How much do you charge for a commercial inspection?

[Ben J. Gromicko]

How much do you charge for a commercial inspection?

I understand that it depends on many factors, but give us an idea of how you charge and how much you make?

Is it profitable to get into doing commercial inspections?

Thanks.

[Joe Funderburk, CMI]

Why don't you give us a commercial building scenario? If you don't provide that, it could be all over the board.

[Ben J. Gromicko]

Originally Posted by jfunderburk

Why don't you give us a commercial building scenario? If you don't provide that, it could be all over the board.

How about a 87,000 warehouse with an RTU and AHU on the roof. 3-phase, 300-amp panel. With a switch gear, multiple panels, multiple disconnects, and a back-up generator with an ATS. Office space. With a few offices. Fire alarms. Horn strobes. Sprinkler system in ceiling. 2x4 troufflers in office area. 6-8 offices. 2 sets of bathrooms. Two womens. Two mens. Both ADA. Parking lot with pole lights. Exterior lights on the building. Part of the area used to be a restaurant with hoods, ANSUL system, ventilation. Commercial stainless steel sinks in corner. Dishwasher unit.

[James A. Levy]

Originally Posted by bgromicko

How about a 87,000 warehouse with an RTU and AHU on the roof. 3-phase, 300-amp panel. With a switch gear, multiple panels, multiple disconnects, and a back-up generator with an ATS. Office space. With a few offices. Fire alarms. Horn strobes. Sprinkler system in ceiling. 2x4 troufflers in office area. 6-8 offices. 2 sets of bathrooms. Two womens. Two mens. Both ADA. Parking lot with pole lights. Exterior lights on the building. Part of the area used to be a restaurant with hoods, ANSUL system, ventilation. Commercial stainless steel sinks in corner. Dishwasher unit.

Open warehouse, or one with 85,000sf of pallets piled 12' high. The other question I would ask is how many loading docks with dock levelers? I did a 100,000sf warehouse/office combo that I didn't ask those questions. I'll never do that again.

[Harry E. McClard]

Commercial: Small stuff like 2 or 3 room office condo or such... usually price a little more than a "standard home" since they are usually a little more complicated. For large stuff, I never even give a "rough estimate" over the phone until a walk-through and sitting down face-to-face with client or rep, asking "now EXACTLY what is it you want me to do that's not in this list (and hand-over InterNACHI ComSOP)?". It's amazing how commercial clients' needs vary so widely.

I did a commercial course at Inspector Expo a couple years ago; "rule of thumb" for fee seemed to vary a lot but "rough norm" if I remember correctly was something around 1% of property value assuming you put the right amount of time into it with a client who doesn't have the time to be bothered and have to call-in specialist(s) for at least one system (imagine elevators for example... might need license just to inspect those). They (clients) seem to be perfectly happy to pay a real estate broker say 5% but you can get caught as the "technical agent" doing tons of leg work checking things like use permits and zoning and municipal codes and such... I think I know all the nooks and crannies in all the town halls around here by now... so 1% really isn't that unreasonable.

Anyhow... commercial can be profitable but it's not for the meek at heart... you are almost always working with a fixed contract and on big jobs, better have all the facts before agreeing to do anything; and, it's almost always competitive... most clients I've run across get 2 or 3 bids before deciding on inspector. And, there's "all that paperwork"... the biggies mostly require Acord insurance certs, paperwork, paperwork, and more paperwork.

I would recommend inspector without heavy facility management or engineering background start with smaller commercial and move to larger properties as they feel more comfortable. My last bid was for a shopping center, fee quoted was bigger than a breadbox (a really big breadbox), somebody else got the job, couldn't find out what they bid.

Anyhow... complicated subject.

[Peter C. Russell]

Rough guess would be .06 per square foot = $5220.00
Add for trade consultation $1500.00

Total $6720.0.00

Might be tough in this market though

[Keith Runquist, CMI]

My E&O only covers me to 50,000 SF. Where do you get E&O that covers more? I could not do that job.

[Vaughn Hill]

10 cent a sq ft

[Bobby G. Michael]

.10 a square foot.

[Scott K. Harris]

Based upon Ben's description and assuming the client wants everything, $12,500
and I'd be pretty confident about convincing them it's the deal of the century at that. Having said that, I'd spend 3 days on site, & up to 3 days for research and reporting. Might have an electrician come out and I'd do a IR scan of the roof. Nice job overall and not herd to get if you can get to the potential client and present it to them correctly. Having said all that, IF the client's on a budjet, I'd "eliminate" some aspects and scale it down to half that fee, get it done in possibly less time and still knock it out of the park. Gotta be adaptable.

[James A. Levy]

Originally Posted by bgromicko

How much do you charge for a commercial inspection?

I understand that it depends on many factors, but give us an idea of how you charge and how much you make?

Is it profitable to get into doing commercial inspections?

Thanks.

It is VERY profitable to do commercial. It is just hard to get clients to buy into them.

[Joe Farsetta]

Probably the most qualified/experienced inspector at NACHI to answer this is Dale Duffy.

But, to Ben's description, there are many variables:

For instance, one would need to have true knowledge of what was to be inspected electrically. A 3-phase 300 ampere service, with switchgear? I work in an industrial environment and am involved heavily in the electrical distribution aspects. So, I question Ben's description. As to the generator, one would need to know what is being backed up, as most generators are configured to support emergency lighting and life/safety circuits. So, siving needs to be considered. The rating of the generator would also need to be known and proposed loads. Response time is a critical aspect. Also, was it sized at one point for N+1, and outgrew it? What voltage does the generator produce. For that matter, what voltage enters the buildng: 4160V, 480V, 240V ??? Does the generator support the primary or secondary?

Too many variables...

[Ben J. Gromicko]

It's quite easy for home inspectors to give estimates via their website or over the phone.

It's apparently NOT as easy for commercial inspectors.

So, (again) can you provide us a way/method that you go through to provide estimates (bids) for commercial properties? Please don't say that there are "too many variables." Instead - just list the variables, and share with us how you make a bid/estimate for your client.

Here.... I'll help... What' the first thing you do when a client calls you about inspecting a commercial building? Go.

[Scott Gilligan, CMI]

On any large scale commercial inspection like the one described, I alway ask to do a walk through of the property with the client in order to see what is actually there and to define a scope of work right there on the spot. It is soooo much easier when you can walk through and point to something and ask do you want that inspected. I did one job before that I did not do a walk through on and got beat up on pricing because there was much more there than what was in the property description and what the client knew about. Never again! On smaller properties like store fronts of gas stations, it really isn't too big of a deal. Those you can pretty much get as much information you need over the phone or by doing a street view search on Google.

I also never give a quote for a commercial property when the client first calls. I tell them that I will have to research the property a little and get back to them. I also ask them if their lender will require any other inspections such as a Phase 1 ESA, WDI, or sewer lateral inspection. These add on services are becomeing very popular with commercial lenders for requirements for a loan. I have to know what kind of equipment is going to be needed and how much time to allow to get everything done.

[Ben J. Gromicko]

Originally Posted by sgilligan1

On any large scale commercial inspection like the one described, I alway ask to do a walk through of the property with the client in order to see what is actually there and to define a scope of work right there on the spot. It is soooo much easier when you can walk through and point to something and ask do you want that inspected. ....

Thanks, Scott.
You have an excellent website.
Do you hire "outside Consultants" to help you with your commercial property inspections? If yes, any example of when/why you needed to do that?