What is a Commercial Building Survey?

A commercial building survey provides you with much more than merely a financial asset valuation. It also provides a deep insight into the current condition of a building, including information on building defects, materials, construction and if there are any hazardous materials present, such as asbestos. The survey may also suggest any necessary corrective work that would support any claim for a price re-negotiation.

Commercial buildings can be substantially different from residential properties when it comes to surveys. The structure of the building may have been built using reinforced concrete, cladding, and steel, which required a completely different approach to that used for a domestic building survey.

Here at VKB Consultancy, we are independent RICS Chartered Surveyors. We provide impartial assessments to protect the interests of our clients. VKB consultancy follows the published guidelines, including the RICS Guidance Note – Building Surveys and Technical Due Diligence Commercial Property (hyperlink) which allows us to deliver a survey that serves as a respected tool, helping clients manage their commercial property.

A building survey offers valuable and professional guidance on any issues that may cause disruption to your interest in selling leasing or buying a commercial property. We provide a high level of attention to detail, ensuring that we fully understand the construction of a building, the current condition of the building and how it will meet the requirements of the client.

When planning a Commercial Building Survey, the first thing would be to discuss and review your circumstances and requirements. This will ultimately establish the level of advice that is required and whether this is in the context of an existing ownership. It will also determine whether it is the purchase of both a freehold and a freehold with tenant in situ, whether it is a new lease or an assignment of a lease. It is also to understand your proposals for the property.

Before organising an inspection, we will also review whether there may be any access issues. If you were planning to extend or alter the property once the deal has already been processed, you may also want us to include preliminary advice or feasibility reports. The content and format of the report can then be tailored to your requirements and a quotation provided accordingly.

If you are the owner of a commercial property, or you’re looking to purchase one to then enter a lease, contact us today. We can provide advice and recommendations regarding the condition of a commercial building!

What is a Schedule of Condition?

A Schedule of Condition is a detailed, factual record of the condition of a property which is usually retained to use at a future time to establish the previous condition of the premises. The survey is typically included within a Lease to limit Tenant’s repairing obligations to the condition of the property at Lease commencement.

To fully record the condition of a building we undertake a Full Schedule of Condition. This would typically include a general description of a property, a detailed schedule which would document the form of construction and condition of each building element, supported by photographic and sometimes video records to give evidence. Specialist information can also be included in a schedule to fully record a buildings condition, for example a CCTV Survey of the underground drains, an electrical test report of the electrical system, an engineer’s report on the lifts etc.

When is a Schedule of Condition required?

For commercial property leases, a schedule of condition can be required when a new lease is entered into to confirm the condition of the property. This ensures that the condition recorded so that any existing defects are identified prior to a commitment to lease being made and can help with lease negotiation. It can also be used to establish responsibility for dilapidations and reinstatement, at the end of a lease.

A schedule of condition might also be prepared before construction work begins for adjacent properties or structures that will be retained, or if part of a building is being refurbished. This not only helps protect against potential claims from neighbours, who may only notice pre-existing defects in their property when the noise and vibration of construction begins but can also establish contractor liability for damage to the employer’s properties.

For both commercial and residential properties, a schedule of condition can be prepared where the Party Wall etc. Act 1996 applies. This is to provide evidence of the condition of the neighbouring building prior to works beginning. The party wall surveyors can then undertake a re-inspection of the building and determine whether any damage has occurred and what repairs should be carried out. 

What is the difference between a Schedule of Condition and a Condition Survey? 

There is often confusion between a Schedule of Condition and a Condition Survey. The main differences are that a Schedule of Condition is purely a record of the condition of the building to be appended to an Agreement whilst a Condition Survey (often also referred to a building survey, pre-acquisition or pre-lease commencement survey) is prepared to not only show the condition of the building but identify repair works required, usually with costs to assist in planning maintenance works which may be needed. VKB Building Consultancy can advise on the most appropriate type of survey that is required and complete the survey if necessary. Our surveys can be appropriately tailored to meet each individual clients specific requirements. 

Why instruct a surveyor?

It is often thought that by simply having some photographs on file these can be used to reduce a Tenant’s repairing liability under the term. If the photographs are not specifically referenced in the Lease and the Lease is held on standard full repairing terms, then it is unlikely they would limit a Tenant’s obligation and the Tenant could be liable for putting the property into repair, even if it was clearly in disrepair at the start of the Lease. This is why it is important to obtain specialist advice from a Chartered Building Surveyor. An incomplete, inadequate, or poorly drafted Schedule can often result in protracted negotiations, disputes and may result in negating the desired effect of undertaking a Schedule and fail to fulfil the intended purpose. Our knowledge will help reduce your liability and save you thousands of pounds at the end of the lease.