TECHNICAL DUE DILIGENCE (TDD, VDD, EDD)
Technical Due Diligence (TDD) is the research, analysis and discovery process in which an aspiring buyer, user or financier of a building collects information about a building's physical properties. The same process for a person selling a building is called a Vendor Due Diligence (VDD). A TDD is based on visual and audio-visual observations and document assessment. An Environmental Due Diligence (EDD) can be part of a TDD or VDD.
Most buildings have defects or deficiencies that can affect their performance in the short, medium or long term. A due diligence study provides insight into the need for repairs of defects resulting from insufficiently planned preventive maintenance, neglect, misuse, insufficient capacity or non-compliance with the regulations.
TECHNICAL DUE DILIGENCE
In a TDD study, Bureau Veritas assesses the components of the building structure, such as floors, interior walls, exterior walls, roofs, windows and doors, and the installation work, such as electricity, heating, ventilation, air conditioning, cooling, fire prevention and burglary prevention. The study consists exclusively of a visual inspection, and the result is a report with the established deviations and problems, accompanied by images to support the findings.
We also carry out a comprehensive review of documents, such as logs, certificates, permits, maintenance documents, the legionella management plan, inspection reports and local government requirements. We interview the building manager or the facility manager or their delegates. And if there are known problems or defects in the building, we map them out.
If required, we assess all relevant aspects identified by the Royal Institution of Chartered Surveyors (RICS) as best practice for due diligence inspections for commercial, industrial and residential buildings in continental Europe.
With a TDD, you gain knowledge about the technical condition and design of a building through a thorough assessment of all existing building documents and an identification of defects, poor performance and possibilities for improvement. We also pay attention to the following aspects:
- suitability of the building for the intended use
- any negative effects of the location or environment on the building
- any legal consequences of defects, such as failure to comply with legal standards
- effects of additions to the building by users on the current or future use of the building
- agreement between the characteristics and principles of the building and the use
- need for and calculation of future costs and other liabilities
The results of a TDD, VDD or EDD provide you with a solid basis for price negotiations or risk sharing.
BUREAU VERITAS ASSET MANAGEMENT
Bureau Veritas Asset Management has a lot of experience in conducting due diligence research in the Netherlands as well as internationally. We have representatives worldwide in more than 144 countries ready to help you. We can use a broad service for our due diligence investigations to ensure they meet your requirements specifically, ranging from quick scans to a study on full details.
For additional information about asset management services and possibilities, please call us on +31 88 450 55 00.