Commercial property Inspection VS PCA

Can anyone explain to me the difference between a Commercial Property Inspection and Property Condition Assessment?

You have to join and pay $399 to find out. ;):slight_smile:

Maybe you could start by its’ definitions and go from there;

Facility condition assessment (FCA) or **Property Condition Assessment (PCA) **is an industry term that describes the process of a qualified group of trained industry professionals performing an analysis of the condition of a facility or group of facilities that may vary in terms of age, design, construction methods, and materials.

**Commercial inspections **are completed for properties like apartment complexes, motels, office buildings, retail stores, and warehouses. The inspection evaluates the major systems of the property and the visible structural components; it also catalogs the type and condition of HVAC equipment.

Reference: en.wikipedia.org/wiki/Facility_condition_assessment
Commercial Property Inspections | AmeriSpec

Wither you analyze or inspect isn’t that the same difference?

Its always $399 to find out something! Thanks Marcel…

It really becomes part of the building culture. The CCPIA will have the task and the charter to build the awareness in the marketplace so that instead of a PCA there is a building inspection.

The PCA is driven from the ASTM world. This is the world of engineers and architects bringing in several sub contractors and the team creating the ASTM report. Given which standard they wish to use (ASTM E2018-01, ASTM 2018 - 05, ASTM 2018 - 15) provides the client with the level of review they are going to publish.

Prior to the creation of COM SOP the ASTM is all that was out there. I am not aware of any state regulating Commercial Building Inspections where there are at least 27 states with a Home Inspection regulation.

Here is my interpretation of the 2018 - 01 Guideline.

ASTM E 2018-01 Guidelines
Purpose: The ASTM E 2018 guideline defines good commercial and customary practice in the United States of America for conducting a baseline Property Condition Assessment (PCA) of the improvements located on a parcel of commercial real estate by performing a walk-through survey and conducting research as described by the following provisions.

Physical Deficiencies: The ASTM E 2018 guideline defines good commercial and customary practices for conducting a baseline PCA. The goal is to identify and communicate physical deficiencies to a user. The term physical deficiencies means the presence of conspicuous defects or material deferred maintenance of a subject property’s material systems, components, or equipment as observed during the field observer’s walk-through survey. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes de minimis conditions that generally do not present material physical deficiencies of the subject property.

Walk-Through Survey: The ASTM E 2018 guideline outlines procedures for conducting a walk-through survey to identify the subject property’s material physical deficiencies, and recommends various systems, components, and equipment that should be observed by the field observer and reported in the property condition report (PCR).
Document Reviews and Interviews: The ASTM E 2018 guideline includes procedures for document reviews, research, and interviews to augment the walk-through survey so as to assist the consultant’s understanding of the subject property and identification of physical deficiencies.

Property Condition Report: The work product resulting from completing a PCA in accordance with the ASTM E 2018 guidelines is a PCR. The PCR incorporates the information obtained during the Walk-Through Survey, the Document Review and Interviews, and includes opinions of probable costs for suggested remedies of the physical deficiencies identified.

Objectives: Objectives in the development of the ASTM E 2018 Standards are: (1) define good commercial and customary practice for the PCA of primary commercial real estate improvements; (2) facilitate consistent and pertinent content in PCRs; (3) develop practical and reasonable recommendations and expectations for site observations, document reviews and research associated with conducting PCAs and preparing PCRs; (4) establish reasonable expectations for PCRs; (5) assist in developing an industry baseline standard of care for appropriate observations and research; and (6) recommend protocols for consultants for communicating observations, opinions, and recommendations in a manner meaningful to the user.

Multiple Buildings: Should the subject property consist of multiple buildings, it is the intent that only a single PCR be produced by the consultant to report on all of the buildings on the subject property.

Hopefully the building of this new Association will bring the awareness in the marketplace that there are other experts beyond engineers who are capable of performing commercial building inspections.

I’ve found that clients who request a PCA are expecting it to include financial info, costs of repairs, and financial reserves needed over the next few years. ASTM standards may or may not require these financials, depending on which standard is chosen. But some clients expect those financials.

On the other hand, InterNACHI’s commercial standards of practice don’t include a requirement for financials (see paragraph 7.12). So I think it’s prudent to mention to your clients if you will or won’t be including cost estimates, reserves, etc.

PCA is more closely identified with ASTM standards and Commercial inspection is more closely identified with InterNACHI.

Strictly speaking, a “property condition assessment” is about the condition of the property, the term implies nothing about costs for repairs. A “commercial inspection” implies no such limitation.

Both are really just terms, but the terms that are most important are the details you work out with the client, which will vary, depending on what they need, or what services you supply.

The Texas Real Estate Commission regulates commercial inspections here in Texas. The TREC promulgated 1-4 residential inspection form is not required to be used for commercial properties and TREC does not have a commercial SOP so either COMSOP or ASTM 2018 can be used.

Here is an applicable FAQ from the TREC website:

ASTM’s 40 year old SOP is copyrighted and ASTM brutally enforces it. You can’t even show your client a copy.