ASTM E2018-01
(Guide)Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process
Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process
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 means the presence of conspicuous defects or material deferred maintenance of a subject property's material systems, components, or equipment as observed during the field observer's walk-through survey. 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 material 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 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: (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 practical 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 and 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.
1.4 Organization of This Guide—This guide consists of several sections, an Annex and two 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 PCA, 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 prov...
General Information
Relations
Standards Content (Sample)
NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
Designation: E 2018 – 01
Standard Guide for
Property Condition Assessments: Baseline Property
1
Condition Assessment Process
This standard is issued under the fixed designation E 2018; 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 (e) indicates an editorial change since the last revision or reapproval.
1. Scope 1.2 Objectives—Objectivesinthedevelopmentofthisguide
are: (1) define good commercial and customary practice for the
1.1 Purpose—The purpose of this guide is to define good
PCA of primary commercial real estate improvements; (2)
commercial and customary practice in the United States of
facilitate consistent and pertinent content in PCRs; (3) develop
America for conducting a baseline property condition assess-
practicalandreasonablerecommendationsandexpectationsfor
ment (PCA) of the improvements located on a parcel of
site observations, document reviews and research associated
commercial real estate by performing a walk-through survey
with conducting PCAs and preparing PCRs; (4) establish
and conducting research as outlined within this guide.
reasonable expectations for PCRs; (5) assist in developing an
1.1.1 Physical Deficiencies—In defining good commercial
industry baseline standard of care for appropriate observations
and customary practice for conducting a baseline PCA, the
and research; and (6) recommend protocols for consultants for
goal is to identify and communicate physical deficiencies to a
communicating observations, opinions, and recommendations
user. The term physical deficiencies means the presence of
in a manner meaningful to the user.
conspicuous defects or material deferred maintenance of a
1.3 Considerations Beyond Scope—The use of this guide is
subject property’s material systems, components, or equipment
strictly limited to the scope set forth in this section. Section 11
as observed during the field observer’s walk-through survey.
and Appendix X1 of this guide identify, for informational
This definition specifically excludes deficiencies that may be
purposes, certain physical conditions that may exist on the
remedied with routine maintenance, miscellaneous minor re-
subject property, and certain activities or procedures (not an all
pairs, normal operating maintenance, etc., and excludes de
inclusive list) that are beyond the scope of this guide but may
minimis conditions that generally do not present material
warrant consideration by parties to a commercial real estate
physical deficiencies of the subject property.
transaction.
1.1.2 Walk-Through Survey—This guide outlines proce-
1.4 Organization of This Guide—This guide consists of
dures for conducting a walk-through survey to identify the
several sections, an Annex and two Appendixes. Section 1 is
subject property’s material physical deficiencies, and recom-
the Scope. Section 2 on Terminology contains definitions of
mends various systems, components, and equipment that
terms both unique to this guide and not unique to this guide,
should be observed by the field observer and reported in the
and acronyms. Section 3 sets out the Significance and Use of
property condition report (PCR).
this guide, and Section 4 describes the User’s Responsibilities.
1.1.3 Document Reviews and Interviews—The scope of this
Sections 5 through 10 provide guidelines for the main body of
guide includes document reviews, research, and interviews to
the PCA, including the scope of the Walk-Through Survey,
augment the walk-through survey so as to assist the consult-
preparation of the Opinions of Probable Costs to Remedy
ant’sunderstandingofthesubjectpropertyandidentificationof
Physical Deficiencies, and preparation of the PCR. Section 11
physical deficiencies.
provides additional information regarding out of scope consid-
1.1.4 Property Condition Report—The work product result-
erations (see 1.3).AnnexA1 provides requirements relating to
ing from completing a PCA in accordance with this guide is a
specific asset types, and where applicable, such requirements
PCR. The PCR incorporates the information obtained during
are to be considered as if integral to this guide. Appendix X1
the Walk-Through Survey, the Document Review and Inter-
provides the user with additional PCA scope considerations,
views sections of this guide, and includes opinions of probable
whereby a user may increase this guide’s baseline scope of due
costs for suggested remedies of the physical deficiencies
diligence to be exercised by the consultant. Appendix X2
identified.
outlines the ADAAccessibility Survey.
1.5 Multiple Buildings—Should the subject property consist
1
ThisguideisunderthejurisdictionofASTMCommitteeE50onEnvironmental
of multiple buildings, it is the intent
...
Questions, Comments and Discussion
Ask us and Technical Secretary will try to provide an answer. You can facilitate discussion about the standard in here.