES ACT (ADA) ABBREVIATED ADA SCREENING
X2
Appendix FAIR HOUSING ACT (FHA) ABBREVIATED FHA SCREENING
X3
1.5 Multiple Buildings—If the subject property is comprised of multiple buildings, it is the intent of this guide that all of the
primary improvements are discussed in one PCR.
1.6 Safety Concerns—This guide does not purport to address all safety concerns, if any, associated with the walk-through survey.
It is the responsibility of the consultant using this guide to establish appropriate safety and health protocols when conducting a
PCA.
1.6 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility
of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of
regulatory limitations prior to use.
1.7 This international standard was developed in accordance with internationally recognized principles on standardization
established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued
by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
2. Referenced Documents
2.1 ASTM Standards:
E1527 Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process
E1528 Practice for Limited Environmental Due Diligence: Transaction Screen Process
E2026 Guide for Seismic Risk Assessment of Buildings
E2557 Practice for Probable Maximum Loss (PML) Evaluations for Earthquake Due-Diligence Assessments
E2797 Practice for Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction
E3026 Guide for Readily Observable Moisture Affected Materials and Conditions Conducive to Elevated Moisture in
Commercial Buildings: Limited Moisture Assessment Process
E3224 Guide for Building Energy Performance and Improvement Evaluation in the Assessment of Property Condition
2.2 Other Publications:
Fair Housing Act
The Fair Housing Act Design Manual
28 CFR Part 36 Nondiscrimination on the Basis of Disability by Public Accommodations and in Commercial Facilities
ADA Accessibility Guidelines (ADAAG)
ADA Standards for Accessible Design
3. Terminology
3.1 This section provides definitions, descriptions of terms, and a list of acronyms, where applicable, for the words used in this
guide. The terms are an integral part of the guide and are critical to an understanding of this guide and its use.
3.2 Definitions:
3.2.1 actual knowledge, n—information that is possessed by an individual, as distinguished from information that is suspected, or
would have been expected to be known.
For referenced ASTM standards, visit the ASTM website, www.astm.org, or contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
Department of Justice/Civil Rights Division, https://www.justice.gov/crt/fair-housing-act-1.
https://www.hudexchange.info/resource/5933/fair-housing-act-design-manual/
Available from U.S. Government Publishing Office (GPO), 732 N. Capitol St., NW, Washington, DC 20401, http://www.gpo.gov.
https://www.access-board.gov/ada/
https://www.ada.gov/law-and-regs/design-standards/
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3.2.2 appropriate inquiry, n—a request for information conducted by verbal, or written, or electronic request including a
good-faith effort conducted by the consultant to obtain the information considering the time constraints to prepare and deliver the
PCR.
3.2.3 architect, n—designation reserved by law for a person professionally qualified, examined, and registered by the appropriate
governmental board having jurisdiction, to perform architecture.
3.2.4 architecture, n—professional services conducted by an architect.
3.2.5 base building, n—the core (common areas) and shell of the building and its systems that typically are not subject to
improvements to suit tenant requirements.
3.2.6 baseline, n—the minimum level of observations,due diligence, inquiry/research, documentation review, and opinions of costs
to remedy material physical deficiencies recommended to satisfy the intent of this guide.
3.2.7 building codes, n—rules and regulations adopted by the governmental authority having jurisdiction that govern the design,
construction, alteration, and repair of commercial real estate.
3.2.8 building component(s), n—a portion of a building system, piece of equipment, or building element.
3.2.9 building department records, n—those records of the local government agency in which the subject property is located
related to permission of the local government to construct, alter, or demolish improvements on the subject property.
3.2.10 building envelope, n—the outer elements of a building, both above and below ground, that divide the external from the
internal environments; commonly included are exterior walls, windows, doors, roofs, and subfloors.
3.2.11 building system(s), n—interacting or independent building components or assemblies, that form integrated units that
comprise a building and its site work, such as, pavement and flatwork, structural frame, roofing, exterior walls, plumbing, HVAC,
electrical, etc.
3.2.12 commercial real estate, n—improved real property, except a dwelling or property with four or less dwelling units
exclusively for residential use; including, but is not limited to, improved real property used for industrial, retail, office, hospitality,
agriculture, other commercial, medical, or educational purposes; property used for residential purposes that has more than four
residential dwelling units; and property with four or less dwelling units for residential use when it has a commercial function, as
in the operation of such dwellings for profit.
3.2.13 commercial real estate transaction, n—a transfer of title to or possession of improved real property or receipt of a security
interest in improved real property, except that it does not include the transfer of title to or possession of improved real property
with respect to an individual dwelling or building containing four or less dwelling units.
3.2.14 consultant, n—the entity or individual that is contracted by a user and responsible for completion of the tasks outlined in
this guide.
3.2.15 dangerous conditions, n—conditions that may pose a threat or possible injury to the field observer, and that may require
the use of special protective clothing, safety equipment, access equipment, or any other precautionary measures.
3.2.16 de minimis, n—any consideration, finding or condition that, in the sole opinion of the consultant, does not represent an
imminent threat of physical harm to occupants, and (1) can be remedied through routine maintenance or (2) where the cost of
corrective action is expected to be below the agreed reporting threshold.
3.2.17 deferred maintenance, n—physical deficiencies that could have been remedied with routine maintenance or similar action.
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3.2.18 dismantling, n—to take apart, move, or remove any component, device, or piece of equipment that is bolted, screwed, held
in-place (mechanically or by gravity), secured, or fastened by other means.
3.2.19 due diligence, n—the process of inquiring into the characteristics of commercial real estate, usually in connection with a
commercial real estate transaction.
3.2.19.1 Discussion—
The degree and type of the assessment may vary for different properties, different user purposes, and time allotted.
3.2.20 easily visible, adj—describes items, components, and systems that are conspicuous, patent, and that may be observed during
the walk-through survey without: intrusion, relocation or removal of materials, exploratory probing, or use of special equipment
or protective clothing.
3.2.21 effective age, n—an opinion representing the difference of the expected useful life and the remaining useful life.
3.2.21.1 Discussion—
The opinion of effective age may be more or less than the actual age and can vary significantly based upon maintenance history,
location, weather conditions, and other factors.
3.2.22 engineer, n—designation reserved by law for a person professionally qualified, examined, and licensed by the appropriate
authority having jurisdiction to perform engineering services.
3.2.23 engineering, n—analysis or design work conducted by an engineer.
3.2.24 expected useful life (EUL), n—the average amount of time in years that a building system or building component is
estimated to function without material repair when installed new and appropriate maintenance is performed.
3.2.25 field observer, n—the individual that conducts the walk-through survey.
3.2.26 fire department records, n—records maintained by or in the possession of the local fire department having jurisdiction over
the subject property.
3.2.27 guide, n—a series of options and instructions that do not recommend a specific course of action.
3.2.28 immediate costs, n—opinions of costs to correct physical deficiencies that require immediate action as a result of any of the
following: (1) conditions that the consultant concludes represent an imminent life-safety issue, (2) conditions that if left
uncorrected would be expected to result in or contribute to building system or building component failure or result in a significant
escalation of its remedial cost, or (3) recorded or reported violations of building codes or fire codes.
3.2.29 interview(s), n—discussions with those knowledgeable about the subject property.
3.2.30 long-term cost(s), n—opinions of cost for anticipated replacement of building systems and building components over an
evaluation period defined by the user.
3.2.30.1 Discussion—
Long-term costs are generally based on the findings of the PCA and are frequently presented in tabular format. Unless expressly
agreed between the user and consultant,long-term costs are not intended to represent enhancements or upgrades to the subject
property. Refer to Section 910 for additional discussion of opinions of cost.
3.2.31 material, adj—that which is pertinent to the objectives of the assessment and which a reasonable observer would expect
to influence the judgments and actions of any party to the assessment.
3.2.32 observation, n—the visual act of surveyobserving of building systems and building components that are readily accessible
and easily visiblevisible. during a walk-through survey of the subject property.
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3.2.33 observe, v—to conduct ancollect information observationby pursuant to this guide visual, auditory, and olfactory means
while performing the PCA within the context of easily visible and readily accessible.
3.2.34 obvious, adj—that which is plain, evident; a condition easily visible or fact could not be ignored or overlooked by a
reasonable observer.
3.2.35 opinions of cost(s), n—preliminary, order of magnitude, budgetary projection to assist the user in developing a general
understanding of the physical condition of the subject property.
3.2.36 owner, n—the entity holding the title to the commercial real estate.
3.2.37 owner’s representative(s), n—the person or entity authorized by, and acting on behalf of, the owner to provide information
regarding and/or access to the subject property.
3.2.38 PCR reviewer, n—the individual that exercises responsible control over the field observer and reviews the PCR prior to
delivery to the user.
3.2.39 physical condition, n—the physical state of a subject property,building system or building component.
3.2.39.1 Discussion—
Within the context of the assessment, the consultant may offer opinions of the physical condition of the subject property, or of
observed building systems or building components. Such opinions commonly employ terms such as good, fair, and poor; though
additional terms such as excellent, satisfactory, and unsatisfactory may also be used, provided that the utilized terms are defined
within the PCR.
3.2.39.2 good condition—in working condition and does not require immediate or short term repairs above an agreed threshold
as discussed in section 9.3.110.3.1.
3.2.39.3 fair condition—in working condition, but may require immediate or short term repairs above an agreed threshold.
3.2.39.4 poor condition—not in working condition or requires immediate or short term repairs substantially above an agreed
threshold.
3.2.39.5 Discussion—
Where used to describe the physical condition of a subject property,building system, or building component the opinion is intended
to reflect the predominant condition. For example, an air conditioning system may be in good condition despite a requirement to
replace a limited number of units. Alternatively, a range of conditions may be described by combining terms such as “good to fair”,
or “fair to poor.” Where conditions are not uniform, an explanation of the various disparate conditions shall be included in the
report. Terms not defined above should be defined in the report or agreement for services.
3.2.40 physical deficiency(ies), n—easily visible defect or deferred maintenance of material building systems or building
components as identified during completion of the PCA.
3.2.40.1 Discussion—
This definition specifically excludes conditions that are de minimis or may be remedied with routine maintenance, miscellaneous
minor repairs, normal operating maintenance, or similar action, and excludes de minimis conditions.
3.2.41 point of contact (POC)—owner,owner’s representative, or other person or persons identified to the consultant as
knowledgeable about the physical characteristics, maintenance, and repair of the subject property.
3.2.42 practically reviewable, adj—describes information that is readily available and provided in a manner and form that, upon
review, yields information relevant to the subject property without the need for significant analysis, measurements, or calculations.
3.2.43 primary improvements, n—the site work, structures, building systems and building components that are of fundamental
importance with respect to the subject property; excluding ancillary buildings that provide support uses such as maintenance sheds,
security booths, utility garages, pool filter and equipment buildings, and similar elements.
3.2.44 property condition assessment (PCA), v—the process by which a person or entity observes a subject property, conducts
interviews, and reviews available documentation for the purpose of developing an opinion and preparing a PCR.
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3.2.45 property condition report (PCR), n—a written report, prepared in accordance with the recommendations contained in this
guide, documenting the observationsfindings and opinions developed during completion of the PCA.
3.2.46 publicly available, adj—describes information to which the source allows access to anyone upon request.
3.2.47 readily accessible, adj—describes areas of the subject property that are made available for observation by the field observer
at the time of the walk-through survey and do not require the removal or relocation of materials, such as furniture, floor, wall, or
ceiling coverings, equipment, or personal property.
3.2.48 readily available, adj—describes information that is easily and promptly provided to the consultant upon making a request
through appropriate inquiry and without the need for researching archive files.
3.2.49 reasonably ascertainable, adj—information that is (1) publicly available,(2) obtainable from its source within reasonable
time and cost constraints, and (3) is practically reviewable.
3.2.50 remaining useful life (RUL), n—a subjective opinion of the number of remaining years that an item, component, or system
is estimated to be able to function in accordance with its intended purpose before warranting replacement.
3.2.50.1 Discussion—
An opinion of remaining useful life is affected by the initial quality of an item, component, or system, the quality of the initial
installation, the quality and amount of preventive maintenance exercised, climatic conditions, extent of use, and other factors, and
is not a guarantee of the remaining service life.
3.2.51 representative observations, n—the survey of a reasonable number of samples of repetitive systems, components, and areas,
that is conducted by the field observer during the walk-through survey.
3.2.51.1 Discussion—
The concept of representative observations extends to all conditions, areas, buildings, building systems and building components
to the extent that they are similar and representative of one another.
3.2.52 routine maintenance, n—an activity that can be conducted within the budget and skill set of typical maintenance staff and
does not require specialized equipment, professional services, or contractors.
3.2.53 short-term costs, n—opinions of costs to remedy physical deficiencies that may not warrant immediate attention but require
repairs or replacements that should be undertaken on a priority basis.
3.2.54 shutdown, adj—building systems or building components that are not operating at the time of the walk-through survey.
3.2.55 site visit, n—the visit to the subject property during which observations are made pursuant to the walk-through survey
section of this guide.
3.2.56 specialist(s), n—individuals or entities with detailed, specialized knowledge and experience in the fields of architecture or
engineering, or with the design, evaluation, operation, repair, or installation of any specific building systems or building
components.
3.2.57 structural frame, n—the building system that supports the structural loads of a building.
3.2.58 subject building(s), n—referring to the primary building or buildings on the subject property, and that are within the scope
of PCA.
3.2.59 subject property, n—the commercial real estate consisting of the site and primary improvements that are assessed in
completion of the PCA.
3.2.60 suggested remedy, n—an opinion as to a course of action to remedy or repair an observed condition.
3.2.60.1 Discussion—
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Such an opinion may also be to conduct further research or testing for the purposes of discovery to gain a better understanding
of the cause or extent of a physical deficiency (whether observed or highly probable) and the appropriate remedial or reparatory
response. A suggested remedy may be preliminary and does not preclude alternate methods or schemes that may be more
appropriate to remedy the observed condition or that may be more commensurate with the user’s requirements.
3.2.61 survey(ed), n—observations made by the field observer during a walk-through survey to obtain information concerning the
readily accessible and easily visible building systems and building components.
3.2.62 technically exhaustive, adj—describes the use of measurements, instruments, testing, calculations, exploratory probing or
discovery, or other means to discover, or a combination thereof, or troubleshoot physical deficiencies or develop findings,
conclusions, suggested remedies, or recommendations.
3.2.63 timely access, n—entry provided to the field observer at the time of the site visit.
3.2.64 user, n—the entity or individual that retains the consultant to complete the tasks outlined in this guide.
3.2.65 walk-through survey, n—nonintrusive observations of readily accessible, observable property improvements.
3.3 Abbreviations and Acronyms:
3.3.1 ADA, n—The Americans with Disabilities Act
3.3.2 ASTM, n—ASTM International
3.3.3 BOMA, n—Building Owners and Managers Association
3.3.4 FEMA, n—Federal Emergency Management Agency
3.3.5 FHA, n—Fair Housing Act
3.3.6 HVAC, n—Heating, Ventilating and Air Conditioning
4. Significance and Use
4.1 Use—This guide is intended to reflect a reasonable baseline process for the completion of PCAs for use on a voluntary basis.
No implication is intended that use of this guide be required to have conducted a PCA in a commercially prudent and reasonable
manner. The baseline process described in this guide is subject to a moderate level of uncertainty. Because the objectives, risk
tolerance, schedule, and budget of users can be dramatically different there are varying levels of PCA and due diligence that can
be exercised that are both more and less comprehensive than this guide that may be appropriate to meet the objectives of the user.
In accordance with ASTM protocols, this guide does not recommend a specific course of action or scope of work. Users should
consider their requirements, the purpose that the PCA is to serve, and their risk tolerance to refine the scope of assessment and
consultant qualifications in order to establish appropriate objectives for the assessment.
4.2 Clarification of Use of Assessments:
4.2.1 Specific Point in Time—A user should only rely on the PCR for the point in time that the observations and research were
conducted.
4.2.2 Site-Specific—The PCA prepared in accordance with this guide is site-specific in that it relates to the physical condition of
primary improvements on a specific parcel of commercial real estate. Consequently, this guide does not address many additional
issues in commercial real estate transactions such as economic obsolescence, the purchase of business entities, or physical
deficiencies relating to off-site conditions.
4.2.3 Specific Objectives—PCAs are completed to address specific objectives identified to the consultant by the user. The
consultant should be consulted prior to use of the PCA to address any other objective.
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4.2.4 Intended Users—PCAs are typically completed for use by contracting parties. In some cases, the use of or reliance on reports
may be extended to additional parties by mutual agreement of the contracting parties. Use of or reliance on PCAs by others may
violate the rights of contracting parties and fail to satisfy the objectives of such unauthorized parties.
4.3 Principles—The following principles are an integral part of this guide. They are intended to be referred to in resolving
ambiguity, or in exercising discretion accorded the user or consultant in conducting a PCA, or in judging whether a user or
consultant has conducted appropriate inquiry or has otherwise conducted an adequate PCA.
4.3.1 Uncertainty Not Eliminated—No PCA can wholly eliminate the uncertainty regarding the presence of physical deficiencies
and the performance of building systems or building components. Preparation of a PCR in accordance with this guide is intended
to reduce, but not eliminate, the uncertainty regarding the potential for building system or building component failure and to reduce
the potential that such building system or building component may not be initially observed. This guide also recognizes the inherent
subjective nature of reported opinions as to such issues as workmanship, quality of original installation, and estimating the RUL
of any given component or system. Users should work with their consultant to consider modifications to the scope of the PCA that
may reduce uncertainties.
4.3.2 Suggested Remedies—The guide recognizes that a suggested remedy may be determined under time constraints, formed
without the aid of engineering calculations, testing, exploratory probing, the removal or relocation of materials, design, or other
technically exhaustive means. Furthermore, there may be other alternatives or more appropriate schemes or methods to remedy a
physical deficiency. The suggested remedies are generally formed without detailed knowledge from those familiar with the
historical or actual performance of the building system or building component.
4.3.3 Not Technically Exhaustive—The PCA is not intended to be construed as technically exhaustive. There is a point at which
the cost of information obtained, or the time required to conduct the PCA and prepare the PCR, may outweigh the usefulness of
the information and, in fact, may be a material detriment to the orderly and timely completion of a commercial real estate
transaction. It is the intent of this guide to attempt to identify a balance between limiting the costs and time demands inherent in
performing a PCA and reducing the uncertainty about unknown physical deficiencies resulting from completing additional inquiry.
4.3.4 Representative Observations—The purpose of conducting representative observations is to convey to the user the expected
magnitude of commonly encountered or anticipated conditions. Recommended representative observation quantities for various
asset types are provided in Annex A1; however, if in the consultant’s opinion, the recommended representative observations are
unwarranted as a result of homogeneity of the asset or other reasons deemed appropriate, the field observer may survey sufficient
units, areas, buildings, building systems, and building components so as to comment with reasonable confidence as to the
representative presence of physical deficiencies at such repetitive or similar areas, building systems, and building components. If
there is more than one building on the subject property, and they are homogeneous with respect to approximate age, use, basic
design, materials, and systems, it is not a requirement of this guide for the field observer to observe the building systems and
building components within each individual building to describe or comment on their condition within the PCR. The descriptions
and observations provided in the PCR are to be construed as representative of all similar improvements.
4.3.4.1 User-Mandated Representative Observations—A user may mandate the representative observations required for a given
subject property or a particular building system or building component. Such representative observations may be more or less
detailed than this guide’s recommended representative observations as provided in Annex A1.
4.3.4.2 Extrapolation of Findings—Consultant may reasonably extrapolate representative observations and findings to all typical
areas or systems of the subject property for the purposes of describing such conditions within the PCR and preparing the opinions
of costs for suggested remedies.
4.3.5 Level of Due Diligence is Variable—Not every subject property will warrant the same level of assessment. The appropriate
level of assessment is guided by the purpose the PCA is to serve; type of subject property; age of the improvements; expertise and
risk tolerance of the user; and time available for preparing and reviewing the opinions contained in the PCR.
4.4 Prior PCR Usage—This guide recognizes that PCRs prepared in accordance with this guide may include information that
subsequent users and consultants may want to use to avoid duplication and to reduce cost. Therefore, this guide includes
procedures to assist users and consultants in determining the appropriateness of using such information. In addition to the specific
procedures contained elsewhere in this guide, the following should be considered:
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4.5 Use of Prior PCR Information—Information contained in prior property condition reports may be helpful to assist in
understanding the subject property and planning the walk-through survey and research for the completion of a current PCR. Such
information should serve only as an aid to a consultant in fulfilling the requirements of this guide and to assist the field observer
in the walk-through survey, research, and the field observer’s understanding of the subject property; and should be verified during
the completion of a current assessment.
4.5.1 Comparison with a Previously Prepared PCR—Discrepancies between a PCR and a previously prepared PCR are not
indicative that either PCR is deficient. User requirements and objectives, the purpose of the PCR, qualifications and experience
of the assessment team, time available to complete the PCR, access to and availability of information, hindsight, new or additional
information, enhanced visibility because of improved weather or site conditions, equipment not in a shutdown mode, specific
building systems and building components observed, and other factors may significantly impact the findings and opinions of the
PCR. It should not be concluded or assumed that a previous PCR was deficient because the previous PCA did not discover a certain
physical deficiency, or because opinions of costs in the previous PCR are different. Because a PCR contains a representative
indication of the condition of the subject property at the time of the walk-through survey and is dependent on the information
available to the consultant at that time, the PCR should be evaluated on the reasonableness of judgments made at the time and
under the circumstances in which they are made.
4.5.2 Conducting Current Walk-Through Surveys—At a minimum, for a PCR to be consistent with this guide, a new walk-through
survey,interviews, and solicitation and review of building and fire department records for recorded material violations should be
performed.
4.6 Actual Knowledge Exception—If the user or consultant conducting a PCA has actual knowledge that the information from a
prior PCR is not accurate, or if it is obvious to the field observer that the information is not accurate, such information from a prior
PCR should not be used.
4.7 Contractual Issues—This guide recognizes that contractual and legal obligations may exist between prior and subsequent users
of PCRs, or between users and consultants who performed prior PCRs, or both. Consideration of such contractual obligations is
beyond the scope of this guide. Furthermore, a subsequent user of a prior PCA should be apprised that the report may have been
prepared for purposes other than the current desired purpose of the PCR and should determine the contractual purpose and scope
of the prior PCA.
4.8 Rules of Engagement—The contractual and legal obligations between a user and consultant (and other parties, if any) are
outside the scope of this guide. No specific legal relationship between the user and consultant was considered during the
preparation of this guide.
5. User’s Responsibilities
5.1 Objectives and Scope of Assessment—The user should identify the objectives of the PCA and work with the consultant to
modify the scope of assessment to satisfy those objectives. In the absence of other notation in the PCR the objective should be
assumed to be the identification of physical deficiencies to support continuation of the current use of the subject property without
rehabilitation, change of use, or other modification.
5.2 Point of Contact—Prior to the start of work the user should identify a person with good knowledge of the physical
characteristics, maintenance, and management of the subject property to arrange access and coordinate information to facilitate the
PCR.
5.3 Access—User should arrange for the field observer to receive timely complete, supervised, and safe access to the subject
property (including roofs). In addition, timely access to the subject property’s POC, staff, vendors, and appropriate documents
should be promptly provided by owner,owner’s representative or made available by the user, or a combination thereof. In no event
should the field observer seek access to any portion of the subject property, interview property management staff, vendors, or
tenants, or review documents, if the owner,user, or occupant objects to such access or attempts to restrict the field observer from
conducting any portion of the walk-through survey, research or interviews, or taking of photographs. Any conditions that
significantly impede or restrict the field observer’s walk-through survey or research, or the failure of the owner or occupant to
provide access, information, or requested documentation should be communicated to the user in a timely manner. If such
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conditions are not remedied, the consultant should document all such limiting conditions that would be expected to significantly
impact their ability to satisfy the objectives of the assessment.
5.4 User Disclosure—The user should seek to obtain relevant information to assist in completion of the PCR and disclose all
relevant information in the user’s possession that may assist the consultant’s efforts. The user should not withhold any pertinent
information that may assist in satisfying the assessment objectives including, but not limited to, previously prepared PCRs; any
study specifically prepared on a building system,building component or the subject property; any knowledge of actual or purported
physical deficiencies; or any information such as pending proposals or costs to remedy known physical deficiencies.
6. Property Condition Assessment
6.1 Objective—The purpose of the PCA is to observe and report, to the extent feasible pursuant to the processes prescribed herein,
on the physical condition of the subject property.
6.2 PCA Components—The PCA should have four components:
6.2.1 Documentation Review and Interviews—Refer to Section 78.
6.2.2 Walk-Through Survey—Refer to Section 89.
6.2.3 Preparation of Opinions of Costs to Remedy Physical Deficiencies—Refer to Section 910.
6.2.4 Property Condition Report—Refer to Section 1011.
6.3 Coordination of Components:
6.3.1 Components Used in Concert—The Documentation Review, Interviews, and Walk-Through Survey components of this guide
are interrelated in that information obtained from one component may either indicate the need for more information from another
or impact the preparation of Opinions of Cost to Remedy Physical Deficiencies.
6.3.2 Information Provided by Others—The consultant should note in the PCR the sources of information that were used in
identifying any physical deficiencies of the subject property that were not observed by the consultant or that supplemented the
consultant’s observations.
6.4 Consultant’s Duties:
6.4.1 Who May Conduct Portions of the PCA—The documentation review and rnterviews,interviews, walk-through survey, and
preparation of opinions of cost to remedy physical deficiencies, and the writing of the PCR may be performed by the
consultant,field observer, members of the consultant’s staff, or third party contractors engaged by the consultant.
6.4.2 Responsibility for Lack of Information—The consultant is not responsible for providing or obtaining information should the
source contacted fail to respond, respond only in part, or fail to respond in a timely manner.
6.4.3 Opinions of Costs Contingent on Further Discovery—The consultant is not required to provide opinions of costs to remedy
physical deficiencies that may require the opinions of specialists or the results of testing, intrusive evaluation, exploratory probing,
or further research to determine the cause of the physical deficiency and the appropriate remedy, scope, and scheme for repair or
replacement unless user and consultant have agreed to such an expansion of the scope of work.
6.4.4 Representative Observations—The field observer is not expected to survey every recurring compon
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