Saturday, October 3, 2009

AFFORDABLE HOMES & OFFICES:WHAT TO WATCHOUT FOR




CONDITION SURVEY & MODIFICATION OF EXISTING STRUCTURE
In the major cities of the world especially US, UK and ASIAN there is a triving on-going trend of wealth creation from residential, commercial and industrial developments for property owners and estate managers. New developers must therefore, be ready for a keen competition to acquire, lease or rent such properties from the above owners who have discovered that such are of high commercial value.

In view of the high cost of such properties, a prospective buyer or developer needs to know which property is worth his investment after taking into consideration the present and future intended use. It is not enough to consider only a good location and aesthetics of the property.

Over the years, it has been discovered that the available basic infrastructure (mechanical & electrical systems) may not support the intended commercial development. The cost of modification may be above the client’s budget and hence such property is declared unsuitable for investment/ modification.

Seeking advice from the right sources when buying, leasing or renting a property will invariably increase the bargaining power of the prospective buyers or tenant. It will also ensure optimum use of the available resources for investment by such investor.

To ensure an optimum use of the available resources, a condition survey of the electrical and mechanical services installations among others, should be carried out:

Ø All the existing drawings and approvals such as the approved survey plan, architectural drawings, civil/structural drawings, electrical and mechanical services drawings of the property must be inspected to confirm if they comply to engineering standards.

Ø The incoming cable should be checked for quality and reliability. In view of the anticipated load, it should be confirmed if the present cable size will require an upgrade.

Surveyed building before renovation

Ø The state of the switchgears, electrical panel (LVs and HTs), transformers and other supply equipments, distribution boards and cables should be checked for quality and reliability. Due to lack of maintenance culture in our society, most of such basic infrastructural provisions may be in deplorable condition and may not support new developments.

Ø The condition of the various fittings; lighting, fire alarm system, security system (CCTV), socket outlets should be checked. Poorly maintained lighting fittings are always full of dust or permanently corroded while the sockets and switches may not be working. The illuminance of specific areas should also be checked for adequacy.

Ø For an IT or a Telecommunication company, one of the basic facility to carefully consider is the availability of a properly installed and working lightning protection system. This is mainly because of the roof-based installations like the base stations communication antennae mast. In a situation where the intention is to occupy a floor or some floors of a multi-storey building (above 10 floors), it may not be a good investment to discover later that the available lightning protection system has failed for variety of reasons e.g. aging, inferior materials. These are part of the requirement for electronic equipment protection.

Ø For the generality of private individuals and organizations, the availability of power supply is vital. Such need to know that the basic infrastructure can support their level of power demand and if not that the cost of upgrade will not be unrealistically high and out of budget. Such developer need to discuss their project intention with the power supply provider as part of their due diligence process.

Ø The availability of spares for all installed equipment may be confirmed to reduce downtime period when there is a breakdown.

Ø The operation and maintenance history can be requested for to confirm the level of commitment to proper maintenance of the facility.

Ø The ventilation and air conditioning system should be checked.

Ø For central chilled water system, the pumps and chilled water pipes should be checked to determine the corrosion state. The fins on the condenser for the water chiller should be checked for corrosion. High level of corrosion will reduce the performance of the system.

Ø All chilled water system accessories such as pressure gauge and thermometer should be checked to be functioning.

Ø The state of the air handling units should be checked to ensure adequate air flow. All insulations should be checked.


Ø Noise level of all moving equipment should be checked to conform to the standard. Any variation shows that the equipment is faulty.

Ø The duct layout and various accessories, dampers etc should be checked for leakages and functionality.

Ø The availability of adequate potable water and a good waste management system should be inspected. The state of the various pipes for the services should be checked.

Ø The drainage system within and outside the building should be inspected for functionality.

Ø The proximity of the building to the Public Fire Fighting Services could be checked and their capabilities to combat fire outbreak could also be verified.

Ø Compliance to safety standards needs to be confirmed for all installations as required by manufacturers and various other respective standard organizations.

A good relationship should be established with the maintenance crew on the property before the survey. This will immeasurably aid the conduction of the exercise.

The purpose of the information given above is to create awareness of the need for proper and thorough inspection and appraisal of properties before the decision for acquisition is finally made. The information will assist identifying a number of common defective conditions. The challenges of modification can be a major setback when not properly anticipated and budgeted for.

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