ASTM E2018-15
(Guide)Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process
Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process
SIGNIFICANCE AND USE
3.1 Use—This guide is intended for use on a voluntary basis by parties who desire to obtain a baseline PCA of commercial real estate. This guide also recognizes that there are varying levels of property condition assessment and due diligence that can be exercised that are both more and less comprehensive than this guide, and that may be appropriate to meet the objectives of the user. Users should consider their requirements, the purpose that the PCA is to serve, and their risk tolerance level before selecting the consultant and the level of due diligence to be exercised by the consultant. The user should also review or establish the qualifications, or both, of the proposed field observer and PCR reviewer prior to engagement. A PCR should identify any deviations or exceptions to this guide. Furthermore, no implication is intended that use of this guide be required in order to have conducted a property condition assessment in a commercially prudent and reasonable manner. Nevertheless, this guide is intended to reflect a reasonable approach for the preparation of a baseline PCA.
3.2 Clarification of Use:
3.2.1 Specific Point in Time—A user should only rely on the PCR for the point in time at which the consultant's observations and research were conducted.
3.2.2 Site-Specific—The PCA performed in accordance with this guide is site-specific in that it relates to the physical condition of real property improvements on a specific parcel of commercial real estate. Consequently, this guide does not address many additional issues in real estate transactions such as economic obsolescence, the purchase of business entities, or physical deficiencies relating to off-site conditions.
3.3 Who May Conduct—The walk-through survey portion of a PCA should be conducted by a field observer, and the PCR should be reviewed by a PCR reviewer; both qualified as suggested in X1.1.1 and X1.1.2, respectively.
3.4 Principles—The following principles are an integral part of this g...
SCOPE
1.1 Purpose—The purpose of this guide is to define good commercial practice in the United States of America for conducting a baseline property condition assessment (PCA) of the improvements located on a parcel of commercial real estate by performing a walk-through survey and conducting research as outlined within this guide.
1.1.1 Physical Deficiencies—In defining good commercial and customary practice for conducting a baseline PCA, the goal is to identify and communicate physical deficiencies to a user. The term physical deficiencies includes the presence of conspicuous defects and material deferred maintenance of a subject property's material systems, components, or equipment as observed during completion of the PCA. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes de minimis conditions that generally do not present material physical deficiencies of the subject property.
1.1.2 Walk-Through Survey—This guide outlines procedures for conducting a walk-through survey to identify the subject property's physical deficiencies, and recommends various systems, components, and equipment that should be observed by the field observer and reported in the property condition report (PCR).
1.1.3 Document Reviews and Interviews—The scope of this guide includes document reviews, research, and interviews to augment the walk-through survey so as to assist the consultant's understanding of 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 the physica...
General Information
Relations
Buy Standard
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 −15
Standard Guide for
Property Condition Assessments: Baseline Property
1
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 includes Opinions of Costs for suggested remedies of the
physical deficiencies identified.
1.1 Purpose—The purpose of this guide is to define good
commercial practice in the United States of America for
1.2 Objectives—Objectives in the development of this guide
conducting a baseline property condition assessment (PCA) of
are to: (1) define good commercial and customary practice for
the improvements located on a parcel of commercial real estate
the PCA of primary commercial real estate improvements; (2)
by performing a walk-through survey and conducting research
facilitate consistent and pertinent content in PCRs; (3) develop
as outlined within this guide.
pragmatic and reasonable recommendations and expectations
1.1.1 Physical Deficiencies—In defining good commercial
for site observations, document reviews and research associ-
and customary practice for conducting a baseline PCA, the
ated with conducting PCAs and preparing PCRs; (4) establish
goal is to identify and communicate physical deficiencies to a
reasonable expectations for PCRs; (5) assist in developing an
user. The term physical deficiencies includes the presence of
industry baseline standard of care for appropriate observations
conspicuous defects and material deferred maintenance of a
and research; and (6) recommend protocols for consultants for
subject property’s material systems, components, or equipment
communicating observations, opinions, and recommendations
as observed during completion of the PCA. This definition
in a manner meaningful to the user.
specifically excludes deficiencies that may be remedied with
1.3 Considerations Beyond Scope—The use of this guide is
routine maintenance, miscellaneous minor repairs, normal
strictly limited to the scope set forth in this section. Section 11
operating maintenance, etc., and excludes de minimis condi-
and Appendix X1 of this guide identify, for informational
tions that generally do not present material physical deficien-
purposes, certain physical conditions that may exist on the
cies of the subject property.
subject property, and certain activities or procedures (not an all
1.1.2 Walk-Through Survey—Thisguideoutlinesprocedures
inclusive list) that are beyond the scope of this guide but may
for conducting a walk-through survey to identify the subject
warrant consideration by parties to a commercial real estate
property’s physical deficiencies, and recommends various
transaction to enhance the PCA.
systems, components, and equipment that should be observed
by the field observer and reported in the property condition
1.4 Organization of This Guide—This guide consists of
report (PCR).
several sections, an Annex and two (2) Appendixes. Section 1
1.1.3 Document Reviews and Interviews—The scope of this
is the Scope. Section 2 on Terminology contains definitions of
guide includes document reviews, research, and interviews to
terms both unique to this guide and not unique to this guide,
augment the walk-through survey so as to assist the consul-
and acronyms. Section 3 sets out the Significance and Use of
tant’s understanding of the subject property and identification
this guide, and Section 4 describes the User’s Responsibilities.
of physical deficiencies.
Sections 5 through 10 provide guidelines for the main body of
1.1.4 Property Condition Report—The work product result-
the PCR, including the scope of the Walk-Through Survey,
ing from completing a PCA in accordance with this guide is a
preparation of the Opinions of Costs to Remedy Physical
Property Condition Report (PCR). The PCR incorporates the
Deficiencies, and preparation of the PCR. Section 11 provides
information obtained during the Walk-Through Survey, the
additional information regarding out of scope considerations
Document Review and Interviews sections of this guide, and
(see 1.3). Annex A1 provides requirements relating to specific
asset types, and where applicable, such requirements are to be
considered as if integral to this guide. Appendix X1 provides
1
the user with additional PCA scope considerations, whereby a
ThisguideisunderthejurisdictionofASTMCommitteeE50onEnvironmental
Assessment, Risk Management and Corrective Action and is the direct responsibil-
...
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 − 08 E2018 − 15
Standard Guide for
Property Condition Assessments: Baseline Property
1
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 define good commercial and customary practice in the United States of America
for conducting a baseline property condition assessment (PCA) of the improvements located on a parcel of commercial real estate
by performing a walk-through survey and conducting research as outlined within this guide.
1.1.1 Physical Deficiencies—In defining good commercial and customary practice for conducting a baseline PCA, the goal is
to identify and communicate physical deficiencies to a user. The term physical deficiencies meansincludes the presence of
conspicuous defects orand material deferred maintenance of a subject property’s material systems, components, or equipment as
observed during the field observer’s walk-through survey. completion of the PCA. This definition specifically excludes deficiencies
that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes
de minimis conditions that generally do not present material physical deficiencies of the subject property.
1.1.2 Walk-Through Survey—This guide outlines procedures for conducting a walk-through survey to identify the subject
property’s physical deficiencies, and recommends various systems, components, and equipment that should be observed by the
field observer and reported in the property condition report (PCR).
1.1.3 Document Reviews and Interviews—The scope of this guide includes document reviews, research, and interviews to
augment the walk-through survey so as to assist the consultant’s understanding of 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 Probable Costs for suggested remedies of the physical
deficiencies identified.
1.2 Objectives—Objectives in the development of this guide are to: (1) define good commercial and customary practice for the
PCA of primary commercial real estate improvements; (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 baseline
standard of care for appropriate observations and research; and (6) recommend protocols for consultants for communicating
observations, opinions, and recommendations in a manner meaningful to the user.
1.3 Considerations Beyond Scope—The use of this guide is strictly limited to the scope set forth in this section. Section 11 and
Appendix X1 of this guide identify, for informational purposes, certain 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.
1.4 Organization of This Guide—This guide consists of several sections, an Annex and two (2) Appendixes. Section 1 is the
Scope. Section 2 on Terminology contains definitions of terms both unique to this guide and not unique to this guide, and
acronyms. Section 3 sets out the Significance and Use of this guide, and Section 4 describes the User’s Responsibilities. Sections
5 through 10 provide guidelines for the main body of the PCR, including the scope of the Walk-Through Survey, preparation of
the Opinions of Probable Costs to Remedy Physical Deficiencies, and preparation of the PCR. Section 11 provides additional
information regarding out of scope considerations (see 1.3). Annex A1 provides requirements relating to specific asset types, and
where applicable, such requirements are to be considered as if integral to this guide. Appendix X1 provides t
...
Questions, Comments and Discussion
Ask us and Technical Secretary will try to provide an answer. You can facilitate discussion about the standard in here.