A property condition assessments (also known as a PCA) is an evaluation of a commercial building’s major systems and components aimed at providing an owner, lessee, investor or lender an economic perspective of the properties overall physical condition, what immediate repairs should be made to the property and what systems will need to be replaced within the next ten years.
Property condition assessments (PCAs) are commercial inspections performed around guidelines established by Standard & Poors during the 1990’s which were intended to standardize the process and scope for commercial inspections. Over the years these standard operating procedures have formalized into a recognized standard known at ASTM E2018.
ASTM International is an international standards organization what develops and publishes technical standards for a wide range of materials, products, systems and services. The organization maintains over 12,000 technical standards and the specific standard established for property condition assessment is the E2018 thus the name ASTM E2018 Standard Guide for Property Condition Assessments.
The scope of a typical Property Condition Assessment includes the following major areas:
- Building Site
- Foundation and Structure
- Building Envelope
- Roof System
- Mechanical Systems (Including Heating, Ventilation, and Air Conditioning)
Once the inspection, or Property Condition Assessment (PCA), is completed the formal written report is known as Property Condition Report (PCR). The Property Condition Report will include a general description of the property, recommendations for repairs or further consideration, likely costs to remedy the repairs and costs of future capital repairs.