Due diligence in construction involves taking reasonable steps and exercising reasonable care, which can have a number of specific meanings. It may refer to the steps taken to thoroughly research a business or person before signing a contract, or to the process of examining a property to evaluate its suitability for a particular project. Due diligence may also be mentioned in the construction contract, placing an obligation on the contractor to complete the work with care and due responsibility. Due diligence is a crucial process that serves as an important step in assessing the condition and suitability of the structure, systems and functions of a property to assess its suitability for its intended use.
Technical due diligence involves a structured process that requires experience and a systematic approach, including inspection of the property, review of engineering drawings and design documents, assessment of equipment, systems and environmental conditions. Ultimately, due diligence provides a framework for construction projects that ensures they are completed on time, within budget and in compliance with safety regulations, while protecting the investment, maximizing operational efficiency and preserving long-term value.
Our key components of technical due diligence in construction include:
- Property condition: An assessment of the current condition of a property, including its structural integrity, building components, and overall condition.
- Site information: Important details such as location, contact details, access procedures, site logistics and security.
- Legal search: Reviewing all necessary legal documents, including deeds, property information, appraisals and surveys, and any associated restrictions.
- Surveys: Conducting site surveys, ranging from pollution to air quality and environmental studies, as well as building surveys assessing the structure and condition of the site.
- On-site services: assessment of electrical, gas, water, sewer and drainage system infrastructure, as well as telecommunications and wireless network capabilities.
- Planning: Consideration of any planning applications and approval, including conditions attached.
- Utilities and environmental conditions: Evaluating the long-term profitability and financial aspects of a property, focusing on physical characteristics, operational efficiency, and regulatory compliance.
- Code compliance: Compliance with local building codes.
- Equipment and systems: Evaluating the equipment and systems installed to determine whether they are compatible with intended operations and whether any upgrades or replacements are necessary.
- Risk assessment: Identifying potential risks and addressing them early to mitigate problems before they become major problems.
EK Innovative Engineering’s due diligence experts provide a range of services that help manage Clients’ risks. We provide independent, reliable and fact-based advice to help understand the challenges facing our Clients’ projects. Our service is completely Client-focused and is based on understanding and knowledge of the Clients’ environment.
We deliver:
- Audit of purchases and revision of unacceptable costs.
- Analysis of procurement processes and their compliance with contract terms.
- Compare actual costs to industry norms.
- Review and pain/gain management.
- In accordance with Client requirements, we review the full portfolio of projects.
- Feedback and updates. We keep our Clients informed at all stages. Our zero-surprises culture helps our Clients make early decisions with confidence. We also provide the report about our findings after completion.
- Mergers and acquisitions. Clients who select an acquisition target need to know much more than just what the company’s reports tell them. They need to know how reliable current revenue streams are and what liability potential is hidden in management reporting.
Ultimately, the role of EK Innovative Engineering is to help our Clients make the right business decisions. Our expertise and experience enable our Clients to make decisions as early as possible.
To find out more, please contact us at info@ek-innovative.com to receive information from experts competent in the respective field.